PNGS Gargi Fashion Jewellery SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Dec 2022 – 13 Dec 2022
- Listing date
- 20 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹30 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹7.80 Cr
- Market cap at offer price
- ₹28.88 Cr
- Promoter holding
- 100.00% → 73.00% pre-issue → post-issue
- ISIN
- INE0NT601018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- S.No.37/1 & 37/2, Near Lokmat New Paper, Wadgaon, Khurd, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,36,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1,105.30 | — |
| P/E (×) | 0.03 | — |
| Market cap | — | ₹28.88 Cr |
Key performance indicators
- Return on net worth
- 100.94%
- ROCE
- 23.69%
- Debt / equity
- 4.74
- PAT margin
- 18.61%
- NAV per share
- ₹1,095.04
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About PNGS Gargi Fashion Jewellery SME
PNGS Gargi Fashion Jewellery Limited, incorporated on March 25, 2009, operates in the costume and fashion jewellery retail segment under the brand name 'Gargi by P. N. Gadgil & Sons', launched in 2021. The company deals in 92.5% certified sterling silver jewellery, brass jewellery, idols and silverware, and related gift items. It offers a wide range of products for special occasions such as weddings and festivals, as well as daily-wear jewellery for all ages, genders and across various price points. The company generates revenue through retail sales across 30 POS counters located at multiple stores across Maharashtra, Gujarat and Karnataka, leveraging an arrangement with P.N. Gadgil & Sons Limited and P. N. Gadgil Art & Culture Foundation. The company also operates an e-commerce platform at www.gargi.shop.
Company Analysis
from RHPPNGS Gargi Fashion Jewellery Limited is a retail business engaged in the sale of costume and fashion jewellery, including 92.5% certified sterling silver jewellery and brass jewellery, across the costume jewellery industry.
PNGS Gargi Fashion Jewellery Limited, incorporated on March 25, 2009, operates in the costume and fashion jewellery retail segment under the brand name 'Gargi by P. N. Gadgil & Sons', launched in 2021. The company deals in 92.5% certified sterling silver jewellery, brass jewellery, idols and silverware, and related gift items. It offers a wide range of products for special occasions such as weddings and festivals, as well as daily-wear jewellery for all ages, genders and across various price points. The company generates revenue through retail sales across 30 POS counters located at multiple stores across Maharashtra, Gujarat and Karnataka, leveraging an arrangement with P.N. Gadgil & Sons Limited and P. N. Gadgil Art & Culture Foundation. The company also operates an e-commerce platform at www.gargi.shop.
Objects of the Issue
- Funding Working Capital Requirements ₹550.00 Lakhs p.20
- General Corporate Purpose ₹176.95 Lakhs p.20
- Funding working capital requirements ₹550.00 Lakhs p.68
- General corporate purposes ₹176.95 Lakhs p.68
- General corporate purposes p.226
Issue Structure
- Total Issue
- 26,00,000 Equity Shares of ₹10/- each for cash at a price of ₹30/- per Equity Share aggregating to ₹780.00 Lakhs
- Fresh Issue
- 26,00,000 Equity Shares of face value of ₹10/- each at an Issue Price of ₹30/- per Equity Share aggregating to ₹780.00 Lakhs
- Offer for Sale
- N.A.
- Lot Size
- 4,000 Equity Shares
- Face Value
- ₹10/- each
Business Model
The company operates a retail distribution model for costume and fashion jewellery. Revenue is generated from the sale of jewellery products through POS counters positioned at stores of related entities (P.N. Gadgil & Sons Limited and P. N. Gadgil Art & Culture Foundation) across multiple locations and through an e-commerce platform. The company procures products from a network of local artisans and manufacturers, with quality assurance including BIS hallmarking for silver jewellery. All silver jewellery is hallmarked by the Bureau of Indian Standards.
Business Segments
SWOT Analysis
- • Established brand heritage of P.N. Gadgil & Sons with over 190 years of history(p.95)
- • Extensive and diverse product portfolio across price points and customer segments(p.95)
- • Hybrid retail model combining 30 offline POS counters with online e-commerce presence(p.96)
- • Experienced promoters with combined 50+ years in jewellery industry(p.96)
- • Strong internal controls including centralized ERP system and real-time inventory tracking(p.96)
- • Experienced promoters with 40+ years in jewellery industry(p.124)
- • Established brand under P.N. Gadgil & Sons group with shared infrastructure(p.109)
- • Strong profitability with net profit margin of 17.93% (Sep 2022)(p.167)
- • Solid financial position with high current ratio of 9.50 as of Sep 2022(p.167)
- • Rapid revenue growth from Rs 0.60 lakh (FY2021) to Rs 1189.17 lakh (Sep 2022)(p.164)
- • Market making and listing infrastructure established(p.225)
- • 100% underwritten issue reduces subscription risk(p.223)
- • Strong profitability with significant EBITDA margins(p.185)
- • Strong current ratio and liquidity position(p.189)
- • Outstanding litigations against directors and promoters(p.26)
- • Limited operating and financial history(p.29)
- • Dependence on third-party suppliers without exclusivity(p.30)
- • Centralized procurement in single location(p.31)
- • Negative cash flows from operations(p.33)
- • Unregistered brand trademark with objections(p.36)
- • Heavy dependence on single supplier relationship with P.N. Gadgil & Sons for 30 POS locations(p.92)
- • Trademark applications objected; only one device trademark accepted and advertised(p.98)
- • Very recent business commencement with limited operational history(p.92)
- • Reliance on third-party contract manufacturers and artisans for product supply(p.92)
- • High inventory intensity requiring substantial working capital funding(p.69)
- • High inventory concentration with Rs 935 lakh (75% of current assets) as of Sep 2022(p.160)
- • Promoter personal guarantees on bank borrowings create individual liability risk(p.111)
- • Recently transitioned business from consultancy (pre-2021) with limited track record in fashion jewellery(p.111)
- • Early-stage company with minimal cash reserves relative to operations(p.160)
- • Heavy reliance on related party transactions(p.175)
- • Trademark applications objected by authorities(p.206)
- • Pending tax liabilities and litigation against promoters(p.194)
- • Litigation involving promoters in property dispute(p.196)
- • India costume jewellery market expected to reach ₹2,126.3 million by 2027 at 7% CAGR(p.90)
- • Rising demand for costume jewellery due to gold price increases(p.90)
- • Growing working women segment driving discretionary spending on jewellery(p.90)
- • Expansion potential for new POS counters at malls and airports(p.96)
- • E-commerce channel providing untapped growth via online sales penetration(p.90)
- • Organized retail segment consolidation creating competitive differentiation opportunities(p.88)
- • Expansion into new geographies through P.N. Gadgil & Sons infrastructure in multiple states(p.109)
- • Leverage established PN Gadgil brand heritage spanning decades in jewellery retail(p.109)
- • Access to related party expertise and resources through P.N. Gadgil & Sons Limited(p.128)
- • Expansion of retail jewellery distribution network(p.185)
- • Growth in organized jewellery retail segment(p.185)
- • Multiple store locations across regional markets(p.202)
- • Competition from organized and unorganized players(p.29)
- • Fluctuations in silver prices(p.32)
- • Regulatory and compliance risks(p.28)
- • Changing laws and economic policies in India(p.43)
- • Natural calamities and external disruptions(p.42)
- • Intense competition from fragmented organized and unorganized costume jewellery players(p.100)
- • Rising raw material costs impacting margins(p.90)
- • Supply chain fragmentation for raw materials causing delays and cost pressures(p.90)
- • Rapidly shifting fashion trends creating inventory obsolescence risk(p.90)
- • Risk of counterfeit and hazardous materials in jewellery affecting consumer confidence(p.90)
- • Scarcity of skilled craftsmen in costume jewellery manufacturing(p.90)
- • High dependence on two promoter shareholders (88.64% combined ownership)(p.161)
- • Potential conflicts of interest with group company P.N. Gadgil & Sons in similar business(p.129)
- • Overlapping directorships creating conflicts between company and promoters(p.129)
- • Regulatory and legal risks in tax compliance(p.197)
- • Exposure to inflation and input cost volatility(p.191)
- • Significant competitive pressure in jewellery retail(p.192)
- • Foreign exchange and currency risks(p.178)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Govind Vishwanath Gadgil | Promoter | 44.32% | — |
| Ms. Renu Govind Gadgil | Promoter | 44.32% | — |
| Mr. Govind Vishwanath Gadgil | Promoter and Non-Executive Director | 44.32% | 32.35% |
| Ms. Renu Govind Gadgil | Promoter | 44.32% | 32.35% |
| Mr. Amit Yeshwant Modak | Promoter Group and Non-Executive Director | 3.12% | 2.28% |
| Ms. Anjali Vishwanath Gadgil | Promoter Group | 1.89% | 1.39% |
| Mr. Aditya Amit Modak | Promoter Group and Non-Executive Director | 1.79% | 1.31% |
| Mr. Shrikant Digambar Kuber | Promoter Group | 1.52% | 1.11% |
| Mr. Satish Digambar Kuber | Promoter Group | 1.52% | 1.11% |
| Mr. Prafulla Dharamraj Wagh | Promoter Group | 1.52% | 1.11% |
| Mr. Govind Vishwanath Gadgil | Promoter | 44.32% | — |
| Ms. Renu Govind Gadgil | Promoter | 44.32% | — |
| Govind Vishwanath Gadgil | Promoter cum Director | — | — |
| Renu Govind Gadgil | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.