PNGS Reva Diamond Jewellery

PNGS Reva Diamond Jewellery has officially opened for subscription. The company, a retail-focused brand specializing in diamond-studded gold and platinum ornaments, is hitting the primary market to fund an aggressive expansion of its retail footprint.

Here is a comprehensive breakdown of the IPO details and business overview.

IPO Details at a Glance

• Issue Period: February 24 to February 26, 2026

• Price Band: ₹367 to ₹386 per equity share

• Lot Size: 32 shares (Minimum investment of ₹12,352 at the upper band)

• Issue Size: ₹380 crore (Entirely a Fresh Issue)

• Listing Date: Tentatively March 4, 2026

• Exchanges: Proposed to list on both BSE and NSE

About the Company

Originally part of the legacy P. N. Gadgil & Sons ecosystem, PNGS Reva Diamond Jewellery operates under the flagship brand "Reva." It specializes in design-led, certified diamond jewellery catering to various consumer segments—from daily wear and affordable luxury to premium bridal collections.

Business Model

The company currently operates through 34 stores across Maharashtra, Gujarat, and Karnataka. Its model has historically been "asset-light," utilizing a shop-in-shop (SIS) format within P. N. Gadgil stores. This has allowed the brand to leverage established customer footfalls while maintaining high profit margins compared to traditional gold-heavy retailers.

Key Strengths

• Strong Heritage: Benefits from the 190-year legacy of its corporate promoter, P. N. Gadgil & Sons, which provides instant brand trust.

• Premium Positioning: Focuses on high-margin diamond and gemstone-studded pieces rather than low-margin plain gold jewellery.

• Design-Led Portfolio: Offers collections with entry points as low as ₹10,000 to ₹20,000, attracting younger and first-time diamond buyers.

• Superior Margins: Reported a PAT (Profit After Tax) margin of approximately 23% in FY25, which is among the highest in the Indian jewellery retail sector.

Objectives of the Issue

The proceeds from the ₹380 crore fresh issue are earmarked for specific growth initiatives:

1. Store Expansion: Setting up 15 new brand-exclusive stores in Tier-1 and Tier-2 cities to reduce dependence on the shop-in-shop model.

2. Marketing & Branding: Investing ₹35.4 crore in promotional activities to establish "Reva" as a standalone premium brand.

3. General Corporate Purposes: Supporting working capital and other operational needs.

Risk Factors to Consider

• Geographic Concentration: Over 96% of revenue comes from the Maharashtra market. Any regional economic or regulatory shift could significantly impact the business.

• Promoter Dependence: Most current stores are located within the promoter's premises; any change in franchise or trademark agreements poses a risk.

• Inventory Intensity: The nature of the diamond business requires holding high-value inventory for long periods (averaging over 300 days), leading to high working capital requirements.

• Competition: Faces rising competition from organized retail players and the increasing popularity of lab-grown diamonds.