Royal Chain Files DRHP for Rs 1,000 Crore IPO to Pare Debt and Scale B2B Jewellery Manufacturing

Mumbai-headquartered jewellery manufacturer Royal Chain has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aggregating up to Rs 1,000 crore. The public offering marks a notable listing move from India’s business-to-business (B2B) jewellery and original design manufacturing (ODM) space.

Issue Structure and Use of Proceeds

The proposed public issue comprises:

• A fresh issue of equity shares worth up to Rs 850 crore.
• An offer for sale (OFS) of shares worth up to Rs 150 crore by promoter and selling shareholders.

Of the fresh capital raised, Royal Chain plans to allocate Rs 650 crore specifically towards the full or partial prepayment or repayment of outstanding borrowings, along with accrued interest. The company had standalone debt of Rs 820.4 crore, making balance sheet deleveraging the principal objective of the issue. The remainder of the proceeds will be utilised for general corporate purposes.

JM Financial and 360 ONE WAM are serving as the book-running lead managers for the issue.

Manufacturing Scale and Client Roster

Royal Chain operates as a technology-enabled, vertically integrated ODM specialising in machine-made and handcrafted gold chains and finished jewellery pieces. The firm covers the complete product lifecycle from design and 3D prototyping to casting, assembly, and polishing.

Key Operational Highlights:

• The company possesses an annual installed manufacturing capacity of 12,000 kilograms.
• Its portfolio encompassed more than 27,000 proprietary designs as of June 30, 2026.
• It functions as a key supply-chain vendor to major national and regional organised jewellery retail chains, including Titan Company, Kalyan Jewellers India, P N Gadgil Jewellers, Senco Gold, Kalamandir Jewellers, Thangamayil Jewellery, and D.P. Abhushan.

Financial Performance

The company has posted substantial operational growth ahead of its public market foray, driven by rising consumer demand and increased outsourcing by corporatised retail chains.

For the financial year 2025–26, Royal Chain reported:

• Revenue from operations: Rs 4,732.5 crore, reflecting an increase of 30.8% compared to Rs 3,617.2 crore in the previous fiscal year.
• Net profit: Rs 173.3 crore, nearly tripling from Rs 63.3 crore recorded in FY25.

Sector Outlook and Structural Tailwinds

The Indian jewellery ecosystem is undergoing rapid formalisation, spurred by mandatory hallmarking, stricter compliance norms, and consumer shifts toward organised retail brands. According to a TKC report cited in the draft prospectus, India’s total jewellery market stood at approximately Rs 7,77,840 crore in FY26 and is estimated to touch Rs 15,47,970 crore by FY31.

Within that universe, the B2B jewellery manufacturing segment was pegged at Rs 5,81,850 crore in FY26, projected to nearly double to Rs 11,33,360 crore by FY31. As organised retailers continue aggressive showroom expansions across Tier-2 and Tier-3 cities, institutional suppliers capable of high-volume, precision manufacturing with tight working-capital control stand positioned to capture market share.

Tags: Royal Chain SEBI IPO Gems and Jewellery Titan Company Kalyan Jewellers