P N Gadgil Jewellers Limited, ranking second among Maharashtra’s prominent organized jewelry players as of January 2024, has submitted its Draft Red Herring Prospectus (“DRHP”) to the Securities and Exchange Board of India (“SEBI”). Maharashtra holds the distinction of being the largest market for BIS-registered outlets in India. The company’s initial public offering consists of a fresh issue of equity shares valued at ₹10 each, totaling up to ₹8,500 million, alongside an offer for sale of equity shares valued at ₹10 each, aggregating to ₹2,500 million. The overall offer size stands at equity shares valued at ₹10 each, amounting to ₹11,000 million, with the offer for sale comprising equity shares valued at ₹10 each, totaling up to ₹2,500 million by SVG Business Trust (Promoter Selling Shareholder).
The proceeds from the IPO are earmarked for several objectives, such as funding the establishment of 12 new stores in Maharashtra, settling certain company debts, and addressing general corporate needs. P N Gadgil Jewellers Limited holds the distinction of being the second-largest among organized jewelry players in Maharashtra, as of January 2024, operating within India’s largest market for BIS-registered outlets. Noteworthy is its status as the fastest-growing jewelry brand among India’s major organized jewelry players, evidenced by robust revenue growth between FY21 and FY23, accompanied by an impressive EBITDA increase of 56.50% over the same period. Additionally, the company achieved the highest revenue per square foot among India’s leading organized jewelry brands in FY23.
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As of December 31, 2023, the company manages a total of 33 stores, comprising 32 outlets situated across 18 cities in Maharashtra and Goa, and one store located in the U.S., spanning a combined retail area of approximately 95,885 square feet. These stores are under the direct management of the company, with 23 operated as owned stores and 10 operating under a franchisee-owned and company-operated (“FOCO”) model. The store formats include 19 large format stores, 11 medium format stores, and 3 small format stores. Furthermore, the company introduced its mobile application “PNG Jewellers” in March 2022, aimed at enhancing customer engagement by providing updates on new designs and collections. Jewelry manufacturing is conducted by a workforce of over 75 skilled artisans, both within and outside Maharashtra.
Drawing upon its extensive legacy tracing back to 1832, P N Gadgil Jewellers Limited provides an extensive array of precious metal and jewelry products, encompassing gold, silver, platinum, and diamond jewelry. These offerings cater to diverse price ranges and designs, suitable for both special occasions and everyday wear. Saurabh Vidyadhar Gadgil, the promoter, boasts over 25 years of experience in the Indian jewelry manufacturing sector and currently serves as the managing director. His leadership has been instrumental in the transformation of the traditional family business into a contemporary brand, shaping its modern identity and market presence.
Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), and BOB Capital Markets Limited are the Book Running Lead Managers to the issue.
