Ahead of IPO, PN Gadgil Jewellers collects Rs 330 cr from anchor investors

New Delhi: Jewellery retail chain PN Gadgil Jewellers Ltd announced on Monday that it has secured Rs 330 crore from anchor investors, just one day prior to the start of its initial share-sale for public subscription. Anchor investors inlcude ICICI Prudential Life Insurance Company, Tata Mutual Fund (MF), Axis MF, Mirae Asset MF, HDFC MF, Bandhan MF, Nippon India MF, Goldman Sachs (Singapore) Pte, Citigroup Global Markets Mauritius, Societe Generale, Troo Capital, and The Jupiter Global Fund. As per a circular posted on BSE's site, the company has distributed 68.75 lakh equity shares to 33 funds at Rs 480 each, which is the highest point of the price range. This combines the transaction amount to Rs 330 crore.

The IPO, valued at Rs 1,100 crore, is set to open for subscription on September 10 and close on September 12. The share price range has been set at Rs 456 to Rs 480. The IPO of the company from Maharashtra includes a new equity share issuance of up to Rs 850 crore and a Rs 250 crore offer for sale (OFS) by promoter SVG Business Trust. Currently, SVG Business Trust owns 99.9 percent of PN Gadgil Jewellers.

Brokerage firms have estimated the company's market capitalisation to be over Rs 6,500 crore after the issue. Rs 393 crore from the new issue funds will go towards establishing 12 new stores in Maharashtra, Rs 300 crore will be used to pay off debt, and some will also be allocated for general corporate needs.

According to the red herring prospectus (RHP), the company had borrowings totaling approximately Rs 397 crore by March 2024. PN Gadgil Jewellers Ltd provides an extensive selection of valuable metal/jewellery items such as gold, silver, platinum, and diamond jewellery, available in different price ranges and styles. The main brand 'PNG' and several sub-brands of the company's products are mostly distributed through different platforms, such as 39 retail stores and online marketplaces like websites. Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd, and BOB Capital Markets Ltd serve as the book-running lead managers for the issue.