Gold Jewellery Maker Master Chains Files ₹400 Crore IPO: Profit Surges 162% Amid Manufacturing Expansion Needs
Investor Attention Turns to Master Chains N Jewels' Upcoming Public Offering
Mumbai-based gold jewellery manufacturer, Master Chains N Jewels, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The filing reveals plans for a significant Initial Public Offering (IPO) aimed at raising fresh capital amounting to up to ₹400 crore.This move signals the company's ambition to scale operations within the organized gold jewellery manufacturing sector. Master Chains N Jewels operates extensively in wholesale distribution, selling its products directly to other retailers and wholesalers across various markets.
IPO Structure Details Revealed
The proposed IPO structure includes a substantial Offer For Sale (OFS) component. As detailed in the draft documents filed on July 25, promoter Taruna Madan Kothari is offering 59.06 lakh shares through the OFS portion of the listing.The fresh issue component may also accommodate an additional fundraising opportunity of up to ₹80 crore via a pre-IPO placement round. If this pre-placement occurs, the size of the primary fresh issue will be proportionally reduced.
Utilization Plan and Financial Health Snapshot
The company plans to utilize the net proceeds from the fresh issue to meet its working capital requirements, allocating ₹350 crore towards this critical need. The remaining funds are designated for general corporate purposes.Master Chains N Jewels highlighted that the increased funding is essential for core operational needs. This includes procuring gold bullion and other necessary raw materials, maintaining inventories of finished jewellery and work-in-progress stock, and ensuring the steady flow of trade receivables.
Strong Financial Performance Drives IPO Filing
The company has demonstrated robust financial momentum leading up to the listing. In the fiscal year ending March 2026 (FY26), Master Chains N Jewels reported a massive 162 percent surge in profit, which stood at ₹97.3 crore. This is a considerable jump from the ₹37.1 crore recorded in the preceding financial year.Revenue growth was also strong, increasing by 11.1 percent to reach ₹1,680.6 crore, up from ₹1,512.2 crore in the prior period. Profitability metrics show significant improvement across the board.
EBITDA and Margin Expansion Highlights
EBITDA (earnings before interest, tax, depreciation and amortisation) for FY26 surged by 136.7 percent to reach ₹145.9 crore, compared to ₹61.6 crore in FY25. This dramatic increase reflects improved operational efficiency and cost management within the organization.Furthermore, the company's margin more than doubled, moving from 4.07 percent in FY25 to a healthier 8.68 percent in the same period. These metrics underscore the successful operating performance that underpinned the IPO filing.
Systematix Corporate Services has been appointed as the book running lead manager for the Master Chains N Jewels IPO, overseeing the financial aspects of the public offering.
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