Pune, (02/08/2024): Gargi Jewellery by P N Gadgil and Sons has announced that its board of directors has approved plans to raise approximately ₹429.98 million through a preferential issue of equity shares to its promoters and public investors. This decision was disclosed in a Bombay Stock Exchange (BSE) filing on July 19.
The company intends to issue 747,800 equity shares at a price of ₹575 per share, including a premium of ₹565 per share. This preferential allotment will be conducted on a private placement basis to both promoters and non-promoter public investors. The funds raised will source additional inventory, expand the chain of brand stores, SIS stores, and FOCO basis stores, and conduct a nationwide marketing campaign per the company’s strategic growth plan.
“The proceeds from this preferential issue will primarily support our aggressive growth plans,” stated Aditya Modak, Co-founder of Gargi by PNGS. “We aim to expand our existing business and drive future growth by establishing new brand stores, a comprehensive PAN India marketing campaign, and significant investment in inventory.”
Gargi plans to capitalize on the growing fashion jewellery market, driven by an increasing number of working women and higher literacy rates. The company sees a significant opportunity to cater to modern consumers’ evolving tastes and preferences by expanding its brand stores. This initiative is expected to boost sales, enhance direct customer engagement, improve market penetration, and provide local market insights for better customer service. The funding for setting up these brand stores will be sourced from the proceeds of the preferential issue.
Currently operational in less than ten states in India, Gargi intends to expand its business across various regions in India. This expansion will enable the company to tap into new customer bases and generate additional revenue. The marketing campaign will include activities such as social media campaigns, influencer partnerships, paid integrations, blog posts, video marketing, webinars, podcasts, email marketing campaigns, search engine marketing (SEM), print advertising, television and radio ads, and sponsorships and partnerships. The amount required for this marketing campaign will be funded through the proceeds of the preferential issue.
Gargi will hold an Extra-Ordinary General Meeting (EGM) on August 2nd to seek shareholder approval for the preferential issue. This strategic move is part of Gargi’s ongoing efforts to strengthen its market presence, revamp its business operations, and prepare for new product launches.
In related developments, Gargi has been focusing on enhancing its brand presence and has initiated various marketing initiatives, which are already showing positive impacts in the current quarter. The company’s future plans include launching new jewellery collections, revamping its franchisee business, and optimizing costs. This preferential issue marks a significant step in Gargi’s journey towards achieving its growth objectives and establishing a stronger foothold in the competitive jewellery market.
