PN Gadgil Jewellers to raise ₹1,100 cr via IPO

PN Gadgil Jewellers, a leading player in Maharashtra, has filed Draft Red Herring Prospectus with market regulator SEBI to raise ₹1,100 crore.

The public offer consists of fresh equity issuance of up to ₹850 crore and an offer for sale of ₹250 crore by promoterowned SVG Business Trust.

The funds raised through the IPO are proposed to be used for the funding of expenditure towards settingup of 12 new stores in Maharashtra, repayment or prepayment of certain borrowings availed by the company and 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 of January.

The company achieved an EBITDA growth of 56 per cent between FY21 and FY23 as well as the highest revenue per square feet in FY23.

As of Decemberend, 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 abroad 95,885 sq ft.

The company owns 23 stores and operates 10 under franchisee model. Additionally, the company has launched mobile application “PNG Jewellers”, in March 2022. Jewellery sold by the company are manufactured by over 75 experienced and skilled artisans (karigars) in and outside Maharashtra.

The ‘PNG’ brand has a rich heritage since 1832 and a legacy of over a century. The company offers a wide range of precious metal and jewellery products including gold, silver, platinum and diamond jewellery, across various price points.

Promoter, Saurabh Vidyadhar Gadgil, is a sixth generation entrepreneur and has over 25 years of experience in the jewellery manufacturing industry in India. As the managing director of the company, he has been instrumental in transforming the traditional family business into a contemporary brand.

Motilal Oswal Investment Advisors, Nuvama Wealth Management and BOB Capital Markets are the Book Running Lead Managers to the issue.