P N Gadgil Jewellers Ltd., a prominent jewellery retailer based in Maharashtra, has launched its initial public offering (IPO), and the response has been overwhelming. The IPO, which opened for bidding, was fully subscribed within hours, demonstrating robust interest from investors.
IPO Subscription Details
The IPO was met with enthusiastic participation, with the entire issue being booked twice over by the end of the first day. By Monday, P N Gadgil Jewellers had already raised ₹330 crore from major investors. The IPO will be open for bidding until September 12. The price range for the shares is set between ₹456 and ₹480 per share. Investors can apply in lots of 31 shares, and additional shares can be purchased in multiples of 31.
The shares are divided among different types of investors:
- Qualified Institutional Buyers (QIBs): 50% of the shares are reserved for these buyers.
- Non-Institutional Investors (NIIs): At least 15% of the shares are allocated to these investors.
- Retail Investors: 35% of the shares are reserved for retail investors.
Subscription Status
The IPO continued to show strong demand on the second day, with non-institutional investors leading the way. The IPO subscription status was reported at 3.23 times, according to data from the Bombay Stock Exchange (BSE). This means that bids were received for 5,45,31,852 shares compared to the 1,68,85,964 shares available.
In detail:
- Non-Institutional Investors (NIIs): Their portion was subscribed 6.01 times.
- Retail Investors: Their portion saw 3.87 times subscription.
- Qualified Institutional Buyers (QIBs): Their share was subscribed 3%.
On the first day, the IPO was completely subscribed with non-institutional investors leading and retail investors closely following. The subscription status on the first day was 2.01 times, with retail investors subscribing 2.61 times and non-institutional investors 3.27 times. The portion reserved for qualified institutional buyers was booked 1%.
The grey market premium (GMP) for P N Gadgil Jewellers’ IPO has been impressive. As of today, the GMP stands at +258. This means that shares of P N Gadgil Jewellers are trading at a premium of ₹258 above the IPO price in the grey market. Experts suggest that based on this premium and the upper end of the IPO price range, the estimated listing price of the shares could be around ₹738. This is a significant 53.75% higher than the IPO price of ₹480.
The grey market premium reflects the extra amount investors are willing to pay over the issue price. The upward trend in GMP over the past nine sessions indicates a strong potential for the stock’s performance on listing day.
P N Gadgil Jewellers Ltd.’s IPO has clearly captured the attention of investors with its high subscription rate and strong grey market premium. The successful response highlights the market’s confidence in the company’s prospects. As the IPO continues to attract attention, all eyes will be on the final subscription numbers and the listing performance of P N Gadgil Jewellers.