PN Gadgil IPO Opens On Sept. 10: From Issue Price To Financials, All You Need To Know
The success of PNG Jewellers is highly dependent on the strength of its brand.
P N Gadgil Jewellers Ltd. will launch its initial public offering on Sept. 10 to raise Rs 1,100 crore. The offering will consist of a fresh issue of 1.77 crore shares worth Rs 850 crore and an offer for sale of 0.52 crore shares worth Rs 250 crore.
The price band for the IPO has been fixed at Rs 456 to Rs 480 per share. Retail investors will need to invest a minimum of Rs 14,880 for one lot of 31 shares. For small non-institutional investors, the minimum investment size is Rs 2.08 lakh for 14 lots (434 shares), while large non-institutional investors will require Rs 10.12 lakh for 68 lots (2,108 shares).
The IPO will close on Sept. 12 and the allotment of shares is expected to be finalised by Sept. 13. The company’s shares are expected to list on the BSE and NSE, with the tentative listing date set for Sept. 17.
Issue Details
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.
Use Of Proceeds
The company will utilise the net proceeds towards funding the following objects:
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.
Kross IPO Subscribed 88% On Day One
Financial Performance
The company’s revenue grew 35.6% 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 possibly increased demand.
This revenue boost helped the company improve its profitability considerably, as reflected in the rise in Ebitda from Rs 122.63 crore in fiscal 2023 to Rs 269.25 crore in fiscal 2024, marking an impressive 119.5% increase.
Ebitda margin stood at 4.41% in fiscal 2024, compared to 2.72% in fiscal 2023.
The company's net profit grew 64.6% to Rs 154.3 crore during the period, compared to Rs 93.7 crore in fiscal 2023, reflecting stronger bottom-line performance.
Risk Factors
The success of P N Gadgil Jewellers is highly dependent on the strength of its brand. Any harm to the reputation of its name or logo could negatively impact the company's financial health, cash flows, and overall business performance.
If P N Gadgil Jewellers fails to effectively promote its products or if public perception of the brand worsens, it may lead to a decline in consumer traffic, which could in turn affect the company’s business operations, financial stability, and cash flow.
