As the Indian jewellery sector shines brightly, P. N. Gadgil Jewellers, a renowned name with a rich heritage, dating back to the 19th century, is set to launch its initial public offer (IPO) on September 10, 2024.
Given the well-established brand presence, strong fundamentals and growth potential, this public offer is keenly eyed by investors. The company plans to raise ₹1,100 crore via the three-day IPO. The offer is a mix of fresh issue worth ₹850 crore and an offer for sale (OFS) of ₹250 crore. The issue is priced in the range of ₹456 to ₹480 per share.
Key details about P.N. Gadgil Jewellers IPO:
| Date | 10 Sept - 12 Sept |
| Price Band | ₹456 to ₹480 per share |
| Issue Size | ₹1,100 crore |
| OFS Size | ₹250 crore |
| Minimum Lot Size | 31 shares |
IPO Objective: The company plans to use the funds raised via the fresh share issue to fund the establishment of 12 new stores in Maharashtra, repay certain borrowings availed by the company and for general corporate purposes.
About P N Gadgil Jewellers
P N Gadgil Jewellers, founded in 2013, offers a wide variety of precious metal and jewellery products, including gold, silver, platinum, and diamond across various price points and designs. Its product portfolio includes collections that are designed for occasions like weddings, engagements, anniversaries, festivals and even everyday wear.
The company operates under the flagship brand ‘PNG’ and several sub-brands, selling through its stores and online platforms. As of December 31, 2023, the company offers eight sub-brands for gold jewellery, two sub-brands for diamond jewellery and two for platinum jewellery. Additionally, customers can opt for custom-made jewellery options.
In 2015, the company opened its first store outside of Maharashtra in Panaji, Goa. And only in 2023, it converted into a public limited firm.
It operates 39 stores as of July 31, 2024, including 38 in Maharashtra and Goa and one in the U.S. The company had the highest revenue per square foot in FY24 among the key organised players in India.
| Company | Revenue per store (₹ crore) | Revenue per sq feet (₹ crore) |
| P. N. Gadgil Jewellers | 169.70 | 60297.4 |
| Kalyan | 77.28 | 26497.6 |
| Senco | 32.96 | 43896.2 |
| Thangamayil | 63.7 | 41693.3 |
Source: P.N. Gadgil RHP
As of January 2024, it is the second-largest organised jewellery player in Maharashtra by store count. The company has a strong financial position as well. In the last fiscal year, its revenue has grown by 34% and profit by 65% on a year-on-year (YoY) basis.
| Parameter | FY 24 | FY 23 | Growth (%) |
| Revenue (₹ in Crore) | 6,119.00 | 4,559.31 | 34.21% |
| PAT (₹ in Crore) | 154.34 | 93.70 | 64.72% |
Source: P.N. Gadgil RHP
Strengths & Risks of Investing In P.N. Gadgil Jewellers IPO
Strengths
- P.N. Gadgil is one of the fastest-growing jewellery brands in India, with a 55% compound annual growth rate (CAGR) in revenue from FY22 to FY24.
| Player | CAGR 2022-2024 |
| Titan Company Ltd. (Tanishq) | 33.23% |
| Kalyan | 30.94% |
| P. N. Gadgil Jewellers | 54.63% |
| Senco | 21.77% |
| Thangamayil | 32.10% |
Source: P.N. Gadgil RHP
- The ‘PNG’ brand has a long legacy, and investors generally prefer a well-established and trusted brand, especially for sectors like jewellery. Also, it has a strong legacy in Maharashtra, which leads India in retail spending. The state accounted for around 15% of the country's total jewellery retail expenditure in FY3. This bodes well for P.N. Gadgil.
- P. N. Gadgil Jewellers boasts a vast product range, with over 10,000 SKUs in gold, 1,200 SKUs in silver, 2,700 SKUs in platinum, and 24,000 SKUs in diamond jewellery. The wide variety and price range help it to tap a diverse range of customers.
Risks
- The company is geographically concentrated, with a major chunk of its revenue coming from five stores located in Maharashtra. The state accounts for 88% of the company’s overall revenue. Any adverse development that affects the region could also hurt the business.
- Any negative impact or reputational damage to the brand, name, or logo could result in deterioration in public perception of the brand, thereby reducing footfall. This could expose the company to financial risks.
- Failure to accurately forecast customer demand and trends could adversely impact the business. The company might end up with too much unsold stock or not enough products to meet customer needs. Both scenarios can hurt sales.
How to Apply For P.N. Gadgil Jewellers IPO
To apply for the P.N. Gadgil Jewellers IPO via INDmoney, follow these steps:
- Download the INDmoney app and create a free account by completing the KYC process.
- Click on the INDstocks tab, followed by IPOs.
- In the 'Explore IPOs' section, find 'Live IPOs’.
- Click 'Apply' to view the key details of the IPO.
- Choose the number of lots you wish to apply for and continue with the application.
- Place your order via UPI. The funds for your IPO application will be held in your bank account until the shares are allocated.
Conclusion
P.N. Gadgil's IPO comes with its sets of benefits and risks. But before subscribing to the IPO, it is crucial to conduct careful research and consider your investment goals to make an informed investment decision.