PN Gadgil Jewellers Raises Rs 330 Crore from Anchor Investors Pre-IPO

PN Gadgil Jewellers Ltd has successfully secured Rs 330 crore from anchor investors ahead of its initial public offering (IPO). The IPO is set to open for public subscription on September 10 and will close on September 12. The price band for the shares has been set between Rs 456 and Rs 480 per share.

Representative image

Anchor Investors and Allocation

The jewellery retailer allocated a total of 68.75 lakh equity shares to 33 funds at Rs 480 each, the upper limit of the price band. This allocation includes prominent investors such as ICICI Prudential Life Insurance Company, Tata Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, HDFC Mutual Fund, Bandhan Mutual Fund, Nippon India Mutual Fund, Goldman Sachs Singapore Pte, Citigroup Global Markets Mauritius, Societe Generale, Troo Capital, and The Jupiter Global Fund.

IPO Details and Market Capitalisation

The IPO aims to raise Rs 1,100 crore through a combination of a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale (OFS) by SVG Business Trust amounting to Rs 250 crore. SVG Business Trust currently holds a 99.9% stake in PN Gadgil Jewellers. Post-issue, brokerage houses estimate the company's market capitalisation to exceed Rs 6,500 crore.

Utilisation of Proceeds

From the fresh issue proceeds, Rs 393 crore will be allocated for setting up 12 new stores in Maharashtra. Additionally, Rs 300 crore will be used to repay debt. The remaining funds will cover general corporate expenses. As of March 2024, PN Gadgil Jewellers had total borrowings of approximately Rs 397 crore.

Product Range and Sales Channels

PN Gadgil Jewellers offers a diverse range of jewellery products including gold, silver, platinum, and diamond pieces. These products are sold under the flagship brand PNG and various sub-brands. The company operates through multiple channels including 39 retail stores as of July 31, 2024, and various online marketplaces.

Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd, and BOB Capital Markets Ltd are serving as the book-running lead managers for this issue.

The company’s strategic expansion plans and debt repayment initiatives are expected to strengthen its market position further.