PN Gadgil Jewellers, one of the prominent jewellery brands in India, has made an impressive debut on the stock market. The company’s IPO (Initial Public Offering), which was highly anticipated, saw a remarkable entry today as the shares got listed with a premium of 73% over the issue price. However, the excitement was short-lived as the stock faced some fluctuations during the day.
Shares Opened Strong but Faced Dip Later
The shares of PN Gadgil Jewellers were issued at Rs 480 per share in the IPO. When listed, the stock opened at Rs 834 on BSE and Rs 785 on NSE, bringing in significant listing gains for the investors. The early investors saw an instant 73% gain on their investments. However, as the trading progressed, the stock price fell to Rs 782 on BSE. By the end of the first trading day, the stock managed to close at Rs 792.80, leaving the IPO investors with a net gain of 65.17%.
Strong Demand from Investors for the IPO
PN Gadgil Jewellers’ ₹1,100 crore IPO was open for subscription between 10th and 12th September 2023. It received a tremendous response from the market, with the offering being subscribed 59.41 times overall. The Qualified Institutional Buyers (QIB) portion was subscribed a massive 136.85 times, while Non-Institutional Investors (NII) subscribed to it 56.08 times, and retail investors subscribed 16.58 times.
The company issued new shares worth ₹850 crore as part of the IPO, while an Offer for Sale (OFS) saw 52,08,333 shares sold by existing shareholders. The funds raised from this IPO will be utilized by the company to expand its retail footprint with 12 new stores in Maharashtra, repay existing debts, and for other corporate purposes.
About PN Gadgil Jewellers: A Growing Jewellery Brand
PN Gadgil Jewellers, established in 2013, is known for selling a wide range of gold, silver, platinum, and diamond jewellery under the PNG brand. As of December 2023, the company operates 33 stores—32 in Maharashtra and Goa and 1 store in the USA. Out of these, 23 stores are company-owned, while 10 operate under a franchise model.
Financial Performance: Impressive Growth
PN Gadgil Jewellers has shown strong financial growth in recent years. In the financial year 2022, the company recorded a net profit of ₹69.52 crore, which surged to ₹93.7 crore in FY 2023. In the latest financial year 2024, the company’s profit jumped to ₹154.34 crore. Over the last few years, the company’s revenue has grown at a compound annual growth rate (CAGR) of more than 53%, reaching ₹6,119.1 crore by 2024.
Future Plans and Market Outlook
With the successful IPO and growing investor confidence, PN Gadgil Jewellers plans to further strengthen its presence in India and internationally. The company’s decision to use the IPO funds for store expansions and debt repayment reflects its strategy to continue its growth trajectory in the jewellery industry. Investors are keenly watching how the stock performs in the upcoming months, especially given the volatility it faced post-listing.
