Amidst the flood of IPOs in the stock market, another opportunity has opened for investors from today. Today, on 10 September, the IPO of PN Gadgil Jewellers Ltd. has opened. The company aims to raise Rs 1,100 crore through this IPO.
The offer consists of a fresh issue of 1.77 crore shares worth Rs 850 crore and an OFS of 0.52 crore shares worth Rs 250 crore. The price band for the IPO has been fixed at Rs 456 to Rs 480/share.
How much money will be required for investment?
Retail investors will have to invest a minimum of Rs 14,880 for one lot of 31 shares. For small non-institutional investors, the minimum investment size is Rs 2.08 lakh for 14 lots (434 shares), while large non-institutional investors will have to invest Rs 10.12 lakh for 68 lots (2,108 shares).
The IPO will close on September 12 and allotment of shares is expected to be completed by September 13. The company’s shares are expected to be listed on BSE and NSE by September 17.
The company will use the IPO proceeds for several purposes:
Expenditure on opening 12 new stores in Maharashtra
Full or partial repayment or prepayment of certain dues
General Corporate Purposes
The company’s revenue grew by 35.6% to Rs 6,110.9 crore in FY24 as against Rs 4,507.5 crore in the previous fiscal. This was possible due to strong operating performance and possibly increased demand.
This revenue growth has helped the company significantly improve its profitability, which has increased from Rs 122.63 crore in FY 2023 to Rs 269.25 crore in FY 2024. This represents an impressive growth of 119.5%.
The EBITDA margin stood at 4.41% in FY 2024 as against 2.72% in FY 2023. The company’s net profit during this period grew by 64.6% to Rs 154.3 crore as against Rs 93.7 crore in FY 2023, indicating strong bottom-line performance.
The success of P N Gadgil Jewellers depends largely on the strength of its brand. Any damage to the reputation of its name or logo can have a negative impact on the company’s financial health, cash flow and overall commercial performance.
If PN Gadgil Jewellers fails to promote its products effectively or if public perception of the brand deteriorates, this could lead to a decline in consumer traffic and will be negative for the company.
