PN Gadgil Jewellers’ shares hit 10% lower circuit, slumps 18% from listing date high

PN Gadgil Jewellers share price: PN Gadgil Jewellers (PNG) saw its share price hit the lower circuit on Thursday, September 19, 2024 on Indian bourses. The stock dropped to ₹694.20, marking an 18 per cent decline from its post-listing high of ₹830.

PN Gadgil Jewellers' share price was trading in the red, down 7.47 per cent, at ₹713.65during the intraday session on September 19, at 1:04 p.m., but it showed signs of recovery on the NSE. As per the NSE, PN Gadgil Jewellers enjoys a market capitalisation of ₹9,635.29 crore.

PN Gadgil Jewellers share price history.

The jewellery company made a stellar debut on Tuesday, September 17, with shares opening at a significant premium. On the National Stock Exchange (NSE), PNG shares began trading at ₹830, while on the Bombay Stock Exchange (BSE), they opened at ₹834. This represented a substantial 73 per cent premium over the initial public offering (IPO) price of ₹480 per share.

However, the initial euphoria was short-lived as profit-taking set in shortly after the listing. The stock touched intraday highs of ₹848 on the NSE and ₹843.80 on the BSE before beginning its downward trajectory.

PNG's IPO, which closed on September 12, had garnered strong interest from investors. The offering was oversubscribed 59.41 times, with qualified institutional buyers showing the highest demand at 136.85 times the allotted quota. The company raised a total of ₹1,100 crore through the IPO, comprising a fresh issue of ₹850 crore and an offer for sale of ₹250 crore.

Following the public offering, the Gadgil family, led by Saurabh Gadgil, retained an 83 per cent stake in the company. PNG has seen significant growth over the past decade, with revenues increasing from ₹2,556 crore in FY14 to ₹6,111 crore by the end of March 2024.

The company operates 39 retail outlets in Maharashtra, including 28 company-owned stores and 11 franchises. PNG also maintained a presence in Goa and had previously ventured into international markets, though its Dubai store was closed in FY23 due to losses.

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