PN Gadgil Jewellers IPO Opens for Subscription Today: Should You Bid? Latest IPO News & Stock Market Insights

The initial public offering (IPO) of PN Gadgil Jewellers is open for bidding from today until 12 September. The IPO consists of a fresh issue of up to 1.7 crore shares and an offer for sale (OFS) of up to 52 lakh shares by Binod Kumar Agarwal.

The company plans to use the money raised from the IPO to fund the opening of 12 new stores in Maharashtra, repay some of its debt, and for general corporate purposes.

IPO price range

PN Gadgil Jewellers has set a price range of ₹456-480 per share for this IPO. Investors can buy a minimum of 31 shares in one lot.

GMP (Grey Market Premium)

Currently, the GMP for PN Gadgil Jewellers is ₹230 in the unlisted market. This indicates a premium of about 48% over the issue price.

Should you subscribe to the PN Gadgil Jewellers IPO?

Experts are advising investors to subscribe to the IPO because PN Gadgil Jewellers is a popular brand in the fashion jewellery sector.

Prashanth Tapse from Mehta Equities mentioned that the valuation, based on FY24 earnings, seems reasonable at the upper price limit. With the company’s plans to expand its stores across Maharashtra and beyond, the IPO could be beneficial for long-term investors. He recommends subscribing for both good listing gains and long-term benefits.

More about PN Gadgil Jewellers

PN Gadgil Jewellers is the second largest organised jewellery retailer in Maharashtra, based on the number of stores as of January 2024. The company is also one of the fastest-growing jewellery brands in India, based on its revenue growth between FY21 and FY23.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 56.5% between FY21 and FY23. It also recorded the highest revenue per square foot in FY23 among the leading organised jewellery brands in India.

As of December 2023, PN Gadgil had expanded to 33 stores, including 32 in 18 cities across Maharashtra and Goa, and one in the US. The company’s total retail space is approximately 95,885 square feet.

The company also launched a mobile app, “PNG Jewellers,” in March 2022, allowing customers to stay updated on new designs and collections.

In FY23, PN Gadgil’s revenue from operations increased by 76% year-on-year to ₹4,507 crore, and its profit after tax grew by 35% to ₹94 crore. For the year ending March 2024, the company’s revenue stood at ₹6,110 crore, and its profit after tax (PAT) was ₹154 crore.

Motilal Oswal Investment Advisors, Nuvama Wealth Management (formerly Edelweiss Securities), and BOB Capital Markets are managing this IPO.