Ahead of IPO, PN Gadgil Jewellers collects Rs 330 crore from anchor investors
The Maharashtra-based company's IPO is a combination of a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale (OFS) of equity shares to the tune of Rs 250 crore by a promoter SVG Business Trust.
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Jewellery retail chain PN Gadgil Jewellers Ltd on Monday said it has raised Rs 330 crore from anchor investors, a day before its initial share-sale opening for public subscription.
ICICI Prudential Life Insurance Company, Tata Mutual Fund (MF), Axis MF, Mirae Asset MF, HDFC MF, Bandhan MF, Nippon India MF, Goldman Sachs (Singapore) Pte, Citigroup Global Markets Mauritius, Societe Generale, Troo Capital, The Jupiter Global Fund are among the anchor investors.
According to a circular uploaded on BSE's website, the company has allocated a total of 68.75 lakh equity shares to 33 funds at Rs 480 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 330 crore.
The Rs 1,100-crore initial public offering (IPO) will open for subscription on September 10 and conclude on September 12. The price band has been fixed at Rs 456 to Rs 480 per share.
The Maharashtra-based company's IPO is a combination of a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale (OFS) of equity shares to the tune of Rs 250 crore by a promoter SVG Business Trust.
At present, SVG Business Trust holds a 99.9 per cent stake in PN Gadgil Jewellers.
Brokerage houses have pegged the company's market capitalisation over Rs 6,500 crore post-issue.
Of the fresh issue proceeds, Rs 393 crore will be utilised for the funding of expenditure towards setting up 12 new stores in Maharashtra, Rs 300 crore for payment of debt, besides a portion will also be used for general corporate purposes.
As of March 2024, the company had a total borrowings of around Rs 397 crore, as per the red herring prospectus (RHP).
PN Gadgil Jewellers Ltd offers a wide range of precious metal/jewellery products including gold, silver, platinum and diamond jewellery, across various price points and designs.
The company's products are primarily sold under its flagship brand, 'PNG', and various sub-brands, through multiple channels, including 39 retail stores (as of July 31, 2024) and various online marketplaces, including websites.
Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd and BOB Capital Markets Ltd are the book-running lead managers to the issue.
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