Loading...

Home >> Blog >> P N Gadgil Jewellers IPO: Review, Valuation, Date & GMP

P N Gadgil Jewellers IPO: Review, Valuation, Date & GMP

  


P N Gadgil Jewellers IPO-Complete Overview

P N Gadgil Jewellers IPO a Mainboard IPO is a book-built issue of Rs.1,100 crore (22,916,667 Shares) by P N Gadgil Jewellers Ltd. The company was founded in 2013 and provides a broad selection of jewelry and precious metal goods in a range of price points and styles, including gold, silver, platinum, and diamond jewelry under the "PNG" brand.

By December 31, 2023, the company had sub-brands offering jewelry collections in various categories for different occasions:

Gold Jewelry Collections-

  1. Saptam

  2. Swarajy

  3. Rings of Love

  4. The Golden Katha of Craftmanship

  5. Flip

  6. Lifestyle

  7. Yoddha

  8. Pratha.

Diamond Jewelry Collections-

  1. Eiina

  2. PNG Solitaire

Platinum Jewelry Collections-

  1. Men of Platinum

  2. Evergreen Love 

Customers can also choose to have crafted-to-measure jewelry.

By December 31, 2023, the company had expanded to 33 locations, with a total retail space of about 95,885 square feet spread among 32 locations in 18 cities in Maharashtra and Goa and one location in the US. 

Under the FOCO (franchisee-owned and company-operated) model, the company operates and manages all 23 of its locations in addition to the 10 that are run by franchisees. Of these stores, three are small format (less than 1,000 sq. ft.), 11 are medium format (between 1,000 and 2,500 sq. ft.), and 19 are big format (2,500 sq. ft. or more).

This new IPO is to be launched on 10 September 2024, and the initial public offering of this upcoming IPO will end on 12 September 2024.

 

P N Gadgil Jewellers IPO Overview

The Rs.1,100 crore P N Gadgil Jewellers Ltd. IPO comprises a combination of a fresh Issue of 1.77 crore Shares amounting to Rs.850 crore and an Offer for Sale (OFS) of 0.52 crore Shares amounting to Rs.250 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO date is from 10 September to September 12, 2024. The IPO listing is on Tuesday, September 17, 2024, and it will be held on the BSE and NSE. P N Gadgil Jewellers IPO price band is between Rs.456 to Rs.480 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Detailed Video:

Company Financial

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

  • The company’s total revenue is Rs.8458.28 crore.

  • The company’s PAT is Rs.135.61 crore.

(Amount in Crore)

Period

31 Mar 2024

30 Sep 2023

31 Mar 2023

Total Assets 

-

1265

1062.55

Total Revenue

8458.28

2,631.14

4,559.31

PAT

135.61

43.75

93.7

Net Worth

-

425.79

365.73

Total Reserves & Surplus

-

307.79

255.53

Total Borrowings

-

329.7

283.21

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

Net Cash Flow In Various Activities

For 6 Months Period Concluded 30 Sep 2023

FY 2023

FY 2022

Net Cash Flow Operating Activities

130.19 

1071.32 

727.71

Net Cash Flow Investing Activities

-269.33

-473.95

-216.08

Net Cash Flow Financing Activities

207.59

-545.55

-457.18

 

Online Sales Revenue Bifurcation

(Values in millions)

Product

For 6 Months Period Concluded 30 Sep 2023

FY 2023

FY 2022

Online Sales 

496.23

62.22

112.60

 

Product-wise Sales Bifurcation Between COCO & FOCO Model

(Values in millions)

Particulars

For 6 Months Period Concluded 30 Sep 2023

FY 2023

FY 2022

COCO

24,278.19

41,129.11

23,353.81

FOCO

1,990.63

3,929.10

2,189.37

 

Product-wise Sales Bifurcation

(Values in millions)

Particulars

For 6 Months Period Concluded 30 Sep 2023

FY 2023

FY 2022

Gold 91.62

24,068.44 

40,933.43

23,037.47 

Silver 

1,027.01

1,634.17

1,222

Diamond

960

1,962.91 

1,044.92

Platinum & Other Products

213.37 

527.70

238.79 

 

Geography-wise Sales Bifurcation

(Values in millions)

Geography

For 6 Months Period Concluded 30 Sep 2023

FY 2023

FY 2022

Maharashtra 

25,002.44 

42,386.02

23,563.63

Others 

920.43

1,508.93

954.55

United States 

355.62

782.67

911.75

UAE 

-

397.57

126.41

Total 

26,278.49

45,075.19 

25,556.34

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

  • Paying back or prepaying all or a portion of the company's outstanding loans from banks and other financial institutions

  • Financing the costs associated with opening 12 new stores in Maharashtra 

  • Corporate Purposes.

     

     

Peers of P N Gadgil Jewellers Ltd.

Company Name

Face Value (Rs.)

EPS (Rs.)

P/E (x)

Kalyan   Jewellers   India Limited

10

4.20

91.71

Senco Gold Limited

10

22.93

33.88

Thangamayil    Jewellery Limited

10

58.13

20.79

 

Note: The above comparison of listed peers is as per data as of FY 2023.

Evaluation

P N Gadgil Jewellers share price is between Rs.456 to Rs.480 for each Share.

Evaluation of P/E Ratio

Considering the 6 months period concluded on 30 Sep 2023, with an EPS of Rs.7.93 from the last year, the resulting P/E ratio is 60.53x.

Considering the weighted EPS of Rs.12.48 for the last three years, the P/E ratio is 38.46x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 48.80x.

Particulars

P/E Ratio (x)

Highest

91.71

Lowest

20.79

Average

48.80

In simple words, the P/E ratio of P N Gadgil Jewellers IPO (60.53x), compared with the industry’s average P/E of 48.80x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

Note: The EPS and weighted EPS of the company are as of FY 2023 and the industry P/E Ratio is computed based on the closing market price of the Share as of 22 March 2024.

IPO's Strengths 

  • A reputable and well-established legacy brand in Maharashtra

  • Among the brands with the quickest rate of growth in Maharashtra and the second-largest organized retail jewelry player

  • A product selection that is varied in terms of price points and categories

  • Seasoned promoter and management group with a track record of success in execution

  • Solid financial performance in the past.

 

IPO’s Weaknesses 

  • The company’s success largely depends on the power of the brands it utilizes. Any harm to the brand's, name, or logo's reputation could harm the company’s financial situation.

  • Its business, financial situation, cash flows, and operational performance could all suffer from its incapacity to successfully market its products or any decline in the public's view of its brand.

  • The operations could be negatively impacted if the company is unable to effectively analyze market trends and customer demand and maintain an ideal amount of inventory in its stores.

  • The business is centered in Maharashtra, and the top five stores in Maharashtra account for a large portion of its income generation. Any unfavorable development impacting these stores or the region could be detrimental to its business.

  • There is fierce competition in the retail jewelry market in India. Its business operates in highly competitive, fragmented markets where price, customer preferences, and market trends are the main drivers of competitiveness. Many of the companies in India's retail jewelry business are well-known in their home countries and frequently provide their goods at extremely low costs.

  • In the last FYs, its financing and investing activities resulted in negative cash flows.

P N Gadgil Jewellers IPO GMP Today

P N Gadgil Jewellers Limited IPO GMP today is Rs.0 as of 05 September 2024.

 

 


P N Gadgil Jewellers IPO Timetable (Tentative)

The IPO open date is from September 10 to September 12, 2024, with IPO allotment on September 13, 2024, refund initiation on September 16, 2024, and listing on September 17, 2024.

Events 

Date

IPO Opening Date

September 10, 2024

IPO Closing Date

September 12, 2024

IPO Allotment Date 

September 13, 2024

Refund Initiation 

September 16, 2024

IPO Listing Date

September 17, 2024

 

P N Gadgil Jewellers IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on September 10, 2024, close on September 12, 2024, and offers a total issue size of 22,916,667 Shares between Rs.456 to Rs.480 per Share with a Lot size of 31 Shares and will be listed at BSE and NSE.

IPO Opening & Closing date 

September 10, 2024 to September 12, 2024

Face Value 

Rs.10 per Share

Issue Price

Rs.456 to Rs.480.

Lot Size

31 Shares

Issue Size

2,29,16,667 Shares (totaling Rs.1,100 crores).

Offer for Sale 

52,08,333 Shares (totaling Rs.250 crores).

Fresh Issue 

1,77,08,334 Shares (totaling Rs.850 crores).

Listing At

BSE, NSE

Issue Type 

Book Built Issue IPO

Registrar 

Bigshare Services Pvt Ltd.

 

P N Gadgil Jewellers IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (31 Shares) amounting to Rs.14,880 and 13 Lots (403 Shares) amounting to Rs.1,93,440 respectively, while for HNI investors, the minimum Lot is 14 (434 Shares) amounting to Rs.2,08,320.

Minimum Lot Investment (Retail)

1 Lot

Maximum Lot Investment (Retail) 

13 Lots

S-HNI (Minimum)

14 Lots

S-HNI (Maximum)

67 Lots

B-HNI (Minimum)

68 Lots

 

P N Gadgil Jewellers IPO Reservation

Institutional Share Portion

50%

Retail Investors Share Portion

35%

Non-Institutional Shares Portion

15%

 

Promoters and Management of P N Gadgil Jewellers Ltd.

  • Saurabh Vidyadhar Gadgil

  • Radhika Saurabh Gadgil

  • SVG Business Trust

Pre-Issue Promoter Shareholding

99.99%

Post-Issue Promoter Shareholding

-

 

P N Gadgil Jewellers IPO Lead Managers

  • Motilal Oswal Investment Advisors Limited

  • Nuvama Wealth Management Limited

  • Bob Capital Markets Limited

Dividend Policy

The company has no formal dividend policy as of the date of the DRHP.

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.Hope you loved the IPO analysis.Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like TwitterFacebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.



Frequently Asked Questions

+

As of 05 September 2024, this company is not listed. The company is currently launching its IPO.

 

+

Ganesh Gadgil

+

By the end of December 2023, it had a gross profit of Rs.331 crore.

 

+

To apply for the IPO you need to have a demat account and apply for at least 1 lot (31 Shares). Applying for any IPO is at your fingertip now.  If You want to apply for the IPO, Click Here to Open a Demat Account..

 

+

Rs.456 to Rs.480 as of 05 September 2024

+

Bollywood Actor Salman Khan was the brand ambassador on Jan 8, 2018.

 



Liked What You Just Read? Share this Post:




Viewer's Thoughts

Any Question or Suggestion

Post your Thoughts


IPO

Related Blogs

Afcons Infrastructure IPO

IPO | 05-10- 2024

Afcons Infrastructure IPO: Rev...

The Afcons Infrastructure IPO is about to go live. Learn about key objectives, growth, IPO size, date, and GMP to maximi...

Continue Reading
Garuda Construction and Engineering

IPO | 04-10- 2024

Garuda Construction and Engine...

Garuda Construction and EngineeringDiscover key insights into the Garuda Construction and Engineering IPO, including its...

Continue Reading
Diffusion Engineers IPO

IPO | 23-09- 2024

Diffusion Engineers IPO: Revie...

Discover key insights into the Diffusion Engineers IPO. Including its objectives and benefits. The IPO opens on 26 Sep ...

Continue Reading
KRN Heat Exchanger IPO

IPO | 20-09- 2024

KRN Heat Exchanger IPO: Review...

Discover key insights into the KRN Heat Exchanger IPO, including its objectives and benefits. The IPO opens on 25 Sep & ...

Continue Reading
Manba Finance IPO

IPO | 18-09- 2024

Manba Finance IPO: Review, val...

Explore the Manba Finance IPO with key insights on value, dates, and GMP. Make informed investment decisions with this d...

Continue Reading
Northern Arc Capital Ltd IPO

IPO | 14-09- 2024

Northern Arc Capital IPO: Revi...

Explore the Northern Arc Capital IPO with key details on its value, dates, and GMP. Use our easy guide to make informed ...

Continue Reading
to Learn Important Strategy worth Rs.15000
Subscribe on
YouTube
Follow us on
Instagram
Follow Us on
Twitter
Like Us on
Facebook