P N Gadgil Jewellers Limited is coming up with an IPO worth INR 1,100 crores, consisting of a fresh issue of 1.77 crore shares worth INR 850 crores and an offer to sell 0.52 crore shares worth INR 250 crores. The company aims to establish 12 new stores, repay borrowings, and fund general corporate purposes. 

P N Gadgil Jewellers IPO – Important Dates 

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P N Gadgil Jewellers Limited IPO – Company Profile 

P N Gadgil Jewellers Limited, the second-largest organized jewellery player in Maharashtra, leverages its rich heritage to offer a wide range of gold, silver, platinum, and diamond jewellery through 39 stores and online platforms. 

As of July 31, 2024, they operate 39 stores, including 28 owned and 11 franchise-operated, across Maharashtra, Goa, and the U.S. The company offers a broad jewellery range through both physical stores and digital platforms. 

Collaborating with skilled artisans, the company introduces innovative designs and leverages diverse marketing strategies, including celebrity endorsements and event-focused campaigns, while maintaining stringent quality standards and strong customer trust. 

P N Gadgil Jewellers Limited IPO Fundamental Analysis 

P N Gadgil Jewellers Limited’s financial analysis reveals a mixed performance. Revenue growth reflects robust expansion, with increasing equity and decreasing debt reliance. Profitability and EPS have risen, enhancing investor confidence, while improved RoNW and total assets suggest solid financial health. 

1. Revenue Trend: The revenue increased from ₹25,556.34 million in March 2022 to ₹45,075.19 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 61,109.45 million. 

2. Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 

3. Profitability: The profit after tax (PAT) has increased from ₹695.15 million in March 2022 to ₹1,543.43 million by March 2024. The rise in profitability could be a source of confidence for investors. 

4. Earnings per Share (EPS): The diluted EPS has also increased from ₹5.89 in March 2022 to ₹13.08 by March 2024, reflecting higher earnings per share for investors. 

5. Return on Net Worth (RoNW): The RoNW has risen from 22.48% to 28.88%, indicating an increase in the company’s ability to generate returns on shareholder equity.

6. Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

P N Gadgil Jewellers IPO Financial Analysis 

P N Gadgil Jewellers Limited IPO Peer Comparison 

P N Gadgil Jewellers Limited shows notable revenue growth and strong profitability compared to competitors. Kalyan Jewellers India Limited leads in revenue, while Senco Gold Limited and Thangamayil Jewellery Limited excel in profitability and return metrics. 

P N Gadgil Jewellers Limited IPO Objective 

The main objective of P N Gadgil Jewellers Limited is to fund the establishment of 12 new stores in Maharashtra and to repay or pre-pay certain borrowings. 

1. Funding expenditure towards setting up 12 New Stores: The company intends to utilize INR 392.568 crores from the Net Proceeds to set up 12 new stores in Maharashtra, focusing on fit-outs and inventory costs, with any additional expenses covered by internal accruals. 

2. Repayment or prepayment, in whole or part, of certain borrowings availed by their company: The company plans to utilize INR 3000 crores from the Net Proceeds for the full or partial repayment of existing borrowings, aiming to reduce debt, improve the debt-to-equity ratio, and enhance future investment capacity. 

3. General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including strategic initiatives, working capital needs, security deposits, marketing, advertising, business development, facility expansion, and various operational expenses such as salaries, rent, and taxes. 

P N Gadgil Jewellers Ltd IPO Risks And Challenges 

P N Gadgil Jewellers Limited’s risks include brand reputation damage from negative publicity or misuse, challenges in maintaining competitive marketing and high-quality customer experiences, and vulnerability to local disruptions and supply chain issues, which can impact financial stability. 

• The strength of P N Gadgil Jewellers’ flagship and sub-brands significantly contributes to its success. Adverse publicity, brand misuse by third parties, or quality issues could impact reputation and affect business performance. 

• Operating in a competitive market, the company must continually enhance its brand and customer experience. Failures in marketing, product quality, or consistent in-store experiences could negatively impact reputation and financial performance. 

• Their operations are highly dependent on the Maharashtra region, particularly Pune, making them vulnerable to local disruptions, economic changes, or natural events. Reliance on critical stores and potential supply chain disruptions could significantly impact their business and financial stability. 

P N Gadgil Jewellers Limited IPO – Industry & Market Potential 

In the global gold market, valued at USD 305.6 billion in CY 2023, jewellery remains the most significant demand sector at 49%. Investment in gold coins, bars, and ETFs contributes significantly at 21%, reflecting solid and diverse interest in gold. 

The Indian jewellery retail sector, valued at USD 70 billion in FY 2023, is projected to grow to USD 145 billion by FY 2028. Growth is driven by economic expansion, rising disposable incomes, and increased consumer demand. 

Since 2015, rough diamond production has averaged 135 million carats and USD 14 billion annually. India dominates with 95% of cutting and polishing. Branded diamond jewellery is expected to grow 8-12% annually through 2029, surpassing the industry’s 3 to 4% growth rate. 

P N Gadgil Jewellers Limited IPO – Type of Offer 

P N Gadgil Jewellers Limited plans a fresh issue of shares, seeking INR 850 crores to establish 12 new stores, repay borrowings, and fund general corporate purposes. Additionally, the company proposes an offer for sale, intending to sell 0.52 crore existing shares.

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 850 crores. The company intends to utilize the proceeds from the fresh issue to establish 12 new stores, repay borrowings, and fund general corporate purposes.  
2. Offer for sale: P N Gadgil Jewellers Limited is offering to sell 0.52 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:

P N Gadgil Jewellers Ltd IPO Offer Size 

The offer size of P N Gadgil Jewellers Limited is INR 1,100 crores, consisting of a fresh issue of 1.77 crore shares worth INR 850 crores and an offer to sell 0.52 crore shares worth INR 250 crores. The company seeks funds to establish 12 new stores, repay borrowings, and fund general corporate purposes. 

P N Gadgil Jewellers Limited IPO Allotment Structure 

P N Gadgil Jewellers Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

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How to apply for P N Gadgil Jewellers IPO?

To apply for the P N Gadgil Jewellers Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the P N Gadgil Jewellers Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the P N Gadgil Jewellers Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check P N Gadgil Jewellers IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the P N Gadgil Jewellers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the P N Gadgil Jewellers Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the P N Gadgil Jewellers Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the P N Gadgil Jewellers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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P N Gadgil Jewellers Ltd IPO Offer Registrar

The registrar for the P N Gadgil Jewellers Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

Office No S6-2, 6th Floor, Pinnacle Business Park,

Next to Ahura Centre, Mahakali Caves Road,

Andheri (East) Mumbai – 400093

Telephone: +91 22 6263 8200

E-mail: [email protected]

Website: www.bigshareonline.com 

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P N Gadgil Jewellers IPO – FAQs