PN Gadgil Jewellers, the second biggest organized jeweler in Maharashtra, is set to launch its initial public offering (IPO) on September 10. The IPO will raise around Rs 1,100 crore.
This offer includes a new equity issue of Rs 850 crore and an offer for sale (OFS) of Rs 250 crore. In the OFS, the promoter SVG Business Trust will sell some of its shares.
The money from the IPO will be used to open 12 new stores in Maharashtra, pay off debt, and for other general business needs.
As of January 2024, PN Gadgil is the second-largest organized jewelry chain in Maharashtra by store count. It is also the fastest-growing jewelry brand among major organized players in India, with impressive revenue growth from FY21 to FY23.
Between FY21 and FY23, PN Gadgil saw its EBITDA grow by 56.5% and had the highest revenue per square foot in FY23 among key jewelry brands in India.
The company has expanded to 33 stores, including 32 in Maharashtra and Goa, plus one in the US, covering a total retail area of about 95,885 sq ft as of December 2023. They also launched a mobile app called “PNG Jewellers” in March 2022 to keep customers updated on new designs and collections.
In FY23, PN Gadgil’s revenue grew by 76% year-on-year to Rs 4,507 crore, and its profit after tax increased by 35% to Rs 94 crore. For the period ending September 2023, revenue was Rs 2,628 crore and PAT was Rs 4.37 crore.
The IPO will be managed by Motilal Oswal Investment Advisors, Nuvama Wealth Management, and BOB Capital Markets.
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