According to Nuvama Alternative & Quantitative Research, as many as 85.7 million shares of the company, or 63% of its outstanding equity will free up for trade as its one-year shareholder lock-in comes to an end today.
Based on Wednesday’s closing price, the number of PN Gadgil shares that free up for trade are valued at ₹5,441 crore.
It must be noted that the end of the shareholder lock-in period does not mean that all the shares will be sold in the open market, rather, they just become eligible to be traded.
Based on the June quarter shareholding pattern, the promoters of PN Gadgil Jewellers had a 83.11% stake in the company, which is above the Minimum Public Shareholding threshold of 75%.
As per the recent changes made by market regulator Securities and Exchange Board of India (SEBI), companies with a market capitalisation between ₹50,000 crore to ₹1 lakh crore, can achieve their 25% public shareholding in five years instead of the earlier mandate of three years.
However, the mandate for companies with a lesser market capitalisation remains the same, at three years. As of Wednesday’s close, PN Gadgil’s market capitalisation stood at ₹8,630 crore.
As of the June quarter, India’s Mutual Funds had a 4.27% stake in PN Gadgil, with no single fund holding stake in excess of 1%. As many as 1.9 lakh small retail shareholders, or those with authorised share capital of up to ₹2 lakh, had a 9.5% stake.
PN Gadgil Jewellers made its stock market debut last year at an issue price of ₹480 per share. As of Wednesday’s close, the stock is 31% above its IPO price.
