PN Gadgil Jewellers IPO Subscribed 59.4 Times On Final Day

PN Gadgil Jewellers Ltd.'s initial public offering has been subscribed 59.41 times on its third and final day of subscription on Thursday, with institutional investors leading the demand.

The offering consisted of a fresh issue of 1.77 crore shares worth Rs 850 crore and an offer for sale of 52 lakh shares worth Rs 250 crore. The price band was fixed at Rs 456 to Rs 480 per share.

Retail investors needed to invest a minimum of Rs 14,880 for one lot of 31 shares. For small non-institutional investors, the minimum investment size was Rs 2.08 lakh for 14 lots (434 shares), while large non-institutional investors required Rs 10.12 lakh for 68 lots (2,108 shares).

The allotment of shares is expected to be finalised by Friday. The company’s shares are expected to list on the BSE and NSE, with Sept. 17 being the tentative listing date.

• Issue opening: Sept. 10.

• Issue closing: Sept. 12.

• Issue price: Rs 456-480 per share.

• Fresh issue: Rs 850 crore.

• Offer for sale: Rs 250 crore.

• Total issue size: Rs 1,100 crore.

The company will use the net proceeds for following purposes:

• Expenditure towards setting up 12 new stores in Maharashtra (new stores).

• Repayment or pre-payment, in full or part, of certain borrowings availed by the company.

• General corporate purposes.

The company’s revenue grew 36% to Rs 6,110.9 crore in fiscal 2024, compared to Rs 4,507.5 crore in the previous fiscal. This was driven by strong operational performance and possible increased demand.

This revenue boost helped the company improve its profitability considerably, as reflected in the rise in Ebitda from Rs 122.6 crore in fiscal 2023 to Rs 269.3 crore in fiscal 2024, marking a 120% increase.

Ebitda margin stood at 4.41% in fiscal 2024, compared to 2.72% in fiscal 2023.

The company's net profit grew 65% to Rs 154.3 crore during the period, compared to Rs 93.7 crore in fiscal 2023, reflecting stronger bottom-line performance.

The PN Gadgil IPO has been subscribed 59.41 times as of 7 p.m. on Thursday.

• Institutional investors: 136.85 times.

• Non-institutional investors: 56.09 times.

• Retail investors: 16.58 times.

The grey market premium of PNG Gadgil was Rs 268 as of 8:58 a.m., implying a 55.83% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 748 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.