The IPO will close on February 26 and is scheduled to list on BSE and NSE on March 4. At the upper end of the price band, the company will command a pre-IPO market cap of around Rs 1,224 crore.
Investors can bid for a minimum of 32 shares, translating into an investment of Rs 12,352. Retail investors can apply up to 512 shares in the retail category. The IPO is structured with not less than 75% reserved for qualified institutional buyers, up to 15% for non-institutional investors and up to 10% for retail investors.
Business profile and expansion plans
PNGS Reva Diamond Jewellery is a retail-focused jewellery company engaged in the sale of diamond, precious and semi-precious stone-studded jewellery in gold and platinum, as well as plain platinum jewellery under its flagship brand ‘Reva’. The company traces its lineage to PN Gadgil and Sons and operates 34 stores across Maharashtra, Gujarat and Karnataka.
The company plans to use the IPO proceeds primarily to fund the setting up of 15 new stores, allocate marketing and promotional expenditure for the new launches, and meet general corporate purposes. A significant Rs 286.56 crore is earmarked for store expansion, while Rs 35.40 crore is allocated for marketing related to the launch of these stores.
Financial performance
On the financial front, the company reported revenue of Rs 259.11 crore in FY25, up from Rs 196.24 crore in FY24. Net profit stood at Rs 59.47 crore in FY25 compared with Rs 42.41 crore in FY24. EBITDA margin for FY25 was 30.7%, indicating strong operating profitability. Basic EPS for FY25 stood at Rs 35.21.The company’s pre-IPO price-to-earnings multiple is about 10.96 times based on FY25 earnings, positioning it below some listed peers in the organised jewellery space, though direct comparability is limited given differences in scale and business models.
Brokerage views
Adroit Financial Services has recommended a “Subscribe” rating for the IPO. In its note, it said the company has demonstrated consistent revenue growth along with improving profitability on a year-on-year basis. While it described the issue as appearing aggressively valued at first glance, it added that superior EBITDA margins and stronger operating metrics compared with peers make the valuation seem justified.
On the other hand, Swastika Investmart has assigned an “Avoid” rating. It said that although the business has shown consistent growth and improving profitability, the IPO may be avoided for short-term or listing gains, especially for investors focused on predictable margin stability and geographic diversification.
Key risks highlighted include heavy revenue dependence on Maharashtra, competition from lab-grown diamonds, reliance on key suppliers and execution risks in scaling up new stores.
With GMP indicating around 3% potential listing gains, expectations of sharp debut returns appear limited. The company’s strong margins and promoter legacy support its long-term growth narrative, especially with an aggressive store expansion strategy.
However, investors must weigh regional concentration risks and rising competition in the diamond jewellery segment. Divergent brokerage recommendations reflect the balance between healthy profitability metrics and concerns over valuation and execution.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)