M. K. Sons Fine Jewels Limited IPO

01At a glance

M. K. Sons IPO date, price band and lot size

• Price band: ₹153 to ₹162 a share, from NSE's issue page; the prospectus leaves the price blank (RHP p.3).
• Lot size: 91 shares, from NSE's issue page; one lot costs ₹14,742 at the upper band (our arithmetic).
• Dates: anchor bidding on Tuesday, October 27, 2026; the issue opens on Wednesday, October 28, 2026 and closes on Friday, October 30, 2026 (RHP p.2).
• Size: up to 1,70,00,000 shares of ₹10 face value: a fresh issue of up to 1,36,00,000 shares and an offer for sale of up to 34,00,000 shares by the promoter Ramchand Murlidhar Raimalani (RHP p.65). At the upper band the issue is worth ₹275.4 crore, of which the fresh issue is ₹220.3 crore and the offer for sale ₹55.1 crore (our arithmetic, RHP p.65).
• Listing: NSE and BSE; NSE is the designated exchange (RHP p.2).
• Lead manager and registrar: Aryaman Financial Services Limited is the sole book running lead manager and Bigshare Services Private Limited the registrar (RHP p.2).

What the company does: sells gold, diamond and coloured stone jewellery from five leased showrooms in Mumbai and Ahmedabad, all of it bought finished from outside makers and karigars (craftsmen) (RHP p.174, RHP p.175).

Who pays it: walk-in retail customers; 24,274 different customers bought in FY26 (RHP p.189). All sales are made in the showrooms; there are no online sales (RHP p.182). One showroom, on C.G. Road in Ahmedabad, gave 57.16% of FY26 revenue (RHP p.28).

Why it is raising money: ₹152.8 crore to stock a new showroom at Ulhasnagar, Thane, and an enlarged showroom on C.G. Road, Ahmedabad, and ₹30.0 crore to repay bank loans (RHP p.101).

How fast it has grown: revenue from ₹217.3 crore in FY24 to ₹538.7 crore in FY26, about 57.4% a year, and profit after tax from ₹8.2 crore to ₹51.8 crore, about 151.9% a year (our arithmetic, RHP p.69).

The one thing to understand: the business is mostly stock. Inventory was ₹256.4 crore at March 2026, about 90.54% of total assets (RHP p.43), and the company itself sizes the new showrooms by the gold they must hold (RHP p.105). Part of the growth came when the founder's own jewellery firm was merged into the company in March 2025 for ₹71.1 crore of shares (RHP p.73).

02The business, in plain words

What M. K. Sons does

M. K. Sons Fine Jewels Limited was incorporated in Mumbai on January 12, 2012 and became a public company with a certificate dated January 30, 2026 (RHP p.3). On March 29, 2025 it took over the running business of M. K. Sons Jewellers, a sole proprietorship of the promoter Ramchand Murlidhar Raimalani (RHP p.3).

A family looks for wedding or daily-wear jewellery → it visits a showroom in Bandra, Andheri or Zaveri Bazaar in Mumbai, or on C.G. Road or Sindhu Bhavan Road in Ahmedabad → M. K. Sons shows pieces bought from outside makers → the customer pays at the counter (RHP p.176, RHP p.189).

Showrooms: five, with about 6,513 sq. ft. in all at June 30, 2026, all leased (RHP p.102). Several are leased from the promoters (RHP p.193, RHP p.194). There is also an appointment-only lounge called "Ra Ra Ru" for bridal and high-value buyers (RHP p.178).

Sourcing: the company does not make jewellery. It worked with 380 makers or wholesalers and 9 karigars in FY26 (RHP p.175). It had more than 19,442 designs (SKUs) at June 2026 (RHP p.174).

Products in FY26: gold jewellery 87.44% of revenue, coloured stones 6.65%, diamonds 5.75%, platinum and silver the rest (RHP p.182).

Earnings equation: Revenue = number of orders × average order value. The company gives an average order value of ₹1,92,412 in FY26 and an average of 18.04 grams of gold per order (RHP p.182).

03Where the money comes from

By state (RHP p.28):

By product (RHP p.182):

M. K. Sons customers: how concentrated the revenue is

The customers are individuals, so the prospectus gives no customer concentration. The concentration is by showroom (RHP p.28):

Revenue depends on one showroom: C.G. Road gave ₹308.0 crore of FY26 revenue (RHP p.28). Of 24,274 customers in FY26, 21,952 were new and 2,322 existing (RHP p.189). Sales are seasonal: the third and fourth quarters gave 33.26% and 33.02% of FY26 revenue (RHP p.41).

On the supply side, the largest supplier was 15.41% of FY26 purchases and the top ten 47.22% (RHP p.189).

04The growth record

M. K. Sons financials: revenue, profit and margins

Source: RHP p.69, RHP p.70, RHP p.114.

Source: RHP p.68, RHP p.114. Borrowings are non-current plus current, our arithmetic.

• Revenue grew about 57.4% a year from FY24 to FY26 (our arithmetic, RHP p.69).
• EBITDA grew about 153.8% a year (our arithmetic, RHP p.114).
• Profit after tax grew about 151.9% a year (our arithmetic, RHP p.69).
• The EBITDA margin rose 947 basis points and the PAT margin 585 basis points (our arithmetic, RHP p.114).

Three months to June 30, 2026: revenue ₹101.4 crore, EBITDA ₹23.4 crore at a 23.09% margin, gross margin 28.48%, profit after tax ₹15.0 crore, and operating cash flow of −₹2.8 crore (RHP p.69, RHP p.70, RHP p.114). Diluted EPS was ₹12.13 for FY26 and ₹3.52 for the quarter (RHP p.69).

05What the growth is made of

• Same shops: five showrooms in FY24, FY25 and FY26 (RHP p.114). Read from the filing: the growth came from the existing showrooms, not new ones.
• More customers: 12,042 in FY24, 18,000 in FY25 and 24,274 in FY26 (RHP p.189).
• Larger orders: average order value ₹1,39,767 in FY24 and ₹1,92,412 in FY26, while grams of gold per order were 17.64 and 18.04 (RHP p.182). Read from the filing: the order value rose by more than the gold weight, which points to price and mix, but the prospectus does not split it.
• Maharashtra: revenue rose from ₹54.8 crore in FY24 to ₹172.6 crore in FY26 (RHP p.28).
• Merger: the founder's proprietary firm was taken over on March 29, 2025 (RHP p.3). Before that, the company bought ₹21.5 crore of jewellery from that firm in FY25 (RHP p.73).

The prospectus does not give same-store growth or a split of revenue growth into gold price and volume.

06Earnings quality

Inventory rose by ₹50.7 crore in FY26 and ₹18.8 crore in the June 2026 quarter (RHP p.70). Gold made up 93.19% of FY26 purchases (RHP p.35). The previous auditor's qualification was cured in the restated figures; the reports for FY25, FY26 and the June 2026 quarter carry no qualification (RHP p.37).

07The balance sheet

At March 31, 2026 (RHP p.68):

• Non-current borrowings: ₹25.4 crore. Current borrowings: ₹43.0 crore.
• Cash: ₹5.5 crore.
• Inventories: ₹256.4 crore. Trade receivables: ₹1.0 crore.
• Lease liabilities: ₹6.0 crore.
• Net worth: ₹168.0 crore.

At June 30, 2026 borrowings were ₹70.5 crore, inventories ₹275.2 crore and net worth ₹183.0 crore (RHP p.68). Debt to equity was 1.73 in FY24 and 0.41 in FY26 (RHP p.114). Net debt was about 0.8 times FY26 EBITDA (our arithmetic, RHP p.68, RHP p.114).

The promoters have given personal guarantees for the company's loans (RHP p.49). Contingent liabilities are two income tax demands, ₹1.3 crore for AY 2012-13 and ₹3.7 crore for AY 2017-18 (RHP p.72).

After the issue: at the upper band the fresh issue adds ₹220.3 crore before expenses to March 2026 net worth of ₹168.0 crore, and ₹30.0 crore is earmarked to repay loans (our arithmetic, RHP p.68, RHP p.101).

08What the money is for

M. K. Sons IPO objects: what the money is for

Source: RHP p.101.

Stock: the company works out 102.30 kg of gold for 3,300 sq. ft. of new space, using its average of 0.031 kg per sq. ft., at a 24 carat rate of ₹1.49 crore a kg on October 9, 2026 (RHP p.104, RHP p.105). The new showroom is at Ulhasnagar, Thane, leased from the promoter Kush Ramchand Raimalani; the C.G. Road showroom grows from 3,951 to 6,035 sq. ft., with the added shop leased from the promoter Neelam Ramchand Raimalani and another owner (RHP p.103).

Loans: ₹30.0 crore of overdraft and cash credit from Kotak Mahindra Bank and Abans Finance (RHP p.106).

Into the business up to 1,36,00,000 new shares, ₹220.3 crore at the upper band (our arithmetic, RHP p.65). To selling shareholders up to 34,00,000 shares, ₹55.1 crore at the upper band, all to the promoter Ramchand Murlidhar Raimalani (our arithmetic, RHP p.65).

09Who is selling

M. K. Sons IPO offer for sale: who is selling

Source: RHP p.1, RHP p.90. The percentage is our arithmetic. The weighted average cost of acquisition of the shares offered is ₹18.31 a share (RHP p.1).

10Promoters

The promoters are Ramchand Murlidhar Raimalani, Neelam Ramchand Raimalani and Kush Ramchand Raimalani (RHP p.1). The prospectus states that Ramchand Murlidhar Raimalani is the spouse of Neelam Ramchand Raimalani, and that Kush Ramchand Raimalani is their son (RHP p.212).

• Ramchand Murlidhar Raimalani, aged 49, Chairman and Managing Director, on the board since January 12, 2012, with more than 27 years of experience (RHP p.211, RHP p.228).
• Neelam Ramchand Raimalani, Whole-time Director and Chief Marketing Officer, on the board since January 12, 2012, with more than 14 years of experience (RHP p.211).
• Kush Ramchand Raimalani, Whole-time Director since May 18, 2023, with more than two years of experience (RHP p.211).

Promoter economics: Ramchand Murlidhar Raimalani received 40,38,152 shares at ₹176 each on March 29, 2025 for the proprietary business, ₹71.1 crore in all (RHP p.86, RHP p.73). Two bonus issues followed: two for one on May 16, 2025 and two for three on December 31, 2025 (RHP p.86). Adjusted for both bonuses, the ₹176 allotment works out at ₹35.20 a share, the weighted average cost the prospectus gives for primary issues in the last three years (RHP p.119). Earlier shares were issued at ₹10, partly by converting promoter loans (RHP p.85, RHP p.86).

Pay: remuneration to the three promoters was nil in FY24, ₹0.6 crore in FY25 and ₹1.7 crore in FY26 (RHP p.74). The company also paid rent of ₹1.7 crore to Ramchand Murlidhar Raimalani in FY26 (RHP p.73).

Regulatory matters: SEBI imposed a penalty of ₹1,00,000 on Neelam Raimalani under the fraudulent and unfair trade practices rules; the Securities Appellate Tribunal disposed of the appeal on January 5, 2010 and the penalty has been paid (RHP p.49). Two of the promoter's income tax reassessments arise from a search in the case of the OJS Group, called Operation Jewel Star (RHP p.344).

No promoter shares are pledged (RHP p.94). Ramchand Murlidhar Raimalani and Neelam Ramchand Raimalani are also promoters of Spicy Sangria Hotels Private Limited, a hotel company whose objects allow a jewellery business (RHP p.46).

11Who already owns it

M. K. Sons promoter holding before and after the IPO

Source: RHP p.91; the after column is our arithmetic on 5,62,90,760 shares after the issue (RHP p.65).

The company has seven shareholders: the three promoters, three members of the promoter group with 100 shares each, and one public holder with 100 shares (RHP p.89, RHP p.98). No fund or company outside the promoter group holds shares (RHP p.90).

12What changed just before the IPO

• Revenue: ₹217.3 crore in FY24 to ₹538.7 crore in FY26 (RHP p.69).
• Profit after tax: ₹8.2 crore in FY24 to ₹51.8 crore in FY26 (RHP p.69).
• Receivable days: 1 in FY24 and 1 in FY26 (RHP p.114).
• Promoter remuneration: nil in FY24 to ₹1.7 crore in FY26 (RHP p.74).
• Merger: the business of M. K. Sons Jewellers taken over on March 29, 2025, against 40,38,152 shares at ₹176 (RHP p.3, RHP p.86).
• Bonus issues: two for one on May 16, 2025; two for three on December 31, 2025 (RHP p.86). No share split is disclosed.
• Gifts of shares: Neelam Ramchand Raimalani gifted 100 shares each to five family members on January 12, 2026 (RHP p.93).
• Auditor: Parmar & Co. resigned on September 30, 2024, citing other assignments, and Paresh Rakesh & Associates LLP was appointed the same day (RHP p.78).
• Company form: converted to a public company, certificate dated January 30, 2026 (RHP p.3).
• Inventory: ₹87.5 crore at March 2024 to ₹275.2 crore at June 2026 (RHP p.68).
• Rent to promoters: rent to Ramchand Murlidhar Raimalani rose from ₹0.2 crore in FY25 to ₹1.7 crore in FY26 (RHP p.73).

13Capacity and expansion

Source: RHP p.102, RHP p.104, RHP p.105; the planned area is our arithmetic, adding the 3,300 sq. ft. stated for the two projects.

The new showroom and expansion are planned for FY27, with fit-out about 90 days and launch about 180 days after the issue (RHP p.102, RHP p.104). Revenue per showroom was ₹107.7 crore in FY26 (RHP p.182).

The chain from space to revenue needs evidence at each step. The prospectus gives revenue per showroom but not revenue per square foot for each showroom, or how long a new showroom takes to reach the average.

14Market size and industry structure

M. K. Sons industry: market size and growth

The industry chapter is drawn from "Gems and Jewellery Industry in India", dated October 9, 2026 and prepared by CareEdge Research (CARE Analytics & Advisory), which the company commissioned and paid for (RHP p.173, RHP p.6).

As claimed: the report puts India's domestic retail gems and jewellery market at about ₹7,20,400 crore in CY25, after growth of about 10.6% a year from CY20 (RHP p.138). It puts the retail gold jewellery market at ₹5,73,160 crore in CY25 (RHP p.150).

The part that is addressable: the company sells hallmarked gold jewellery, diamond and coloured stone jewellery in Mumbai and Ahmedabad (RHP p.174). The report's diamond-studded gold jewellery market is a separate figure, ₹23,830 crore in CY20 rising to a projected ₹87,180 crore by CY30 (RHP p.156). The report does not size the jewellery market of Mumbai or Ahmedabad.

What the company is today: FY26 revenue of ₹538.7 crore (RHP p.69) against the report's ₹5,73,160 crore gold jewellery market is under 0.1%, our arithmetic; the report does not state the company's share.

Size over time: the report says retail gold jewellery grew from ₹3,74,020 crore in CY20 to ₹5,73,160 crore in CY25, about 8.9% a year (RHP p.150). The report projects ₹9,55,110 crore by CY30, about 10.8% a year, and projects the wider retail gems and jewellery market to grow about 12.2% a year from CY25 to CY30 (RHP p.150, RHP p.138). These are CareEdge's projections, not newboard's.

Segments: by material, the report puts gold at about 78% to 82% of the market in CY25, diamonds about 8% to 12%, silver about 4% to 6% and others about 3% to 5% (RHP p.139). It also splits gold jewellery into bridal, occasion and daily wear (RHP p.150). The company is mainly in gold, which was 87.44% of its FY26 revenue (RHP p.182).

What drives demand: weddings and festivals, rising incomes, urbanisation, a shift to branded and hallmarked jewellery, and lighter designs for younger buyers (RHP p.138). The report notes that rising gold prices drive value growth (RHP p.138).

Structure: the report says unorganised jewellers held 63.3% of the retail gold jewellery market in CY25 and organised retailers 36.7% (RHP p.152). It names Tanishq, Malabar Gold & Diamonds and Kalyan Jewellers as organised players expanding their ranges (RHP p.155). For comparison it uses Tribhovandas Bhimji Zaveri, Motisons Jewellers, PNGS Reva Diamond Jewellery and Senco Gold (RHP p.165).

Inputs and trade: the report says domestic gold demand fell 10.17% to 721.1 tonnes in CY25, and jewellery demand by volume fell 21.8% to 440.7 tonnes as prices rose (RHP p.141). Domestic gold was ₹1,50,744.88 per 10 grams in June 2026 (RHP p.142). In May 2026 the import duty on gold and silver went back up from 6% to 15%, which the report says is expected to raise jewellery prices and working capital needs (RHP p.157).

Rules: gold jewellery must carry BIS hallmarking, and the company sells only hallmarked gold jewellery (RHP p.184). Gold imports come only through nominated agencies (RHP p.33).

What the chapter says can go wrong: gold price swings, which cut volumes when prices rise (RHP p.141); duty changes (RHP p.157); and the hold of local jewellers on customers through trust and flexible payment (RHP p.186). The company adds lab-grown diamonds as a risk to natural diamond demand (RHP p.47).

15Competitive position

M. K. Sons competitors

Source: RHP p.117.

What the company points to: eleven collections across price points, targeted marketing, founder-led management, and hallmarked, certified products (RHP p.111, RHP p.179, RHP p.184). Against that: the company does not make its own jewellery and has no long-term supplier contracts (RHP p.33), its designs are not registered (RHP p.38), and inventory days were 193 in FY26 against 227 to 491 days for the four listed peers (RHP p.118). It had 148 permanent employees (RHP p.192).

16Peers the company named

Peers named in the offer document: Motisons Jewellers Limited, Tribhovandas Bhimji Zaveri Limited, Senco Gold Limited and PNGS Reva Diamond Jewellery Limited (RHP p.113).

M. K. Sons listed peers

Source: RHP p.113; peer P/E at NSE closing prices of October 9, 2026 on FY26 EPS (RHP p.113). The prospectus gives the peers' P/E as highest 27.78, lowest 9.55 and average 20.29 (RHP p.113).

Motisons and PNGS Reva are close to the company's size; Tribhovandas Bhimji Zaveri's revenue is about 5.9 times and Senco Gold's about 15.6 times the company's (our arithmetic, RHP p.113).

17Valuation at the issue price

M. K. Sons IPO valuation and P/E

At the upper band of ₹162, with 1,36,00,000 new shares added to 4,26,90,760 existing shares (RHP p.65):

Source: our arithmetic on RHP p.65, RHP p.69, RHP p.112. At the lower band of ₹153 the market capitalisation is ₹861.2 crore (our arithmetic, RHP p.65).

Enterprise value on the shares before the issue, with March 2026 borrowings of ₹68.4 crore and cash of ₹5.5 crore, is about ₹754.5 crore, 9.1 times FY26 EBITDA of ₹82.9 crore (our arithmetic, RHP p.68, RHP p.114). After the issue, book value including the fresh issue at the upper band would be about ₹388.3 crore, and the market capitalisation 2.3 times that (our arithmetic, RHP p.68).

The four peers the prospectus names traded at 27.78, 19.62, 9.55 and 24.21 times FY26 earnings on October 9, 2026, a median of 21.9 (RHP p.113, our arithmetic). At the upper band the issue is priced at 13.4 times FY26 EPS on the prospectus's own share basis and 17.6 times FY26 profit on the enlarged share count, 20% below the peer median on the second measure (our arithmetic, RHP p.113).

18Risks, in plain words

M. K. Sons IPO risks

One showroom: C.G. Road gave 57.16% of FY26 revenue (RHP p.28) → any disruption there hits most of the business → Gujarat as a whole was 67.97% (RHP p.28).

Inventory: inventory was ₹256.4 crore at March 2026, 193 days (RHP p.43, RHP p.114) → slow-moving stock or a fall in gold prices would tie up or reduce that value → it was 333 days in the June 2026 quarter, not annualised (RHP p.43).

Cash: operating cash flow was negative in FY24 and FY25 and −₹2.8 crore in the June 2026 quarter (RHP p.70) → growth needs borrowing or new equity → borrowings were ₹70.5 crore at June 2026 (RHP p.35).

Gold prices and duty: gold was 93.19% of FY26 purchases (RHP p.35) → price and duty changes move costs and demand → import duty rose from 6% to 15% in May 2026 (RHP p.157).

Suppliers: all jewellery comes from outside makers and karigars without long-term contracts (RHP p.33) → a supplier's failure stops products → the top ten suppliers were 47.22% of FY26 purchases (RHP p.189).

Related parties: several showrooms, including the new one, are leased from the promoters (RHP p.103, RHP p.193) → terms depend on the promoters → rent to Ramchand Murlidhar Raimalani was ₹1.7 crore in FY26 (RHP p.73).

Seasonality: the third and fourth quarters gave about two thirds of FY26 revenue (RHP p.41) → a weak wedding or festival season hits the year → the June 2026 quarter revenue was ₹101.4 crore (RHP p.69).

Tax: the company carries income tax demands of ₹5.0 crore, including one on ₹5.0 crore of cash deposited during demonetisation (RHP p.72, RHP p.342) → an adverse outcome means payment → the AY 2012-13 appeal was dismissed in November 2025 and is pending further (RHP p.341).

19Litigation and regulatory matters

Cases against M. K. Sons and its promoters

There are no criminal proceedings and no actions by regulators against the company (RHP p.341). The ₹1,00,000 SEBI penalty on Neelam Raimalani was upheld on appeal in 2010 and paid (RHP p.49). The AY 2017-18 case concerns ₹5.0 crore of cash deposited during demonetisation, which the tax officer treated as unexplained; the company says the deposits were jewellery sales (RHP p.342).

20Related-party transactions

Source: RHP p.73, RHP p.74.

Loans owed to Ramchand Raimalani fell from ₹12.4 crore at March 2024 to ₹0.02 crore at June 2026 (RHP p.74). In the June 2026 quarter the company sold ₹1.3 crore of jewellery to Neelam Raimalani (RHP p.74).

What appeared in the period: the business purchase in FY25, promoter pay from FY25, higher rent from FY26 and rent to Neelam Raimalani and Kush Raimalani from the June 2026 quarter (RHP p.73, RHP p.74). What ended: purchases from the founder's firm once it was merged in (RHP p.73).

21What the offer document does not say

• Same-store sales growth, and how much of revenue growth came from gold prices rather than volume, are not given.
• Revenue and profit by showroom, other than C.G. Road's revenue, are not given.
• How the founder's firm was valued at ₹71.1 crore, and its assets and profit at the time, are not set out in the pages read.
• How long a new showroom takes to reach the average showroom's sales is not stated.
• The amount for general corporate purposes and the issue expenses are left blank (RHP p.101, RHP p.107).
• Why the gross margin rose to 28.48% in the June 2026 quarter is not explained in the pages read.

22Five questions for management

1. Of the rise in FY26 revenue to ₹538.7 crore, how much came from higher gold prices and how much from more grams sold?
2. What revenue and profit did the C.G. Road showroom earn in FY26, against ₹308.0 crore of sales?
3. How was the founder's proprietary firm valued at ₹71.1 crore, and what profit did it earn before the merger?
4. How much of the 193 days of inventory is slow-moving stock older than a year?
5. Why did the gross margin rise from 18.81% in FY26 to 28.48% in the June 2026 quarter?

24Draft to final: what changed

The fresh issue of 1,36,00,000 shares, the offer for sale of 34,00,000 shares by Ramchand Murlidhar Raimalani, the ₹30.0 crore for loan repayment and the lead manager are unchanged (DRHP p.3, DRHP p.95, RHP p.65, RHP p.101).

1Sources and cited facts

This study was read from 1 document the company filed. The 150 figures it cites are listed under the document each came from, with the page and the sentence as printed.