PN Gadgil Jewellers IPO: A legacy jeweller in Maharashtra

MUMBAI, 9 SEPTEMBER, 2024 (TGN): The initial public offering (IPO) of PN Gadgil Jewellers will open for subscription on September 10. The issue closes on September 12. Through the public offer, the company plans to raise nearly Rs 1100 crore.
In a Candid Interview Babita Prabhakar spoke with Saurabh Gadgil, Managing Director of PN Gadgil Jewellers, to understand how well the company is positioned at this point and what are the prospects.
Talking on the Financials Saurabh Gadgil, MD,PN Gadgil Jewellers said, “We closed March 2024 with a revenue of around Rs. 6,100 crores, EBITDA of Rs. 280 crores, and a PAT of Rs. 155 crores. Our ROCE and ROE are both close to 30%, and we’ve seen a CAGR of over 50% in volume growth over the past three years. We expect continued growth, with plans to expand existing stores and open new ones. We’re aiming for a 30% increase in top-line revenue this financial year and are on track to achieve that. We have achieved several industry firsts. Our revenue per square foot stands at Rs.6 lakh, the highest in the industry. Our revenue per store exceeds Rs. 170 crore, again leading the industry. I’m proud to say that between FY22 and FY24, we’ve grown at a CAGR of more than 50%, making us the fastest-growing company among both organized and listed players in the country.”
The company started in 1832, making us one of the oldest jewellery companies in the country. After celebrating 125 years in Sangli, where we began, we expanded to Pune, which has been our growth hub. I joined the business in 2000 when we were a single-store, family-run company with a top line of Rs.20 crore. Today, as of March 2024, we have 39 stores and a revenue of Rs.6,000 crore, and we’re now a fully professionally managed company.
CHECK THE KEY HIGHLIGHTS:
1) What is the business overview of PN Gadgil Jewellers?
PN Gadgil Jewellers is the second largest among the prominent organised jewellery players in Maharashtra in terms of the number of stores as on January 2024. The company is also the fastest growing jewellery brand amongst the key organised jewellery players in India, based on the revenue growth between FY21 and FY23.
2) What is the industry overview of PN Gadgil Jewellers?
The Indian jewellery retail sector’s size in FY23 was close to $70 billion. Within this landscape, organized retail accounted for about 37%, encompassing both national and regional players. The fine jewellery segment in India constitutes about 90% of the overall jewellery market.
3) What is the current GMP of PN Gadgil Jewellers?
According to market analysts, the current GMP of PN Gadgil Jewellers is Rs 230 in the unlisted market, indicating a premium of 48% to the issue price.
4) What is the size of PN Gadgil Jewellers IPO?
The IPO includes a fresh issue of up to 1.7 crore shares and an offer for sale (OFS) of up to 52 lakh shares by Binod Kumar Agarwal.
5) What is the price band for PN Gadgil Jewellers IPO?
The company has fixed a price band of Rs 456-480 for the public offer, where investors can bid for 31 shares in one lot.
6) What is the structure of PN Gadgil Jewellers IPO?
About 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
7) How is the financial performance of PN Gadgil Jewellers Trading?
In FY23, the company’s revenue from operations jumped 76% year-on-year to Rs 4,507 crore and the profit after tax increased 35% to Rs 94 crore. For the period ended September 2023, revenue from operations stood at Rs 2,628 crore and PAT came in at Rs 4.37 crore.
8) What are the objects of PN Gadgil Jewellers IPO?
The funds raised through the IPO are proposed to be utilised for the funding of expenditure towards setting-up of 12 new stores in Maharashtra, repayment of debt and other general corporate purposes.
9) Who are the book-running lead managers for PN Gadgil Jewellers IPO?
Motilal Oswal Investment Advisors, Nuvama Wealth Management (formerly Edelweiss Securities) and BOB Capital Markets are the book running lead managers to the issue.
10) When is the share allotment and listing date of PN Gadgil Jewellers IPO?
The share allotment for the IPO will likely be finalised on September 13 and the company is anticipated to list on stock exchanges on September 17.




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