PN Gadgil Jewellers made a strong debut on the stock market on Tuesday, September 17, with its shares listing at Rs 830 per share on the NSE, marking a premium of 72.91% over the issue price of Rs 480 per share. On the BSE, the shares listed even higher at Rs 834 per share, a 73.75% premium.
The company’s Rs 1,100 crore initial public offering (IPO) received an overwhelming response, with subscriptions reaching 59.41 times by the last day of bidding on September 12. The price band for the IPO was set at Rs 456-480 per share, and the company raised Rs 330 crore from anchor investors.
The IPO comprises a fresh issue of equity shares for Rs 850 crore apart from an OFS by promoter SVG Business Trust worth Rs 250 crore. Currently, the stake of SVG Business Trust in PN Gadgil Jewellers stands as under: 99.9%.
The money received from fresh issue would be utilised to finance expansion plans and partial repayment of debt. The company plans to utilise Rs 393 crore in setting up 12 new stores across Maharashtra, Rs 300 crore for debt repayment, while the balance for general corporate purpose.
PN Gadgil Jewellers, based in the state of Maharashtra, designs, manufactures and markets different types of gold, silver, platinum and diamond jewellery under its flagship brand “PNG” with various sub-brands. Presently, the company is operating 39 retail stores and its products are also sold through various online marketplaces.
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Source: Moneycontrol
News Desk
