 "Opens Today! PN Gadgil Jewellers IPO GMP zooms 50%. Should you bid?")
P N Gadgil Jewellers IPO opens today: The initial public offering of P N Gadgil Jewellers opens for public subscription today. The company seeks to raise Rs 1,100.00 crore from the public issue by offering a fresh issue of 17,708,334 shares and an offer for sale of 5,208,333 shares with a face value of Rs 10 apiece. P N Gadgil Jewellers announced that it has already raised Rs 330.00 crore from anchor investors from the bidding concluded on September 9, 2024.
Adding to the buzz, the shares of P N Gadgil Jewellers are commanding a strong premium in the grey market on the first day of its opening. P N Gadgil Jewellers shares are trading at a grey market premium (GMP) of Rs 240, or 50 per cent, reflecting favourable market sentiment for the public issue, as per the sources that track grey market activities.
The public issue of P N Gadgil Jewellers is available at a price band of Rs 456-480 with a lot size of 31 shares. Accordingly, investors can bid for a minimum of 31 shares and in multiples thereof. The minimum amount required by a retail investor to bid for the P N Gadgil Jewellers IPO is Rs 14,880.
Bigshare Services is the registrar for the P N Gadgil Jewellers IPO, while Motilal Oswal Investment Advisors, Nuvama Wealth Management, and Bob Capital Markets are the book running lead managers of the public issue.
P N Gadgil Jewellers will use the net proceeds from the public issue for funding expenditure towards setting up 12 new stores in Maharashtra, as well as for the repayment or prepayment, in full or part, of certain borrowings availed by the company. The company will use the remaining amount for general corporate purposes.
P N Gadgil Jewellers will use the net proceeds from the public issue for funding expenditure towards setting up 12 new stores in Maharashtra, as well as for the repayment or prepayment, in full or part, of certain borrowings availed by the company. The company will use the remaining amount for general corporate purposes.
The public issue will close for subscription on Thursday, September 12, 2024. The allotment of P N Gadgil Jewellers IPO is expected to be finalised on Friday, September 13, 2024. Subsequently, the company's shares will be credited into demat accounts on Monday, September 16, 2024. Shares of P N Gadgil Jewellers are expected to list on the BSE and NSE on Tuesday, September 17, 2024.
P N Gadgil Jewellers IPO review
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Deven Choksey Research - Subscribe
Analysts at Deven Choksey Research have assigned a Subscribe rating on P N Gadgil Jewellers IPO for investors. According to the brokerage, P N Gadgil Jewellers, a prominent player in the Indian jewellery market, capitalises on strong demand for gold, silver, and diamonds. Operating in a steadily expanding sector driven by cultural significance, investment appeal, and a growing middle class, the company is well-positioned to benefit from the industry's growth.
The brokerage highlighted that P N Gadgil has achieved notable financial growth, with revenue increasing at a 54.63% CAGR, from Rs 25,55.6 crore in FY 2022 to Rs 61,10.9 crore in FY 2024. Deven Choksey Research attributes this to effective product launches, an expanding retail footprint, and efficient cost management.
The analysts believe that the company's strengths include a broad product range, a renowned brand with over 100 years of history, and extensive market presence. It leads many competitors in revenue per square foot and EBITDA growth, with strong working capital management enhancing scalability and profitability.
"Currently valued at an adjusted PE ratio of 42x, P N Gadgil is trading at a discount compared to its peers. We assign a 'Subscribe' rating to the IPO," said the Deven Choksey Research team in its report.
Anand Rathi Research - Subscribe for long-term
Anand Rathi Research - Subscribe for long-term
Anand Rathi Research has recommended that investors subscribe to the P N Gadgil Jewellers IPO for the long-term perspective. The brokerage's report pointed out that, as a traditional player, the company runs customer-oriented incentives and loyalty schemes. India is the second-largest consumer of gold jewelry, and the retail market is expected to grow at a 16% CAGR over FY23-28, with the rising share of organized players. Besides, the rise in gold prices over the past years has pushed the retail demand for gold. Also, the company is coming with the public offer amid a retail rush for gold during the festive and beginning of wedding seasons, which, as per the brokerage, will have an added advantage for brand recall and PNG setting a sentimental demand from a futuristic perspective.
On the valuation front, at the upper price band, the company's implied market cap is around Rs 6513 crore, valuing it at a PE of 42.2 times for FY24. Looking at the company's stable and growing profits and returns ratios, the brokerage believes that this issue may be considered for its long-term growth.
About P N Gadgil Jewellers
Headquartered in Pune, Maharashtra, P N Gadgil Jewellers offers an extensive range of jewellery, including gold, silver, diamond, and platinum pieces, catering to diverse customer preferences. PN Gadgil is the second-largest among prominent organised jewellery players in Maharashtra (which is one of the largest markets for BIS-registered outlets in India), in terms of the number of stores as of January 2024.