P N Gadgil Jewellers Sets IPO Price Band for Expansion and Debt Reduction

Jewellery retail chain P N Gadgil Jewellers Ltd has set a price band of Rs 456-480 per share for its Rs 1,100-crore initial share sale. The IPO will open on September 10 and close on September 12, with proceeds earmarked for expansion and debt reduction.

Jewellery retail chain P N Gadgil Jewellers Ltd announced on Thursday a price band of Rs 456-480 per share for its Rs 1,100-crore initial share sale, with proceeds aimed at expansion plans and debt reduction.

The Initial Public Offering (IPO) is set to open for public subscription from September 10 to September 12, with anchor investors' bidding commencing a day earlier, on September 9.

The company, based in Maharashtra, revealed that the IPO involves a fresh issue of equity shares worth Rs 850 crore and an offer for sale by promoter SVG Business Trust amounting to Rs 250 crore. Post-issue, the company's market capitalisation is expected to surpass Rs 6,500 crore.

From the fresh issue proceeds, approximately Rs 393 crore will be allocated towards setting up 12 new stores in Maharashtra, Rs 300 crore for debt repayment, and the remaining for corporate purposes. As of March 2024, P N Gadgil Jewellers Ltd has borrowings of around Rs 397 crore, according to the Red Herring Prospectus.

The company's product line includes gold, silver, platinum, and diamond jewellery, sold under its flagship brand 'PNG' and various sub-brands through 39 retail stores and online platforms. Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd, and BOB Capital Markets Ltd are the lead managers for the issue.

(With inputs from agencies.)