P N Gadgil Jewellers Limited has finalized the allotment of 1,14,94,252 equity shares under its Qualified Institutions Placement (QIP), raising a total of ₹7,000 million (₹700 crore). The Executive Committee approved the issue and allotment on August 04, 2026, at an issue price of ₹609 per share. This completion marks the successful closure of the fundraising exercise, which opened on July 30, 2026, and closed on August 03, 2026. The proceeds will be utilized for the stated objects of the issue, strengthening the company’s balance sheet for future growth initiatives.

The allotment increases the company’s paid-up equity share capital from ₹1,357.08 million (13,57,08,333 shares) to ₹1,472.02 million (14,72,02,585 shares). The issue price of ₹609 includes a premium of ₹599 over the face value of ₹10 and reflects a discount of ₹31.69, or 4.95%, from the floor price of ₹640.69. This discount is within the maximum permissible limit under Regulation 176(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Allottee Details

The QIP attracted significant interest from institutional investors, with five major allottees receiving more than 5% of the total equity shares offered. The allocation highlights strong participation from both foreign portfolio investors and domestic mutual funds.

| Allottee Name | Shares Allotted | % of Issue | Category | | :--- | ---: | :--- | | Bandhan Small Cap Fund | 18,00,000 | 15.66% | Mutual Fund | | Tata AIG General Insurance Co Ltd | 17,79,640 | 15.48% | Insurance Company | | BNP Paribas Financial Markets - ODI | 10,67,325 | 9.29% | FPI (Corporate) | | FLC Investco LLC | 9,85,222 | 8.57% | FPI (Corporate) | | Astorne Capital VCC Arven | 8,21,019 | 7.14% | FPI (Corporate) | | Morgan Stanley Asia Singapore Pte - ODI | 6,56,815 | 5.71% | FPI (Corporate) |

These six entities collectively account for 61.85% of the total shares issued in the QIP. The remaining shares were allotted to other qualified institutional buyers.

Regulatory Compliance and Next Steps

The allotment was conducted in compliance with Section 42 of the Companies Act, 2013, and Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014. The company will submit the post-issue shareholding pattern to the stock exchanges in the format specified under Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This submission is part of the listing application process for the newly issued shares.

The Board of Directors had initially sanctioned the QIP on July 03, 2025, with shareholder approval granted via a special resolution at the Annual General Meeting on August 18, 2025. The final placement document, dated August 03, 2026, was adopted by the Executive Committee and made available on the company’s website. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations and SEBI circular SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

PN Gadgil Jewellers has laid out a comprehensive strategic roadmap covering store expansion, margin improvement, hedging targets, and debt reduction, reflecting broad-based ambitions across its operational and financial dimensions. The company has also assured that Q1 FY27 results are on track to match earlier guidance, despite prevailing high gold prices.

Aggressive Store Expansion Planned Through FY29

PN Gadgil Jewellers aims to open 177 stores by March 2029, with a clear breakdown across store formats and ownership models. The company plans to add approximately 25 new stores in FY2027, primarily through franchisees in Q3 and Q4, to reach approximately 103 stores by year-end. The following table summarises the planned store network:

Management has noted that other expenses are estimated at around INR 400 crores, approximately 3% of total sales, and anticipates an increase in other expenses in Q3 and Q4 due to store expansions. Despite this, the company remains confident in meeting its EBITDA target.

Margin Targets and EBITDA Confidence

PN Gadgil Jewellers has expressed confidence in achieving a 7% EBITDA margin. On the PAT margin front, the company targets an increase to 4.5%-4.7% by FY29, up from the current level of 4.4%, and seeks an underlying PAT margin of 4.1%-4.25% this year, excluding hedging gains. The key margin metrics are outlined below:

Hedging Strategy and QIP Plans

The company has outlined a phased hedging strategy, planning to achieve an 80% hedging percentage by Q3 FY27, around Diwali, and 90%-100% by the following year, with full hedging intended for the next financial year. On the capital structure front, PN Gadgil Jewellers aims to lower promoter shareholding below 75% by launching a QIP at an appropriate time, with a board resolution already approved.

Studded Jewellery Push and Debt Reduction Goals

PN Gadgil Jewellers is targeting a significant shift in its product mix, aiming to boost its studded inventory to 80% and achieve a 50-60% studded ratio in the next two years, with targeted gross margins of 30-35%. On the debt side, the company plans to cut its total loans from INR 1,500-1,550 crores by INR 500-600 crores by FY29, aiming for a level below INR 1,000 crores, with a longer-term goal of becoming debt-free in the next four to five years.

Collectively, these targets reflect PN Gadgil Jewellers' focus on scaling its retail footprint, improving profitability metrics, optimising its balance sheet, and enhancing its product mix over the medium to long term.