On Tuesday, September 10, subscriptions for the PN Gadgil Jewellers IPO opened. The initial public offering (IPO) of the jewellery retail chain is scheduled to conclude on September 12 and has set a price range of Rs 456-Rs 480 per share.
A new issuance of Rs 850 crore and an offer for sale (OFS) of shares valued at Rs 250 crore by promoter SVG Business Trust comprise the Rs 1,100 crore IPO.
At 99.9 per cent, SVG Business Trust is the owner of PN Gadgil Jewellers.
IPO Size
PN Gadgil Jewellers intends to raise a total of Rs 1,100 crore through its initial public offering (IPO).This comprises an offer-for-sale (OFS) by the company's promoter, SVG Business Trust, of up to 52,08,333 equity shares, valued at Rs 250 crore, as well as a fresh share sale worth Rs 850 crore. The issue's anchor book opens on Monday, September 9.
Portion reserved in IPO for categories
As per PN Gadgil Jewellers, 15 per cent of the shares are set aside for non-institutional investors, while 50 per cent of the net issue is reserved for qualified institutional bidders. Retail investors will receive thirty-five percent of the net offer.
Rs 330 Crore Anchor investment
The Maharashtra-based company raised Rs 330 crore in the anchor round on Monday, prior to the IPO, from investors including Troo Capital, Citigroup Global Markets Mauritius, Societe Generale, Goldman Sachs (Singapore) Pte, Tata Mutual Fund (MF), Mirae Asset MF, Axis MF, HDFC MF, Nippon India MF, and Bandhan MF.
33 funds received 68.75 lakh shares from the company, priced at Rs 480 per unit, the highest possible amount.
Utilisation of IPO proceeds
The funds raised will be used for general corporate purposes, debt repayment, and capital expenditures, such as opening new stores in Maharashtra.
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Company Financials
The company reported a net profit of Rs 43.75 crore for the six months ended September 30, 2023, on revenue of Rs 2,631.15 crore. For the fiscal year that concluded on March 31, 2023, the company's revenue was Rs 4,559.31 crore, and its net profit was Rs 93.7 crore.
