IPO listed on 17 Sep'24
P N Gadgil Jewellers Ltd
Minimum Investment
₹ 14,880 / 31 shares
Grey market premium
₹ 240 (50% premium)
Issue price
₹ 480
Listing price
₹ 830
Listing day %
64%
Listing on
Sep 17, 2024
Our Verdict:
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- P N Gadgil Jewellers Ltd (PNG) has exhibited strong growth in both revenue and profits in recent years. EBITDA has almost doubled from Rs 142 crore in FY22 to Rs 277 crore in FY24. Additionally, a considerable portion of the proceeds from this issue will be used to repay debt, which will significantly reduce interest costs and boost profits further.
- The IPO is attractively priced with a price-to-earnings (P/E) ratio of 22x based on FY24 earnings, lower than the industry average despite showcasing superior return metrics. Additionally, the positive grey market premium (GMP) suggests a solid market debut.
- Considering PNG's solid financial health, expansion strategies, growth potential, and appealing valuation, investors should consider this IPO as a viable option for medium to long-term investment.
About the company
Founded in
28 Oct'13
Managing director
Saurabh Gadgil
- PNG ranks as Maharashtra's second-largest jewellery retailer by store count as of January 2024. The firm offers a diverse range of jewellery made from precious metals such as gold, silver, platinum, and diamonds. These products are available in various designs and price ranges to cater to different customer preferences.
- PNG markets its jewellery under the primary brand 'PNG' and several sub-brands. Sales are conducted through 39 retail stores as of July 31, 2024, and various online platforms. Of these stores, 28 are directly owned and managed by the company (CoCo), and 11 are managed under a franchisee owned and company operated (FoCo) model.
STRENGTHS
- Market Position: PNG ranks as Maharashtra's second-largest jewellery retailer, a state accounting for ~15% of India's total jewellery retail spending. Notably, its revenue per square foot reached Rs 6.02 lakh in FY24, the highest among India’s major jewellery players.
- Extensive Product Range: PNG boasts a comprehensive and diverse product range, offering over 10,000 SKUs in gold, 1,200 SKUs in silver, 2,700 SKUs in platinum, and 24,000 SKUs in diamond jewellery designs as of the end of March 2024.
- Strong Financial Growth: PNG has exhibited a robust growth trajectory, with its operational revenue and net profit posting compounded annual growth rates (CAGRs) of 55% and 49%, respectively, from FY22 to FY24.
- Solid Return Metrics: PNG’s financial efficiency is highlighted by impressive return metrics, with a Return on Equity (RoE) of 28.88% and a Return on Capital Employed (RoCE) of 27.31% in FY24, outperforming its industry peers.
RISK FACTORS
- Geographical Concentration: Majority of PNG's business is centralized in Maharashtra, particularly Pune, with the top five stores in the state significantly contributing to revenues. Approximately 68% of total FY24 revenue originated from Pune. Any negative developments in this region or these specific stores could impact overall business performance.
- Legal Challenges: PNG is involved in various legal proceedings, including criminal cases that involve its directors, promoters, and group companies. Unfavourable outcomes in these cases could harm the company's reputation and financial health.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 1,100 crore
Fresh Issue
₹ 850 crore
OFS
₹ 250 crore
Price range
₹ 456 - 480
Lot size
31 shares
Issue Objective
PNG intends to use the net proceeds from the fresh issue for the following purposes:
- Financing the establishment of 12 new stores in Maharashtra;
- Repaying or prepaying specific debts incurred by the company; and
- General corporate purposes.
Dates
Bidding open
10 Sep'24
Bidding close
12 Sep'24
Allotment date
13 Sep'24
Refund date
16 Sep'24
Listing
17 Sep'24
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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