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P N Gadgil Jewellers Limited, a prominent name in the Indian jewelry industry, is set to go public with its IPO from September 10, 2024, to September 12, 2024. The company aims to raise ₹1,100 crores, with a combination of a fresh issue of 17.71 million shares aggregating to ₹850 crores and an offer for sale (OFS) of 5.21 million shares amounting to ₹250 crores.
With a price band of ₹456 to ₹480 per share, the company is looking to attract retail and institutional investors alike. The IPO has been categorized as a book-built issue, and the minimum lot size for retail investors is 31 shares, translating into a minimum investment of ₹14,880. The shares are set to be listed on both the BSE and the NSE, with the tentative listing date scheduled for September 17, 2024.
IPO Details at a Glance
The IPO includes the following key details:
- Fresh Issue: ₹850 crores
- Offer for Sale: ₹250 crores
- Total Shares Offered: 22.92 million shares
- Market Capitalization: ₹6,514 crores post-IPO
- Listing Exchanges: BSE, NSE
The company has also managed to raise ₹330 crores from anchor investors as part of the pre-IPO process. Anchor bidding took place on September 9, 2024, and these investors will be subject to lock-in periods of 30 and 90 days for 50% of the shares.
Financial Strength of P N Gadgil Jewellers
As of March 31, 2024, the company’s financials have shown promising growth, with a 34% increase in revenue compared to the previous year. The profit after tax (PAT) grew by 65% from ₹93.7 crores in 2023 to ₹154.34 crores in 2024. The company’s net worth has also improved, reaching ₹534.38 crores.
| Key Financials | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Revenue (₹ Cr) | 6,119.1 | 4,559.31 | 2,586.31 |
| Profit After Tax (₹ Cr) | 154.34 | 93.7 | 69.52 |
| Total Assets (₹ Cr) | 1,464.98 | 1,062.55 | 1,110.24 |
| Net Worth (₹ Cr) | 534.38 | 365.73 | 282.01 |
With these numbers, the IPO is expected to attract significant attention from both retail and institutional investors.
Key Performance Metrics
- ROE (Return on Equity): 28.88%
- ROCE (Return on Capital Employed): 27.31%
- Debt/Equity Ratio: 0.74
- PAT Margin: 2.53%
- P/E Ratio (Post-IPO): 42.2x
Subscription Details and Investment Options
The IPO is divided into portions:
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
The minimum investment for retail investors is ₹14,880 for 31 shares, while small and large HNIs (High Net-worth Investors) can invest in higher multiples, with the maximum investment for S-HNI being ₹996,960 and for B-HNI being ₹1,011,840.
| Investor Category | Lots | Shares | Investment (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 31 | 14,880 |
| Retail (Max) | 13 | 403 | 193,440 |
| S-HNI (Min) | 14 | 434 | 208,320 |
| B-HNI (Min) | 68 | 2,108 | 1,011,840 |
P N Gadgil Jewellers Limited IPO Overview (September 10-12, 2024)
| Details | Information |
|---|---|
| IPO Date | September 10, 2024 – September 12, 2024 |
| IPO Size | ₹1,100 crores (22.92 million shares) |
| Fresh Issue | ₹850 crores (17.71 million shares) |
| Offer for Sale (OFS) | ₹250 crores (5.21 million shares) |
| Price Band | ₹456 – ₹480 per share |
| Lot Size | 31 shares |
| Minimum Investment | ₹14,880 (for 31 shares) |
| Listing Exchange | BSE, NSE |
| Face Value | ₹10 per share |
| Market Capitalization | ₹6,514 crores |
| Pre-IPO Shareholding | 118 million shares |
| Post-IPO Shareholding | 135.71 million shares |
| Basis of Allotment | September 13, 2024 |
| Listing Date | September 17, 2024 |
Anchor Investors Details
| Details | Information |
|---|---|
| Anchor Portion Size | ₹330 crores |
| Anchor Bid Date | September 9, 2024 |
| Shares Offered (Anchor) | 6.87 million |
| Lock-in Period (50% Shares) | October 13, 2024 |
| Lock-in Period (Remaining) | December 12, 2024 |
Financial Information (Consolidated)
| Financial Year Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets (₹ Cr) | 1,464.98 | 1,062.55 | 1,110.24 |
| Revenue (₹ Cr) | 6,119.1 | 4,559.31 | 2,586.31 |
| Profit After Tax (₹ Cr) | 154.34 | 93.7 | 69.52 |
| Net Worth (₹ Cr) | 534.38 | 365.73 | 282.01 |
| Reserves & Surplus (₹ Cr) | 255.53 | 191.22 | – |
| Total Borrowing (₹ Cr) | 396.5 | 283.21 | 294.93 |
Key Performance Indicators (as of March 31, 2024)
| KPI | Value |
|---|---|
| ROE | 28.88% |
| ROCE | 27.31% |
| Debt/Equity | 0.74 |
| PAT Margin | 2.53% |
| EPS (Post-IPO) | ₹11.37 |
| P/E (Post-IPO) | 42.2x |
Subscription Details
- Retail Investors: 35%
- Non-Institutional Investors (NII): 15%
- Qualified Institutional Buyers (QIB): 50%
Minimum and Maximum Investment for Retail and HNI Investors:
| Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 31 | 14,880 |
| Retail (Max) | 13 | 403 | 193,440 |
| S-HNI (Min) | 14 | 434 | 208,320 |
| B-HNI (Min) | 68 | 2,108 | 1,011,840 |
This IPO is designed to fund the company’s expansion, with a mix of fresh issue and offer for sale.
Conclusion
P N Gadgil Jewellers Limited’s IPO promises to be one of the more anticipated listings of the year, driven by the company’s strong financial performance and market presence. The funds raised will support its expansion plans, including increasing retail outlets, boosting its online presence, and managing working capital. Investors looking for exposure to the luxury and retail segment, particularly in jewelry, may find this IPO an attractive opportunity.
