P N Gadgil Jewellers Limited, a leading name in the Indian jewellery market, has made a notable debut on the BSE and NSE platforms. The company’s IPO listed at ₹768 per share, marking a significant 60% premium over the issue price of ₹480 per share. This robust performance highlights the strong investor confidence in the brand, despite the competitive landscape of the jewellery sector.

About P N Gadgil Jewellers Limited

P N Gadgil Jewellers stands as the second-largest organized jewellery player in Maharashtra, boasting a substantial number of stores as of January 2024. Maharashtra is the leading market for BIS-registered jewellery outlets in India. Notably, the brand has emerged as the fastest-growing jewellery chain among key organized players in India, based on its revenue growth from Fiscal 2022 to Fiscal 2024.

Founded with a vision to cater to diverse consumer preferences, P N Gadgil Jewellers has leveraged its extensive experience to offer a broad portfolio of designs. Promoter Saurabh Vidyadhar Gadgil’s expertise in the jewellery sector enables the company to tailor its offerings to meet aesthetic and functional requirements effectively.

IPO Details

The P N Gadgil Jewellers IPO was a book-built issue totaling ₹1,100 crore, consisting of a fresh issue of 17.70 lakh shares worth ₹850 crore and an offer for sale of 5.20 lakh shares totaling ₹250 crore. The subscription period ran from September 10, 2024, to September 12, 2024, with shares priced between ₹456 to ₹480 per share. Investors were required to bid in lots of 31 shares, with a minimum investment of ₹14,880 for retail investors and ₹208,320 for high-net-worth individuals (HNIs) bidding for 14 lots.

The IPO was managed by Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited, and BOB Capital Markets Limited, with Bigshare Services Private Limited serving as the registrar.

P N Gadgil Jewellers IPO Grey Market Premium (GMP)

Before listing, the Grey Market Premium (GMP) for P N Gadgil Jewellers was estimated to be between ₹290 to ₹310, indicating potential listing gains. The actual listing at ₹768 exceeded these expectations, reflecting strong market demand and investor interest.

P N Gadgil Jewellers IPO Live Subscription Status

As of 4:00 PM on September 12, 2024, the P N Gadgil Jewellers IPO was subscribed 59.15 times, highlighting overwhelming interest from investors. This high level of subscription underscores the market's confidence in the company's growth prospects.

IPO Anchor Investors Report

P N Gadgil Jewellers successfully raised ₹333 crore from anchor investors at the upper price band of ₹480 per share. Top anchor investors included prominent names such as HDFC Trustee Capital, Nippon Life India Trustee, and Axis Mutual Fund Trustee, among others. The allocation of 68,74,999 equity shares to anchor investors reflects strong institutional support.

P N Gadgil Jewellers IPO Allotment Date

The allotment date for the P N Gadgil Jewellers IPO is September 13, 2024. Investors can check their allotment status on the registrar’s website by:

Visiting the IPO allotment status page.

Selecting P N Gadgil Jewellers Limited IPO from the dropdown menu.

Entering their application number, PAN, or DP Client ID.

Submitting the details to view their allotment status.

Objectives of the IPO

The proceeds from the P N Gadgil Jewellers IPO will be used for the following purposes:

₹3,925.68 million for setting up 12 new stores in Maharashtra.

₹3,000.00 million for repayment or pre-payment of existing borrowings.

For general corporate purposes.

P N Gadgil Jewellers IPO Review

P N Gadgil Jewellers has demonstrated impressive financial growth. The company's revenue increased from ₹25,863.05 million in FY22 to ₹45,593.12 million in FY23, and further to ₹61,191.04 million in FY24. Similarly, EBITDA grew from ₹1,419.83 million in FY22 to ₹2,774.26 million in FY24, and PAT increased from ₹695.15 million in FY22 to ₹1,543.43 million in FY24.

The IPO is priced at a pre-issue EPS of ₹13.08 and a post-issue EPS of ₹11.37, with a pre-issue P/E ratio of 36.69x and a post-issue P/E ratio of 42.21x, compared to the industry average of 63.31x. The company's Return on Capital Employed (ROCE) for FY24 is 27.31%, and Return on Equity (ROE) is 28.88%. These metrics suggest that the IPO is fairly priced and offers potential for both short-term gains and long-term investment.

Recommendation: Given the company's strong financial performance and substantial IPO subscription, it is advisable for investors to apply for the P N Gadgil Jewellers IPO for potential listing gains and long-term investment.

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