PN Gadgil Jewellers IPO Opens Today, Comapny Targets Rs 10,000 Cr Revenue In FY27 | CNBC TV18

CNBC-TV18
9 Sept 202403:04

Summary

TLDRPN Gild's ₹1,100 crore IPO has opened for subscription. The company plans to raise ₹850 crore in fresh issues and ₹250 crore in offers for sale, aiming for a market cap of ₹6,500 crore. The funds will be used to expand its jewelry store count from 36 to 60 by FY27 and repay ₹300 crore in debt. Despite lower margins (4.4%) compared to peers, the company targets 10,000 crore revenue and double-digit margins by FY27. It has already raised ₹330 crore from anchor investors at ₹480 per share.

Takeaways

  • 📈 PN Gadgil's jewelry retailer's IPO opens for subscription, aiming to raise 1100 CR rupees.
  • 💠 The IPO includes a fresh issue of 850 CR and an offer for sale of 250 CR, with a price band set between 456 to 48 rupees per share.
  • 🎯 At the upper end of the price band, the company is targeting a market cap of over 6,500 CR.
  • 💹 Prior to the IPO, PN Gadgil has already secured 330 CR from anchor investors at 480 rupees per share.
  • 🏢 The company is a prominent jewelry brand in Maharashtra, with Pune accounting for 65% of its sales.
  • 📊 Maharashtra contributes significantly to the jewelry industry, with 46% of the national market share, and PN Gadgil is the second-largest organized retail jewelry player in the state.
  • 💼 The company plans to use the funds to establish 12 new stores and prepay 300 CR of existing debt, which stood at approximately 396 CR.
  • 📉 PN Gadgil operates 36 stores, fewer than competitors like Titan (490 stores) and Kalan (277 stores), but aims to expand to 60 stores by FY27.
  • 🔍 The company reported revenues of 6,100 CR in FY4 with a margin of 4.4%, lower than its peers, but has guided for margin improvement.
  • 📊 Seeking a valuation of 42 times FY24 price to earnings, which is a discount compared to listed peers, reflecting its lower margins and regional presence.

Q & A

  • What is the purpose of PN Gadgil's IPO?

    -PN Gadgil's IPO aims to raise funds to set up 12 new stores and prepay 300 CR of debt.

  • How much is PN Gadgil seeking to raise through its IPO?

    -PN Gadgil is seeking to raise 1100 CR through its IPO, which includes a fresh issue of 850 CR and an offer for sale of 250 CR.

  • What is the price band for PN Gadgil's IPO?

    -The price band for PN Gadgil's IPO is set between 456 to 48 per share.

  • What is the market cap PN Gadgil is targeting with its IPO?

    -PN Gadgil is targeting a market cap of a little over 6500 CR at the upper end of the price band.

  • How much has PN Gadgil already raised from anchored investors before the IPO?

    -PN Gadgil has already raised about 330 CR from anchored investors at 480 rupees per share.

  • What is the geographical focus of PN Gadgil's business?

    -PN Gadgil is an established jewelry brand in Maharashtra, with Pune accounting for 65% of its sales.

  • What is the current debt situation of PN Gadgil as per the last reported numbers?

    -As of the last reported numbers, PN Gadgil's debt was close to 396 CR.

  • How does PN Gadgil's revenue and margin compare to its peers?

    -In FY24, PN Gadgil did revenues of close to 6100 CR with margins at 4.4%, which is lower than its peers.

  • What is PN Gadgil's valuation in terms of FY24 price to earnings ratio?

    -PN Gadgil is seeking a valuation of 42 times FY24 price to earnings ratio.

  • What are PN Gadgil's expansion plans as per the management's targets for FY27?

    -PN Gadgil aims to have 60 stores by FY27, with a target of 10,000 CR in revenue, double-digit margins, and 15% share of revenue coming from studded jewelry.

  • What are the aspirational targets set by PN Gadgil for the next six years?

    -PN Gadgil has aspirational targets of expanding to 100 to 120 stores over the next six years.

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