**PNGS Reva Diamond Jewellery: Market Performance and IPO Insights** The initial public offering (IPO) for PNGS Reva Diamond Jewellery has entered its second day of bidding, maintaining a steady pace with a 59% subscription rate. The 380 crore INR issue is attracting focused attention as grey market activities suggest a premium of 4 INR to 5 INR. This indicates expectations for modest listing gains as the market processes the company's valuation against its current growth trajectory. Institutional participation has emerged as a primary driver, showing robust interest from large-scale investors. In contrast, retail demand has remained moderate, reflecting a cautious approach among individual traders who are weighing the issue’s pricing against broader market volatility. Brokerage firms are currently divided on the stock; while many acknowledge the company’s healthy profit margins, others highlight potential execution risks and the challenges of maintaining high valuations in a competitive retail landscape. The broader Indian jewellery sector is navigating a transformative phase in early 2025. The domestic gems and jewellery market is now valued at approximately 105.8 billion USD. Demand remains resilient, particularly in the gold segment which was valued at 58.6 billion USD recently. Analysts expect the sector to grow at a compound annual rate of over 8%, potentially reaching 231.9 billion USD by 2034. Current financial data for related players like PNGS Gargi Fashion Jewellery provides a relevant benchmark. That entity recently reported a 15.85% rise in quarterly net profit to 10.60 crore INR, with sales growing by 27.10% to 46.06 crore INR. These figures underscore the high-growth environment within the branded jewellery space, where consolidated net profit margins are hovering around 22.21%. Investor sentiment is further influenced by favorable regulatory shifts and international trade developments. A recent framework for a US-India trade deal has proposed reducing tariffs on jewellery to 18% and abolishing duties on loose diamonds. Such macro-economic tailwinds, combined with a 15% year-over-year increase in consumer spending on premium branded products, provide a supportive backdrop for new market entrants like PNGS Reva. As the bidding process continues, the focus remains on whether retail participation will accelerate to match institutional confidence. The company's ability to leverage its established brand heritage while executing store expansions in Tier-2 and Tier-3 cities will be critical for long-term value creation.