PN Gadgil Jewellers' initial public offering (IPO) has seen robust interest, being subscribed 3.6 times on its second day, with retail and non-institutional investors leading the demand. The retail portion was subscribed 4.22 times, while the non-institutional investors' segment reached 6.80 times. The qualified institutional buyers (QIBs) portion lagged at 3%.
The IPO, which opened for subscription on September 10 and will close on September 12, aims to raise ₹1,100 crore through a fresh equity issue of ₹850 crore and an offer for sale of ₹250 crore. The price band is set between ₹456-480 per share.
PN Gadgil Jewellers, a prominent player in Maharashtra's jewellery market, plans to utilize the funds for opening 12 new stores, debt repayment, and other corporate purposes. The company has demonstrated significant growth, with a 76% revenue increase year-on-year to ₹4,507 crore in FY23, and an impressive EBITDA growth of 56.5% from FY21 to FY23.
Analysts recommend subscribing to the IPO, citing the company's strong brand presence and strategic expansion plans as key factors for potential long-term gains.