Mumbai-based Royal Chain has filed papers for a Rs 1,000-crore IPO, consisting of a Rs 850-crore fresh issue and Rs 150-crore offer for sale. The company intends to use Rs 650 crore to reduce its debt of Rs 820.4 crore. In FY26, the firm reported a net profit of Rs 173.3 crore.
Royal Chain, a Mumbai-based jewellery manufacturer, has taken the first step toward listing on the stock exchanges by filing draft papers for a Rs 1,000-crore initial public offering. The IPO structure includes a fresh issuance of shares worth Rs 850 crore and an offer for sale by existing shareholders totaling Rs 150 crore.
The core focus of this public offer is balance sheet cleanup. As of the recent filing, Royal Chain has total standalone debt of Rs 820.4 crore. The company plans to use Rs 650 crore from the proceeds to pay off a significant portion of this debt. For investors, lowering debt is generally viewed as a positive move, as it reduces interest expenses, which can otherwise weigh on profitability. This is particularly important for the jewellery manufacturing sector, which often deals with thin operating margins.
Royal Chain functions as an original design manufacturer, creating jewellery for large retailers. Its client list features major names in the Indian jewellery market, including Titan Company, Kalyan Jewellers India, and Senco Gold. This business model relies on large-scale production, with an annual capacity of 12,000 kilograms of gold jewellery.
Financially, the company showed significant growth in the last fiscal year. Net profit rose to Rs 173.3 crore for the year ended March 2026, up from Rs 63.3 crore in the previous year. Revenue also grew by 30.8 percent to reach Rs 4,732.5 crore during the same period.
While the profit growth is encouraging, investors should look at the final prospectus to understand the company's working capital needs. Gold jewellery manufacturing is capital-intensive because it requires holding significant gold inventory. A key area to track will be how the company manages its working capital requirements and inventory costs once the debt load is reduced. The upcoming filing will also provide details on the company's valuation, specific risk factors related to raw material prices, and the final timeline for the offering. JM Financial and 360 ONE WAM are managing the issuance process.