PN Gadgil Jewellers seek to raise $131 mn in Upcoming IPO

PN Gadgil Jewellers said it aims to raise Rs. 11 billion or $131 mn through an initial public offering next week as it seeks funds to expand retail store network and repay debt. The IPO comprises a fresh issue of equity shares of upto Rs. 8.5 mn and an offer for sale of shares worth 2.5mn by promoters, the company said in a statement.

The company, which has 39 showrooms, including 1 in the US, has set a price band of 456-480 rupees per share, which will run from Sept 9 to Sept 12. The company is valued at Rs 65 billion at the upper end of its price range.

The company plans to use Rs 3.9 billion from the proceeds to open 12 new stores in Maharashtra and 3 billion to repay the debt.

The company aims to increase its total store count to 100 stores within the next five years by opening new stores, particularly in Central and Northern India where it currently has no presence, said Saurabh Gadgil, chairman of the company.

In the fiscal year ended March 2024, the jeweller’s revenue stood at Rs 61 billion and net profit was Rs 1.54 billion, it said.

Source: Reuters