PNGS Reva Diamond Jewellery Ltd. made a weak debut on Dalal Street on Wednesday, listing at a nearly 4% discount to the IPO price, reflecting tepid interest in the primary market. The share price opened at Rs 372, about 3.6% lower than the issue price of Rs 386 on the BSE, and at Rs 375 on the NSE, a discount of 2.8%.
The Rs 380-crore IPO received was subscribed 1.23 times, with bids for 70.31 lakh shares against 57.06 lakh shares on offer. The QIB portion was subscribed 1.04 times, the retail segment 1.29 times, and the non-institutional investors' category 1.54 times.
The Pune-based company's Rs 380-crore IPO comprised entirely a fresh issue, with no offer-for-sale component. Proceeds will be used to open 15 new stores by fiscal 2028, fund marketing and promotional expenses for the 'Reva' brand, and meet general corporate requirements.
PNGS Reva Diamond Jewellery was carved out after its promoter, PN Gadgil & Sons Ltd., transferred its diamond jewellery business into a separate retail-focused entity through a slump sale. The company primarily offers different types of jewellery made using diamonds and precious and semi-precious stones under the brand name, ‘Reva'. It operates 34 stores across 25 cities in Maharashtra, Gujarat, and Karnataka.
Amit Modak, chief executive officer, said there is growing demand for studded jewellery. In response to this trend, the company has planned an expansion of its exclusive ‘Reva' diamond brand. He added that instead of operating a full‑stack jewellery store, the company is now focusing specifically on studded diamond products.
Demand for primary issues has waned this year amid a slump in the secondary market. The benchmark Nifty 50 is down 6.7% year-to-date. Five out of the seven IPOs that listed opened lower than their issue price. On Monday, Shree Ram Twistex Ltd. and Clean Max Energy Solutions Ltd. declined 31% and 17% after debut.
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