P N Gadgil Jewellers Ltd files draft red herring prospectus with SEBI for Rs 1,100 crore IPO

Promoter Saurabh Gadgil, a sixth-generation entrepreneur who is Managing Director of the company, intends to utilize the funds raised through the IPO primarily for the funding of expenditure towards setting up 12 new stores in Maharashtra 

Pune: Leading jewellery retail brand P N Gadgil Jewellers Limited, the second largest among the prominent organized jewellery players in Maharashtra – in terms of the number of stores as of January, 2024 – has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”). Promoter Saurabh Gadgil, a sixth-generation entrepreneur who is Managing Director of the company, intends to utilize the funds raised through the IPO primarily for the funding of expenditure towards setting up 12 new stores in Maharashtra, repayment or pre-payment, in full or part, of certain borrowings availed by the company, and general corporate purposes.

The Company’s initial public offering comprises a fresh issue of equity shares of face value of Rs 10 each aggregating up to Rs 850 crore and an offer for sale of equity shares of face value of Rs 10 each aggregating up to Rs 250 crore. The total offer size comprises of equity shares of face value of Rs 10 each aggregating up to Rs 1100 crore. The offer for sale comprises of equity shares of face value of Rs 10 each aggregating up to Rs 250 crore by SVG Business Trust (Promoter Selling Shareholder).

According to a company communique, P N Gadgil Jewellers Limited is also the fastest-growing jewellery brand amongst the key organized jewellery players in India, based on an EBITDA growth of 56.50% between FY21 and FY23.

As of December 31, 2023, the company expanded to 33 stores, which includes 32 stores across 18 cities in Maharashtra and Goa and one store in the United States with an aggregate retail area of approximately 95,885 sq. ft. All the stores are operated and managed by the company with 23 being owned stores and 10 franchisee stores, on a franchisee-owned and company-operated (“FOCO”) model. Of these stores, 19 stores are large format stores (with an area of 2,500 sq. ft. or more), 11 stores are medium format stores (with an area between 1,000 sq. ft. to 2,500 sq. ft.) and three stores are small format stores (with an area of less than 1,000 sq. ft.). Additionally, the brand launched its mobile application “PNG Jewellers”, in March 2022. The digital presence allows it to keep customers updated on new designs and collections and familiarize them with the product portfolio, which enhances customers’ in-store experience. The manufacturing of all the jewellery is carried out by more than 75 experienced and skilled artisans (kaarigars) in and outside Maharashtra. The brand has Madhuri Dixit as its brand ambassador.

The ‘PNG’ brand derives its legacy from the ‘P N Gadgil’ brand, which has a rich heritage dating back to 1832 and a legacy of over a century. Leveraging the legacy and heritage of the ‘PNG’ brand, the company has created a strong brand recall and presence in Maharashtra offering a wide range of precious jewellery products including gold, silver, platinum and diamond, across various price points and designs which cover the needs of customers for special occasions as well as everyday wear jewellery. 

Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and BOB Capital Markets Limited are the Book Running Lead Managers to the issue.

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