PN Gadgil Jewellers Ltd has set a price band of Rs 456-480 per share for its upcoming Rs 1,100-crore initial public offering (IPO), which is set to open for subscription on September 10. The anchor bidding will begin on September 9, and the issue will close on September 12. The allotment will take place on September 13, with refunds expected by September 17, and the stock is scheduled to list on exchanges on September 18.
The IPO is a fresh issue of Rs 850 crore and an OFS of up to Rs 250 crore by SVG Business Trust. The company plans to utilize Rs 387 crore of the proceeds to open 12 new stores in Maharashtra by FY26 and will invest Rs 300 crore to repay debt. The balance amount from the proceeds will be utilized for general corporate purposes. The company has a debt of Rs 377.45 crore as on February 29.
PN Gadgil Jewellers claims to be the second-largest organised jewellery player in Maharashtra by store count and has 33 operational outlets as of December 2023, of which 32 are located in Maharashtra and Goa, and one in the US. Of these, 23 stores are company-operated, while 10 are franchise-owned. This company competes with successful jewellery players like Kalyan Jewellers, Senco Gold and Thangamayil Jewellery.
PN Gadgil has reported a 34.8 percent year-on-year growth in net profit at Rs 93.7 crore for FY23, driven by strong revenue growth. Operating margins were strained due to increased input costs. Revenue increased by 76.4 percent at Rs 4,507.5 crore, while EBITDA increased 10.3 percent at Rs 122.7 crore, though the margin fell 163 basis points to 2.72 percent.
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Source: Moneycontrol
News Desk
