The Retaggio Industries IPO is one of the most anticipated Initial Public Offerings (IPOs) in the jewellery sector. As a company that specializes in gold, diamond, precious stones, and fancy jewellery for the B2B segment, Retaggio Industries has garnered attention with its steady growth and unique positioning in the market.

This Fixed Price Issue amounts to ₹15.50 Crores and is entirely a Fresh Issue of 61.98 Lakh shares, with a Share Price set at ₹25 per equity share. The IPO subscription period opens on March 27, 2025, and closes on April 1, 2025. The allotment is expected to be finalized by April 2, 2025, with the listing date set for April 4, 2025, on the BSE SME platform.

The market capitalization of the company at the IPO price stands at ₹38.91 Crores. The lot size is 6,000 shares, and retail investors are required to invest a minimum of ₹1,50,000. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots, or ₹3,00,000.

Key Highlights of the Retaggio Industries IPO:

• Company Overview: Retaggio Industries manufactures a range of jewellery products, including gold, diamond, and precious stone jewellery, along with bullion like coins and bars. The company has established itself as a strong player in the B2B segment, with its founders bringing over a decade of experience in the industry.

• Financial Performance: Retaggio Industries has shown significant growth in its revenue and profits. For the period ended September 30, 2024, the revenues stood at ₹902.89 Lakh. Its EBITDA for the same period was ₹158.12 Lakh, and the profit after tax (PAT) was ₹81.13 Lakh. These results indicate strong financial health compared to previous years.

• Valuation: The company’s pre-issue EPS stands at ₹3.57, and the post-issue EPS is expected to be ₹2.15 for FY24. The pre-issue P/E ratio is 7.00x, and the post-issue P/E ratio stands at 11.65x. These metrics show that the IPO is fairly priced compared to industry standards.

• Grey Market Premium (GMP): The GMP for Retaggio Industries is currently ₹0, indicating no expected listing gains at this stage. The lack of real trading on the basis of the GMP suggests caution before making investment decisions.

Objectives of the IPO:

The net proceeds from the IPO will be utilized as follows:

• ₹208 Lakhs for the repayment or prepayment of certain debt facilities.

• ₹3,488.48 Lakhs for working capital requirements, ensuring that the company continues its operational growth and expansion.

Allotment Process and Key Dates:

• IPO Allotment Date: April 2, 2025 (Wednesday)

• How to Check Allotment Status: After the allotment date, investors can visit the registrar's website to check their status. The required details include the application number, PAN, or DP Client ID.

Recommendation:

Based on Retaggio Industries' financials, valuation, and Grey Market Premium, we advise investors to avoid the IPO for listing gains or long-term investment purposes, as the current GMP shows no potential for listing gains.

Retaggio Industries’ focus on debt repayment and working capital suggests that the funds raised will be effectively used for the company's financial stability and operational growth. However, the pricing and listing expectations indicate that investors should exercise caution before committing to the IPO.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Identixweb Limited,Retaggio Industries Limited,Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited,Desco Infratech Limited,Rapid Fleet Management Services, Active Infrastructures Limited.

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