PNGS Reva Diamond IPO: The primary market action is showing signs of revival as another mainboard initial public offering (IPO) is gearing up to hit Dalal Street following the closure of Aye Finance and Fractal Analytics IPOs this week.
PNGS Reva Diamond IPO, worth ₹380 crore, is entirely a fresh share sale of 0.98 crore shares priced at ₹367 ₹386 apiece. The offer will open for bidding on Tuesday, February 24 and close on Thursday, February 26.
Since the offer is entirely a fresh issue, the company plans to use it for setting up new stores, promotional expenses and general corporate purposes.
Investors can apply for a jewelery retailer’s IPO in multiples of 32 shares, requiring a minimum investment of ₹12,352 at the upper end of the price range.
The company has reserved 75% of the offer for QIBs, 10% for retail investors and 15% for NIIs.
PNGS Reva Diamond IPO is expected to announce the allotment for shares on Friday, February 27, while the listing will take place on BSE and NSE on March 4.
About PNGS Reva Diamond
According to the company’s red herring prospectus, it is a retail-focused jewelery brand involved in selling a wide range of jewelery made using diamonds and precious and semi-precious stones studded in gold and platinum.
It currently operates 34 stores across 25 cities in the states of Maharashtra, Gujarat and Karnataka. Prominent jewelery retailer PN Gadgil is the company’s corporate promoter.
On the financial front, the company’s revenue has jumped from ₹198.8 crore in fiscal 2023 to ₹195.6 crore in fiscal 2024 and to ₹258.18 crore in fiscal 2025.
However, the profit trajectory has not been linear. The figure stood at ₹51.7 crores, ₹42.4 crore and ₹59.4 crore in fiscal 2023, fiscal 2024 and fiscal 2025, respectively.
PNGS Reva Diamond IPO Risks
Ahead of the PNGS Reva Diamond IPO launch, investors must also know the key challenges and risks that the company faces. Take a look:
1. Geographical concentration
The company derives a significant portion of its revenue from Maharashtra. During the last three fiscal years, the state contributed upwards of 95% to its revenue, exposing it to the risk of geographical concentration.
If this region or these key locations face any negative developments, it could
harm the business performance, growth potential, financial health, and overall profitability.
2. Heavy dependence on promoter brand
The company is heavily dependent on the brand reputation of its corporate promoter, PN Gadgil & Sons. Any reputational damage to their brand could affect the footfalls and sales.
3. Risks from lab-grown diamonds
The company deals in diamond and precious stone-studded jewellery. As the demand, availability and popularity for lab-gown an synthetic diamond grows, it may dent the appeal for natural diamonds and gemstones for customers. The lower cost and growing acceptance pose a threat to the natural diamond industry.
4. Fluctuations in gold and diamond prices
The jewelery industry is affected by fluctuations in the price and supply of gold, diamonds and other precious and semi-precious metals and stones. Despite government measures and available hedging platforms, many jewelers remain exposed to the risks of price fluctuations.
5. Inability to update designs
The company said its ability to introduce new designs and update collections in line with evolving customer preferences is critical to its business success. “If we fail to anticipate or respond effectively to changing trends, our business prospects, results of operations, and cash flows could be adversely affected,” it cautioned.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
