PN Gadgil Jewelers IPO Review:The IPO of PN Gadgil Jewellers Limited has opened for investment. It can be subscribed till 12 September. The company has fixed the price band for the IPO at Rs 456 to Rs 480 per share. The company plans to raise Rs 1100 crore through the IPO. Shares will be allotted in the IPO on 13 September, while the shares will be listed on 17 September.
50% premium in grey market
There is a craze for the company’s IPO in the grey market. The company’s unlisted stock is at a premium of Rs 240 in the grey market. This premium is 50 per cent in terms of the upper price band of Rs 480. That is, the company’s stock can be listed at a 50 per cent premium.
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Canara Bank Securities : Subscribe
Brokerage house Canara Bank Securities has advised to subscribe to the IPO of PN Gadgil Jewelers. The brokerage says that the company has a strong presence in Maharashtra with 38 stores. The company also boasts of a large inventory with more than 38,000 SKUs. The company plans to open 12 new stores in Maharashtra in the next 2 years, followed by expansion in neighboring states. The target is to reach 120 stores in 6 to 7 years.
PN Gadgil has a P/E ratio of 22.23 times and a P/B ratio of 10.60 times, which shows better valuation than Pierce. Ebitda has almost doubled from Rs 141.98 crore in FY22 to Rs 277.42 crore in FY24, which shows the potential of the company. The company is expanding its operations with profitability.
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SBI Securities : Subscribe
Brokerage house SBI Securities has advised to subscribe to the IPO of PN Gadgil Jewelers. The brokerage says that PN Gadgil is valued at a FY24 P/E multiple of 42.2 times based on the upper price band on post-issue capital. The company is one of the fastest growing organized jewelers in Maharashtra and operates under the legacy of the ‘PN Gadgil’ brand. The company has a CAGR growth of 54.6 per cent, 55.5 per cent and 49.0 per cent in revenue, Ebitda and PAT. The company expects to save Rs 31 crore from finance cost after repaying the debt from the IPO proceeds and plans to use Rs 393 crore to open 12 new stores in FY25 and FY26. The company is also set to capitalize on the growth trend of the jewelry market.
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About IPO
The size of the IPO is Rs 1100 crore. In this, fresh equity shares worth Rs 850 crore will be issued, while 52 lakh shares will be sold under OFS of Rs 250 crore. There is one lot of 31 shares in the IPO. Retail investors will have to invest at least Rs 14,880. You can bid for a maximum of 13 lots. PM Gadgil Jewelers Company deals in many types of jewelery. These include gold, silver, platinum, diamond. It is known by the PNG brand.
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How much reserve for whom
In the IPO of PM Gadgil Jewelers, 35 percent quota is reserved for retail investors. While 50 percent is reserved for qualified institutional buyers i.e. QIB. At the same time, 15 percent is reserved for non-institutional buyers i.e. NII. The money raised through the IPO will be used to start new stores, repay debt and for general corporate purposes.
(Disclaimer: The views or advice on the stock are given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
