P N Gadgil Jewellers files DRHP for Rs 1,100cr IPO

Jewellery retail chain P N Gadgil Jewellers Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,100 crore through an initial public offering (IPO) to fund its expansion and pare debt.

The Maharashtra-based company’s proposed IPO is a combination of a fresh issue of equity shares worth up to Rs850 crore and an offer for sale (OFS) of equity shares to the tune of Rs250 crore by a promoter SVG Business Trust, according to the draft red herring prospectus (DRHP). At present, SVG Business Trust holds 99.9 per cent stake in P N Gadgil Jewellers.

Of the IPO proceeds of Rs850 crore, a total of Rs387 crore will be utilised for the funding of expenditure towards setting up of 12 new stores in Maharashtra, Rs 300 crore for payment of debt, besides a portion will also be used for general corporate purposes. As on February 29, 2024, the company had total outstanding borrowings of Rs 377.45 crore, as per the draft papers filed last week. P N Gadgil Jewellers Ltd is among the prominent organised jewellery players in Maharashtra, in terms of the number of stores as on January 2024.