Pune-based P N Gadgil Jewellers Ltd has come out with its initial public offering (IPO) today. The IPO consists of a fresh issue and an offer for sale. If you are looking forward to investing in this IPO read the below article
P N Gadgil Jewellers Ltd is the second largest organised jewellery player in Maharashtra in terms of number of stores as of January 2024.
It is also the fastest-growing jewellery brand amongst India's key organised jewellery players, based on the revenue growth between FY21 and FY23. Its CAGR for revenue from operations between FY21 and FY23 was 52.82%.
The table captures the key details of P N Gadgil Jewellers Ltd IPO:
Particulars | Lot size, price and other details |
---|---|
IPO opens on | 10th September |
IPO closes on | 12th September |
Issue size | ₹1100 crores in the upper price band |
Price range | ₹456 to ₹480 |
Lot size | 31 |
Minimum investment | ₹14880 |
The company proposes to utilise the proceeds received from the IPO to:
The table captures key financials of the company across different financial years:
Particulars | As of March 31, 2024 | As of March 31, 2023 | As of March 31, 2022 |
---|---|---|---|
Total equities and liabilities (in ₹ crores) | 1,464.979 | 1062.552 | 1110.238 |
Total income (in ₹ crores) | 6,119.104 | 4559.311 | 2586.305 |
Total expenses (in ₹ crores) | 5,910.740 | 4441.228 | 2501.274 |
Profit after tax (in ₹ crores) | 154.343 | 93.70 | 69.515 |
EBITDA (in ₹ crores) | 277.426 | 174.520 | 141.983 |
Return on net worth | 28.88% | 25.09% | 22.48% |
Here are the competitive strengths of P N Gadgil Jewellers Ltd:
Going forward, the company plans to implement the following strategies:
The global gold market is estimated at 4,448 tons valued in CY 2023 at close to USD 305.6 billion. Demand for gold is the highest in the jewellery retail category as it takes up 49% of the share of overall gold demand.
Investment demand in terms of gold coins and bars and ETFs contributed close to 21% of demand with the rest coming from the central bank and electronics and other technology-led sectors. China became the largest consumer of gold jewellery in CY 2023. India took the second place and consumed 562 tonnes of gold jewellery in CY 2023.
Wrapping it up
Before investing in the IPO of any company, it’s crucial to do your homework, and the IPO of P N Gadgil Jewellers Ltd is no different. Go through the company’s red herring prospectus for a complete overview of the company and its various aspects.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.