Jewellery retail chain P N Gadgil Jewellers Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,100 crore through an initial public offering (IPO) to fund its expansion and pare debt.
The Maharashtra-based company’s proposed 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, according to the draft red herring prospectus (DRHP).
At present, SVG Business Trust holds 99.9 per cent stake in P N Gadgil Jewellers.
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IPO Purpose
Of the IPO proceeds of Rs 850 crore, a total of Rs 387 crore will be utilised for the funding of expenditure towards setting up of 12 new stores in Maharashtra, Rs 300 crore for payment of debt, besides a portion will also be used for general corporate purposes.
As on February 29, 2024, the company had total outstanding borrowings of Rs 377.45 crore, as per the draft papers filed last week.
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About The Company
P N Gadgil Jewellers Ltd is among the prominent organised jewellery players in Maharashtra, in terms of the number of stores as on January 2024.
The ‘PNG’ brand derives its legacy from the ‘P N Gadgil’ brand, which has a heritage dating back to 1832 and a legacy of over a century.
As on December 31, 2023, the company expanded to 33 stores, which includes 32 stores across 18 cities in Maharashtra and Goa and one store in the US.
The company has also launched its mobile application “PNG Jewellers” in March 2022.
Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Ltd) and BOB Capital Markets Ltd are the book running lead managers to the issue.
What Is IPO?
IPO stands for Initial Public Offering. It’s the process when a private company offers its shares to the public for the first time. This lets the company raise money by selling stock and becoming a publicly traded company.
Investing in IPOs also comes with risks. It’s important to do your research before investing in any IPO.
(With PTI inputs)
