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PN Gadgil Jewellers made a sparkling debut on the stock market, with shares soaring 73% above the issue price.
The company's successful IPO, which raised ₹1,100 crore, will fund the opening of 12 new stores in Maharashtra and repay debts.
Offering a variety of precious metal jewelry under the 'PNG' brand, the firm's strong market performance reflects high demand for its shares.

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The company's IPO was oversubscribed by nearly 60%

PN Gadgil Jewellers's shares debut at 73% premium on NSE

By Mudit Dube

Sep 17, 2024

10:34 am

What's the story

PN Gadgil Jewellers's shares made a remarkable debut on the National Stock Exchange (NSE) today, listing at ₹830 per share. This represents a substantial premium of 72.91% over the issue price. The company's initial public offering (IPO) was significantly oversubscribed by 59.41 times on the final day of bidding, which took place on September 12.

Market performance

Strong debut on BSE and significant anchor investments

On the Bombay Stock Exchange (BSE), PN Gadgil Jewellers's shares also had a strong start, listing at ₹834 per share. This indicates a premium of 73.75% against the issue price of ₹480 per share. The company's ₹1,100-crore IPO managed to attract ₹330 crore from anchor investors, further demonstrating market confidence in this jewelry retail chain.

Growth strategy

IPO details and future expansion plans

The IPO of PN Gadgil Jewellers included a fresh issue of equity shares worth up to ₹850 crore and an offer for sale (OFS) of equity shares amounting to ₹250 crore by promoter SVG Business Trust. The company plans to use the proceeds from this fresh issue, specifically ₹393 crore, for setting up 12 new stores in Maharashtra. An additional ₹300 crore will be allocated toward debt repayment with the remaining funds earmarked for general corporate purposes.

Product portfolio

PNG: A diverse range of jewelry products

PN Gadgil Jewellers offers a diverse range of precious metal/jewelry products, including gold, silver, platinum, and diamond jewelry. These products are primarily sold under its flagship brand 'PNG' and various sub-brands through multiple channels. As of July 31, the company operates 39 retail stores and also sells its products on various online platforms.

IPO response

High subscription rates and market expectations

Market experts had predicted a premium of 50% - 63% for PN Gadgil Jewellers's share price. The quota for Qualified Institutional Buyers (QIBs) saw a subscription of 136.85 times while the non-institutional investor category was oversubscribed by 56.09 times. Retail Individual Investors (RIIs) also showed strong interest with a subscription rate of 16.58 times, indicating high demand for the company's shares in the market.