Retaggio Industries IPO Overview Retaggio Industries is a jewelry manufacturing company specializing in gold, diamond, precious stones, and fancy jewelry, serving the B2B segment. The company is offering an IPO through a Fixed Price Issue totaling ₹ 15.50 Crores, which consists entirely of a Fresh Issue of 61.98 lakh shares. The subscription period opens on March 27, 2025 and closes on April 1, 2025, with allotment expected to be finalized on or about April 2, 2025. The shares will be listed on the BSE SME with a tentative listing date set for April 4, 2025.

Share Price and Market Capitalization The IPO is priced at ₹ 25 per equity share. At this price, the market capitalization of Retaggio Industries will be ₹ 38.91 Crores. The lot size for this IPO is 6,000 shares. Retail investors are required to invest a minimum of ₹ 1,50,000, and High-Net-Worth Individuals (HNIs) must invest a minimum of ₹ 3,00,000 (2 lots, i.e., 12,000 shares).

IPO Subscription Status and GMP As of March 28, 2025, at 10:30 AM, the subscription status shows that the IPO is subscribed 0.56 times on its second day of the subscription period. The Grey Market Premium (GMP) for Retaggio Industries is ₹ 0, reflecting no expected listing gains based on the company’s financial performance.

Retaggio Industries IPO Allotment Date and Status The IPO allotment date is April 2, 2025 (Wednesday). Investors can check their allotment status on the registrar’s website by following these steps:

• Visit the IPO allotment status page.

• Select Retaggio Industries Limited IPO from the dropdown list.

• Enter your application number, PAN, or DP Client ID and submit the details to check your allotment status.

Objectives of the IPO Retaggio Industries intends to utilize the net proceeds from the IPO for the following purposes:

• ₹ 208.00 Lakhs for the repayment or prepayment of certain debt facilities.

• ₹ 3,488.48 Lakhs for working capital requirements.

Financial Performance and Metrics Retaggio Industries has shown steady financial growth over the years. Here’s a snapshot of their financial performance:

• Revenues from operations for FY2024 were ₹ 902.89 Lakhs compared to ₹ 2,327.83 Lakhs in FY2023 and ₹ 2,306.59 Lakhs in FY2022.

• EBITDA for FY2024 was ₹ 158.12 Lakhs, compared to ₹ 518.35 Lakhs in FY2023 and ₹ 415.91 Lakhs in FY2022.

• Profit After Tax (PAT) for FY2024 stood at ₹ 81.13 Lakhs, a steady growth compared to ₹ 334.11 Lakhs in FY2023 and ₹ 308.99 Lakhs in FY2022.

The company’s pre-issue EPS for FY24 is ₹ 3.57, and post-issue EPS is ₹ 2.15. The pre-issue P/E ratio is 7.00x, and the post-issue P/E ratio is 11.65x. The company's ROCE for FY24 is 17.04%, and the ROE is 19.74%, suggesting a good return on equity. RoNW stands at 17.99%.

IPO Review and Valuation Given the financial performance and valuation, the IPO is priced at a relatively low P/E ratio of 7.00x pre-issue and 11.65x post-issue, indicating a fairly priced IPO. The Grey Market Premium of ₹ 0 suggests minimal listing gains. Based on these metrics, we recommend investors to avoid the Retaggio Industries IPO for both listing gains and long-term investment purposes.

Conclusion Retaggio Industries offers a jewelry manufacturing business with a strong history and market presence. However, with no expected listing gains based on GMP and the current valuation metrics, it might be wise to proceed with caution. Investors should carefully assess their risk appetite before considering investment in the IPO.

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