P N Gadgil Jewellers has approved a floor price of ₹640.69 per equity share for its Qualified Institutions Placement (QIP), signaling the commencement of its fundraising process. The Executive Committee fixed the relevant date for the issue as July 30, 2026, determining the valuation benchmark in accordance with regulatory guidelines. This move enables the company to invite bids from eligible qualified institutional buyers, with the final issue price to be determined in consultation with the lead manager.

The approval follows earlier green lights from the Board of Directors on July 03, 2025, and shareholders via a special resolution passed at the Annual General Meeting on August 18, 2025. The Executive Committee also adopted the preliminary placement document and draft application forms dated July 30, 2026. These documents are now available on the company’s website and have been filed with the BSE Limited and the National Stock Exchange of India Limited.

Pricing Mechanism and Regulatory Framework

The floor price was calculated using the formula prescribed under Regulation 176(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. Under these rules, the company may offer a discount of not more than 5% on the calculated floor price. The placement is being conducted under Chapter VI of the SEBI ICDR Regulations and Section 42 of the Companies Act, 2013, read with Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

Issue Process and Compliance

The Executive Committee meeting commenced at 9:00 P.M. and concluded at 9:30 P.M. on July 30, 2026. The company is authorized to open the proposed issue to eligible qualified institutional buyers immediately. The final issue price will be determined by the company in consultation with the appointed lead manager.

This disclosure is made pursuant to compliance under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The preliminary placement document serves as the key reference for institutional investors participating in the bid process.

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.