The much-awaited P N Gadgil Jewellers Limited IPO has concluded, and the allotment process was finalized on September 13, 2024. Congratulations to all those who received an allotment, including myself, as I secured one lot of shares. Now, the focus shifts to the big question: What should we do on the listing day?
This article will cover key information about the IPO, tips for listing day, and strategies to maximize your returns.
Overview of P N Gadgil Jewellers IPO
| IPO Details | Information |
|---|---|
| IPO Date | September 10-12, 2024 |
| Issue Size | ₹1,100 Crores |
| Fresh Issue | ₹850 Crores |
| Offer for Sale | ₹250 Crores |
| Price Band | ₹456 – ₹480 |
| Minimum Lot Size | 31 Shares |
| Total Shares Offered | 2.37 Crore Shares |
| Listing Exchange | BSE, NSE |
| Listing Date | September 17, 2024 |
| GMP (as of Sept 14, 2024) | ₹345 |
| Estimated Listing Price | ₹825 |
IPO Subscription Details
| Investor Category | Subscription (times) |
|---|---|
| Retail (RII) | 16.58 |
| Qualified Institutional Buyers (QIB) | 136.85 |
| Non-Institutional Investors (NII) | 56.08 |
| Overall Subscription | 59.41 |
Financial Snapshot of P N Gadgil Jewellers
| Financials | March 31, 2024 | March 31, 2023 | March 31, 2022 |
|---|---|---|---|
| Revenue (₹ Crores) | 6,119.14 | 4,559.31 | 2,586.31 |
| Profit After Tax (₹ Crores) | 154.34 | 93.76 | 69.52 |
| Net Worth (₹ Crores) | 534.38 | 365.73 | 282.01 |
| Debt to Equity Ratio | 0.74 | 0.23 | 1.04 |
| Return on Equity (ROE) | 28.88% | 25.63% | 24.65% |
What to Expect on Listing Day
The grey market premium (GMP) for P N Gadgil Jewellers IPO is currently at ₹345, indicating a strong potential for listing gains. The estimated listing price, based on the GMP, is around ₹825, which represents a significant 71.88% gain over the issue price of ₹480.
Listing Day Strategy
| Scenario | What You Should Do |
|---|---|
| Strong Listing (₹800+) | Consider booking partial profits. |
| Moderate Listing (₹700-800) | Hold for a potential price rally. |
| Weak Listing (<₹700) | Hold for long-term gains; the company has strong fundamentals. |
Tips for Listing Day
- Evaluate the Listing Price:
If the stock lists at ₹800 or higher, you might want to book profits on part of your holdings while holding on to the rest for potential future gains. - Monitor Market Sentiment:
Keep an eye on overall market conditions. If the broader market is bullish, the stock might perform even better. - Long-Term Prospects:
P N Gadgil Jewellers has shown strong revenue and profit growth, making it a good long-term bet. If you’re a long-term investor, holding the stock could yield more substantial returns as the company expands its footprint. - Avoid Panic Selling:
Market fluctuations are normal on listing day. Avoid the temptation to sell at the first sign of a dip, especially if you are in for the long haul.
Should You Hold or Sell?
P N Gadgil Jewellers is a solid company with strong financials, making it suitable for both short-term listing gains and long-term investment. If you’re looking for quick profits, partial booking might be a wise move. However, if you’re a patient investor, holding the stock for a few quarters could yield even better returns as the company executes its growth strategies.
Key Metrics to Watch
| Key Performance Indicator (KPI) | Value |
|---|---|
| Return on Equity (ROE) | 28.88% |
| Debt/Equity Ratio | 0.74 |
| Profit After Tax (PAT) Margin | 2.53% |
| Price-to-Earnings (P/E) Ratio | 42.2 |
These metrics showcase the company’s efficient use of capital and strong financial management, making it a good candidate for long-term holding.
