Ahead of the listing, the company’s shares traded with a GMP of 63% to the issue price.
The IPO, which included a fresh equity sale of 1.77 crore shares and an offer for sale (OFS) of 52.08 lakh shares, received a strong investor response with an overall subscription of over 50 times by the close.
Ahead of the issue opening, PN Gadgil Jewellers raised Rs 330 crore from anchor investors by allotting 68.74 lakh shares to 25 anchor investors.
The funds raised through the IPO are proposed to be used for setting up 12 new stores in Maharashtra, repaying debt, and other general corporate purposes.
As of January 2024, PN Gadgil Jewellers is the second-largest among the prominent organized jewellery players in Maharashtra in terms of the number of stores. The company is also the fastest-growing jewellery brand among India’s key organized jewellery players, based on revenue growth between FY21 and FY23.As of December 2023, the company has expanded to 33 stores, including 32 across 18 cities in Maharashtra and Goa, and one in the US, with an aggregate retail area of approximately 95,885 sq ft.PN Gadgil achieved an EBITDA growth of 56.5% between FY21 and FY23 and recorded the highest revenue per square foot among key organized jewellery players in India in FY23.
In FY23, the company’s revenue from operations surged 76% year-on-year to Rs 4,507 crore, while profit after tax increased 35% to Rs 94 crore. For the year ended March 2024, revenue from operations reached Rs 6,110 crore, with PAT at Rs 154 crore.
Motilal Oswal Investment Advisors, Nuvama Wealth Management (formerly Edelweiss Securities), and BOB Capital Markets acted as the book-running lead managers for the issue.
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