PN Gadgil Jewellers plans to raise ₹1,100 crore through initial public offering which opens for subscription on September 10.
The company has fixed the price band for the offer at ₹456-₹480 per equity share. Bids can be made for a minimum of 31 shares and in multiples of 31 shares thereafter.
The Maharashtra-focused jeweller will issue fresh equity shares worth ₹850 crore and an offer for sale of ₹250 crore by existing investors. The promoter group SVG Business Trust will sell shares worth ₹250 crore through offer for sale.
To set up stores
The retail chain intends to spend ₹387 crore of the fresh issue proceeds to set up 12 stores in Maharashtra by FY26 and use ₹300 crore to repay debt. The remaining funds will be utilised for general corporate purposes. The company had a debt of ₹377 crore as of February 29.
Saurabh V Gadgil, Chairman and Managing Director, PNG Jewellers said the company will first cover Maharashtra — one of the biggest jewellery markets — before venturing into other States.
The latest initiative of the government has led to jewellery market across the country getting more organised and people preferring leading jewellery brands rather than relying on local jewellers, he added.
Besides ready-to-wear jewellery, the Pune-based company also offers customers the option of having jewellery made to measure. The company competes with Kalyan Jewellers, Senco Gold and Thangamayil Jewellery.
The company has 32 stores across 18 cities in Maharashtra and Goa and one store in the US with a total retail space of approximately 95,885 sqft. All stores are operated and managed by the company, with 23 stores owned by the company and 10 operated by franchisees under the FOCO (franchisee-owned and company-operated) model.
For the six months ended September, the company has reported a net profit ₹44 crore with a revenue of ₹2,631 crore. For FY23, revenue was up 76 per cent at ₹4,508 crore, while EBITDA increased 10 per cent to ₹123 crore.