The initial public offering (IPO) of Retaggio Industries, a jewellery manufacturing company, is set to open for subscription on March 27, 2025. The IPO will close on April 2, giving investors the opportunity to participate in the company’s growth.
The following is a simple breakdown of the IPO details and why investors may be interested.
Retaggio Industries IPO Overview
- IPO Opening Date: March 27, 2025
- IPO Closing Date: April 2, 2025
- Issue Size: ₹15.5 crore
- Issue Type: Fresh issue of 61.98 lakh shares (No Offer for Sale)
- Price Per Share: ₹25
- Lot Size: Minimum 6,000 shares (₹1,50,000 per lot)
- High Net-Worth Investors (HNIs): Minimum 12,000 shares (₹3,00,000 investment)
- Retail Allocation: 50%
- Listing Date: April 7, 2025
- Stock Exchange: BSE SME
Purpose of the IPO
Retaggio Industries plans to use the funds raised for:
- Repaying Certain Debts: Reducing the company’s financial liabilities.
- Working Capital Requirements: Supporting the day-to-day operations and expanding production.
- Enhancing Brand Visibility: Gaining more recognition by being listed on the stock exchange.
About Retaggio Industries
Retaggio Industries is a leading jewellery manufacturer operating in the B2B segment. The company produces a wide range of products including:
- Gold Jewellery
- Diamond Jewellery
- Precious Stones
- Bullion (Coins and Bars)
The company is known for its traditional and heritage-inspired jewellery collections with intricate designs. Its primary clients are businesses in states like Gujarat, Maharashtra, Tamil Nadu, and Rajasthan.
Currently, Retaggio has 15 employees and primarily receives orders directly from clients.
Financial Performance Overview
Retaggio Industries’ financial performance over the past few years is as follows:
| Year | FY22 | FY23 | FY24 | H1 FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | – | 23.07 | 23.28 | 9.03 |
| Net Profit (₹ Cr) | -0.0064 | 3.09 | 3.34 | 0.81 |
| Expenses (₹ Cr) | 0.0064 | 19.34 | 19.23 | 8.05 |
- Revenue Growth: The company saw a slight growth of 0.91% in FY24 compared to FY23.
- Net Profit Growth: Profit increased by 8% to ₹3.34 crore in FY24.
- H1 FY25: For the first half of FY25, the company reported ₹9.03 crore in revenue and ₹81 lakh in net profit.
Key Financial Ratios and Valuation
| Metric | FY22 | FY23 | FY24 |
|---|---|---|---|
| Earnings Per Share (EPS) | -1.28 | 8.07 | 3.57 |
| PE Ratio | – | – | 7.01 |
| Return on Net Worth (RONW) | -14.68% | 20.24% | 17.99% |
| Net Asset Value (NAV) | 8.72 | 39.89 | 19.83 |
| Return on Capital Employed (ROCE) | -14.68% | 15.84% | 17.04% |
| EBITDA Margin (%) | – | 18.03% | 22.27% |
| Debt/Equity Ratio | – | 0.71 | 0.61 |
- Improving Profitability: Retaggio’s EBITDA margin improved to 22.27% in FY24, indicating better operational efficiency.
- Debt Reduction: The company reduced its debt-equity ratio to 0.61 in FY24, showcasing financial discipline.
- Moderate Valuation: The IPO is priced at a PE ratio of 7.01 based on FY24 earnings, suggesting a fair valuation compared to industry peers.
Promoters and Shareholding
The company’s promoters include Nidhi Lodha, Savinay Lodha, and Retaggio Trading Services LLP, who currently hold 99.99% of the company. After the IPO, the promoters’ stake will reduce to 60.18%.
This dilution will provide public investors with an opportunity to own shares in the company.
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Should You Apply for Retaggio Industries IPO?
Before applying, consider these factors:
Pros
- Established B2B Business: Strong presence in jewellery manufacturing.
- Steady Revenue Growth: Consistent financial performance.
- Healthy Profit Margins: Improved EBITDA margins in FY24.
- Debt Reduction Plans: Focus on strengthening the balance sheet.
Cons
- Limited Retail Presence: No direct-to-consumer sales.
- Small Employee Base: The company currently has only 15 employees.
- Valuation Risks: Moderate growth may limit future earnings.
How to Apply for the IPO?
Retail investors can apply through their broker’s trading platform or UPI-enabled apps using the ASBA (Application Supported by Blocked Amount) process.
- Minimum Investment: ₹1,50,000 (6,000 shares)
- Allotment Date: April 3, 2025
- Listing Date: April 7, 2025
If you want to read more articles related to IPOs, you can read these articles:
- Why IPO Gets Rejected? What Investors Should Know About Allotment Rejections?
- How IPO Allotment Works: A Step-by-Step Guide for Investors
Final Thoughts
Retaggio Industries’ IPO offers investors an opportunity to be part of the jewellery manufacturing sector, which has witnessed steady growth. With the funds raised, the company aims to strengthen its financial position and expand its operations.
However, since it’s an SMEIPO with higher investment requirements, retail investors should carefully assess their risk appetite before applying. Conduct thorough research and consider the company’s growth potential in the jewellery sector.
Disclaimer: This post is just for your information and shouldn’t be taken as investment. Before deciding what investments to make, investors should talk to financial experts.
