P N Gadgil Jewellers Limited IPO Sees 6.97x Subscription on Day 2

P N Gadgil Jewellers Limited’s IPO, which opened for subscription on September 10, 2024, will close on September 12, 2024. The IPO is a book-built issue worth ₹1,100.00 crore, consisting of a fresh issue of 17,708,334 shares totalling ₹850.00 crore and an offer for sale of 5,208,333 shares of ₹10, totalling ₹250.00 crore.

P N Gadgil Jewellers IPO price band is fixed at ₹456 to ₹480 per share. The minimum lot size for an application is 31 shares, and the minimum amount of investment required by retail investors is ₹14,880. 

Motilal Oswal Investment Advisors Limited, BOB Capital Markets Limited, and Nuvama Wealth Management Limited are the book-running lead managers for the issue, with Bigshare Services Private Limited serving as the registrar.

The company stated that it would use the net proceeds towards the following objects:

• To fund expenditure towards setting up 12 new stores in Maharashtra
• To repay or prepay, in full or part, certain borrowings availed by the company
• For general corporate purposes.

Day Wise Subscription

• Day 1: On September 10, 2024, the IPO was subscribed to 2.06x. QIBs subscribed 0.01x, NIIs subscribed 3.29x, and retail investors subscribed 2.71x.
• Day 2: On September 11, 2024, P N Gadgil Jewellers IPO was subscribed 6.97x. QIBs subscribed 0.10x, NIIs subscribed 16.00x, and retail investors subscribed 7.02x.

Grey Market Premium

As of September 11, 2024, at 2:26 PM, P N Gadgil Jewellers’ IPO last GMP was ₹258. With a price band of ₹480, the estimated listing price is ₹738 (cap price + today’s GMP). This suggests an expected gain of 53.75% per share.

About P N Gadgil Jewellers Limited

P N Gadgil Jewellers Limited, established in 2013, offers a diverse range of precious metal and jewellery products, including gold, silver, platinum, and diamond jewellery under the PNG brand. As of July 31, 2024, the company operates 39 stores, with 38 located across 21 cities in Maharashtra and Goa, and one in the U.S. The stores are managed under a franchisee-owned and company-operated (FOCO) model, with 28 stores owned by the company and 11 operated as franchises. Between FY 2021 and FY 2023, the company achieved a notable 39.78% growth in EBITDA.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.