29-Mar-2024
2 mins read
PNG Jewellers (P N Gadgil Jewellers) IPO is offering a 100% book-built public issue. This upcoming IPO is offering a fresh issue of equity shares worth up to Rs 850 Crore. The face value is reported as Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer is reserved for Qualified Institutional Investors, not less than 15% reserved for Non-Institutional Investors and the remaining 35% or more reserved for Retail Individuals. Application for public issue and subscription opening/closing dates and other important dates will be announced soon.
About the Company
PNG Jewellers is the second largest among the prominent organised jewellery players in Maharashtra in terms of the number of stores as of January 2024, which is the largest market for BIS-registered outlets in India (Source: Technopak Report). They are also the fastest-growing jewellery brand amongst the key organised jewellery players in India, based on the revenue growth between Fiscal 2021 and Fiscal 2023. The company reported their CAGR for revenue from operations for the period between Fiscal 2021 and Fiscal 2023 was 52.82%. They have achieved an EBITDA growth of 56.50% between Fiscal 2021 and Fiscal 2023, which is among the highest in key organised jewellery players in India. They also had the highest increase in ROE from Fiscal 2021 and Fiscal 2023 and the highest revenue per square feet in Fiscal 2023 among the key organised jewellery players in India. Maharashtra leads the retail spending in India and accounted for approximately 15% of the overall retail spend on jewellery in India in Fiscal 2023.
The ‘PNG’ brand derives its legacy from the ‘P N Gadgil’ brand, which has a rich heritage dating back to 1832 and a legacy of over a century (Source: Technopak Report).
Objectives of the Public Offering
The company intend to deploy the Net Proceeds towards the objects, in accordance with the business needs of the company. Meanwhile the company propose to repay certain loans obtained from Bank of Baroda from the Net Proceeds, secondly funding expenditure towards setting-up of 12 New Stores and the rest they will intent to utilise the net proceeds in general corporate purposes.
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Financials of the Company (Amt in Crore)
The company reported net revenue of Rs 4,559.31 Crore, assets worth Rs 1,062.55 Crore, and profit after tax reported as Rs 93.70 Crore for the FY 22-23, which rose by 76.28%, 34.78% and 29.68% respectively as compared to FY 21-22.
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 1,265.00 | 1,062.55 | 1,110.24 | 1,014.15 |
| Revenue | 2,631.14 | 4,559.31 | 2,586.31 | 1,944.44 |
| Profit After Tax | 43.75 | 93.7 | 69.52 | -6.71 |
| Net Worth | 425.79 | 365.73 | 282.01 | 213.98 |
| Reserves and Surplus | - | -8.43 | 2.95 | 1.48 |
| Total Borrowing | 329.7 | 283.21 | 294.93 | 298.25 |
Key Performance Indices of PNG Jewellers Limited
Key performance indicators of the company reported a Return on Capital Employed as 23.29%, a Return on Net Worth of 25.09%, and a Profit after-tax margin of 2.08% for the year ended March 2024. If we look at the EBITDA margin, it is reported as 3.87% for the same FY ended.
Lead Manager, Registrar & Promoters of public offering
The IPO is managed by Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), and BOB Capital Markets Limited, which are the book-running lead managers. Bigshare Services Private Limited has been appointed as the registrar for the issue. The promoters of the PNG Jewellers Limited are Saurabh Vidyadhar Gadgil, Radhika Saurabh Gadgil and Svg Business Trust.
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