PN Gadgil Jewellers has announced a price band of ₹456-480 per share for its upcoming ₹1,100-crore initial public offering (IPO). The issue will be open for subscription from September 10 to September 12, with anchor bidding beginning on September 9.
The IPO will include a fresh equity issue of ₹850 crore and an offer for sale of ₹250 crore. The offer for sale will see promoter SVG Business Trust sell part of its equity stake.
The funds raised will be used to set up 12 new stores in Maharashtra, repay debt, and cover other general corporate expenses.
As of January 2024, PN Gadgil Jewellers is the second largest organized jewellery player in Maharashtra by store count. The company has been the fastest-growing among key organized jewellery brands in India, with a 56.5% increase in EBITDA between FY21 and FY23. In FY23, PN Gadgil achieved the highest revenue per square foot among its peers.
The company has expanded to 33 stores, including 32 in Maharashtra and Goa and one in the US, covering a retail area of about 95,885 sq ft. PN Gadgil also launched the “PNG Jewellers” mobile app in March 2022 to keep customers updated on new designs and collections.
In FY23, the company’s revenue rose 76% year-on-year to ₹4,507 crore, while profit after tax increased by 35% to ₹94 crore. For the period ending September 2023, revenue was ₹2,628 crore, with a PAT of ₹4.37 crore.
Motilal Oswal Investment Advisors, Nuvama Wealth Management (formerly Edelweiss Securities), and BOB Capital Markets are the book running lead managers for the IPO.
