PNGS Reva Diamond Jewellery IPO opens today: Should you subscribe to it?

The initial public offering (IPO) of PNGS Reva Diamond Jewellery (PNGS Reva) kicks-off for subscription on Tuesday, February 24. The company is offering its shares in the range of Rs 367-386 apiece and investors can apply for a minimum of 32 equity shares and its multiples thereafter. The issue will close for bidding on Thursday, February 26.

The Rs 380 crore IPO of PNGS Reva is entirely a fresh share sale of 98,44,559 equity shares. Net proceeds from the issue shall be utilized towards funding expenditure towards setting-up of 15 new stores; marketing and promotional expenses; and general corporate purposes.

Incorporated in 2004, Pune-based PNGS Reva Diamond Jewellery is engaged in the jewellery business, which 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".

Ahead of its, PNGS Reva raised a total of Rs 170.58 core from 16 anchor investors as it allocated 44,19,200 equity shares at Rs 386 apiece. Its anchor book included names like Tata Mutual Fund, Groww Mutual Fund, Sageone Growth Fund, Citigroup Global Markets, Societe Generate, Tiger Strategies Fund, Innovative Vision Fund, Visionary Value Fund and others.

For the period ended on September 30, 2025, PNGS Reva reported a net profit at Rs 20.13 crore, with a revenue of Rs 157.12 crore. The company clocked a net profit at Rs 59.47 crore with a revenue of Rs 259.11 crore for the financial year ended on December 31, 2025. At the current valuations, the company is commanding a market capitalization close to Rs 1,225 crore.

The company has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation. Retail investors will have only 10 per cent of allocation in the IPO. Last heard, it was commanding a grey market premium of Rs 9-10 per shares, suggesting on listing gains around 2-3 per cent for the investors.

Smart Horizon Capital Advisors is the sole book running lead manager of PNGS Reva Diamond Jewellery IPO and Bigshare Services is the registrar of the issue. Here's what a host of brokerage firms say about the IPO of PNGS Reva Diamond Jewellery:  

Choice Broking

Rating: Subscribe for long-term

While the company has demonstrated steady growth in revenue and profitability over the past few years, margins have exhibited volatility. To accelerate growth and strengthen the 'Reva' brand, the company plans to open 15 new stores under the COCO model, said Choice Broking.

"The transition may exert near-term pressure on margins due to higher operating costs and upfront investments. Its revenue remains significantly concentrated in Maharashtra, exposing it to regional demand risks.  Thus, focused positioning in the real diamond jewellery segment, and planned expansion strategy," it said with a 'subscribe for long-term' rating.  

SBI Securities

Rating: Neutral

PNGS Reva is a structurally differentiated play on India's organized diamond jewellery retail segment. Unlike gold-centric peers whose margins are constrained by commodity-linked revenues, Reva's 100 per cent diamond focus generates PAT margins of ~23 per cent (FY25) — among the highest in Indian jewellery retail, said SBI Securities.

"However, its business model is highly dependent on its promoters, as 32 out of 34 stores are operated under the shop-in-shop (SIS) format. Any unfavorable modifications to the franchise or trademark agreements could significantly impact Reva’s customer footfall, sales, and overall operations. We maintain a 'neutral' view and intend to observe its performance post listing," it said.  

Swastika Investmart

Rating: Avoid

The business has demonstrated consistent revenue growth along with improving profitability on a year-on-year basis. On the basis of recent financials, the issue initially appears to be aggressively valued, said Swastika Investmart in its IPO note.

"However, considering its superior Ebitda margins and stronger operating metrics compared to industry peers, the IPO valuation seems justified. The IPO may be avoided for short-term or listing gains; for investors who prioritize geographic diversification and predictable margin stability," it said.

BP Equities

Rating: Subscribe

PNGS Reva Diamond Jewellery is valued at a P/E multiple of 10.9 times based on FY25 earnings, said BP Equities. "Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a 'subscribe' rating with a medium to long-term investment horizon," it said.  

Marwadi Financial Services

Rating: Subscribe

"We assign a 'subscribe' rating to this IPO given the company’s diversified product portfolio across categories and price points, along with its expertise in customised and high-value jewellery, which supports revenue growth and brand premiumisation," said Marwadi Financial Services. "Also, it is available at reasonable valuation considering the growth potential of the company."

Ventura Securities

Rating: Subscribe

Efficient retail network with a growing store footprint across multiple Indian states supports broad consumer reach and operational scale. Diverse diamond and precious jewellery portfolio, strong promoter heritage with nearly two centuries of industry legacy, and focused expansion plans supporting growth, said Ventura Securities with a 'subscribe' rating.

However, the brokerage has cited a highly competitive organized jewellery market with pricing pressures and strong rivals may impact margins and market share. Expansion plans and capital deployment rely on successful execution of new store rollouts and continued consumer demand in a discretionary luxury segment as its key weaknesses.  

Lakshmishree Investments & Securities

Rating: Subscribe

PNGS Reva has secured a strategic position in India’s 'affordable luxury' diamond segment. Leveraging a highly efficient 'shop-in-shop' model within the 190-year legacy of PNGadgil & Sons, it achieves industry-leading Ebitda margins of 31-42 per cent by minimizing infrastructure overhead and tapping into established consumer footfalls, said Lakshmishree.

"Unlike gold-heavy retailers, PNGS Reva focuses on high-margin diamond and gemstone-studded pieces, maintaining a 0.37 debt-to-equity ratio. It is utilizing its February 2026 IPO proceeds to fund an aggressive pivot from a dependent shop-in-shop format to 15 new brand-exclusive showrooms. We suggest a ‘subscribe' rating for investors seeking high-growth exposure," it said.  

Adroit Financial Services

Rating: Subscribe

A significant portion is earmarked for setting up 15 new stores, which is expected to expand geographic presence, improve market penetration, and support higher revenue scale over the medium term, said Adroit Financial Services. "It is recommended to 'subscribe' to the IPO for long-term investment, considering its growth potential," it said.