The Retaggio Industries IPO offers an intriguing opportunity in the jewellery manufacturing sector. The company, with its strong expertise in producing and selling a wide range of gold, diamond, and precious stone jewellery, is tapping into the public markets through a fixed-price issue. This article provides a detailed look at the key aspects of the Retaggio Industries IPO, including its pricing, subscription details, Grey Market Premium (GMP), and a review of the company's financials and investment potential.

Key IPO Details

The Retaggio Industries IPO is set to raise ₹15.50 Crores, consisting entirely of a fresh issue of 61.98 Lakh shares. The IPO opens on March 27, 2025, and closes on April 02, 2025, with an expected allotment date on April 03, 2025, and a tentative listing on the BSE SME set for April 07, 2025.

The share price for this IPO is fixed at ₹25 per equity share, giving the company a market capitalization of ₹38.91 Crores at the IPO price. The lot size is 6,000 shares, and retail investors are required to invest a minimum of ₹1,50,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (12,000 shares), totaling ₹3,00,000.

Gretex Corporate Services Limited serves as the book-running lead manager for this IPO, while Bigshare Services Private Limited is the registrar for the issue. Gretex Share Broking Limited is the market maker for this IPO.

Subscription Status and Live Updates

As of April 02, 2025, Retaggio Industries IPO has been subscribed 1.78 times on the final day of its subscription period. This indicates a relatively positive interest in the offering, although not exceptionally high.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Retaggio Industries IPO is expected to be ₹0, indicating no significant demand or premium in the unregulated market. The GMP reflects investor sentiment, but it is important to note that it is not a reliable indicator of the post-listing performance. It is merely for informational purposes.

Company Financial Performance

Retaggio Industries has experienced significant growth in recent years. The company specializes in catering to the B2B segment of the jewellery industry, offering products like gold, diamond, and precious stone jewellery. Founded by Mr. Savinay Lodha and Ms. Nidhi Lodha, the company has been led by professionals with over a decade of experience in the gems and jewellery industry.

For the fiscal year ending September 30, 2024, the company reported revenues from operations of ₹902.89 Lakh, showing a decline compared to the previous years, where revenues stood at ₹2,327.83 Lakh (2023) and ₹2,306.59 Lakh (2022). Despite the dip in revenues, the EBITDA improved in 2024 to ₹158.12 Lakh compared to ₹518.35 Lakh in 2023. The Profit After Tax (PAT) for the fiscal year ending September 30, 2024, was ₹81.13 Lakh, showing strong growth from ₹334.11 Lakh in 2023.

Valuation and Investment Analysis

The company's pre-issue earnings per share (EPS) is ₹3.57, and the post-issue EPS stands at ₹2.15 for FY24. With a pre-issue P/E ratio of 7.00x and post-issue P/E ratio of 11.65x, the IPO appears fairly priced compared to its industry peers.

Use of IPO Proceeds

The IPO proceeds will be used for two main purposes:

1. ₹208.00 Lakhs for the repayment and prepayment of certain debt facilities, which will help strengthen the company's financial position.

2. ₹3,488.48 Lakhs for working capital requirements, ensuring the company has the liquidity to support its operations and expansion plans.

Recommendation

Given the steady growth in financial performance and the fairly priced valuation of the IPO, Retaggio Industries IPO could be an attractive option for long-term investors. However, considering the GMP of ₹0, investors may want to approach this IPO with caution, especially if they are looking for short-term listing gains.

In conclusion, while the Retaggio Industries IPO presents an opportunity in a well-established sector, the lack of significant Grey Market Premium (GMP) and the current market conditions suggest that investors should weigh the investment risk carefully. Long-term investors may find the company's steady performance and strong industry presence appealing, but listing gains might not be substantial based on current trends.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited.

The Closed IPOs are  Retaggio Industries Limited.

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