P N Gadgil Jewellers is aiming to raise 11 billion rupees ($131 million) through an IPO next week to fund its retail expansion and debt repayment. The offering includes a fresh issue of equity shares worth 8.5 billion rupees and a 2.5 billion rupee offer for sale by promoters.
The price band is set at 456-480 rupees per share, with the IPO running from Sept. 9 to Sept. 12, valuing the company at 65 billion rupees at the upper range.
The jeweller, which currently operates 39 showrooms, including one in the U.S., plans to use 3.9 billion rupees to open 12 new stores in Maharashtra and 3 billion rupees to repay debt.
Chairman Saurabh Gadgil said the company aims to expand to 100 stores over the next five years, focusing on central and northern India, where it has no current presence.
For the fiscal year ending March 2024, PNG Jewellers reported revenue of 61 billion rupees and a net profit of 1.54 billion rupees. The jewellery market in India, valued at $80 billion, has seen rapid growth due to rising disposable incomes.
Demand for gold jewellery is expected to rebound in the second half of 2024, following a reduction in import duty by the Indian government.
