PN Gadgil Jewellers IPO Sees High Demand, Subscribed 59 Times on Final Day; Grey Market Premium Soars to 64%

The initial public offering (IPO) of PN Gadgil Jewellers Ltd. has generated significant interest in the market, with a subscription rate of 59 times on the final day of bidding, September 12. This high demand is mainly driven by qualified institutional buyers (QIBs) and other investor segments.

By 4 PM on the last day, the IPO attracted bids for approximately 99.64 crore shares against the issue size of 1.68 crore shares, indicating a subscription rate of 59.01 times. The retail portion was subscribed 16.04 times, while non-institutional investors subscribed 55.94 times. The allocation for qualified institutional buyers saw an overwhelming subscription rate of 136.53 times, reflecting substantial interest from this investor category.

In the unlisted market, PN Gadgil Jewellers’ shares are currently trading at a premium of ₹308, translating to a 64% premium over the IPO issue price. However, it is crucial to understand that the grey market premium (GMP) serves as a market sentiment indicator and can fluctuate rapidly, depending on market conditions and investor sentiment.

Anchor Investments and IPO Details

Ahead of the IPO opening, PN Gadgil Jewellers raised ₹330 crore from anchor investors, including prominent names such as HDFC Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund, LIC Mutual Fund, Invesco India, and Citigroup. The shares were offered in a fixed price band of ₹456-480 per share. At the upper price band, PN Gadgil Jewellers is expected to achieve a post-listing market capitalization of ₹6,514 crore.

The public offer consisted of a fresh issue of equity shares worth ₹850 crore and an Offer for Sale (OFS) component amounting to ₹250 crore. The proceeds from the IPO are intended to fund the opening of 12 new stores in Maharashtra, repay existing debt, and cover other general corporate expenses.

About PN Gadgil Jewellers

PN Gadgil Jewellers, a Pune-based jewellery retailer, offers a diverse range of precious metal and jewellery products, including gold, silver, platinum, and diamond jewellery under the 'PNG' brand. The company caters to a wide range of price points and provides custom-made jewellery options for its customers.

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For the six months ending September 30, 2023, PN Gadgil Jewellers posted a net profit of ₹43.75 crore on a revenue of ₹2,631.15 crore. For the financial year ending March 31, 2023, the company reported a net profit of ₹93.7 crore with a total revenue of ₹4,559.31 crore.

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Listing Details and Key Players

Motilal Oswal Investment Advisors, Nuvama Wealth Management, and BOB Capital Markets are the Book Running Lead Managers for this IPO, while Bigshare Services Pvt Ltd serves as the registrar. The allotment of shares for the PN Gadgil Jewellers IPO is expected to be finalized on September 13, with the shares likely to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on September 17, 2024.