PN Gadgil Jewellers IPO Subscription details on Day 2

11 Sep 2024 , 01:11 PM

PN Gadgil Jewellers Ltd. IPO was fully subscribed within hours of opening for bids on Tuesday, with a 2x subscription on the first day.

The IPO will close on September 12. The price band is set at ₹456-₹480 per share. The lot size is 31 equity shares, with increments in multiples of 31 shares. The company collected ₹330 Crore from major investors ahead of the IPO.

Share Allocation:

• 50% reserved for Qualified Institutional Buyers (QIBs)
• 15% for Non-Institutional Investors (NIIs)
• 35% for Retail Investors

PN Gadgil Jewellers is the second-largest organized jewellery retailer in Maharashtra and a leading player in the BIS-registered market in India, according to the Technopak Report.

The company operates under the flagship brand “PNG” through 39 retail stores and online channels (as of July 31, 2024).

On the second day of bidding, the IPO saw continued demand, with non-institutional investors driving the momentum. At 1:08 pm on the second day of subscription, the IPO subscribed to 4.38 times.

• NII quota subscribed 8.81x
• Retail investor quota subscribed 4.96x
• QIBs quota subscribed 0.03x

The IPO includes an offer for sale (OFS) of ₹250 Crore by SVG Business Trust and a fresh issue of ₹850 Crore.

The proceeds will be used for ₹300 Crore in debt repayment, ₹387 Crore for opening 12 new stores in Maharashtra by FY26, and the remainder for general business needs. As of February 29, 2024, the company’s debt stood at ₹377.45 Crore.

Motilal Oswal Investment Advisors, Nuvama Wealth Management, and Bob Capital Markets are the lead managers for the IPO, with Bigshare Services Pvt Ltd as the registrar.