The IPO, scheduled from 10 to 12 September, has a total size of Rs 1,100 crores, with Rs 850 crores allocated to a fresh issue
Bengaluru: Maharashtra-based jewellery retailer P N Gadgil Jewellers Ltd. will be listed on the country’s bourses—National Stock Exchange and Bombay Stock Exchange from 10 to 12 September, a top company official told IndiaRetailing.
The initial public offering (IPO) has a total size of Rs 1,100 crores, with Rs 850 crores coming from a fresh issue. The price band for the offer has been set between Rs 456 and Rs 480 per equity share, with a face value of Rs 10 each, amounting to a total of up to Rs 8,500 million.
The anchor allotment is scheduled for 9 September, one day prior to the public opening of its initial share sale for subscription.
“Currently, we are the second-largest jewellery player in Maharashtra, just behind Tanishq. The funds will primarily be used to expand our store network, with the goal of becoming the largest player in the region,” said Saurabh Gadgil, managing director of P N Gadgil Jewellers.
The company plans to use the IPO proceeds to open 12 new stores in Maharashtra. Moreover, it will allocate Rs 300 crores to repay bank loans, with the remaining funds being reinvested into the business as non-fund-based limits.
“In the first two years, our focus will be on expanding in Maharashtra. After that, starting from year three, we will shift our attention to neighbouring Central Indian states, including Madhya Pradesh,” added Gadgil.
The retailer offers around 38,000 stock keeping units (SKUs) across gold, silver, platinum, precious stones, and diamond categories.
“As we expand into new markets, particularly in uncharted areas of Maharashtra, we will be adding a significant number of new SKUs. This will help us continue our growth and adapt to the demands of these new regions,” he said.
The legacy brand has a global presence with a 5,000 sq. ft. flagship store in California, US, which was launched 15 years ago.
The company is exploring further opportunities in the US. “Ongoing studies are being conducted to assess feasibility, and if viable, there may be plans to expand into different parts of the US,” added Gadgil.
P N Gadgil Jewellers (Purshottam Narayan Gadgil Jewellers) was founded by Ganesh Gadgil 1832 with a single store in Sangli. At present, the company operates 39 stores across Maharashtra, Gujarat, and Karnataka.
In addition to retail stores and direct-to-consumer (D2C) website pngjewellers.com, the brand is also present on e-commerce marketplaces such as Amazon, Ajio, and Flipkart. Its online sales account for nearly 2% of the company’s total turnover.
Currently, the brand handles around one million customers a year, with approximately 60% being repeat buyers.
In fiscal year (FY) 2024, the company reported a top line of approximately Rs 6100 crores, with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of around Rs 278 crores and a profit after tax of close to Rs 155 crores. It has experienced over 50% year-over-year (YoY) growth in the last three years.
The retailer claims to have a revenue of Rs 6 lakh per sq. ft. in each store. “Our revenue per store is around Rs 170 crores, positioning us one of the top organised listed jewellery players. Also our high stock turnover results in inventory days of just 63 as of 31 March 2024,” added Gadgil.
