PN Gadgil Jewellers has raised Rs 330 crore from anchor investors by allotting 68.74 lakh shares to 25 anchor investors ahead of the issue opening on Tuesday.
The shares were allotted at the upper end of the price band of Rs 480 per share. Out of the total anchor book, about 33.54 lakh shares were allocated to 10 domestic mutual funds through a total of 18 schemes.
Marquee anchor investors who participated in the anchor round include HDFC MF, Tata MF, Edelweiss MF, LIC MF, Invesco India, Citigroup among others.
The company’s IPO comprises a fresh equity issue of Rs 850 crore and an offer for sale of Rs 250 crore. Under the OFS, promoter SVG Business Trust will offload part equity.
The funds raised through the IPO are proposed to be utilised for the funding of expenditure towards setting-up of 12 new stores in Maharashtra, repayment of debt and other general corporate purposes.
PN Gadgil Jewellers is the second largest among the prominent organised jewellery players in Maharashtra in terms of the number of stores as on January 2024. The company is also the fastest growing jewellery brand amongst the key organised jewellery players in India, based on the revenue
growth between FY21 and FY23.
The company expanded to 33 stores, which includes 32 stores across 18 cities in Maharashtra and Goa and one store in the US with an aggregate retail area of approximately 95,885 sq ft, as of December 2023.
PN Gadgil achieved an EBITDA growth of 56.5% between FY21 and FY23 as well as the highest revenue per square feet in FY23, which was the highest among the key organised jewellery players in India.
In FY23, the company’s revenue from operations jumped 76% year-on-year to Rs 4,507 crore and the profit after tax increased 35% to Rs 94 crore. For the year ended March 2024, revenue from operations stood at Rs 6110 crore and PAT came in at Rs 154 crore.
Motilal Oswal Investment Advisors, Nuvama Wealth Management (formerly Edelweiss Securities) and BOB Capital Markets are the book running lead managers to the issue.
