Jewellery retail chain PN Gadgil Jewellers Ltd said it has raised Rs 330 crore from anchor investors, a day ahead of its initial share-sale opening for public subscription.
The anchor investors are ICICI Prudential Life Insurance Company, Tata MF, Axis MF, Mirae Asset MF, HDFC MF, Bandhan MF, Nippon India MF, Goldman Sachs (Singapore) Pte, Citigroup Global Markets Mauritius, Societe Generale, Troo Capital and The Jupiter Global Fund.
The company has allotted 68.75 lakh equity shares to 33 funds at Rs 480 apiece, which is also the upper end of the price band, a circular uploaded on BSE website showed. This aggregates the transaction size to Rs 330 crore.
The Rs 1,100-crore IPO will start subscription on September 10 and close on September 12. It has fixed the price band at Rs 456-480 per share.
The initial share sale of the Maharashtra-based firm is an amalgamation of a fresh issue of equity shares worth up to Rs 850 crore and an OFS of equity shares to the tune of Rs 250 crore by a promoter- SVG Business Trust.
Currently, 99.9 per cent in PN Gadgil Jewellers is held by SVG Business Trust.
Brokerage houses have pegged the company's market capitalization over Rs 6,500 crore post-issue.
Out of the fresh issue proceeds, Rs 393 crore would be used to fund expenditure towards setting up of 12 new stores in Maharashtra, Rs 300 crore as payment of debt, besides a portion would also go towards general corporate purposes.
As of March 2024, the company has borrowings of around Rs 397 crore, according to the red herring prospectus (RHP).
The product mix of the Company consists of gold, silver, platinum, and diamond jewelry products, spanning a wide range of price points and designs. The company's offerings are primarily sold under its umbrella brand, 'PNG', and sub-brands through various channels such as through 39 retail stores as of July 31st, 2024, including online marketplaces, websites, etc.
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