PN Gadgil Jewellers IPO day 3: GMP, review, subscription status, other details. Buy or not?

PN Gadgil Jewellers IPO: The initial public offering (IPO) of PN Gadgil Jewellers is witnessing a healthy response. The issue, which opened for subscription on Tuesday, September 10, saw an overall subscription of 59.41 times. After the completion of the subscription period, the company is expected to finalise the share allotment status on Friday, September 13. Shares of PN Gadgil Jewellers are expected to debut on the BSE and the NSE on Tuesday, September 17.

PN Gadgil Jewellers IPO subscription status

According to the BSE data on Thursday, the issue saw an overall subscription of 59.41 times. It received bids for 1,00,31,53,273 shares against 1,68,85,964 offered. 

The segment reserved for retail investors was subscribed 16.58 times, receiving bids for 13,99,86,607 shares against 84,42,983 offered. 

The non-institutional investors category was subscribed 56.09 times, with bids for 20,29,40,043 shares against 36,18,421 offered. 

The QIB segment of the book build issue was subscribed 136.85 times, with bids of 66,02,26,623 shares against 48,24,560 offered. 

Important PN Gadgil Jewellers IPO details

Let's take a look at PN Gadgil Jewellers IPO details in 10 key points:

1. PN Gadgil Jewellers IPO GMP: According to market sources, the last grey market premium (GMP) of the shares of PN Gadgil Jewellers is ₹333. This means the listing price of PN Gadgil Jewellers IPO is ₹813, a premium of 69.38 per cent.

2. PN Gadgil Jewellers IPO price band: The price band of the mainboard issue has been set at ₹456 to ₹480 per share.

3. PN Gadgil Jewellers IPO date: The book build issue opened for subscription on Tuesday, September 10 and will conclude on Thursday, September 12.

4. PN Gadgil Jewellers IPO size: The company intends to raise ₹1,100 crore crore from the IPO, a combination of a fresh issue and an offer for sale (OFS). The company will raise ₹850 crore from the fresh issue of shares.

5. PN Gadgil Jewellers IPO lot size: The minimum lot size for an application is 31 Shares. With the upper price band of the issue at ₹480, the minimum amount of investment required by retail investors is ₹14,880.

6. PN Gadgil Jewellers IPO allotment date: The company is expected to finalise the share allotment on Friday, September 13. Successful applicants will likely see the shares credited to their demat accounts by Monday, September 16, while those who do not receive an allotment may expect refunds to be processed on the same day.

7. PN Gadgil Jewellers IPO registrar: Bigshare Services Pvt Ltd is the official registrar of the mainboard issue.

8. PN Gadgil Jewellers IPO listing: The company's shares are proposed to be listed on the BSE and the NSE tentatively on Tuesday, September 17.

9. Object of the issue: The company intends to use the net proceeds to set up 12 new stores in Maharashtra. Moreover, some proceeds will be used in loan payments and for general corporate purposes.

10. Company overview: According to the RHP, as of January 2024, the company is the second largest among the prominent organised jewellery players in Maharashtra in terms of the number of stores.

"As on July 31, 2024, we had expanded to 39 stores, which includes 38 stores across 21 cities in Maharashtra and Goa and one store in the US. We plan to expand our store network by opening 12 new stores in Maharashtra by fiscal 2026," says the RHP.

PN Gadgil Jewellers IPO: Buy or not?

Experts appear positive about the PN Gadgil Jewellers IPO. Brokerage firm Swastika Investmart has a 'subscribe' recommendation for the mainboard issue.

"While the company's overall outlook is positive, investors should be aware of potential fluctuations in listing gains due to the competitive IPO market. Long-term investors may consider subscribing to the IPO," said Swastika.

Brokerage firm Anand Rathi also has a 'subscribe' view on the issue.

"Looking at the company’s stable and growing profits and returns ratios, we believe this issue may be considered for its long-term growth. Hence, we give this IPO a 'subscribe for long term' rating," said the brokerage firm.

Anand Rathi pointed out that on the valuation front, the company’s implied market cap is around ₹6,513 crore at the upper price band of the issue, valuing at a PE of 42.2 times for FY24.

Moreover, the company is coming with a public offer amid the retail rush for gold during the festive and beginning of wedding seasons, which will have an added advantage for brand recall PNG, the brokerage firm observed.

Akriti Mehrotra, a research analyst at Stoxbox, underscored that PN Gadgil, a leading player with over 10,000 gold SKUs, 1,200 silver, 2,700 platinum, and 24,000 diamond pieces, leverages its strong presence in Maharashtra and Goa.

With 39 stores, including one in the US, PNG plans to open 12 more stores in Maharashtra by FY26 to address demand-supply gaps. The company’s strong financial performance, with significant revenue and EBITDA growth during FY2022-24, is reflected in its net debt of ₹3,965 million, partially earmarked for repayment. Priced at a PE of 36.7 times, based on FY24 earnings, PNG's strategic expansion and innovative marketing justify a 'subscribe' rating for medium to long-term investment," said Mehrotra.

Rajan Shinde, a research analyst at Mehta Equities, believes PN Gadgil Jewellers IPO offers investors an opportunity to invest in the second largest organized jewellery retailer in Maharashtra, a key market for BIS-registered outlets in India.

"Based on FY24 earnings and fully diluted post-IPO paid-up capital, the company is asking for PE of 42.2 times, which seems in line looking at its industry average of nearly 40-45 times and financial growth trajectory. Due to its rich heritage of PNG brand equity and legacy of more than 150 years, the market may give a higher valuation multiple compared to its listed peers," said Shinde.

PNG's commitment to quality, demonstrated by its adherence to BIS hallmarking standards and certified conflict-free diamonds, enhances its brand credibility among discerning customers. Given its robust operational model, strategic store expansion, and focus on catering to evolving consumer trends, we believe PNG is well-positioned in India’s growing organized jewellery sector. Hence, we recommend investors to 'subscribe with risk' in P N Gadgil Jewellers IPO for long-term perspective only. We advise booking profits if the market sentiment leads to listing gains exceeding 20 per cent over the issue price," said Shinde.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.