PN Gadgil Jewellers IPO opens today: Check price band, GMP, other details before subscribing to issue

The action-packed week has multiple new offerings in the primary market including mainboard issues of Bajaj Housing Finance, Kross Ltd and Tolins Tyres.

PN Gadgil Jewellers' Rs 1,100-crore initial public offer (IPO) opens today (10 September) at 10 am for public subscription in the primary market. Earlier on Monday, the company raised Rs 330 crore from anchor investors including ICICI Prudential Life Insurance Company, Tata Mutual Fund (MF), Axis MF, Mirae Asset MF, HDFC MF, Goldman Sachs (Singapore) Pte, Societe Generale among other anchor investors.

The action-packed week has multiple new offerings in the primary market including mainboard issues of Bajaj Housing Finance, Kross Ltd and Tolins Tyres.

Jewellery retail chain PN Gadgil Jewellers IPO price band has been fixed at Rs 456-480 per share. The initial share sale opens for subscription today, and will conclude on 12 September. Brokerage houses have pegged the company's market capitalisation over Rs 6,500 crore post-issue.

PN Gadgil Jewellers IPO GMP (grey market premium) is soaring ahead of the launch of the issue. Multiple platforms that track grey market premium activites estimate that PN Gadgil Jewellers shares are commanding a GMP of Rs 240, which signals a potential listing gain of 50 percent over the upper price band of the issue at Rs 480 per share.

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The shares of the mainboard issue will be allotted to successful bidders on 13 September and will be listed on the stock exchanges next week on 17 September.

The Maharashtra-based company’s IPO consists of a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale (OFS) of equity shares amounting to Rs 250 crore by the promoter SVG Business Trust. Currently, SVG Business Trust holds a 99.9 per cent stake in PN Gadgil Jewellers.

Out of the fresh issue proceeds, Rs 393 crore will be used for setting up 12 new stores in Maharashtra, Rs 300 crore will be allocated for debt repayment, and a portion will be utilised for general corporate purposes.

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As of March 2024, the company had total borrowings of around Rs 397 crore, according to the red herring prospectus (RHP).

PN Gadgil Jewellers Ltd offers a variety of precious metal and jewellery products, including gold, silver, platinum, and diamond jewellery, at different price points and designs. The company’s products are mainly sold under its flagship brand, 'PNG', and sub-brands, through multiple channels, including 39 retail stores (as of July 31, 2024) and various online marketplaces.

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