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Informist, Tuesday, Sept. 29, 2026

NEW DELHI – Royal Chain Ltd. Monday filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering. The offer comprises a fresh issue of shares worth up to INR 8.5 billion and an offer for sale of shares worth up to INR 1.5 billion.

Under the offer for sale component, promoters Suresh Futarmal Jain and Manish Futarmal Jain will each offload shares worth up to INR 500 million. Promoters Celestial Charms and Foxy Feathers will each part with shares of up to INR 250 million.

Royal Chain is a vertically integrated original design manufacturer of gold chains and jewellery. The company serves multiple jewellery retailers in India, including Titan Co. Ltd., Kalyan Jewellers India Ltd., P N Gadgil Jewellers Ltd., Senco Gold Ltd., Kalamandir Jewellers Ltd., Thangamayil Jewellery Ltd., and D.P. Abhushan Ltd. It had an aggregate annual installed capacity of 12,000 kilograms as of Mar. 31.

For the financial year 2025-26 (Apr-Mar), the company had recorded a net profit of INR 1.73 billion on revenue from operations of INR 47.32 billion. For FY25, the company's profit was INR 633.31 million on revenue of INR 36.17 billion. It reported a net profit of INR 273.62 million for FY24 on revenue of INR 23.51 billion.

From the net proceeds of the exercise, the company plans to use INR 6.5 billion for repayment or prepayment of certain outstanding loan facilities and accrued interest. The rest will be channelled towards general corporate purposes.

Among risk factors, Royal Chain's cost of materials consumed, primarily gold, constitutes the majority of its total expenses and is subject to significant price volatility. The company is dependent on its manufacturing facility at Mahape in Navi Mumbai, Maharashtra, occupied on a long-term lease. Any disruption or shutdown at this facility, or termination of the lease, could have an adverse effect on its business.

As per the draft documents, there is no criminal litigation pending against the company, its subsidiaries, and directors. There are three tax proceedings against the company involving INR 10.53 million, and one against its promoters involving INR 5.30 million.

The public offer will be made through the book-building process, in which not more than 50% of the issue will be available for allocation to qualified institutional buyers. At least 15% of the offer will be reserved for non-institutional investors and not less than 35% for retail individual investors. JM Financial Ltd. and 360 One WAM Ltd. are the book-running lead managers for the exercise. MUFG Intime India Pvt. Ltd. is the registrar. (Devanshu Singla)

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Edited by Avishek Dutta

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