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

Summary

PN 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.