Royal Chain has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a proposed ₹1,000-crore IPO, marking a significant development for the Mumbai-based B2B jewellery manufacturer. The proposed issue includes a ₹850-crore fresh issue and an offer for sale of up to ₹150 crore by promoters.
Quick Summary
- Royal Chain has filed its DRHP with SEBI for a proposed ₹1,000-crore IPO.
- The IPO comprises a ₹850-crore fresh issue and an OFS of up to ₹150 crore.
- The company operates a vertically integrated manufacturing facility in Mahape, Navi Mumbai.
- Royal Chain has an annual installed jewellery manufacturing capacity of 12,000 kg and more than 27,000 active designs.
- Revenue from operations increased from ₹2,350.58 crore in FY24 to ₹4,732.45 crore in FY26.
- Net profit increased from ₹27.36 crore in FY24 to ₹173.34 crore in FY26.
- ₹650 crore from the fresh issue is proposed to be used towards repayment of debt.
- JM Financial and 360 ONE WAM are the appointed merchant bankers.
Proposed IPO Structure
According to the DRHP filed on September 28, the proposed issue comprises a fresh issue of equity shares worth ₹850 crore and an offer for sale (OFS) of shares worth up to ₹150 crore by the company’s promoters.
Manufacturing Capacity and Product Portfolio
Royal Chain operates a vertically integrated manufacturing facility in Mahape, Navi Mumbai, with an annual installed capacity of 12,000 kg of jewellery. The company has more than 27,000 active designs and an in-house design team. Its business model combines jewellery design, manufacturing and technology to supply products to organised jewellery retailers across India.
Major Institutional Customers
The company supplies jewellery to several major organised retailers, including Titan Company, Kalyan Jewellers India, P N Gadgil Jewellers, Senco Gold, Kalamandir Jewellers, Thangamayil Jewellery and DP Abhushan. Revenue from institutional customers increased from ₹131.03 crore in FY24 to ₹322.99 crore in FY26, representing a 57.02% CAGR.
Financial Performance
Royal Chain recorded significant growth in its overall financial performance during the period. Revenue from operations increased from ₹2,350.58 crore in FY24 to ₹4,732.45 crore in FY26, while net profit rose from ₹27.36 crore to ₹173.34 crore. During FY26, revenue grew 30.8% from ₹3,617.2 crore in FY25, while profit increased from ₹63.3 crore to ₹173.3 crore.
Improvement in Profitability
The company’s profitability also improved, with its gross margin rising from 4.62% in FY24 to 7.84% in FY26. EBITDA margin increased from 2.71% to 6.09% during the same period.
Use of IPO Proceeds
Royal Chain proposes to utilise ₹650 crore from the net proceeds of the fresh issue towards repayment of debt. The company had total outstanding borrowings of ₹820.4 crore on a standalone basis. The balance proceeds from the issue are proposed to be used for general corporate purposes.
Vertically Integrated ODM Platform
The company’s vertically integrated original design manufacturing (ODM) platform focuses on gold chains and other jewellery and is positioned to cater to the requirements of large organised retailers at scale. The expansion of organised jewellery retail in India has also contributed to growing demand for specialised B2B manufacturing capabilities.
Jewellery Market and B2B Manufacturing Market Outlook
According to a TKC report cited in the DRHP, India’s jewellery market was valued at approximately ₹7,77,840 crore in FY26 and is projected to reach around ₹15,47,970 crore by FY31. The B2B jewellery manufacturing market was estimated at approximately ₹5,81,850 crore in FY26 and is expected to grow to around ₹11,33,360 crore by FY31.
Merchant Bankers
JM Financial and 360 ONE WAM have been appointed as the merchant bankers managing the proposed Royal Chain IPO.
FAQs
What is the size of the proposed Royal Chain IPO?
The proposed Royal Chain IPO is valued at ₹1,000 crore.
How is the Royal Chain IPO structured?
The IPO comprises a fresh issue of equity shares worth ₹850 crore and an offer for sale of shares worth up to ₹150 crore by the company’s promoters.
When did Royal Chain file its DRHP?
Royal Chain filed its DRHP with SEBI on September 28.
Where is Royal Chain’s manufacturing facility located?
Royal Chain operates a vertically integrated manufacturing facility in Mahape, Navi Mumbai.
What is Royal Chain’s annual jewellery manufacturing capacity?
The company has an annual installed capacity of 12,000 kg of jewellery.
How much does Royal Chain plan to use for debt repayment?
Royal Chain proposes to utilise ₹650 crore from the net proceeds of the fresh issue towards repayment of debt.
Who are the merchant bankers for the Royal Chain IPO?
JM Financial and 360 ONE WAM have been appointed as the merchant bankers managing the proposed Royal Chain IPO.
Source: SVAR Media Network
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