The Rs 380-crore IPO, which closed on February 26, was priced at Rs 386 per share, the upper end of its Rs 367-386 price band. The issue was a fresh issue of 98,44,559 shares in total and will be listed on both BSE and NSE.
In the gray market, the shares trade at a discount to the issue price, indicating the potential for a negative listing to be muted. A negative GMP generally indicates poor near-term sentiment, although it is not an official or regulated indicator.
The IPO saw moderate demand overall, with 1.30 times the subscription of the issue. The retail segment subscribed 1.37 times, while non-institutional investors (NII) subscribed 1.62 times. Qualified institutional buyers (excluding anchors) bid 1.10 times their reserved quota. The employee segment saw strong interest in participating seven times.
The company had raised Rs 170.58 crore from anchor investors before the issue on February 23, with 44,19,200 shares allotted to anchor shareholders.
PNGS Reva Diamond Jewellery, established in 2004, operates under the ‘Reva’ brand and focuses on diamond jewellery. The company offers rings, earrings, necklaces, pendants, solitaires, bangles, bangles and other manufactured products in gold and platinum. As of September 30, 2025, it operated 34 stores across 25 cities in Maharashtra, Gujarat and Karnataka under a mix of FOCO, FOFO and COCO models.
Financially, the company reported total revenue of Rs 259.11 crore and profit after tax of Rs 59.47 crore for FY25, compared to revenue of Rs 196.24 crore and PAT of Rs 42.41 crore in FY24. For the six months ending September 30, 2025, it posted revenue of Rs 157.12 crore and PAT of Rs 20.13 crore. The company plans to spend Rs 286.56 crore from the net proceeds for setting up 15 new stores, Rs 35.40 crore for marketing and the balances related to general loans related to these loans for promotional corporations.
Analysts note that while valuations appear to be in line with some listed jeweler peers, earnings have shown some volatility in recent years and development-led execution risks remain.
With GMP pointing to downside and broader market volatility still elevated, investors will be watching closely to see if institutional support and anchor support translates into stability on listing day, or if the stock opens below its strike price.
((rejection: The recommendations, suggestions, opinions and views given by the experts are their own. (It does not represent the views of The Economic Times.)
