PN Gadgil Jewellers expected to list at 60% premium over IPO price on September 17; check latest GMP

PN Gadgil Jewellers shares will be listed on the exchanges on Tuesday, September 17.

PN Gadgil Jewellers shares will be listed on the exchanges on September 17 after receiving a whopping 59.41 times subscription. Earlier, the Rs 1,100-crore initial share sale raised Rs 330 crore from anchor investors.

The Maharashtra-based jewellery retail chain company's IPO was a combination of a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale (OFS) of equity shares to the tune of Rs 250 crore by promoter SVG Business Trust.

Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, said: "as per the market intelligence the issue is expected to list with decent gains and post listing, investors may choose to book profits."

"On valuation parse, at the upper price band the company’s implied market cap is around Rs 65,130 Mn valuing at PE of 42.2 times for FY24. Looking at the company’s stable and growing profits and returns ratios we have subscribe-long term rating on the IPO," he added.

According to multiple platforms that track the grey market premium activities, the shares of P N Gadgil are commanding a GMP in the price range of Rs 309 in the unlisted market, indicating a premium listing gain of over 64 percent.

Akriti Mehrotra, Research Analyst at Stoxbox, said "P N Gadgil Jewellers is poised for a strong debut on the stock exchanges on 17th September 2024, potentially commanding a premium of approximately 60% above the upper band price."

India's jewellery market benefits from a profound cultural affinity for gold, which is valued as a store of wealth, a hedge against inflation, and collateral for loans. PNG has leveraged this cultural affinity effectively, boasting a diverse product range with over 10,000 SKUs in gold, 1,200 in silver, 2,700 in platinum, and 24,000 in diamond jewellery, catering to a broad spectrum of customer needs, she noted.

Operating 39 stores—38 in Maharashtra and Goa and one in the US—PNG has established a strong brand presence and is strategically expanding into underserved Tier I and Tier II cities, with plans to add 12 new stores in Maharashtra by FY26.

Prashanth Tapse, Sr VP Research at Mehta Equities Ltd, expects the IPO to debut with a healthy listing gain of anything above 50 percent of its issue price.

"P N Gadgil listing is matching the time when gold is also shining almost near all-time high, we believe the shine can be seen on listing day. We believed P N Gadgil Jewellers Ltd (PNG) IPO offer gave investors a unique opportunity to invest in the 2nd largest organized jewellery retailer in Maharashtra," he said.

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