PN Gadgil IPO Subscribed 6.90 Times On Day Two

PN Gadgil Jewellers Ltd.'s initial public offering entered its second day on Wednesday. The offering was subscribed 6.90 times on the second day, with bids led by retail investors. The offering consists of a fresh issue of 1.77 crore shares worth Rs 850 crore and an offer for sale of 52 lakh shares worth Rs 250 crore.

The price band has been fixed at Rs 456 to Rs 480 per share. Retail investors will need to invest a minimum of Rs 14,880 for one lot of 31 shares. For small non-institutional investors, the minimum investment size is Rs 2.08 lakh for 14 lots (434 shares), while large non-institutional investors will require Rs 10.12 lakh for 68 lots (2,108 shares).

The IPO will close on Thursday and the allotment of shares is expected to be finalised by Friday. The company's shares are expected to list on the BSE and NSE, with Sept.17. set as the tentative listing date.

Issue Details

• Issue opening: Sept. 10.

• Issue closing: Sept. 12.

• Issue price: Rs 456-480 per share.

• Fresh issue: Rs 850 crore.

• Offer for sale: Rs 250 crore.

• Total issue size: Rs 1,100 crore.

Use Of Proceeds

The company will use the net proceeds for following purposes:

• Expenditure towards setting up 12 new stores in Maharashtra (new stores).

• Repayment or pre-payment, in full or part, of certain borrowings availed by the company.

• General corporate purposes.

Financial Performance

The company's revenue grew 36% to Rs 6,110.9 crore in fiscal 2024, compared to Rs 4,507.5 crore in the previous fiscal. This was driven by strong operational performance and possible increased demand.

This revenue boost helped the company improve its profitability considerably, as reflected in the rise in Ebitda from Rs 122.6 crore in fiscal 2023 to Rs 269.3 crore in fiscal 2024, marking a 120% increase.

Ebitda margin stood at 4.41% in fiscal 2024, compared to 2.72% in fiscal 2023.

The company's net profit grew 65% to Rs 154.3 crore during the period, compared to Rs 93.7 crore in fiscal 2023, reflecting stronger bottom-line performance.

PN Gadgil Jewellers IPO Subscription Status

The PN Gadgil IPO has been subscribed 6.90 times as of 5:30 p.m. on Wednesday.

• Institutional investors: 0.08 times or 8%.

• Non-institutional investors: 15.76 times.

• Retail investors: 7.00 times.

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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.