P N Gadgil Jewellers Limited is launching an IPO with a total issue size of ₹1,100 crores. This book-built issue includes a fresh issue of 1.77 crore shares, amounting to ₹850 crores, and an offer for sale of 0.52 crore shares, totalling ₹250 crores.
The IPO opens for subscription on September 10, 2024, and closes on September 12, 2024. The allotment is expected to be finalised on September 13, 2024, with the shares tentatively listed on the BSE and NSE on September 17, 2024. The price band is set between ₹456 to ₹480 per share.
Retail investors can apply with a minimum lot size of 31 shares, requiring an investment of ₹14,880. For sNII, the minimum investment is ₹208,320 for 14 lots (434 shares), while bNII requires an investment of ₹1,011,840 for 68 lots (2,108 shares).
Industry Outlook:
- China and India together account for over 50% of global gold demand, with China also emerging as the world’s largest gold producer.
- The Indian jewellery market is projected to grow from USD 70 billion in FY 2023 to USD 145 billion by FY 2028, driven by rising consumer demand.
P N Gadgil Jewellers Limited IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding expenditure towards setting-up of 12 new stores in Maharashtra (“New Stores”);
- Repayment or pre-payment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes
About P N Gadgil Jewellers Limited
P N Gadgil Jewellers Limited, established in 2013, offers an extensive range of precious metal and jewellery products, including gold, silver, platinum, and diamond jewellery under its "PNG" brand.
As of December 31, 2023, the company boasts eight sub-brands for gold jewellery, including Saptam, Swarajya, and Rings of Love, two sub-brands for diamond jewellery, Eiina and PNG Solitaire, and two sub-brands for platinum jewellery, Men of Platinum and Evergreen Love. The company also provides made-to-measure jewellery services.
P N Gadgil Jewellers has expanded to 33 stores, with 32 across 18 cities in Maharashtra and Goa, and one in the US, covering approximately 95,885 sq. ft. of retail space. The stores include 23 company-owned and 10 franchise-operated under the FOCO model, categorised into large, medium, and small formats. As of September 30, 2023, the company employed 1,152 people.
Peer Details
The companies considered by P N Gadgil Jewellers as its peers include:
- Kalyan Jewellers India Limited
- Senco Gold Limited
- Thangamayil Jewellery Limited
How to Check the Allotment Status of the P N Gadgil Jewellers Limited IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of P N Gadgil Jewellers Limited IPO
- Registered office: 694, NarayanPeth, Pune, Maharashtra, India–411 030
- Phone: +91 2024478474
- E-mail:secretarial@pngadgil.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operations (in ₹ million) | 61,109.45 | 45,075.19 |
| Profit After Tax (PAT) (in ₹ million) | 1,543.43 | 937.01 |
| Current Ratio (x) | 1.55 | 1.50 |
| Net Worth (in ₹ million) | 5,343.77 | 3,657.34 |
| Total Borrowings (in ₹ million) | 3,964.96 | 2,832.10 |
| Return on Equity (%) | 28.88% | 25.09% |
| Return on Capital Employed (RoCE) (%) | 27.31% | 23.29% |
| Earnings Per Share (in ₹) | 21.59 | 16.97 |
Know before investing
Strengths
6Trusted legacy brand in Maharashtra with 39 stores by 2024.
Highest revenue per square foot among key jewellery players (2024).
FOCO (Franchise Owned Company Operated) model ensures consistent quality and service across 11 stores.
Strong customer loyalty programs with ₹2,180.54 million in deposits.
Significant digital presence with a new app launched in 2022.
Second-largest organised retail jewellery player in Maharashtra.
Risks
6Brand reputation crucial; any damage impacts operations and financials.
Maharashtra-focused, with 88% of revenue dependent on the top 5 stores.
Volatile gold prices directly affect inventory value and profitability.
Significant reliance on third-party artisans, exposing operational risks.
High working capital needs with ₹3,489.66 million outstanding borrowings.
Seasonal fluctuations in sales can strain resources and cash flows.
