Retaggio Industries, a jewellery manufacturing company, is all set to launch its Initial Public Offering (IPO) to raise ₹15.50 Crores. Known for its strong presence in the B2B segment of the jewellery industry, the company specializes in producing a wide variety of jewellery, including gold, diamond, precious stones, and other fancy jewellery, as well as bullion in the form of coins and bars.

Founded by Mr. Savinay Lodha, the Promoter and Managing Director, and Ms. Nidhi Lodha, the Promoter and Non-Executive Director, Retaggio Industries brings over a decade of expertise in the gems and jewellery sector. Their extensive industry knowledge, customer relationship skills, and innovative business strategies have positioned the company as a key player in the B2B jewellery manufacturing space.

Key IPO Information

• Subscription Dates: The subscription window for the Retaggio Industries IPO opens on March 27, 2025, and closes on April 1, 2025. Investors need to apply within this period to participate in the IPO.

• Price Band: The share price for the Retaggio Industries IPO has been fixed at ₹25 per equity share. The IPO is a fixed price issue amounting to ₹15.50 Crores, with 61.98 Lakh shares being offered.

• Market Capitalization: At the IPO price of ₹25 per share, the market capitalization of Retaggio Industries will be ₹38.91 Crores.

• Lot Size: Retail investors will need to invest a minimum of ₹1,50,000 for one lot (6,000 shares), and High-Net-Worth Individuals (HNIs) are required to invest ₹3,00,000 for two lots (12,000 shares).

• Allotment Date: The allotment of shares will be finalized on April 2, 2025. Investors can check the allotment status on the registrar's website after the allotment date.

• Listing Date: The shares of Retaggio Industries will be listed on the BSE SME platform on or about April 4, 2025.

Objectives of Retaggio Industries IPO

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹208.00 Lakhs: For the repayment/prepayment of certain debt facilities.

2. ₹3,488.48 Lakhs: To meet the working capital requirements of the company.

Financial Performance of Retaggio Industries

Retaggio Industries has demonstrated steady growth in its financial performance, showcasing a strong recovery in recent years:

• Revenue from Operations: The company's revenue for the fiscal year ended September 30, 2024, stood at ₹902.89 Lakhs, a substantial increase from ₹2,306.59 Lakhs in FY 2023. This growth highlights the company's ability to scale operations effectively.

• EBITDA: Retaggio Industries posted an EBITDA of ₹158.12 Lakhs for FY 2024, which is an improvement compared to ₹415.91 Lakhs in FY 2023.

• Profit After Tax (PAT): For the period ended September 30, 2024, the company recorded a PAT of ₹81.13 Lakhs, which is consistent with its positive growth trajectory after overcoming previous losses in FY 2022.

Valuation and Key Metrics

• EPS: The company has a pre-issue EPS of ₹3.57, which is expected to reduce to ₹2.15 post-issue for FY24.

• P/E Ratio: The pre-issue P/E ratio is 7.00x, while the post-issue P/E ratio rises to 11.65x, indicating that the IPO is priced on the lower end compared to its expected future earnings.

• ROE and ROCE: The company posted a Return on Equity (ROE) of 19.74% for FY24, with a Return on Capital Employed (ROCE) of 17.04%, suggesting a solid return on investments.

Grey Market Premium (GMP)

As of March 25, 2025, the Grey Market Premium (GMP) for Retaggio Industries IPO is ₹0, indicating no significant price movement in the unofficial market. This suggests that investors may not experience immediate listing gains based on GMP speculation.

IPO Review and Recommendations

While Retaggio Industries has demonstrated solid financial performance with steady revenue growth and profit generation, the company’s IPO appears to be fairly priced with a lower P/E ratio. The fixed-price issue suggests that investors will need to consider other factors beyond listing gains when evaluating this IPO.

Given the steady financial performance, the limited Grey Market Premium (GMP), and the company's relatively low P/E ratio, investors may want to exercise caution. The IPO does not appear to offer significant listing gains, and the investment may be more suited for long-term investors who believe in the future growth potential of the jewellery manufacturing sector.

In conclusion, while the company's financials and industry experience make it a stable investment, the lack of immediate listing gains, as indicated by the GMP, makes this IPO less attractive for short-term investors. It is recommended to approach this IPO with a long-term investment perspective or avoid it if seeking immediate gains.

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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