P N Gadgil Jewellers, one of the most prominent organised jewellery brands in Maharashtra, has launched its IPO with a total issue size of ₹1,100 Crores. This includes a fresh issue of 17.70 lakh shares worth ₹850 Crores and an offer for sale (OFS) of 5.20 lakh shares amounting to ₹250 Crores. As of January 2024, P N Gadgil is the second-largest jewellery player in Maharashtra, the largest market for BIS-registered outlets in India, and is rapidly expanding.

The subscription period for the P N Gadgil Jewellers IPO runs from September 10, 2024, to September 12, 2024, with the shares expected to be listed on the BSE and NSE on or about September 18, 2024. Retail investors must apply for a minimum lot of 31 shares, which amounts to an investment of ₹14,880, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹208,320 for 14 lots (434 shares). The IPO price range is set between ₹456 to ₹480 per equity share, and the Grey Market Premium (GMP) currently hovers between ₹240 and ₹250.

For those looking for detailed IPO reviews, check out our list of the Best IPO to Apply Now, where we explore various options for retail and institutional investors.

Financial Performance and Growth:

The company has shown tremendous growth in recent years. Between Fiscal 2022 and Fiscal 2024, P N Gadgil Jewellers achieved significant revenue increases, from ₹25,863.05 million in FY22 to ₹61,191.04 million in FY24. This represents a steady upward trajectory, demonstrating a 46.6% compounded annual growth rate (CAGR) in revenue. EBITDA has also risen from ₹1,419.83 million in FY22 to ₹2,774.26 million in FY24, with PAT growing from ₹695.15 million in FY22 to ₹1,543.43 million in FY24. These numbers highlight the company's financial stability and the strong operational efficiency it has achieved in the past few years.

Investors are particularly drawn to P N Gadgil's robust Return on Capital Employed (ROCE) of 27.31% and Return on Equity (ROE) of 28.88% in FY24. These key metrics underscore the company’s efficient capital allocation and profitable growth. The pre-issue P/E ratio stands at 36.69x, while the post-issue P/E ratio is 42.21x, which remains lower than the industry average P/E of 63.31x, making this IPO an attractive investment for those seeking long-term growth.

For further business insights and updates, be sure to visit our Top News Headlines section, where we bring the latest news on share market trends, IPOs, and other business highlights.

IPO Subscription and Allotment Status:

As of September 10, 2024, P N Gadgil Jewellers IPO saw a subscription rate of 2.01 times on its opening day. Investors can check their IPO allotment status starting from September 13, 2024. To check the status:

Go to the IPO allotment page.

Select P N Gadgil Jewellers Limited IPO from the list.

Enter your application number, PAN, or DP Client ID.

Submit the details to verify your allotment.

For more real-time updates on subscription and allotment, stay tuned to our platform.

Grey Market Premium and Listing Gains:

The Grey Market Premium (GMP) is currently reflecting a price in the range of ₹240 to ₹250, which suggests a potential 50%-55% gain upon listing. However, investors should keep in mind that GMP does not always guarantee the final listing price, as it is dependent on unorganized market sentiment. Still, it provides a strong indication of positive investor demand.

IPO Objective:

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

₹3,925.68 million will fund the opening of 12 new stores in Maharashtra, further expanding the brand’s footprint.

₹3,000 million will be allocated towards repaying or pre-paying certain borrowings, enhancing the company’s financial flexibility.

The remainder will be used for general corporate purposes, aimed at improving operational efficiency and furthering business growth.

Conclusion:

With P N Gadgil Jewellers' strong financial performance and significant revenue growth over the last three fiscal years, this IPO offers great potential for listing gains and long-term returns. Given the Grey Market Premium and the robust industry growth, investors are recommended to apply for listing gains or long-term wealth creation.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.