IPO-bound PNGS Reva Diamond Jewelery to invest Rs 287 cr to open 15 stores

PNGS Reva Diamond Jewellery, which will enter the capital market with its maiden public issue on Tuesday, plans to invest Rs 287 crore in setting up 15 new stores to expand its business.Pune-based PNGS Reva Diamond Jewelery Ltd will launch its initial public offering (IPO) on Tuesday to raise Rs 380 crore through fresh issue of shares.

The price band of the issue, which closes on February 26, has been fixed at Rs 367-386 per share.“We are raising funds to expand our operations,” company CEO Amit Modak told PTI.

He said the company plans to set up 15 new stores with an investment of Rs 286.5 crore.

Of the fifteen new stores, about 60 percent would be in Maharashtra.

“These 15 stores will be company owned and operated,” Modak said. As per the IPO targets, another Rs 35.4 crore has been earmarked for marketing and promotional expenses related to the launch of these 15 new stores.

PNGS Reva Diamond Jewelery Ltd’s operating revenue stood at Rs 156.7 crore during the first six months of this fiscal, with a net profit of Rs 20.1 crore.

In the last fiscal, revenue from operations rose to Rs 258 crore from Rs 195.6 crore in the previous year.

Net profit rose to Rs 59.4 crore in fiscal 2024-25 from Rs 42.4 crore in the previous year.

The company has 34 stores across 25 cities in the states of Maharashtra, Gujarat and Karnataka.

Modak said the company only focuses on domestic sales and does not export diamond jewelry.

Promoters have an 87 percent stake in the company. After the IPO, their shareholding will drop to approximately 60 percent.