What You Must Know About P N Gadgil Jewellers IPO: Price Band ₹456 to ₹480 Per Share

Established in 2013, P N Gadgil Jewellers Limited is a prominent jewellery retailer offering various precious metal/jewellery products, including gold, silver, platinum, and diamond jewellery, under its brand name "PNG" in various price ranges and designs.

Key highlights of P N Gadgil Jewellers' operations include:

• 8 sub-brands for gold jewellery collections: Saptam, Swarajya, Rings of Love, The Golden Katha of Craftmanship, Flip, Lifestyle, Pratha and Yoddha
• 2 sub-brands for diamond jewellery collections: Eiina and PNG Solitaire
• 2 sub-brands for platinum jewellery collections: Men of Platinum and Evergreen Love
• 33 stores as of December 31, 2023: 32 across 18 cities in Maharashtra and Goa, and 1 in the US
• Total retail space of approximately 95,885 sq. ft.
• 23 company-owned stores and 10 franchisee-operated stores under the FOCO model
• Store formats: 19 large format, 11 medium format, and 3 small format
• 1,152 employees as of September 30, 2023

The Objectives of the Issue

P N Gadgil Jewellers IPO intends to utilise the net proceeds from the IPO for the following purposes:

1. New Store Expansion: Funding expenditure towards setting up 12 new stores in Maharashtra.
2. Debt Repayment: Repayment or pre-payment, in full or part, of certain borrowings availed by the Company.
3. General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.

Highlights of P N Gadgil Jewellers IPO

P N Gadgil Jewellers IPO is set to launch with a book-built issue of ₹1,100.00 crores. The issue combines a fresh issue and an offer for sale. Here are the key details of the IPO:
 

• The IPO opens for subscription on 10th September 2024 and closes on 12th September 2024.
• The allotment is expected to be finalised on 13th September 2024.
• Refunds will be initiated on 16th September 2024.
• Credit of shares to Demat accounts is also expected on 16th September 2024.
• The company will tentatively list on BSE and NSE on 17th September 2024.
• The price band is set at ₹456 to ₹480 per share.
• The fresh issue comprises 1.77 crore shares, aggregating to ₹850.00 crores.
• The offer for sale comprises 0.52 crore shares, aggregating to ₹250.00 crores.
• The minimum lot size for the application is 31 shares.
• Retail investors need to invest a minimum of ₹14,880.
• The minimum investment for small NII (sNII) is 14 lots (434 shares), amounting to ₹208,320.
• The minimum investment for big NII (bNII) is 68 lots (2,108 shares), amounting to ₹1,011,840.
• Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited and Bob Capital Markets Limited are the book running lead managers for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.

P N Gadgil Jewellers IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 12th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

P N Gadgil Jewellers IPO Issue Details/Capital History

The P N Gadgil Jewellers IPO is scheduled from 10th September to 12th September 2024, with a price band of ₹456 to ₹480 per share and a face value of ₹10. The total issue size is 22,916,667 shares, raising up to ₹1,100.00 crores. This includes a fresh issue of 17,708,334 shares aggregating to ₹850.00 crores and an offer for sale of 5,208,333 shares aggregating to ₹250.00 crores. The pre-issue shareholding is 118,000,000 shares, which will increase to 135,708,334 shares post-issue.

P N Gadgil Jewellers IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 31 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: P N Gadgil Jewellers Ltd

Strengths:

• Strong brand presence with multiple sub-brands catering to various Jewellery segments
• Extensive retail network across Maharashtra and Goa
• Diverse product range covering gold, silver, platinum, and diamond Jewellery
• Mix of company-owned and franchisee-operated stores for balanced growth

Weaknesses:

• Geographical concentration primarily in Maharashtra and Goa
• Dependence on precious metal prices and market fluctuations
• Capital-intensive business model with high inventory requirements

Opportunities:

• Expansion into new geographical markets within India
• Growing demand for branded Jewellery in tier-2 and tier-3 cities
• Potential for e-commerce growth in the Jewellery sector
• Increasing preference for organized retail in the Jewellery market

Threats:

• Intense competition from both organized and unorganized jewellery retailers
• Regulatory changes affecting gold imports or Jewellery industry
• Economic downturns impacting discretionary spending on luxury items
• Potential disruptions due to global events affecting precious metal supply chains

Financial Highlights: P N Gadgil Jewellers Ltd

P N Gadgil Jewellers Limited has demonstrated strong financial growth over the past three fiscal years. The company's assets have grown significantly, increasing from ₹11,102.39 lakhs in FY22 to ₹14,649.79 lakhs in FY24, representing a growth of about 31.9% over two years. This increase in assets indicates the company's operational capabilities and inventory expansion.

Revenue has shown remarkable growth, rising from ₹25,863.05 lakhs in FY22 to ₹61,191.04 lakhs in FY24, marking an impressive increase of 136.6% over two years. The year-over-year growth from FY23 to FY24 was 34%, indicating strong market demand for the company's products.

The company's profitability has seen a similar upward trajectory. Profit after tax rose significantly from ₹695.15 lakhs in FY22 to ₹1,543.43 lakhs in FY24, representing a substantial growth of 122% over two years. The year-over-year growth in PAT from FY23 to FY24 was 65%, showing improved operational efficiency and cost management.

Net worth has shown consistent growth, increasing from ₹2,820.13 lakhs in FY22 to ₹5,343.77 lakhs in FY24, a growth of about 89.5% over two years. This increase reflects the company's ability to generate and retain earnings, strengthening its financial position.

Total borrowings have increased from ₹2,949.49 lakhs in FY22 to ₹3,964.96 lakhs in FY24, an increase of about 34.4%. While this represents a significant increase, it should be viewed in the context of the company's even more substantial growth in revenue and assets.