P N Gadgil Jewellers IPO

P N Gadgil Jewellers Limited, a well-established jewellery retailer in India, is launching its Initial Public Offering (IPO). Known for its legacy in the jewellery industry, the company is set to raise funds through a combination of a fresh issue and an offer for sale. This IPO is a major opportunity for retail investors looking to capitalise on the Indian jewellery market's growth potential.

P N Gadgil Jewellers Limited IPO details

The P N Gadgil Jewellers IPO comprises a fresh issue of equity shares worth Rs. 850 crore and an offer for sale aggregating Rs. 250 crore by SVG Business Trust, the promoter selling shareholder. The total offer size amounts to Rs. 1100 crore. The IPO will follow the 100% book-built process and the shares will be listed on both BSE and NSE. The bid opens on 10th September 2024 and closes on 12th September 2024.

Offer structure

The P N Gadgil Jewellers Limited IPO is structured as follows:

• Fresh issue: Up to Rs. 850 crore in equity shares.

• Offer for sale: Up to Rs. 250 crore worth of equity shares offered by SVG Business Trust.

• QIBs: Up to 50% of the offer is reserved for Qualified Institutional Buyers (QIBs).

• Non-Institutional Bidders: 15% of the offer is reserved for non-institutional bidders.

• Retail Individual Bidders (RIBs): 35% is allocated for retail investors. This structure ensures a balanced distribution among different investor categories.

Why is P N Gadgil Jewellers going public?

P N Gadgil Jewellers is going public to raise capital for various strategic objectives, including expansion, working capital requirements, and general corporate purposes. The company aims to strengthen its market position and utilise the proceeds to fuel growth and operational efficiencies, ensuring continued leadership in the Indian jewellery market.

About P N Gadgil Jewellers Limited

P N Gadgil Jewellers Limited was incorporated in 2013 and is a renowned name in the Indian jewellery sector, especially in Maharashtra. The company has a rich legacy dating back to the 19th century and operates through its numerous showrooms across India.

• Founded: 1832

• Corporate headquarters: Pune, Maharashtra

• Promoters: Saurabh Vidyadhar Gadgil, Radhika Saurabh Gadgil, SVG Business Trust

• Key products: Gold, diamond, and silver jewellery P N Gadgil Jewellers is known for its craftsmanship and diverse range of jewellery, catering to a wide customer base.

P N Gadgil Jewellers' financial performance

Metrics	FY 2024 (Consolidated)
Revenue (in Rs. Crore)	6,119.1
Net worth (in Rs. Crore)	534.38
Profit after tax (in Rs. Crore)	154.34
ROE (%)	28.88%
ROCE (%)	27.31%
Debt to Equity Ratio	0.74

Strengths and risks of P N Gadgil Jewellers

Strengths:

• Strong brand reputation in the Indian jewellery market.

• Extensive retail network with numerous stores across key locations.

• Robust financial performance with steady growth in revenues.

• A legacy of over 190 years, providing a strong customer base.

Risks:

• Fluctuations in gold and diamond prices could impact profitability.

• Highly competitive market with several regional and national players.

• Risks associated with regulatory changes in the jewellery industry.

What’s in it for investors?

Investors in the P N Gadgil Jewellers IPO stand to benefit from the company’s strong market presence, extensive retail network, and historical growth in revenue. With the Indian jewellery market poised for significant expansion, P N Gadgil Jewellers is well-positioned to capitalise on this growth, offering potential for long-term investment returns.

Conclusion

The P N Gadgil Jewellers IPO offers a promising investment opportunity for retail investors looking to tap into the growth of the jewellery sector in India. As a leading jewellery retailer with a strong brand and financial track record, this IPO is an exciting prospect for both institutional and individual investors alike.