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The Indian stock market witnessed a positive start to the week as PN Gadgil Jewellers, a prominent jewellery retailer, made its trading debut on Tuesday with a remarkable 64% surge over its issue price. Shares of the company closed at Rs 788, marking an impressive Rs 308 gain. The stock reached a high of Rs 848 and a low of Rs 782 on the National Stock Exchange (NSE), with a hefty Rs 2,000 crore worth of shares changing hands during the day.
The strong debut performance of PN Gadgil Jewellers can be attributed to the overwhelming response the company received during its initial public offering (IPO). The IPO, valued at Rs 1,100 crore, witnessed an unprecedented level of investor interest, attracting bids more than 60 times the number of shares on offer. The total bids received amounted to a staggering Rs 48,100 crore, underscoring the market's confidence in the company's growth prospects.
The IPO consisted of a fresh fundraise of Rs 850 crore and an offer for sale of Rs 250 crore. At the last close, PN Gadgil Jewellers was valued at Rs 10,692 crore. Following the day one surge, the company trades at 35x its estimated earnings for FY26, aligning with other listed peers such as Senco Gold and Thangamayil Jewellery. However, this valuation places it at a discount compared to Kalyan Jewellers and Titan Co, which trade at over 60x.
Meanwhile, Tata Motors, the renowned automotive manufacturer, is nearing the completion of its differential voting rights (DVR) programme. The company recently received approval from the National Company Law Tribunal (NCLT) Mumbai for the winding up of the programme. As a result, Tata Motors sold 11.5 million new ordinary shares on stock exchanges on Tuesday. The proceeds from this sale will be used for the distribution of fractional share entitlement and to cover tax liabilities associated with the scheme.
An independent trustee, Axis Trustee Services, will now distribute the sale proceeds in cash to eligible DVR shareholders. Additionally, the balance of new shares will be credited to their respective demat accounts shortly. Despite the positive development regarding the DVR programme, shares of Tata Motors declined by 1.33 per cent on Tuesday, closing at Rs 975.
The strong debut performance of PN Gadgil Jewellers and the nearing completion of Tata Motors' DVR programme reflect the dynamic nature of the Indian stock market. Investors continue to show enthusiasm for promising companies, while established players like Tata Motors are actively restructuring their operations to enhance shareholder value.
Source: PN Gadgil jumps 64% on debut; Tata Motors DVR cancellation nears completion