PN Gadgil Jewellers lists at 72.9% premium on NSE

PN Gadgil Jewellers made a remarkable debut in the share market, attracting significant attention from investors. The company’s initial public offering (IPO) was highly successful, resulting in the stock listing at a substantial premium. Let’s take a closer look at how PN Gadgil performed during its IPO listing and what it means for those looking to invest in IPO opportunities.

Impressive listing at a premium

PN Gadgil Jewellers made its stock market debut on September 17 with a strong opening. The company’s shares are listed at ₹830 apiece on the National Stock Exchange (NSE), reflecting a 72.9% premium over the issue price of ₹480. On the BSE-Bombay Stock Exchange, the stock opened at ₹834, a 73.7% premium. This impressive start highlighted the high demand for the company's shares.

Early price fluctuations

Shortly after the initial listing, PN Gadgil shares experienced some fluctuations. At around 10:21 am, the stock dipped slightly to ₹827 on the NSE. By 10:48 am, shares had further declined by 4.4%, settling at ₹793. Despite the slight pullback, the company's market capitalisation remained strong at ₹10,761.67 crore.

Key strengths driving the IPO success

Several key strengths supported PN Gadgil Jewellers’ robust performance during the IPO:

• Trusted brand: The company’s legacy as a well-established and trusted jewellery brand in Maharashtra played a vital role in its popularity among investors.
• Large market share: PN Gadgil ranks as the second-largest organised jewellery player in Maharashtra and has shown impressive financial results.
• Strong growth: Between FY22 and FY24, the company acquired a compound annual growth rate (CAGR) of 33% in revenue and 30% in net profit.
• Diversified portfolio: PN Gadgil offers a wide range of jewellery products, including gold, platinum, silver, and diamonds, catering to different price points.

Financial performance and projections

PN Gadgil Jewellers has displayed a strong financial performance over the years. In FY22, the company reported revenues of ₹2,555 crore, which grew significantly to ₹6,110 crore by FY24. Net profit also saw a substantial increase from ₹69.5 crore in FY22 to ₹154 crore in FY24. With the Indian jewellery market expected to reach approximately USD 145 billion by FY28, PN Gadgil is well-positioned for continued growth.

IPO details and strong demand

During the IPO bidding period from September 10 to 12, PN Gadgil’s shares received overwhelming demand. The IPO was subscribed 59.41 times, with the part reserved for qualified institutional buyers (QIBs) receiving 136.85 times the subscription. Non-institutional investors (NIIs) subscribed 56.08 times, and retail investors’ quota saw 16.58 times the subscription.

The IPO had a price range of ₹456-₹480 per share and included a fresh issuance of shares worth up to ₹850 crore and an offer for sale (OFS) component of ₹250 crore by the promoter SVG Business Trust.

Plans for IPO proceeds

PN Gadgil plans to use a portion of the IPO to continue funding the expansion of its retail network in Maharashtra, with ₹393 crore allocated for this purpose. Additionally, ₹300 crore will go towards repaying existing debt, and the existing funds will be used for general corporate purposes.

Key takeaways

• Strong listing: PN Gadgil Jewellers shares are listed at a 72.9% premium, reflecting high demand and market confidence.
• Financial growth: The company’s impressive financial results and market position make it an attractive investment for those looking to invest in IPOs.
• IPO success: With a total subscription of 59.41 times, the IPO saw significant interest from both institutional and retail investors.