Retaggio Industries Limited, a jewellery manufacturing company, has launched its Initial Public Offering (IPO) to raise capital for business expansion. The IPO will be open for subscription from March 27, 2025, to April 2, 2025, and is entirely a fresh issue of 61.98 lakh shares, aggregating to ₹15.50 crores.

IPO Details and Subscription Information

The offer price per equity share is ₹25, and the company aims for a market capitalization of ₹38.91 crores post-IPO. The minimum lot size for retail investors is 6,000 shares, translating to a minimum investment of ₹1,50,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (12,000 shares), requiring ₹3,00,000.

• Subscription Start Date: March 27, 2025

• Subscription End Date: April 2, 2025

• Allotment Date: April 3, 2025

• Listing Date (Tentative): April 7, 2025

• Stock Exchange: BSE SME

The book-running lead manager for this IPO is Gretex Corporate Services Limited, while Bigshare Services Private Limited is handling the IPO allotment and registrar services. Additionally, Gretex Share Broking Limited is acting as the market maker for the IPO.

Financial Performance and Growth

Retaggio Industries has demonstrated steady financial growth, as reflected in its revenue and profitability trends:

• Revenue from operations:

  • ₹902.89 lakh (September 30, 2024)

  • ₹2,327.83 lakh (FY24)

  • ₹2,306.59 lakh (FY23)

  • ₹0.00 lakh (FY22)

• EBITDA Growth:

  • ₹158.12 lakh (September 30, 2024)

  • ₹518.35 lakh (FY24)

  • ₹415.91 lakh (FY23)

  • ₹0.64 lakh (FY22)

• Profit After Tax (PAT):

  • ₹81.13 lakh (September 30, 2024)

  • ₹334.11 lakh (FY24)

  • ₹308.99 lakh (FY23)

  • ₹-0.64 lakh (FY22)

These figures indicate a consistent increase in revenue and profitability, positioning Retaggio Industries as a growing player in the jewellery manufacturing sector.

Key Performance Indicators (KPIs)

• Pre-Issue Earnings Per Share (EPS): ₹3.57

• Post-Issue EPS: ₹2.15

• Pre-Issue Price-to-Earnings (P/E) Ratio: 7.00x

• Post-Issue P/E Ratio: 11.65x

• Return on Capital Employed (ROCE): 17.04%

• Return on Equity (ROE): 19.74%

• Return on Net Worth (RoNW): 17.99%

Grey Market Premium (GMP) Trends

The Grey Market Premium (GMP) for Retaggio Industries IPO is currently at ₹0, indicating no premium over the IPO price. The GMP is highly dependent on demand and supply in the grey market, and it is not a reliable indicator of listing gains.

Allotment Status & How to Check

The IPO allotment will be finalized on April 3, 2025, and investors can check their allotment status online:

• Visit the IPO registrar’s website (Bigshare Services Private Limited).

• Select Retaggio Industries IPO from the list.

• Enter your application number, PAN, or DP Client ID.

• Click Submit to check your status.

Utilization of IPO Proceeds

The company plans to allocate the IPO funds as follows:

• ₹208 lakh for repayment/prepayment of certain debt facilities.

• ₹3,488.48 lakh for working capital requirements.

Should You Invest in Retaggio Industries IPO?

While Retaggio Industries has shown financial growth, the IPO valuation suggests moderate risk for investors. The P/E ratio post-issue (11.65x) is higher, making the stock less attractive in terms of immediate listing gains.

Additionally, with zero GMP and a B2B business model, the demand for shares post-listing remains uncertain. Investors should carefully analyze their investment objectives before subscribing to the IPO.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com

About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.