P N Gadgil Jewellers Ltd IPO

Well established and trusted legacy brand in Maharashtra.

Second largest organised retail jewellery player and one of the fastest growing brand in Maharashtra.

Diversified product portfolio across categories and price points.

Experienced Promoter and management team with proven execution capabilities.

Strong historical financial results.

The strength of the brands the company use are crucial to its success. Any reputational damage to the brand, name or logo could have an adverse effect on its financial condition, cash flows and results of operations.

Its inability to effectively market the company products, or any deterioration in public perception of its brand, could affect consumer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.

Its inability to identify market trends and customer demand accurately and maintain an optimal level of inventory in its stores may impact the company operations adversely.

Its business is primarily concentrated in Maharashtra and the company is significantly dependent on top five of its stores located in Maharashtra for revenue generation. Any adverse development affecting such region or stores may have an adverse effect on its business, prospects, financial condition and results of operations.

The Company requires significant amounts of working capital for continued growth. Its inability to meet the company working capital requirements, on commercially acceptable terms, may have an adverse impact on its business,financial condition and results of operations.

While the company commenced its e-commerce operations in Fiscal 2014, its focus primarily on a brick-and-mortar model to establish our physical presence in India. Since, the company operates in highly competitive and fragmented markets, and competition in these markets is based primarily on market trends, pricing and customer preferences, there can be no assurance that its can effectively compete with the company competitors in the future, and any such failures to compete effectively may have a material adverse effect on its business, financial condition, results of operations and prospects.

If the company is unable to effectively manage or expand its retail network and operations or open new stores operated by the Company in accordance with its business plan, or pursue the company growth strategy, its existing and new stores may not achieve its expected levels of profitability which may adversely affect the companys business prospects, financial condition and results of operations.

The company does not own the trademark for its key flagship PNG brand and the company requires the written approval of P N Gadgil Jewellers for assigning or sub-licensing the trademark to any person, except its Subsidiaries, joint ventures or associates or franchise partners.

The company are dependent on third party artisans for the production and manufacturing of all of its products. Any disruptions at such third-party production or manufacturing facilities, or shortage or scarcity of Karigars in thejewellery industry especially in Maharashtra or failure of such third parties to adhere to the relevant quality standards may have a negative effect on its reputation, business and financial condition and results of operations.

Its manufacturing work is done by skilled craftsmen who does not work exclusively for it which exposes the company to any risks/adverse developments affecting the skilled craftsmen.