PNG Jewellers to launch IPO on September 10; price band set at Rs.456-480 per share

Funds raised will be directed to repay Rs.300 crore of debt and fund the opening of 12 new stores in Maharashtra by FY26, leftovers will be allocated for general business purposes

Mumbai: P N Gadgil Jewellers Limited has set the price band for its upcoming initial public offering (IPO) between Rs.456 and Rs.480 per share. The subscription period for the IPO will open on September 10 and close on September 12, with the allocation for anchor investors scheduled for September 9.

The IPO will price shares at 45.6 to 48 times the face value of Rs.10 per equity share. Investors can apply in lots of 31 shares, with additional shares in multiples of 31.

The offering will allocate up to 50% of shares to Qualified Institutional Buyers (QIBs), at least 15% to Non-Institutional Investors (NIIs), and a minimum of 35% to retail investors.

Important dates include the finalisation of share allotment on September 13, with refunds processed on September 16. Shares will be credited to demat accounts on the same day, and the listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is anticipated on September 17.

Founded in 2013, P N Gadgil Jewellers provides a broad range of jewellery under its “PNG” brand, including gold, silver, platinum, and diamond pieces. By the end of 2023, the company will feature eight sub-brands for gold jewellery, two for diamonds, and two for platinum, along with custom jewellery services.

For the fiscal year 2023, P N Gadgil Jewellers reported revenues of Rs.4,507.5 crore, marking a 76.4% increase from the previous year. EBITDA grew by 10.3% to Rs.122.7 crore, although the margin decreased to 2.72%. For the six-month period ending September FY24, net profit was Rs.43.75 crore on revenues of Rs.2,627.8 crore.

The IPO will include a Rs.250 crore offer from SVG Business Trust and a fresh issue of Rs.850 crore. The funds will be used to repay Rs.300 crore of debt and to finance the opening of 12 new stores in Maharashtra by FY26, with the remaining amount allocated for general business purposes. As of February 29, the company’s debt was Rs.377.45 crore.

Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd, and Bob Capital Markets Ltd will act as the book-running lead managers for the IPO, with Bigshare Services Pvt Ltd serving as the registrar.

Retail Jeweller India News