Royal Chain Files DRHP for Rs 1,000 Crore IPO to Pare Rs 650 Crore Debt

Mumbai-headquartered business-to-business (B2B) jewellery manufacturer Royal Chain has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an initial public offering (IPO).

The proposed issue consists of a fresh issue of equity shares amounting to ₹850 crore and an offer for sale (OFS) of up to ₹150 crore by its promoters. The merchant bankers appointed to manage the listing process are JM Financial and 360 ONE WAM.

Issue Structure and Use of Proceeds

The primary objective of the fresh capital infusion is to significantly deleverage the company's balance sheet. Royal Chain has earmarked ₹650 crore from the fresh issue proceeds for the repayment or prepayment of its outstanding debt.

Key details of the capital allocation include:

• Debt Repayment: ₹650 crore will be deployed towards trimming borrowings, providing substantial relief against finance costs, which stood at ₹37.82 crore in FY26. Royal Chain carried total standalone borrowings of ₹820.4 crore, while total borrowings stood at ₹848.73 crore as of August 31, 2026.
• General Corporate Purposes: The remaining balance from the ₹850 crore fresh issue will support general operational requirements and corporate initiatives.
• Offer for Sale: The ₹150 crore OFS component will go entirely to selling promoter shareholders and will not bring fresh funds into the company.

Business Model and Industry Footprint

Unlike front-end consumer jewellery retailers, Royal Chain operates as an integrated original design manufacturer (ODM), manufacturing gold chains and finished jewellery products for organised and unorganised retailers.

The company maintains an annual installed production capacity of 12,000 kg, having consolidated its manufacturing infrastructure at Mahape. In FY26, the company catered to 1,887 clients across India.

Its major corporate client roster includes prominent listed retail jewellers:

• Titan Company
• Kalyan Jewellers India
• P N Gadgil Jewellers
• Senco Gold
• Kalamandir Jewellers
• Thangamayil Jewellery
• DP Abhushan

Financial Performance

The draft filing highlights sharp operational acceleration over recent financial years. For the fiscal year ended March 31, 2026, Royal Chain reported revenue from operations of ₹4,732.5 crore, marking a 30.8% increase compared to ₹3,617.2 crore in FY25.

Net profit expanded nearly three-fold to ₹173.3 crore in FY26 from ₹63.3 crore in FY25. The manufacturer also delivered a return on net worth (RoNW) of 53.34% during FY26, driven by rising volumes across organised retail client pipelines.

Industry Context and Outlook

The listing comes amid rapid formalisation in the Indian jewellery retail landscape. According to industry data by TKC cited in the prospectus, the domestic jewellery market stood at ₹7,77,840 crore in FY26 and is forecast to expand to ₹15,47,970 crore by FY31. Within this, the B2B jewellery manufacturing market was valued at approximately ₹5,81,850 crore in FY26 and is projected to reach ₹11,33,360 crore by FY31.

As domestic retail brands aggressively scale physical stores across tier-1 and tier-2 markets, upstream demand for scaled, high-volume ODM manufacturing continues to rise, positioning Royal Chain's planned deleveraging as a crucial strategic step to expand operating margins.

Tags: Royal Chain IPO SEBI Titan Company Kalyan Jewellers Jewellery Sector