PN Gadgil Jewellers' Rs 1,100-crore IPO fully subscribed within hours; Issue booked 2.01x on Day 1

PN Gadgil Jewellers Rs 1,100-crore initial public offer (IPO) got fully subscribed within four hours of opening on Day 1 of subscription

PN Gadgil Jewellers' Rs 1,100-crore initial public offer (IPO) got fully subscribed in under four hours of opening on Day 1 of subscription on Tuesday. The issue has been subscribed 2.01x, driven by continued strong demand from retail investors.

The public issue by Maharashtra-based PN Gadgil Jewellers has received bids for over 3.38 crore shares, compared to 1.68 crore shares on offer.

The portion meant for non-institutional investors fetched 3.26 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 2.61 times. PN Gadgil Jewellers on Monday said it has collected Rs 330 crore from anchor investors.

The initial share sale will conclude on September 12. The price band has been fixed at Rs 456-480 per share. The shares of the mainboard issue will be listed on September 17.

The issue has a 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 a promoter SVG Business Trust. At present, SVG Business Trust holds a 99.9 per cent stake in PN Gadgil Jewellers.

PN Gadgil Jewellers Ltd offers a wide selection of precious metal and jewellery products, such as gold, silver, platinum, and diamond jewellery, catering to different price ranges and designs. The company's flagship brand, 'PNG', along with several sub-brands, drives its product sales through multiple channels, including 39 retail stores (as of July 31, 2024) and various online marketplaces.

Brokerage houses have estimated the company's market capitalisation to exceed Rs 6,500 crore post-issue. Of the fresh issue proceeds, Rs 393 crore will be allocated towards opening 12 new stores in Maharashtra, Rs 300 crore will go towards debt repayment, and a portion will be set aside for general corporate purposes.

As of March 2024, the company's total borrowings stood at approximately Rs 397 crore, according to the red herring prospectus (RHP).

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