PN Gadgil Jewellers IPO Receives Strong Investor Interest

The initial public offering (IPO) of PN Gadgil Jewellers, which commenced on Tuesday and is set to conclude on September 12, has garnered significant investor attention. On its opening day, the IPO was subscribed nearly two times, with substantial backing from non-institutional investors, who subscribed at a rate of 3.27 times. Retail investors participated actively as well, with their subscription rate reaching 2.61 times.

PN Gadgil Jewellers is offering a total issue size of Rs 1,100 crore, which includes a fresh issue of Rs 850 crore and an offer-for-sale (OFS) of equity shares valued at Rs 250 crore. The funds raised through this IPO are intended for the establishment of new stores, debt repayment, and other general corporate purposes.

The company currently operates 33 stores, which comprise 32 locations across Maharashtra and Goa, in addition to one store situated in the United States, amounting to approximately 95,885 square feet of retail space. Notably, 23 of these stores are owned by the company, while the remaining 10 operate under a franchisee-owned and company-operated (FOCO) model.

The recent subscription figures reflect a strong preference for the IPO among non-institutional investors, significantly outpacing the interest from qualified institutional buyers (QIBs), who accounted for a mere 0.01 times their reserved share quantity. The allocation strategy reserves 50 percent of shares for QIBs, 15 percent for non-institutional investors, and 35 percent for retail investors.

In the grey market, PN Gadgil Jewellers shares were seen at a price of Rs 230, indicating a premium of 48 percent over the issue price. Ahead of the IPO, the jewellery company successfully raised Rs 330 crore from anchor investors by allotting shares at the upper end of the price band, set at Rs 480 per share.

According to analysts from Anand Rathi Research, the company’s stable profit margins, consistent growth, and return ratios, position the IPO as a worthwhile long-term investment opportunity. They provided a “Subscribe for Long term” rating for potential investors.

PN Gadgil Jewellers is cultivating a market presence in India’s gold jewellery sector, which is projected to grow at a compound annual growth rate of 16 percent through fiscal years 2023 to 2028. The company plans to utilize raised funds for establishing 12 new stores in Maharashtra by the fiscal year 2026.