PNGS Reva IPO Opens Feb 24; ₹380 Crore Upcoming IPO

PNGS Reva Diamond Jewellery Limited is launching a book-built initial public offering (IPO) aggregating to ₹380 crore. The issue is entirely a fresh issue of 0.98 crore equity shares (98,44,559 shares). The IPO opens for subscription on February 24, 2026 and closes on February 26, 2026. The allotment is expected to be finalised on February 27, 2026, with refunds and credit of shares scheduled for March 2, 2026. The shares are proposed to be listed on BSE and NSE on March 4, 2026.

The price band has been fixed at ₹367 to ₹386 per share with a face value of ₹10 per share. At the upper price band, the company is targeting a market capitalisation of ₹1,224.04 crore. The pre-issue shareholding stands at 2,18,66,400 shares and will increase to 3,17,10,959 shares post-issue. The issue constitutes 31.04% of the post-IPO paid-up equity capital.

 PNGS Reva IPO Reservation 

Smart Horizon Capital Advisors Pvt. Ltd. is the sole Book Running Lead Manager, Bigshare Services Pvt. Ltd. is the registrar, and Phillips Capital (India) Pvt. Ltd. is the syndicate member.

About the PNGS Reva Company and Business Model

Incorporated in 2004, PNGS Reva Diamond Jewellery Limited is engaged in the retail sale of diamond-studded jewellery and plain platinum jewellery under its flagship brand “Reva.” The product portfolio includes rings, earrings, necklaces, pendants, solitaires, bangles, bracelets, mangalsutra, nose rings and chains. The company offers 13 distinct jewellery collections as of September 30, 2025 and operates with an in-house design team along with curated selections from third-party manufacturers and karigars.

As of the date of the Red Herring Prospectus, the company operates 34 stores across 25 cities in Maharashtra, Gujarat and Karnataka, aggregating 647.15 running feet. The stores function under FOCO (Franchise Owned Company Operated), FOFO (Franchise Owned Franchise Operated) and COCO (Company Owned Company Operated) models. Under FOCO, the retail space is owned or leased by the corporate promoter while the company manages inventory and operations, creating an asset-light structure. The company has 69 employees on its payroll as of September 30, 2025.

The corporate promoter, P. N. Gadgil & Sons Limited, with a legacy of over 190 years, executed a slump sale of its diamond business to the company through a Business Transfer Agreement dated January 31, 2025. Inventory and gratuity liabilities related to the diamond business were transferred as part of this arrangement. This restructuring established PNGS Reva as an independent entity in the diamond jewellery segment.

Objects of the Issue

Out of the net proceeds, ₹286.56 crore will be utilised for setting up 15 new stores, ₹35.40 crore for marketing and promotional expenses related to these new stores and enhancing brand visibility of “Reva,” and the balance towards general corporate purposes. The total identified allocation towards specific objects amounts to ₹321.96 crore.

Financial Performance of PNGS Reva

Key Metrics of PNGS Reva

Key performance indicators show ROE of 165.9% in FY25 and 18.3% as of September 30, 2025. ROCE was 79.8% in FY25 and 25.2% as of September 30, 2025. The debt-to-equity ratio was 0.90 in FY25 and 1.10 as of September 30, 2025. RoNW stood at 59.36% in FY25 and 16.73% as of September 30, 2025. The price-to-book value is 8.42.

Based on FY25 earnings, the IPO is priced at a P/E of 20.58, and if FY26 annualised earnings are considered on a post-IPO fully diluted basis, the P/E works out to 30.39. Pre-IPO EPS is ₹35.21 with a pre-IPO P/E of 10.96. The issue is priced at a P/BV of 7.02 based on the NAV of ₹55.02 as of September 30, 2025 (including capital reserve), and 2.60 based on the post-IPO NAV of ₹148.21 per share at the upper band. 

Promoter holding will dilute from 87.45% pre-issue to 60.31% post-issue. The average cost of acquisition of shares by promoters ranges from ₹2.22 to ₹166.67 per share.

Peer Comparison and Valuation

The company has cited Tribhovandas Bhimji Zaveri, Thangamayil Jewellery and Senco Gold as listed peers, trading at P/E multiples of 37.4, 45.6 and 11.0 respectively as of February 20, 2026. However, the comparability across business models and scale may not be strictly like-for-like.

Considering the volatility in margins, rising borrowings, declining ratios in H1 FY26 and aggressive pricing at 20.58 times FY25 earnings and 30.39 times annualised FY26 earnings, the valuation appears demanding. The PAT margins, which are higher than industry averages, raise questions about sustainability in a competitive and fragmented jewellery segment.

Conclusion 

PNGS Reva Diamond Jewellery Limited operates 34 stores and plans to expand by 15 additional outlets using IPO proceeds. While it benefits from the legacy of its corporate promoter and operates under an asset-light retail model, its financials show inconsistency in revenue and profit trends along with margin moderation in H1 FY26 and rising leverage.