PN Gadgil Jewellers Limited is set to make its stock market debut on Tuesday, September 17, 2024, after an overwhelmingly successful subscription period. The company's shares are currently trading with a Grey Market Premium (GMP) of nearly 63% above the issue price, a day before listing. This has raised expectations for a strong debut, with analysts predicting robust listing gains for investors.

Prashanth Tapse, Senior VP Research Analyst at Mehta Equities, commented on the upcoming listing, stating, “Considering its strong brand loyalty and solid positioning in Maharashtra, PN Gadgil is poised to deliver impressive growth in the future.” Tapse anticipates a listing gain exceeding 50% of the issue price, based on the current market trends and investor sentiment.

PN Gadgil Jewellers IPO Details:

The ₹1,100 crore IPO consisted of a fresh issue of ₹850 crore and an offer for sale (OFS) worth ₹250 crore. The price band was set at ₹456 to ₹480 per equity share. Retail investors were required to bid for a minimum lot size of 31 shares, while High-Net-Worth Individuals (HNIs) had a minimum requirement of 434 shares, amounting to ₹208,320.

IPO Subscription Status As of September 12, 2024, the IPO received overwhelming demand, with a subscription of 59.15 times. This high subscription rate indicates the strong confidence of institutional and retail investors in PN Gadgil Jewellers' growth potential.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for PN Gadgil Jewellers IPO is currently hovering between ₹290 to ₹310 per share, reflecting significant investor optimism. Though GMP does not guarantee listing performance, it does give an indication of how the shares might perform once they are listed on the stock exchanges.

Anchor Investors

PN Gadgil Jewellers successfully raised ₹333 crore from anchor investors before the IPO opened for public subscription. Some of the top names participating in the anchor allotment include HDFC Trustee Capital, Nippon Life India Trustee, and Axis Mutual Fund. The allocation was made at the upper price band of ₹480 per share, reflecting the high demand for the stock even before its public offering.

Financial Performance

PN Gadgil Jewellers has displayed impressive financial growth over the past few fiscal years. The company’s revenue surged from ₹25,863.05 million in FY22 to ₹61,191.04 million in FY24. EBITDA also saw substantial growth, reaching ₹2,774.26 million in FY24 from ₹1,419.83 million in FY22. With a Return on Capital Employed (ROCE) of 27.31% and a Return on Equity (ROE) of 28.88% in FY24, PN Gadgil Jewellers has demonstrated consistent performance.

Valuation Metrics:

Pre-issue EPS: ₹13.08

Post-issue EPS: ₹11.37

Pre-issue P/E ratio: 36.69x

Post-issue P/E ratio: 42.21x

Given the industry P/E ratio of 63.31x, the IPO seems fairly priced, offering good potential for both listing gains and long-term value creation.

Objectives of the IPO:

The proceeds from the fresh issue will be used for the following objectives:

Expansion Plans: ₹3,925.68 million will be used to fund the setup of 12 new stores in Maharashtra.

Debt Repayment: ₹3,000 million will be allocated for the repayment or pre-payment of certain borrowings.

General Corporate Purposes: Remaining funds will be utilized for corporate expansion and operational activities.

Listing Day Expectations

With a Grey Market Premium of nearly 63%, PN Gadgil Jewellers is expected to deliver strong listing gains. Given its robust brand presence in Maharashtra, which accounts for a significant share of BIS-registered jewellery outlets in India, and its consistent revenue growth, analysts expect a healthy debut. The listing gains could be above 50%, according to market experts.

Investors who participated in the IPO have high expectations due to PN Gadgil’s solid financials and the strong demand it generated during the subscription phase. As the second-largest organised jewellery player in Maharashtra, the company is poised for further growth, making this IPO a potential winner for both short-term gains and long-term investments.

How to Check Allotment Status

Investors can check the status of their IPO allotment on the registrar’s website by following these steps:

Navigate to the IPO allotment status page.

Select PN Gadgil Jewellers Limited IPO from the dropdown.

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

Submit the details to view your allotment status.

Conclusion

PN Gadgil Jewellers’ IPO has captured the attention of both retail and institutional investors due to its strong brand presence, impressive financials, and strategic growth plans. With a potential listing gain of over 50%, this IPO promises to be one of the top performers of the year.

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.