PNGS Reva wants to raise Rs 380 crore largely for store expansion
PNGS Reva Diamond Jewellery Ltd. (PRDJL) has opened its maiden IPO for public subscription on February 24, 2026, and the issue closes on February 26, 2026. The company is raising Rs. 380 crore through a fresh issue of equity shares via the book building route. Shares will be listed on both BSE and NSE post allotment. This is the first time the company is tapping the capital markets, making it a maiden public offering in every sense.
About the Business
PNGS Reva Diamond Jewellery Ltd. is a retail-focused jewellery brand that deals in diamond-studded jewellery set in precious metals like gold and platinum. The company also sells plain platinum jewellery — rings, bracelets, chains — and caters to customers looking for customisable, premium-yet-accessible diamond pieces. All products are marketed and sold under the flagship brand “Reva”, which is positioned as a blend of traditional elegance and modern aesthetics.
The company was carved out of P.N. Gadgil & Sons Limited, one of Maharashtra’s most well-known jewellery groups with a legacy spanning over 190 years. In January 2025, P.N. Gadgil & Sons did a slump sale of its entire diamond jewellery business undertaking to PRDJL through a Business Transfer Agreement dated January 31, 2025. This included the transfer of inventory and gratuity liabilities related to the diamond segment. The restructuring was done to give the diamond business its own identity, a dedicated management focus, and access to public capital markets independently.
Issue Details at a Glance
| Parameter | Details |
| Issue Type | Fresh Issue (Book Building) |
| Issue Size | Rs. 380 crore (approx.) |
| Number of Shares | ~98,44,560 equity shares (at upper cap) |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 367 – Rs. 386 per share |
| Lot Size | 32 shares and in multiples thereof |
| Minimum Investment (Retail) | Rs. 12,352 (at upper cap) |
| Issue Opens | February 24, 2026 |
| Issue Closes | February 26, 2026 |
| Listing | BSE & NSE |
| Issue as % of Post-IPO Capital | 31.04% |
| Post-IPO Market Cap (Upper Cap) | Rs. 1,224.04 crore |
| Pre-IPO Paid-up Capital | Rs. 21.87 crore |
| Post-IPO Paid-up Capital | Rs. 31.71 crore |
Store Network and Operations
The company currently operates 34 stores across 25 cities in Maharashtra, Gujarat, and Karnataka, with a total retail area of 647.15 running feet. These stores operate under three models FOCO, FOFO and COCO which is franchise owned, company operated, franchise owned and operated and company owned and operated. Most of the stores operate as shops-in-shop within existing P.N. Gadgil & Sons retail outlets. This gives the company access to established footfall without incurring heavy real estate or infrastructure costs, which is an asset-light model.
The Raise
The Rs. 380 crore raised through this IPO will be deployed as follows:
| Purpose | Amount (Rs. Crore) |
| Setting up 15 new stores (Capex) | 286.56 |
| Marketing & promotional expenses for new stores + brand “Reva” | 35.40 |
| General Corporate Purposes | Balance |
| Total | 380 cr |
The bulk of the IPO proceeds — nearly 75% — goes into expanding the store count from 34 to 49. This is a clear store-rollout play, with the company betting that geographic and outlet expansion will drive revenue growth over the next few years.
Capital History
The company’s pre-IPO capital activity is quite eventful and worth understanding before you look at the valuation numbers. The promoters are entering the IPO at an average cost as low as Rs. 2.22 per share, while the public is being asked to subscribe at Rs. 386.
Financial Performance
Here is how the company’s revenues and profits have moved over the reported periods:
| Period | Total Income (Rs. Crore) | Net Profit (Rs. Crore) | PAT Margin (%) |
| FY23 | 199.35 | 51.75 | 26.02% |
| FY24 | 196.24 | 42.41 | 21.68% |
| FY25 | 259.11 | 59.47 | 23.04% |
| H1 FY26 (Apr–Sep 2025) | 157.12 | 20.13 | 12.85% |
Revenue dipped from FY23 to FY24, recovered in FY25, but the first half of FY26 shows a notable compression in PAT margins — from the 21–26% range seen in earlier years to just 12.85%. The inconsistency in both top line and bottom line over reported periods is a point that analysts have flagged.
The PAT margins at 21–26% are unusually high for a retail jewellery business operating in a competitive, fragmented segment. The industry average for jewellery retailers tends to be much thinner. What drives these margins — and whether they are sustainable as the company scales with 15 new stores.
Valuation and Pricing
| Metric | Value |
| P/E (based on FY25 earnings) | 20.58x |
| P/E (based on annualised FY26 earnings) | 30.39x |
| P/BV (pre-IPO NAV of Rs. 55.02 as of Sep 30, 2025) | 7.02x |
| P/BV (post-IPO NAV of Rs. 148.21 per share) | 2.60x |
| Average RoNW (3-year, including capital reserve) | –36.51% |
Peer Comparison
Some of its peers listed are Tribhovandas Bhimji Zaveri, which is trading at a PE of 37.4 times, Thangmayil Jewellery, 45.6 times, and Senco Gold, 11 times.
However, these are well-set businessses. PRDJL is a pure-play diamond jewellery retailer that is only a year old as an independent entity. At a P/E of 30.39x on annualised FY26 numbers, the pricing is between Senco Gold and TBZ, which is does not appear any less expensive.
The sole Book Running Lead Manager (BRLM) for this issue is Smart Horizon Capital Advisors Pvt. Ltd. This is their 20th mandate over the last two fiscals. Looking at their last 10 listings, 2 opened at a discount, 1 at par, and the remaining 7 opened at premiums ranging from 2.14% to 6.36% on listing day. The registrar is Bigshare Services Pvt. Ltd. and Phillips Capital (India) Pvt. Ltd. is the syndicate member.
Dividend Policy
The company has not declared any dividend during the reported periods covered in the offer document. A dividend policy was adopted in May 2025, with actual payouts to be decided based on future financial performance and business requirements.
Key Risks
- The company is barely a year old as an independent entity, having been carved out only in January 2025
- Geographic concentration — only Maharashtra, Gujarat, and Karnataka
- Heavy dependency on the parent P.N. Gadgil & Sons for store infrastructure under the FOCO model
- Revenue and profit inconsistency across reported periods
- Sharp PAT margin compression in H1 FY26
- RoCE data missing from offer documents
- Only 69 employees for 34 stores — lean, but also limited bandwidth for a rapid 15-store expansion
