PN Gadgil Jewellers makes stellar debut, lists at 73% premium: Check how much investors gained from IPO listing

Shares of PN Gadgil Jewellers Ltd made a stellar trading debut on Tuesday, September 17, listing at a nearly 73% premium over the issue price on the National Stock Exchange of India (NSE). The stock also made its debut at a premium of nearly 74% at ₹834 on the BSE.

Let’s examine what this means exactly for investors who were allotted shares in the initial public offering (IPO).

PN Gadgil Jewellers Limited shares opened the trading session at a price of ₹830 apiece on the NSE, compared to its IPO price of ₹480 apiece. This means a straight profit of ₹350 on a single share of the company that was allotted in the primary issue. However, since the lot size, or the minimum bid quantity, to apply for the PN Gadgil Jewellers IPO was 31 shares, it translates into listing gains of ₹10,850 (₹350 x 31) per lot.

Hence, retail investors would be sitting on listing gains of at least ₹10,850 as soon as the PN Gadgil Jewellers stock started trading on exchanges.

After the stellar listing, PN Gadgil Jewellers' total market capitalisation stood at ₹11,076 crore at 12:20 pm. This means that PN Gadgil has emerged as one of the leading players in the sector compared to other listed jewellery companies in terms of market cap.

Other listed players in the jewellery industry, such as Senco Gold Ltd, have a market capitalisation of ₹9,910.78 crore, while Kalyan Jewellers’ market cap stood at ₹72,856.56 crore. PC Jeweller and Motisons Jewellers have market caps of ₹6,841.44 crore and ₹2,448.35 crore, respectively.

The minimum bid quantity for small non-institutional investors (sNII) was 14 lots, they made a minimum profit of ₹1.52 lakh (₹10,850 x 14). For big NIIs (bNIIs), for whom the minimum bid quantity was 68 lots, the minimum profit would amount to almost ₹7.38 lakh (₹10,850 x 68).

Notably, sNIIs is a subcategory of NIIs. These are investors that must bid for shares worth more than ₹2 lakh but less than ₹10 lakh. About one-third of the shares reserved for the NII category are set aside for sNIIs. Meanwhile, bNII is an NII category of investors who bid for shares worth more than ₹10 Lakhs. Two-thirds of NII category shares are reserved for the bNII sub-category.

The ₹1,100-crore Gadgil Jewellers IPO was subscribed more than 59 times during its three-day bidding period from September 10 to September 12. The retail portion was subscribed 16.6 times, while the NII category was overbooked 56 times. The qualified institutional buyers (QIB) portion was overbid 137 times.