P N Gadgil Jewellers Limited, one of Maharashtra’s largest organized jewellery players, has launched an Initial Public Offering (IPO) amounting to ₹1,100.00 crores. This book-built issue consists of a fresh issue worth ₹850.00 crores and an offer for sale (OFS) of ₹250.00 crores, aimed at enabling early investors to sell their shares. The IPO subscription opens on September 10, 2024, and closes on September 12, 2024, with allotment expected to finalize on September 13, 2024. The tentative listing date is September 18, 2024, on both the BSE and NSE.

Investors can purchase shares priced between ₹456 and ₹480 per equity share. The minimum lot size is 31 shares, translating into a minimum investment of ₹14,880 for retail investors. High-Net-Worth Individuals (HNIs) must purchase a minimum of 14 lots, amounting to an investment of ₹208,320.

Book-running lead managers include Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited, and BOB Capital Markets Limited, while Bigshare Services Private Limited serves as the registrar.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for P N Gadgil Jewellers IPO is projected between ₹240 and ₹250, suggesting a potential listing gain of 50%-55%. However, it is important to note that GMP is speculative and cannot guarantee real price discovery until shares are listed on the exchange.

As of 12:30 PM on September 10, 2024, the live subscription status indicates that the IPO is subscribed 0.72 times on its first day. Retail investors can check real-time subscription updates on the BSE website.

Allotment Status and Listing Details

The allotment of shares will be finalized on September 13, 2024. Investors can check the P N Gadgil Jewellers IPO allotment status by visiting the registrar's website and entering their application number, PAN, or DP Client ID.

Objectives of P N Gadgil Jewellers IPO

The company intends to utilize the fresh issue proceeds for the following purposes:

₹3,925.68 million for funding the setup of 12 new stores across Maharashtra.

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

Remaining funds for general corporate purposes.

P N Gadgil Jewellers Financial Performance

Founded by Saurabh Vidyadhar Gadgil, P N Gadgil Jewellers is known for its extensive experience in the jewellery industry and its ability to cater to the diverse tastes of Indian consumers. The company has exhibited rapid growth over the last few fiscal years.

Revenue increased from ₹25,863.05 million in FY22 to ₹61,191.04 million in FY24.

EBITDA rose from ₹1,419.83 million in FY22 to ₹2,774.26 million in FY24.

PAT jumped from ₹695.15 million in FY22 to ₹1,543.43 million in FY24.

With a pre-issue EPS of ₹13.08 and a post-issue EPS of ₹11.37, the company’s P/E ratio is 42.21x, lower than the industry average of 63.31x, suggesting the IPO is reasonably priced.

Key Metrics and IPO Review

P N Gadgil Jewellers has a Return on Capital Employed (ROCE) of 27.31% and a Return on Equity (ROE) of 28.88% for FY24, positioning it as a solid investment opportunity in the jewellery sector. With its second-largest footprint in Maharashtra and rapid revenue growth, the IPO has gained the attention of investors seeking both listing gains and long-term value.

Given the company's robust financial performance, the Grey Market Premium (GMP), and strong market positioning, we recommend investors to apply for the P N Gadgil Jewellers IPO, either for short-term listing gains or long-term investment.

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