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PNGS Reva Diamond Jewellery IPO opens today: Should you subscribe to the ₹380 crore issue?While the company's revenue and profitability have grown steadily in recent years, margins have shown some volatility.By Meghna Sen  February 24, 2026, 6:46:45 AM IST (Published)3 Min Read(Photo Credit : Pixabay)The ₹380-crore initial share sale of PNGS Reva Diamond Jewellery will open for subscription on Tuesday, February 24, and close on February 26. Ahead of the issue opening, the company has raised ₹170.58 crore from anchor investors.

Some of the marquee institutions that participated in the anchor round include Citigroup Global Markets Mauritius, Societe Generale, Astorne Capital VCC - Arven, Aanjay Ageless AIF Fund, and Holani Venture Capital Fund - 1.

The IPO price band has been fixed at ₹367 to ₹386 per share, with a lot size of 32 shares per application.

In the grey market, the shares are commanding a premium of 3.11%. However, grey market premiums are only indicative of demand in the unlisted market and can change rapidly.

What brokerages are saying

SBI Securities has assigned a 'Neutral' rating to the IPO and said it would prefer to track the company's performance post listing.

The brokerage said that PNGS Reva is a structurally differentiated play in India's organised diamond jewellery retail segment. Unlike gold-centric peers, whose margins are constrained by commodity-linked revenues, the company's 100% diamond focus resulted in PAT margins of 23% in FY25, among the highest in the sector.

However, SBI Securities cited risks related to the business model, as 32 of the company's 34 stores operate under the Shop-in-Shop model. Any unfavourable changes to franchise or trademark agreements could impact footfall, sales and overall operations.

Choice Broking has given a 'Subscribe for long term' rating. At the upper price band, the issue is valued at a P/E of 20.6x based on FY25 EPS of ₹18.8, indicating that valuations largely factor in near-term growth expectations.

The brokerage said that while revenue and profitability have grown steadily in recent years, margins have shown some volatility.

The company currently operates 34 stores, predominantly under the Shop-in-Shop model within outlets of its corporate promoter, P N Gadgil & Sons Ltd. To strengthen the "Reva" brand and accelerate growth, the company plans to open 15 new stores under the company-owned, company-operated model.

While this shift could enhance brand visibility and long-term scalability, it may put pressure on margins in the near term due to higher operating costs and upfront investments.

Additionally, revenue remains significantly concentrated in Maharashtra, exposing the company to regional demand risks.

Arihant Capital has also recommended 'Subscribe for long term', citing the company's positioning in the design-led, organised diamond jewellery segment.

The brokerage believes PNGS Reva is well placed to benefit from rising demand for premium and customised diamond jewellery, supporting margin strength and higher average order values.

IPO details

The Pune-based company's IPO comprises entirely a fresh issue of equity shares, with no offer-for-sale component.

Proceeds will be used to open 15 new stores by FY28, fund marketing and promotional expenses for the "Reva" brand, and meet general corporate requirements.

PNGS Reva Diamond Jewellery was formed after its promoter, P N Gadgil & Sons Ltd, transferred its diamond jewellery business through a slump sale into a separate retail-focused entity.

As of March 31, 2025, the company operated 33 stores across 25 cities in Maharashtra, Gujarat and Karnataka. Revenue from operations rose 32% to ₹258.18 crore in FY25 from ₹195.63 crore in the previous year, while profit increased 40% to ₹59.47 crore.

The basis of allotment is expected to be finalised on February 27. The shares are scheduled to list on BSE and NSE on March 4.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsIPO