| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 456 to ₹ 480 | 31 | 10th Sep, 2024 – 12th Sep, 2024 | ₹1,100.00 Cr |
About P N Gadgil Jewellers Ltd IPO
As of January 2024, P N Gadgil Jewellers Limited (PNG) stood as the second-largest organized jewellery player in Maharashtra by store count. Leveraging a heritage since 1832, PNG offers a diverse range across various price points and occasions through its sub-brands: Saptam (handcrafted gold wedding and festive jewellery), Swarajya (gold wedding jewellery blending traditional Maharashtrian and modern styles), Rings of Love (advanced gold wedding rings), The Golden Katha of Craftmanship (gold wedding necklaces and bangles with traditional dies), Flip (wedding mangalsutras), Litestyle (daily wear gold jewellery), Eiina (diamond jewellery for women), PNG Solitaire (diamond solitaires), Men of Platinum (platinum jewellery for men), Evergreen Love (platinum wedding jewellery), Pratha (gold wedding jewellery), and Yoddha (gold chains and rings for men). The company has 39 stores, including 38 in Maharashtra and Goa and one in the US. All stores are operated and managed by the company, with 28 stores owned by the company and 11 stores operated by franchisees under the FOCO (franchisee-owned and company-operated) model. PNG plans to open 12 new stores in Maharashtra by FY26. PNG’s marketing strategy includes location-based promotions, event-focused campaigns and celebrity endorsements, with awards highlighting their innovative efforts. Their commitment to quality is demonstrated by adherence to BIS hallmarking and stringent diamond certification processes. Under the leadership of promoter Saurabh Vidyadhar Gadgil, PNG has evolved from a traditional family business into a high-growth contemporary brand, supported by a skilled management team, achieving high revenue per square foot and the lowest working capital days among key organised jewellery players. The company is the fastest-growing jewellery brand in India, with a 54.6% revenue CAGR from FY22 to FY24. The company also achieved a 39.8% EBITDA growth during the same period and the highest revenue per square foot in FY24.
Objective of the P N Gadgil Jewellers Ltd IPO
The company proposes to utilize the net proceeds towards the funding of the following objects:
- Funding expenditure towards setting up 12 new stores in Maharashtra;
- Repayment or pre-payment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes.
Rationale To Invest In P N Gadgil Jewellers Ltd IPO
PNG leverages its heritage to drive rapid expansion and establish market leadership
PNG, a well-established and trusted legacy jewellery brand in Maharashtra, has significantly expanded its footprint with 39 stores, including 38 in Maharashtra and Goa and one in the US, by July 31, 2024. Drawing on its rich heritage dating back to 1832, PNG offers a broad spectrum of jewellery through its sub-brands: Saptam, Swarajya, Rings of Love, The Golden Katha of Craftmanship, Flip, Litestyle, Eiina, PNG Solitaire, Men of Platinum, Evergreen Love, Pratha, and Yoddha. These collections cater to diverse needs, from traditional wedding and festive jewellery to modern, everyday pieces in gold, diamond, and platinum. Demonstrating robust financial performance, PNG achieved a 54.6% CAGR in revenue and a 39.8% increase in EBITDA from FY22 to FY24, with the highest revenue per square foot in FY24. Maharashtra leads as the largest market for BIS-registered jewellery outlets, representing 17% of India’s total jewellery stores. As part of its growth strategy, PNG has leveraged its brand strength to strategically expand into under-served markets, particularly Tier II and Tier III cities in Maharashtra, addressing demand-supply gaps in these regions. The company plans to open 12 new stores in Maharashtra by FY26 and is enhancing its digital presence through its website and mobile app. PNG’s marketing strategies, including celebrity endorsements, strategic exhibitions, and social media campaigns, along with its rigorous quality control practices – such as adherence to BIS hallmarking and Kimberley certification for conflict-free diamonds – solidify its strong market position and customer loyalty.
Diversified product portfolio catering to varied customer profile and taste reflected in strong financial performance
As of March 31, 2024, PNG showcased a diverse product portfolio with over 10,000 SKUs in gold, 1,200 in silver, 2,700 in platinum, and 24,000 in diamond jewellery. The company’s eight gold sub-brands and four dedicated to diamond and platinum jewellery cater to various customer niches, offering traditional and contemporary designs for different occasions. Leveraging its legacy, PNG tailors its extensive range to meet the preferences of Maharashtra’s consumers, evident in collections like Swarajya, which blends traditional Maharashtrian motifs with modern styles. This broad selection spans all price points, making PNG a “one-stop-shop” for consumers across income levels. The company’s commitment to innovation is demonstrated by its launch of 291, 159, and 106 new designs over the past three fiscal years. Owing to its diversified portfolio, PNG has registered strong financials, with a 54.6% CAGR in revenue from Rs. 25,556.34 million in FY22 to Rs. 61,109.45 million in FY24. EBITDA increased by 39.8%, and revenue per square foot reached the highest among key jewellery players in India. PNG’s operational efficiency, effective capital management, and robust product offerings underscore its market leadership and expansion strategy.
Valuation of P N Gadgil Jewellers Ltd IPO
India’s dynamic jewellery market thrives on the country’s deep cultural affinity for gold, which serves as a store of wealth, a hedge against inflation, and collateral for loans. As the fifth-largest importer of gold with significant reserves, India exhibits strong demand for both traditional and contemporary jewellery, fueled by rising disposable incomes and technological advancements. The jewellery market is highly seasonal, with consumer spending peaking during weddings, festivals, and agricultural harvests, requiring tailored marketing and localized product strategies. PNG, with its rich heritage and extensive product portfolio, has established itself as a leading player in the Indian jewellery market. The company offers a broad range of products, including over 10,000 SKUs in gold, 1,200 in silver, 2,700 in platinum, and 24,000 in diamond jewellery, catering to diverse customer needs across various price points. Operating 39 stores – 38 in Maharashtra and Goa and one in the US – PNG has capitalized on its strong brand presence in Maharashtra and strategically expanded into underserved markets like Tier I and Tier II cities. To address demand-supply gaps, the company plans to add 12 new stores in Maharashtra by FY26. Financially, PNG demonstrated robust financial performance, with revenue and EBITDA registering strong growth during FY2022-24 period. As on 31 March 2024 , the company’s net debt stood at Rs. 3,965 million, a portion of which is planned for repayment. On the upper band, the issue is priced at a P/E of 36.7x based on FY24 earnings, and aligns well with its peers. Given PNG’s strategic expansion in under-served markets, strong digital presence and innovative marketing strategies, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.
What is the P N Gadgil Jewellers Ltd IPO?
P N Gadgil Jewellers IPO is a book built issue of Rs 1,100.00 crores. The issue is a combination of fresh issue of 1.77 crore shares aggregating to Rs 850.00 crores and offer for sale of 0.52 crore shares aggregating to Rs 250.00 crores. Login to your account now – https://campaign.StoxBox.in/redirect.html
How to apply for the P N Gadgil Jewellers Ltd IPO through StoxBox?
To apply for the P N Gadgil Jewellers LtdIPO through StoxBox one can apply from the website and also from the app. Click here
When will the P N Gadgil Jewellers Ltd IPO open?
P N Gadgil Jewellers Ltd IPO is opening on 10th September 2024. Apply Now
What is the lot size of the P N Gadgil Jewellers Ltd IPO?
The Lot Size of P N Gadgil Jewellers Ltd IPO is 31 equity shares. Login to your account now – https://campaign.StoxBox.in/redirect.html
When is the P N Gadgil Jewellers Ltd IPO allotment date?
The allotment Date for P N Gadgil Jewellers Ltd IPO is 12th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html
When is the P N Gadgil Jewellers Ltd IPO listing date?
The listing Date for P N Gadgil Jewellers Ltd IPO is 17th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html
What is the minimum investment required for the P N Gadgil Jewellers Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,880. Login to your account now – https://campaign.StoxBox.in/redirect.html
What is the maximum investment allowed for the P N Gadgil Jewellers Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 193,440. Login to your account now – https://campaign.StoxBox.in/redirect.html
What are the risks associated with investing in the P N Gadgil Jewellers Ltd IPO?
- Impact of raw material price changes on PNG: PNG faces risks due to changes in the prices of gold, silver, and diamonds, which can affect its costs and profits. Fluctuations in raw material prices and the company’s reliance on suppliers can impact its financial performance and operations.
- Risk from geographic concentration and key store dependency: PNG’s business is heavily concentrated in Maharashtra, especially Pune, with top stores significantly contributing to revenue. Any adverse developments in this region or closure of major stores could severely impact the company’s financial health and operational stability.
- Brand dependence and reputational risks for PNG: PNG’s success is deeply tied to its flagship brand and sub-brands like “PNG,” with negative publicity or brand damage potentially impacting its reputation and financial performance. The continued use of the “P N Gadgil” name by former partners further complicate matters, as any issues with these third parties could confuse customers and pose additional reputational risks.
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When will the P N Gadgil Jewellers Ltd IPO shares be credited to my Demat account?
The P N Gadgil Jewellers Ltd IPO be credited to the account on allotment date which is 16th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html
Where can I find the P N Gadgil Jewellers Ltd IPO prospectus?
The prospectus of P N Gadgil Jewellers Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to P N Gadgil Jewellers Ltd IPO?
| IPO Open Date | Tuesday, September 10, 2024 |
| IPO Close Date | Thursday, September 12, 2024 |
| Basis of Allotment | Friday, September 13, 2024 |
| Initiation of Refunds | Monday, September 16, 2024 |
| Credit of Shares to Demat | Monday, September 16, 2024 |
| Listing Date | Tuesday, September 17, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 12, 2024 |
