New Delhi: P N Gadgil Jewellers Ltd, a chain of jewellery stores, has set a price range of Rs 456-480 per share for its Rs 1,100-crore initial public offering. The funds will be utilized for expanding the business and reducing debt. The company announced that the IPO will be available for public subscription from September 10 to September 12, with anchor investors bidding opening on September 9 for one day.
The IPO of the company from Maharashtra includes a new issuance of equity shares valued at a maximum of Rs 850 crore and a sale offer of equity shares worth Rs 250 crore by promoter SVG Business Trust. Currently, SVG Business Trust owns 99.9 percent of P N Gadgil Jewellers. After the issue, brokerage houses estimate that the company's market capitalization is higher than Rs 6,500 crore.
Of the newly raised funds, approximately Rs 393 crore will go towards establishing 12 new stores in Maharashtra, Rs 300 crore for debt repayment, and the rest will be allocated for general corporate needs. According to the Red Herring Prospectus (RHP), the company's total borrowings were approximately Rs 397 crore by March 2024. P N Gadgil Jewellers Ltd provides a diverse selection of valuable metal/ accessory items such as gold, silver, platinum, and diamond jewelry in a variety of price ranges and styles.
The main brand of the company, 'PNG', along with several sub-brands, are mainly sold through a variety of channels, such as 39 retail stores (as of July 31, 2024) and several online platforms, including websites. Book-running lead managers to the issue are Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd, and BOB Capital Markets Ltd.
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