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)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

Online Sales Revenue Bifurcation

(Values in millions)

 

Product-wise Sales Bifurcation Between COCO & FOCO Model

(Values in millions)

 

Product-wise Sales Bifurcation

(Values in millions)

 

Geography-wise Sales Bifurcation

(Values in millions)

 

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.

 

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.

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.

 

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.

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.

P N Gadgil Jewellers IPO Reservation

Promoters and Management of P N Gadgil Jewellers Ltd.

• Saurabh Vidyadhar Gadgil

• Radhika Saurabh Gadgil

• SVG Business Trust

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.  

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