PNGS Reva IPO ahead: Here's what RHP says about key risks and growth driver

Backed by P N Gadgil & Sons, the owner of the ‘Reva’ brand, PNGS Reva Diamond Jewellery is moving closer to its D-Street debut and is set to go public next week. The company will launch its initial public offering (IPO) on Tuesday, February 24, 2026.

 

Through its maiden share sale, the company aims to raise ₹380 crore from the markets. The issue comprises an entirely fresh issue of 9.8 million equity shares.

 

Ahead of the public subscription window, bidding for anchor investors is scheduled to take place on Monday, February 23.

 

The issue has been priced in the band of ₹367 to ₹386 per share, with a lot size of 32 shares. The public issue will remain open for subscription till Thursday, February 26. The company’s shares are likely to make their D-Street debut on Thursday, February 26, 2026. 

 

As investors await the launch of the public offering, here are the top risk factors and strengths outlined in the company’s Red Herring Prospectus (RHP): 

Key risks 

 

A significant portion of the company’s revenue is derived from its stores in Maharashtra, where its operations are heavily concentrated. In the six-month period ended September 30, 2025, and in fiscals 2025, 2024 and 2023, it derived ₹1,528.70 million, ₹2,503.83 million, ₹1,892.61 million and ₹1,923.42 million, respectively, accounting for 97.54 per cent, 96.97 per cent, 96.75 per cent and 96.73 per cent of revenue from operations. As stated in the RHP, any adverse developments in this region or at these key locations could impact business performance, growth prospects, financial condition and profitability.

 

According to the RHP, the success of the business is closely linked to the strength and reputation of its flagship brand, “Reva”. "There is no assurance that the company will be able to maintain or enhance brand awareness and perception. Any reputational damage to the brand, name or logo could adversely affect its financial condition, cash flows and results of operations," said the company in its RHP. 

 

The RHP further noted that the company is dependent on the brand reputation of its corporate promoter, P N Gadgil & Sons Limited. Any reputational damage to the promoter’s brand may impact footfall and, in turn, sales and revenue. Inability to effectively market its products could also affect consumer footfall and adversely impact business and financial performance.

 

The document highlighted that the growing popularity and availability of lab-grown or synthetic diamonds pose a potential threat. Lower costs and increasing consumer acceptance of such products may reduce demand for natural diamonds or gemstones. The company’s pricing strategies may not succeed in competing with cost-efficient synthetic alternatives, as per the RHP.

 

The RHP also stated that the company’s inability to maintain optimal inventory levels at its stores may adversely affect operations. It is dependent on its top three third-party suppliers, from whom it purchased materials worth ₹657.47 million, ₹594.19 million, ₹511.47 million and ₹427.61 million in the six-month period ended September 30, 2025, and fiscals 2025, 2024 and 2023, respectively. These accounted for 26.45 per cent, 30.14 per cent, 30.74 per cent and 30.70 per cent of total stock-in-trade purchases. Any delay on their part could impact inventory levels. 

Key strengths 

 

As per the RHP, the value of the “Reva” brand, along with the legacy, industry knowledge and relationships of its promoters, strengthens its market presence, customer trust and operational and financial stability. The brand’s operations were initially managed by its corporate promoter, P N Gadgil & Sons Limited, enabling it to build brand recognition and customer loyalty. "Over time, Reva has evolved into a modern jewellery brand offering collections that combine traditional craftsmanship with contemporary design," said the company. 

 

The company, according to RHP, is led by an experienced board of directors with expertise across finance, business, retail and jewellery, supporting decision-making and long-term value creation. Its Chairperson and non-executive director, Govind Gadgil, who is also an individual promoter, has over 45 years of experience in the jewellery industry and is a promoter of P N Gadgil & Sons Limited. Its whole-time director and chief executive officer, Amit Yeshwant Modak, has been associated with the company since incorporation and brings 25 years of industry experience. He also serves as a director on the board of P N Gadgil & Sons Limited and PNGS Gargi Fashion Jewellery Limited. 

 

According to the RHP, its presence across Tier-1, Tier-2 and Tier-3 cities in Maharashtra, Gujarat and Karnataka provides competitive advantages in western India. With regional expertise, the company understands customer preferences across city tiers and optimises inventory with tailored collections, supporting festive sales during occasions such as Gudi Padwa, Akshay Tritiya, Dussehra, Diwali and Valentine’s Day.

 

As highlighted in the RHP, a diversified product portfolio across categories and price points enables the company to cater to a wide range of consumer preferences and purchasing capacities. As of September 30, 2025, its collections span multiple categories, with price points starting from approximately ₹20,000. The portfolio addresses demand for high-value purchases such as weddings and engagements, as well as more frequent purchases for festive occasions and everyday wear. Offerings include rings, earrings, necklaces, bracelets, pendants, mangalsutras and bangles made using diamonds and other precious and semi-precious gemstones set in gold and platinum.

 

The RHP further noted that the company’s focus on customised and high-value jewellery enhances revenue potential and brand positioning in the premium segment. It offers clients the flexibility to personalise metal selection, diamonds and precious or semi-precious stones, as well as engravings, enabling delivery of jewellery that reflects individual preferences.