The Initial Public Offering (IPO) of PN Gadgil Jewellers continues to generate strong interest from investors, with the issue receiving an overwhelming subscription on Day 2. As of now, the IPO has been subscribed 3.6 times, reflecting robust demand across investor categories. In this article, we will cover the key aspects of the IPO, including subscription details, company financials, and steps to check the allotment status once the issue closes.
PN Gadgil Jewellers IPO Subscription Overview
On the second day of bidding, the IPO saw a massive demand, with 6.03 crore shares bid against 1.68 crore shares available for subscription. This indicates a high level of investor confidence in the company’s growth potential and market presence.
Here’s a breakdown of the subscription rates for different investor categories:
- Retail Investors: The retail portion was subscribed 4.22 times. Retail investors have shown considerable interest, reflecting their trust in the company’s brand and future potential.
- Non-Institutional Investors (NIIs): The NII quota has seen the highest demand, with a subscription rate of 6.80 times. This underscores the strong appetite for the stock among high-net-worth individuals (HNIs) and other non-institutional investors.
- Qualified Institutional Buyers (QIBs): The QIB portion has so far been subscribed 3%. The QIB category typically includes large institutional investors such as mutual funds, pension funds, and insurance companies.
PN Gadgil Jewellers IPO Pricing and Anchor Investor Participation
The company has set a price band of ₹456-₹480 per share, with investors required to bid for a minimum lot size of 31 shares. The upper price band indicates strong confidence in the company’s valuation, which is reinforced by the high subscription levels.
Before the IPO opened for public subscription, PN Gadgil Jewellers raised ₹330 crore from anchor investors. A total of 68.74 lakh shares were allocated to 25 anchor investors, including HDFC Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund, and LIC Mutual Fund. The shares were allotted at ₹480 per share, the upper end of the price band.
Grey Market Premium (GMP) and IPO Listing Expectations
As of now, the Grey Market Premium (GMP) for PN Gadgil Jewellers IPO has risen to ₹258, compared to ₹230 earlier. This 54% premium indicates strong market expectations and a potential positive listing for the company on the stock exchanges.
IPO Size and Offer for Sale (OFS)
The total IPO size is pegged at ₹1,100 crore, comprising a fresh issue of ₹850 crore and an Offer for Sale (OFS) worth ₹250 crore. Under the OFS, SVG Business Trust, a promoter entity, will be offloading part of its equity stake in the company.
The fresh issue will help the company expand its footprint in Maharashtra and beyond, with plans to set up more stores and strengthen its retail network across India and internationally.
PN Gadgil Jewellers Financial Performance
PN Gadgil Jewellers is a well-established brand, particularly in Maharashtra, where it is the second-largest organized jewellery retailer by store count as of January 2024. The company has demonstrated remarkable financial growth in recent years.
Key financial highlights include:
- Revenue Growth: The company achieved a 76% year-on-year revenue increase in FY23, reaching ₹4,507 crore.
- Profit After Tax (PAT): In the same period, PAT grew by 35%, amounting to ₹94 crore.
- EBITDA Growth: Between FY21 and FY23, PN Gadgil Jewellers recorded an EBITDA growth of 56.5%.
- FY24 Financials: For the fiscal year ending March 2024, the company’s revenue increased to ₹6,110 crore, with PAT reaching ₹154 crore.
Store Expansion and Online Presence
PN Gadgil Jewellers operates 33 stores across 18 cities in Maharashtra, Goa, and the United States. The company has a retail footprint of approximately 95,885 sq ft as of December 2023. As part of its expansion strategy, PN Gadgil aims to open new stores and further consolidate its position in the organized jewellery sector.
In addition to its physical stores, the company launched the “PNG Jewellers” mobile application in March 2022. The app allows customers to explore new jewellery designs and collections, enhancing the company’s omnichannel retail strategy.
How to Check PN Gadgil Jewellers IPO Allotment Status
Once the IPO closes, investors can check their allotment status through the Bombay Stock Exchange (BSE) and KFin Technologies. Below are the steps to follow:
Checking Allotment Status on BSE
- Visit the BSE website at https://www.bseindia.com.
- Select ‘Investors’ from the main menu.
- Click on ‘Status of Issue Application’ under the Investor Services dropdown.
- Choose ‘Equity’ in the issue type field.
- Enter the Issue Name, PAN number, and other required details.
- Click ‘Search’ to view your allotment status.
Checking Allotment Status on KFin Technologies
- Go to the KFin Technologies website at https://evault.kfintech.com/ipostatus/.
- Select ‘PN Gadgil Jewellers IPO’ from the dropdown menu.
- Enter your PAN details or Application number.
- Click on ‘Search’ to check the status of your application.
IPO Listing and Expected Date
The shares of PN Gadgil Jewellers are expected to list on the NSE and BSE exchanges on [specific date]. Based on the current GMP and strong subscription figures, the company is poised for a successful listing, with the possibility of listing gains for early investors.
Final Thoughts
The PN Gadgil Jewellers IPO has generated substantial interest across investor categories, driven by the company’s strong financial performance, well-established brand, and ambitious expansion plans. With a high subscription rate and strong market expectations, the IPO could offer both listing gains and long-term growth potential for investors.
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