Proceeds from the offer for sale will accrue to the selling shareholders and will not be received by the company. Of the fresh issue proceeds, Royal Chain proposes to utilise approximately ₹650 crore towards repayment or prepayment of existing borrowings, while the balance will be used for general corporate purposes.
The company currently carries outstanding debt of approximately ₹820.4 crore.
JM Financial Limited and 360 ONE WAM Limited are the book-running lead managers to the proposed issue.
Strong Presence in B2B Jewellery Manufacturing
Royal Chain operates primarily as a large-scale B2B supplier of gold chains and jewellery to organised jewellery retailers.
The company supplies to several leading jewellery brands and retail chains, including Titan, Kalyan Jewellers, Senco Gold, P N Gadgil Jewellers, Kalamandir Jewellers, Thangamayil Jewellery and DP Abhushan. Its positioning within the organised jewellery supply chain gives it direct exposure to the expansion of branded and organised jewellery retail across India.
Revenue Reaches ₹4,732 Crore in FY26
Royal Chain has reported strong growth over the past three financial years.
Revenue from operations increased from ₹2,350.58 crore in FY24 to ₹3,617.20 crore in FY25, before rising further to ₹4,732.45 crore in FY26.
EBITDA increased to ₹288.23 crore in FY26, compared with approximately ₹131 crore in FY25.
Profit after tax also recorded a sharp increase, rising from ₹27.36 crore in FY24 to ₹63.30 crore in FY25 and further to ₹173.34 crore in FY26.
For FY26, Royal Chain reported a net profit margin of 3.66%, return on net worth of 53.34% and return on capital employed of 24.56%.
Debt Reduction a Key IPO Objective
The proposed deployment of ₹650 crore towards debt repayment is one of the most significant components of the IPO.
With existing borrowings of approximately ₹820.4 crore, the proposed repayment could materially reduce the company’s leverage and strengthen its balance sheet.
A lower debt burden may also improve financial flexibility for a business operating in a working-capital-intensive jewellery manufacturing segment.
Jewellery Market Expected to Nearly Double by FY31
Royal Chain’s IPO filing comes against the backdrop of continued expansion in India’s jewellery industry.
Industry data cited in the prospectus estimates India’s total retail jewellery market at approximately ₹7,77,840 crore in FY26, with the market projected to reach ₹15,47,970 crore by FY31.
The organised B2B jewellery manufacturing segment was valued at approximately ₹5,81,850 crore in FY26 and is projected to grow to around ₹11,33,360 crore by FY31.
The growth is being supported by the increasing share of organised jewellery retail, network expansion by national and regional brands, rising compliance requirements and a gradual shift towards larger-scale manufacturing partners.
Royal Chain’s proposed listing places another major B2B jewellery manufacturer in the public-market pipeline, reflecting the increasing scale and formalisation of India’s jewellery manufacturing sector.