 "PN Gadgil loses luster after solid debut; stock down 17% from record high")
Shares of PN Gadgil Jewellers, one of leading organised jewellery players in Maharashtra fell as much as 10 per cent to hit an all-time low of Rs 694.20 on the NSE, before ending the session at Rs 707.95, down 8.21 per cent from its previous close, led by profit booking. The company's shares have extended losses for thirds straight session after since their stellar debut.
PN Gadgil Jewellers shares listed at Rs 830 on Tuesday, September 17, this week, against the IPO issue price of Rs 480, reflecting a premium of 72.91 per cent. The stock claimed it's all-time high of Rs 848 post-listing and has been falling since then. On Tuesday, the stock settled 4.62 per cent lower, and on Thursday, September 18, it ended 2.77 per cent lower on the NSE.
The stock has fallen 18.13 per cent in the last three trading sessions, since scaling its all-time high of Rs 848 on the NSE.
Upon the listing of the company's shares, Shivani Nyati, Head of Wealth at Swastika Investmart, had recommended that investors consider booking part profit here, and those who want to hold it for the long term may keep a stop-loss at around Rs 750.
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. The company offers an extensive range of jewellery, including gold, silver, diamond, and platinum pieces, catering to diverse customer preferences.
As of September 19, 2024, the company has a market capitalization of Rs 9,462.94 crore on the NSE.
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Overall, PN Gadgil Jewellers garnered robust demand with 59.41 times subscription by the final day of application of its IPO, Thursday, September 12, 2024. The public issue IPO received the highest bids from Qualified Institutional Buyers (QIBs) at 136.85 times, non-institutional investors (NIIs) at 56.09 times the offered amount, followed by Retail Individual Investors (RIIs) at 16.58 times, as per the data available on the exchanges. The IPO was a book-built issue of Rs 1,100 crore comprising 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.