About the Company:
PN Gadgil Jewellers Ltd is the second largest among the prominent organised jewellery players in Maharashtra, in terms of the number of stores as on January, 2024, which is the largest market for BIS-registered outlets in India.
The ‘PNG’ brand derives its legacy from the ‘P N Gadgil’ brand, which has a rich heritage dating back to 1832 and a legacy of over a century.
Company’s products are primarily sold under our flagship brand, ‘PNG’, and various sub – brands, through multiple channels, including our 39 retail stores (as on July 31, 2024) and various online marketplaces, including our website.
As on July 31, 2024, Company had expanded to 39 stores, which includes 38 stores across 21 cities in Maharashtra and Goa and one store in the U.S. with an aggregate retail area of approximately 108,282 sq. ft.
Company is the fastest growing jewellery brand amongst the key organised jewellery players in India, based on the revenue growth between Fiscal 2022 and Fiscal 2024.
Company’s CAGR for revenue from operations for the period between Fiscal 2022 and Fiscal 2024 was 54.63% and achieved an EBITDA growth of 39.78% between Fiscal 2022 and Fiscal 2024, which is the second highest in key organised jewellery players in India.
Company also had the highest revenue per square feet in Fiscal 2024 among the key organised jewellery players in India.
Company’s Retail Showrooms:
As on July 31, 2024, Company had expanded to 39 stores, which includes 38 stores across 21 cities in Maharashtra and Goa and one store in the U.S. with an aggregate retail area of approximately 108,282 sq. ft. All our stores are operated and managed by us with 28 being owned stores and 11 franchisee stores, on a franchisee owned and company operated (“FOCO”) model.
Company operated model allows us to exercise control over the quality of our products and ensure that our customers receive consistent experience and service across all our stores.
Of these stores, 22 stores are large format stores (with an area of 2,500 sq. ft. or more), 13 stores are medium format stores (with an area between 1,000 sq. ft. to 2,500 sq. ft.) and 4 stores are small format stores (with an area of less than 1,000 sq. ft.). We plan to further expand our stores network by opening 12 new stores in Maharashtra by Fiscal 2026.
Company’s Channel-wise revenue: (in millions)
Company’s Total Number of Stores:
Company Owned & Franchise Owned Stores:
Company’s Revenue from COCO & FOCO Stores:
Management Team:
- Mr. Saurabh Vidyadhar Gadgil (Managing Director)
- Mr. Parag Yashwant Gadgil (Executive Director)
Objectives of the Issue:
Offer For Sale: (Rs.250 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.850 cr)
- Funding expenditure towards setting-up of 12 new stores in Maharashtra (“New Stores”).
- Repayment or pre-payment, in full or part, of certain borrowings availed by our Company.
- General corporate purposes.
Fund Utilization:
Particulars | Amount (Rs. in Crores) |
---|---|
Funding expenditure towards setting-up of 12 New Stores in Maharashtra, India (“New Stores”) |
392.5 cr |
Repayment or pre-payment, in full or part, of certain borrowings availed by our Company | 300 cr |
Details of Expenditure for setting-up 12 New Stores:
Company proposes to set up the following number of New Stores (across large and medium formats) in Maharashtra in Fiscals 2025 and 2026 from the Net Proceeds: (image)
Company proposes to expand in the state of Maharashtra through COCO model out of the Net Proceeds of the Offer in the coming two years. In Fiscal 2025, our Company has already identified the places where COCO stores will be set up. All the 12 New Stores will be based on the Company’s strategic decision to open stores on the COCO model.
Positives for the Company:
- Well established and trusted legacy brand in Maharashtra.
- Second largest organised retail jewellery player and one of the fastest growing brand in Maharashtra.
- Diversified product portfolio across categories and price points.
- Experienced Promoter and management team with proven execution capabilities.
- Company Plans to expand the Retail network in western India by leveraging the brand.
- Focus on increasing footfalls in our existing stores and increasing the average transaction value.
Financials of the Company:
(in Crores) | FY 22 | FY 23 | FY 24 |
---|---|---|---|
Revenue | 2586.3 | 4559.3 | 6119.1 |
Net Profit | 69.5 | 93.7 | 154.3 |
Valuation of Peer Group Companies:
Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
---|---|---|---|---|---|
P N Gadgil Jewellers Ltd | 10 | 13.08 | 36.69 | 28.88% | 45.29 |
Kalyan Jewellers India Ltd | 10 | 5.80 | 101.53 | 14.23% | 40.67 |
Senco Gold Limited | 10 | 24.06 | 45.50 | 13.26% | 175.74 |
Thangamayil Jewellery Ltd | 10 | 44.91 | 42.89 | 24.99% | 179.74 |
IPO Details:
Details | Info |
---|---|
Issue Opens on | 10th September 2024 |
Issue Closes on | 12th September 2024 |
Issue Price | Rs.456 – 480 |
Face Value | Rs.10 |
Retail Category Allocation | 35 % |
Minimum Lot | 31 Shares |
Minimum Investment | Rs.14,880 |
Issue Constitutes | 16.88 % |
Issue Size | Rs.1100 cr ($ 130 million) |
Market Cap | Rs.6513 cr ($ 775 million ) |
Listing at | NSE & BSE |
Equity Shares Offered (Fresh) | 1,77,08,333 (Rs.850 cr) |
Equity Shares Offered (OFS) | 52,08,333 (Rs.250 cr) |
Total Equity Shares Offered (Fresh + OFS) | 2,29,16,666 (Rs.1100 cr) |
Equity Shares Prior to the Issue | 11,80,00,000 |
Equity Shares after the Issue | 13,57,08,333 |
IPO Valuation Parameters:
Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
---|---|---|---|
13.08 | 36.69 | 28.88% | 45.29 |
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Should You Subscribe or Not ? (Markets Guruji’s View) |
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PN Gadgil Jewellers Ltd (PNG) is the second-largest among the prominent organized jewellery players in Maharashtra, the biggest market for BIS-registered outlets in India, as of January 2024. The brand’s legacy dates back to 1832 under the iconic ‘P N Gadgil’ name, representing a rich heritage of over a century. As of July 31, 2024, PNG operates 39 retail stores, including 38 across 21 cities in Maharashtra and Goa, and one in the U.S., with a total retail area of approximately 108,282 sq. ft.
The company’s jewellery products are primarily sold under the ‘PNG’ brand, along with various sub-brands, through its physical stores and online platforms. PNG is recognized as the fastest-growing jewellery brand among key organized players in India, demonstrating significant revenue growth between Fiscal 2022 and Fiscal 2024. With an experienced management team and a diversified product portfolio, PNG is a trusted name in Maharashtra. The company plans further expansion across western India, making its upcoming IPO an appealing option for investors seeking moderate listing gains. |
Important Dates:
Finalization of Basis of Allotment | on or Before 13th September 2024 |
Initiation of Refunds | on or Before 16th September 2024 |
Credit of Equity Shares: | on or Before 16th September 2024 |
Listing Date: | on or Before 17th September 2024 |
Company Contact Info: |
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PN Gadgil Jewellers Ltd 694, Narayan Peth, Pune, Maharashtra, India – 411 030. Telephone: +91 20 24478474 E-mail:secretarial@pngadgil.com Website: www.pngjewellers.com |
Registrar to the Issue: |
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Bigshare Services Private Limited Office No S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093 Telephone: +91 22 6263 8200 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |