The ₹1,100-crore initial public offering of PN Gadgil Jewellers opens today in the ₹456-480 price band. The Maharashtra-based company’s IPO is a combination of a fresh issue of equity shares worth up to ₹850 crore and an offer for sale (OFS) of equity shares to the tune of ₹250 crore by a promoter SVG Business Trust. The IPO closes on September 12.
Not less than 35 per cent of the net Issue is reserved for retails, while up to 50 per cent is reserved for QIBs, and the balance 15 per cent for NIIs. The issue’s lot size is 31 equity shares and in multiples of 31 equity shares thereafter.
The jewellery retail chain on Monday raised ₹330 crore from anchor investors, as part of the IPO exercise.
ICICI Prudential Life Insurance Company, Tata Mutual Fund (MF), Axis MF, Mirae Asset MF, HDFC MF, Bandhan MF, Nippon India MF, Goldman Sachs (Singapore) Pte, Citigroup Global Markets Mauritius, Societe Generale, Troo Capital, The Jupiter Global Fund are among the anchor investors. The company has allocated a total of 68.75 lakh shares to 33 funds at ₹480 apiece.
Of the fresh issue proceeds, ₹393 crore will be utilised for the funding of expenditure towards setting up 12 new stores in Maharashtra, ₹300 crore for payment of debt, besides a portion will also be used for general corporate purposes.
As of March 2024, the company had total borrowings of around ₹397 crore, as per the red herring prospectus (RHP).
PN Gadgil Jewellers Ltd offers a range of precious metal/ jewellery products including gold, silver, platinum and diamond jewellery, across price points and designs. The company’s products are primarily sold under its flagship brand, ‘PNG’, and various sub-brands, through multiple channels, including 39 retail stores (as of July 31, 2024) and various online marketplaces, including websites.
Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd and BOB Capital Markets Ltd are the book-running lead managers to the issue.