Despite the strong subscription demand for Bajaj Housing Finance, the initial public offering (IPO) of PN Gadgil also attracted significant interest during the same period, with the Qualified Institutional Buyers (QIB) portion being oversubscribed by 137 times and the overall subscription reaching 59 times.

The shares of PN Gadgil Jewellers will be listed on the exchanges on Tuesday, September 17. The company’s shares are trading with a GMP of nearly 63% over the issue price, just a day before the listing.

If the current trends sustain, PN Gadgil Jewellers is likely to deliver robust gains to investors on debut.

“Considering its strong brand loyalty ‘PN Gadgil’ and its solid position in Maharashtra, the company is well-positioned to capitalise the demand and assuming to deliver impressive growth in the future,” said Prashanth Tapse, Sr VP Research – Research Analyst at Mehta Equities.

Tapse expects the IPO to debut with a healthy listing gain of anything above 50% of its issue price.

“PN Gadgil’s listing is matching the time when gold is also shining almost near all-time high, we believe the shine can be seen on listing day. We think a strong brand legacy and a diverse portfolio in gold, silver, platinum and in diamond jewellery, PNG is catering to a wide range of customer preferences and price points, from traditional wedding jewellery to modern everyday wear,” he said.

Tapse believes the company’s rapid growth, driven by its strategic expansion into underserved Tier II and III cities in Maharashtra (western India) and a growing presence online through its e-commerce platform and mobile app, positions it well to capture future market opportunities.

The company sold its shares in a fixed price band of ₹456-480. At the upper price band, PN Gadgil will have a post-listing market capitalisation of ₹6,514 crore.

The offer comprised a fresh issue of equity shares worth ₹850 crore, along with an Offer For Sale (OFS) component worth ₹250 crore.

Ahead of the issue opening, the company had already raised ₹330 crore from anchor investors including HDFC MF, Tata MF, Edelweiss MF, LIC MF, Invesco India, Citigroup among others.

The funds raised through the issue are proposed to be utilised for the funding of expenditure towards setting-up of 12 new stores in Maharashtra, repayment of debt and other general corporate purposes.

PN Gadgil Jewellers offers a wide range of precious metal/jewelry products including gold, silver, platinum, and diamond jewelry under its brand name ‘PNG’ in various price ranges and designs. The Pune-based company offers its customers the option of having jewelry made to measure.

For the six months ended on September 30, 2023, the company posted a net profit ₹43.75 crore with a revenue of ₹2,631.15 crore. Its net profit stood at ₹93.7 crore with a revenue of ₹4,559.31 crore for the financial year ending on March 31, 2023.