PN Gadgil Jewellers IPO: Grey Market Premium Hints At Strong Listing Day Gains

Ahead of the listing of PN Gadgil Jewellers' shares on Tuesday, grey market projections indicate a strong debut for the company's IPO, which was subscribed over 59 times.

The grey market premium for the shares stood at Rs 298 as of 9:29 p.m. on Monday, according to the website Investor Gain. This takes the estimated listing price to Rs 778, which is 62.08% higher than the upper end of the IPO price band of Rs 480.

However, GMP is not an official price quote for the stock and is based on speculation.

The Rs 1,100-crore IPO was launched by the Maharashtra-based jewellery chain last week. It comprised a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale component of Rs 250 crore by promoter SVG Business Trust.

At the close of the subscription window, on Thursday, the IPO was subscribed 59.41 times led by demand from qualified institutional buyers. Cumulatively, the issue received bids for 1,00,31,53,273 shares against 1,68,85,964 shares on offer, according to the NSE data.

The quota for qualified institutional buyers garnered 136.85 times subscription, while the category for non-institutional investors got subscribed 56.09 times. The portion for retail individual investors fetched 16.58 times subscription.

The allotment of shares under the IPO was finalised on Friday.

PN Gadgil Jewellers aims to utilise Rs 393 crore raised through the IPO for setting up 12 new stores in Maharashtra. The company also intends to earmark Rs 300 crore for payment of debt, besides using a portion of the proceeds for general corporate purposes.

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