PNGS Reva Diamond Jewellery
- PNGS Reva Diamond Jewellery is coming out with a 100% book building; initial public offering (IPO) of 1,03,54,222 shares of Rs 10 each in a price band Rs 367-386 per equity share.
- Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
- The issue will open for subscription on February 24, 2026 and will close on February 26, 2026.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 36.70 times of its face value on the lower side and 38.60 times on the higher side.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance Officer for the issue is Kirti Suryakant Vaidya.
Profile of the company
PNGS Reva Diamond Jewellery is a retail focused jewellery brand involved in the business of sale of a wide range of jewellery made using diamond and precious and semi-precious stones which are studded into precious metals such as gold and platinum. It also retails plain platinum jewellery including rings, bracelets and chains. Its products are sold under its flagship brand, “Reva”. The Reva brand aims to blend traditional elegance with modern aesthetics, offering customizable diamond jewellery that appeals to a broad customer base.
The company’s Corporate Promoter, P. N. Gadgil & Sons Limited was originally involved in the business of gold jewellery, silver jewellery, idols and other silverware, diamonds and diamond jewellery and other gemstones jewellery and related gift items. Pursuant to a business transfer agreement dated January 31, 2025, its Corporate Promoter, P. N. Gadgil & Sons Limited undertook a strategic move with a disinvestment via a slump sale of their diamond business in favour of the company (Business Transfer Agreement). This restructuring led to the establishment of the company as an independent business entity, allowing it to carve out its distinct identity in the market while continuing to operate in the diamond jewellery industry. Pursuant to the Business Transfer Agreement, the company stands as a separate player in the diamond jewellery segment, committed to offering high-quality jewellery pieces made using diamond and precious and semi-precious stones which are studded in precious metals such as gold and platinum.
As a design-led brand, the company offers designs across various price points tailored to various occasions and customer preferences. Its retail network comprises of brand-exclusive store owned and operated by the company and shops-in-shop where it sets up its brand in a dedicated space within the premises of the retail stores operated by its Corporate Promoter, P. N. Gadgil & Sons Limited (Stores), allowing it to leverage their established infrastructure and customer footfall while maintaining its brand identity. This provides it with an additional advantage with consumers being more predisposed to branded jewellery, particularly in metro and tier I cities, given the rising media and Western influences and willingness to pay a premium price.
Proceed is being used for:
- Funding expenditure towards setting-up of 15 new brand-exclusive stores across India with a focus of targeting in Tier-1 cities and selectively exploring Tier-2 cities in Maharashtra and other metro cities in India
- Marketing and promotional expenses related to the launch of the 15 New Stores, aimed at enhancing local brand awareness and visibility of its flagship brand, “Reva”, in their respective areas
- General corporate purposes
Industry Overview
The Indian gems and jewellery industry is a significant pillar of the national economy, contributing approximately 7% to the country’s GDP and around 15% of total merchandise exports. The sector is expected to grow steadily, driven by domestic consumption and international demand. India is the largest diamond-cutting and polishing hub globally, producing over 90% of the world’s polished diamonds. The industry comprises various segments, including gold jewellery, diamond jewellery, coloured gemstones, and diamond-studded gold jewellery, with gold jewellery dominating the market. Gold plays a vital cultural and religious role in India, symbolising prosperity and wealth, and is an essential part of weddings, festivals, and other ceremonies. The manufacturing base is geographically concentrated in key states like Maharashtra, Gujarat, and Tamil Nadu.
The Indian jewellery market is traditionally dominated by gold jewellery. Gold jewellery purchases in India are not just limited to consumption, as is the case with fashion jewellery. They have a strong saving significance. This is more evident in rural communities where access, literacy, and acceptance of other financial savings instruments are low. These factors have resulted in gold being a major savings asset class. Cultural differences, religious & trust concerns, and other elements that influence jewellery purchases have all contributed to gold jewellery's significance. In CY24, the Indian jewellery market is estimated to be Rs. 7,105 billion. Furthermore, the market is expected to grow at a compounded annual growth rate (CAGR) of 10.9% between CY24 and CY30 to Rs 11,548 billion.
Indian jewellery sector is likely to witness growth in the coming years driven by rising disposable incomes among the middle class, growing demand for certified and branded jewellery, and increased adoption of digital retail platforms. The increasing penetration of e-commerce, omnichannel retail strategies, and digital innovations such as virtual try-ons, AI-driven recommendations, and blockchain authentication will further driving market transformation. The lower customs duty on jewellery, platinum findings will boost jewellery demand in near time. However, industry may face several challenges, including volatile gold prices, high labour costs, fragmented inventory systems, and the slow adoption of advanced retail technologies.
Pros and strengths
Strong brand equity backed by promoter legacy: The value of the “Reva” brand, along with the legacy, industry knowledge, and relationships of its Promoters, plays a significant role in strengthening its market presence, maintaining customer trust, and supporting its operational and financial stability. The operations of the “Reva” brand were initially operated by its Corporate Promoter, P. N. Gadgil & Sons Limited. This legacy has enabled it to build brand recognition and customer loyalty. Over time, Reva has evolved into a modern jewellery brand offering a wide range of collections that combine traditional craftsmanship with contemporary design.
Strong western India presence with tier-wise market penetration: The company’s presence across Tier-1, Tier-2 and Tier-3 cities in Maharashtra, Gujarat and Karnataka gives it competitive advantages in western India. Seasonality in jewellery buying is a key factor that influences demand heterogeneity in India. Weddings, festivals, and harvests in rural regions are the main drivers of the category, and the seasonal nature of each of these drivers assures that demand for jewellery is tied to the different months and seasons. The manufacturing base is geographically concentrated in key states like Maharashtra, Gujarat and Tamil Nadu. With regional expertise, the company understands customer preferences across city tiers in western India. Insights into regional demand allows it to optimise inventory with tailored collections, driving festive sales during key occasions like Gudi Padwa, Akshay Tritiya, Dussehra and Diwali, as well as for new age occasions like valentines’ day.
Diversified product portfolio catering to evolving consumer preferences: To cater to the changing consumer preferences and design trends, larger stores are offering more variety and a diverse range of jewellery. Its diversified product portfolio serves as a competitive strength, enabling it to cater to a wide spectrum of consumer preferences and purchasing capacities. As of September 30, 2025, its collection features jewellery designs across multiple categories, with price points starting from approximately Rs 20,000. This allows it to address demand across high-value purchases such as weddings and engagements, as well as for more frequent use cases including festive occasions and everyday wear. Its product offerings consist of a comprehensive range of jewellery types including rings, earrings, necklaces, bracelets, pendants, mangalsutras and bangles made using precious stones such as diamonds and precious and semi-precious gemstones studded into precious metals like gold and platinum.
Customisation-led premiumisation strategy: Customization has become a popular choice, especially among affluent customers looking for unique designs. Continuous innovation in designs and customisation options is attracting a broader customer base. It offers customised jewellery and high-value pieces which positions its brand not only in the entry-level market but also within the premium jewellery segment. It offers clients the flexibility to personalise every detail, from metal selection, diamond and precious and semi-precious stone preferences to engravings, thus enabling it to deliver jewellery that reflects individual preferences.
Risks and concerns
Regional concentration risk in core operating state: A significant portion of its revenue comes from its Stores in Maharashtra, where its operations are heavily focused. In six-months period ended September 30, 2025 and Fiscal 2025, 2024, 2023, it has derived Rs 1,528.70 million, Rs 2,503.83 million, Rs 1,892.61 million and Rs 1,923.42 million contributing to 97.54%, 96.97%, 96.75% and 96.73% of its revenue from operations from its Stores in Maharashtra. If this region or these key locations face any negative developments, it could harm its business performance, growth potential, financial health, and overall profitability.
Promoter-led brand equity concentration risk: The company’s business operations are significantly dependent on the brand equity, customer perception and operational performance of its Corporate Promoter, P. N. Gadgil & Sons Limited. Any adverse publicity, reputational damage or negative developments in relation to Corporate Promoter, P. N. Gadgil & Sons Limited may lead to diminished customer traffic at its Stores, which could, in turn, have a material adverse effect on its sales, profitability and overall business performance. While it has not experienced any such issue in the past, it cannot assure that the same will not happen in the future. Additionally, its Corporate Promoter, P. N. Gadgil & Sons Limited’s retail outlets operate under a multi-brand store format. Therefore, the performance, reputation and consumer perception of other third-party brands housed within the same premises may also influence customer footfall at majority of its Stores.
Competitive threat from lab-grown diamonds: Products such as lab-grown or synthetic diamonds are gaining popularity and become more easily available, which may cause a decrease in demand for natural diamonds or gemstones from customers. The lower cost and growing acceptance of these diamonds is a potential threat to the natural diamond industry, and its pricing strategies may not be successful in competing with cost-efficient synthetic alternative products.
Franchise dependency & operational coordination risk: Majority of the company’s business operates through a franchise agreement pursuant to which it has acquired inventory and logistical support from its Corporate Promoter, P. N. Gadgil & Sons Limited. The use of these is governed by a franchise agreement dated February 1, 2025, as amended pursuant to the amendment agreement dated June 26, 2025, which grants the company an exclusive right over inventory and the use of logistical support and physical store infrastructure. This dependency creates potential operational risks and its growth and brand management remain subject to ongoing coordination with its Corporate Promoter.
Outlook
PNGS Reva Diamond Jewellery is engaged in the jewellery business. The company offers different types of jewellery made using diamonds and precious and semi-precious stones, which are studded into precious metals such as gold and platinum. All products are offered under the brand name, “Reva”. The company has diversified product portfolio across categories and price points helps it to stay ahead of changing consumer preferences. On the concern side, the company is dependent on the brand reputation of its Corporate Promoter, P. N. Gadgil & Sons Limited and any reputational damage to their brand will also have an impact on its footfall and subsequently its sales and revenue. Moreover, the company’s revenue is influenced by seasonal trends and any dip in earnings during peak periods could disproportionately affect its overall performance.
The issue has been offering 1,03,54,222 equity shares in a price band of Rs 367-386 per equity share. The aggregate size of the offer is around Rs 380.00 crore to Rs 399.67 crore based on lower and upper price band respectively. Minimum application is to be made for 32 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 31.97% to Rs 2,581.83 million for Fiscal 2025 from Rs 1,956.34 million for Fiscal 2024. This increase can be primarily attributed to an increase in the sale of the diamond studded jewellery which includes precious stones, domestically. Moreover, the company’s profit after tax increased by 40.22% to Rs 594.74 million for Fiscal 2025 from Rs 424.14 million for Fiscal 2024.
The company intends to open 15 New Stores to strengthen its market position and drive revenue growth while establishing a distinct identify in the jewellery market. It intends to utilise Rs 2,865.64 million of the Net Proceeds for the purpose of opening these New Stores. These New Stores will be owned and operated by the company and sell jewellery exclusively under the Reva brand. It will be able to maintain control over operations, brand consistency and customer experience, ensuring standards of service and product quality. It aims to focus on strategic location selection, operational efficiency and customer-centric initiatives to ensure execution and sustainable growth. By optimising aggregate store area, it aims to maximize revenue potential per location while catering to diverse customer needs, thereby strengthening its competitive advantage and market share.
