Momai Art IPO

01At a glance

What the company does: designs and makes lightweight gold jewellery for daily wear (Dokiya chains, bracelets, rings, earrings, pendants, necklace sets), including enamel (Meenakari) and CNC-cut pieces, at one leased facility in Borivali East, Mumbai; jewellery sales were 98.33% of FY26 revenue (DRHP p.197, DRHP p.331).

Who pays it: jewellery retail chains and wholesalers. The document names Titan Company Limited, Kalyan Jewellers India Ltd., Malabar Gold and Diamonds Limited, Jos Alukkas India Private Limited, Manoj Vaibhav Gems ‘N’ Jewellers Limited, Manubhai Gems Private Limited and Mukunda Jewellery among its customers (DRHP p.205). The largest customer was 23.90% of FY26 revenue and the top ten 60.77% (DRHP p.30).

Why it is raising money: ₹1,431.63 million of the fresh issue, about ₹143.2 crore, goes to working capital, mainly gold inventory and customer credit, with the rest, capped at 25% of gross proceeds, for general corporate purposes (DRHP p.111). The offer for sale proceeds go to the three promoters, not the company (DRHP p.110).

How fast it has grown: revenue from ₹3,201.28 million in FY24 to ₹6,622.30 million in FY26, about 43.8% a year, and profit after tax from ₹58.26 million to ₹390.05 million, about 158.7% a year (our arithmetic, DRHP p.81). Most of the profit growth came in one year: profit rose 325.5% in FY26 while revenue rose 18.9% (our arithmetic, DRHP p.81).

The one thing to understand: the jump in FY26 profit came from a gross margin that went from 5.85% to 11.03% in one year, which the company puts down to higher making charges, product mix and the benefit of rising gold prices on inventory held (DRHP p.341). Over the same years the kilograms of jewellery produced fell from 1,292.26 to 809.35, and operating cash flow was negative in all three years (DRHP p.200, DRHP p.82).

02The business, in plain words

Momai Art turns gold bars into light jewellery: thin hollow beads, fine chains and small components, cut by CNC machines and laser, or coloured with enamel, then assembled and finished by hand (DRHP p.218, DRHP p.219). It does not run shops. It sells to jewellery chains and wholesalers, who put the pieces in their stores (DRHP p.200).

A jewellery chain or wholesaler needs fast-moving, low-weight gold pieces → it orders from a catalogue of about 14,285 designs or asks for its own → the company buys gold from bullion suppliers and banks, melts, alloys, shapes, enamels, polishes and sends it for hallmarking → it is paid the gold value plus making charges, usually after a short credit period (DRHP p.205, DRHP p.218, DRHP p.220, DRHP p.113).

The business started as a partnership firm under a deed of April 6, 2017 between the three promoters, became Momai Art Private Limited on March 21, 2025, and a public company with a certificate dated July 11, 2026 (DRHP p.3). In 2026 it moved from Dahisar East to a 16,000 square foot leased building over four floors in Borivali East, with installed capacity of 3,000 kg a year (DRHP p.199). It had 205 employees on August 31, 2026, of whom 175 were design staff and karigars (craftsmen) (DRHP p.223).

Sometimes the customer supplies the gold and the company is paid only for the work. That job work was ₹52.96 million in FY26, 0.80% of revenue; everything else was jewellery made with gold the company bought (DRHP p.200). The company has no long-term supply contracts for gold and does not hedge it; it says it buys roughly the quantity of gold that matches the jewellery it has sold (DRHP p.200, DRHP p.349).

Exports were small and falling: ₹201.87 million in FY24 and ₹42.24 million in FY26, all to the United Arab Emirates (DRHP p.200).

Earnings equation: Revenue = kilograms of jewellery sold × realisation per gram (gold value plus making charges). The document gives kilograms produced and gold processed, but not kilograms sold, gold price per gram realised or making charges per gram, so the equation cannot be filled in from the filing.

03Where the money comes from

Source: DRHP p.198. Contemporary jewellery went from 4.29% of revenue in FY24 to 12.59% in FY26 (DRHP p.198). By customer type, multi-store retailers (14 customers) were 33.06% of FY26 revenue, up from 2.03% (6 customers) in FY24; wholesalers and single-store retailers were 66.30% (DRHP p.206). By state, Maharashtra was 61.60% of FY26 revenue in the document's state table, Delhi 5.86% and Kerala 5.42% (DRHP p.35). The company sold in 17 states and 3 union territories (DRHP p.200).

Source: DRHP p.30. Revenue depends on a few customers: ten took 60.77% of FY26 revenue and one took 23.90% (DRHP p.30). Only Malabar Gold and Diamonds Limited and Kalyan Jewellers India Limited are named in the top ten; the others did not consent to being named (DRHP p.30). The company had 189 customers in FY26, of whom 92 were new; the new customers brought ₹2,017.71 million of revenue (DRHP p.206).

On the supply side, the largest supplier was 23.87% of FY26 raw material purchases and the top ten 82.06% (DRHP p.32). None is named (DRHP p.32).

04The growth record

Source: DRHP p.80, DRHP p.81, DRHP p.82, DRHP p.125, converted from ₹ million. In rupees, revenue went from ₹320.1 crore in FY24 to ₹662.2 crore in FY26 and profit after tax from ₹5.8 crore to ₹39.0 crore (DRHP p.81).

Our arithmetic over FY24 to FY26: revenue grew about 43.8% a year (our arithmetic, DRHP p.81), EBITDA about 113.1% a year (our arithmetic, DRHP p.125) and profit after tax about 158.7% a year (our arithmetic, DRHP p.81). EBITDA margin moved from 4.14% to 9.09%, up 495 basis points, and PAT margin from 1.82% to 5.89%, up 407 basis points (DRHP p.125). Year by year, revenue rose 73.9% in FY25 and 18.9% in FY26, and profit after tax rose 57.3% in FY25 and 325.5% in FY26 (our arithmetic, DRHP p.81).

Operating cash flow was an outflow of ₹21.8 crore in FY26, after outflows of ₹2.4 crore in FY25 and ₹9.0 crore in FY24 (DRHP p.82). Other income of ₹12.96 million was 2.5% of FY26 profit before tax of ₹525.28 million (our arithmetic, DRHP p.81). Net debt was about 1.5 times FY26 EBITDA (our arithmetic, DRHP p.80), debt to equity 1.74 times, about 1.7× (DRHP p.125), and return on capital employed 42.2% in FY26 (DRHP p.125).

Working capital days were 58 in FY26 against 39 in FY24 (DRHP p.125), and inventory days 63 (DRHP p.48). Contingent liabilities were ₹0.68 million, about ₹0.1 crore, a tax deducted at source demand (DRHP p.83). Related-party transactions added up to ₹195.54 million in FY26, about ₹19.6 crore, or 2.95% of revenue (DRHP p.57). Borrowings stood at ₹1,113.44 million, about ₹111.3 crore, on August 31, 2026 (DRHP p.357).

The fresh issue puts ₹1,431.63 million, about ₹143.2 crore, into working capital (DRHP p.111).

Three accounting points sit under the table. The FY24 and FY25 figures are the partnership firm's, restated to Ind AS, and the firm paid its partners remuneration, a share of profit and interest on capital, with interest on capital of ₹18.37 million booked as a finance cost in FY25 (DRHP p.266, DRHP p.334).

The firm was taxed at 34.94% and the company at 25.17%, so the effective tax rate fell from 36.61% in FY25 to 25.74% in FY26 (DRHP p.336). Net worth fell in FY25 because ₹154.52 million of partners' capital was turned into loans from the directors on conversion (DRHP p.275). The year end is March 31 throughout (DRHP p.197).

05What the growth is made of

Revenue rose ₹3,421.02 million from FY24 to FY26 (our arithmetic, DRHP p.198). Daily wear jewellery added ₹2,730.36 million and contemporary jewellery ₹696.60 million, while job work fell ₹33.39 million (our arithmetic, DRHP p.198). The company attributes the FY25 rise to new customers, higher gold prices, an increase in average realisation per gram and ₹19.26 million of new machinery, and the FY26 rise to added customers and the gold price (DRHP p.341, DRHP p.337).

Volume did not rise. Jewellery manufactured fell from 1,292.26 kg in FY24 to 1,153.63 kg in FY25 and 809.35 kg in FY26, down 37.4% over the two years, and gold processed fell from 1,149.45 kg to 707.49 kg (our arithmetic, DRHP p.200). Gold bought by the company and processed was 529.76 kg in FY24 and 507.72 kg in FY26 (DRHP p.200). Revenue from jewellery made with the company's own gold went from ₹3,114.93 million to ₹6,569.34 million over the same years, which is about ₹5.9 million per kg of own gold processed in FY24 and about ₹12.9 million per kg in FY26 (our arithmetic, DRHP p.200).

Read from the filing: on the document's own production figures, the growth is realisation per kilogram, not kilograms. The document does not disclose kilograms sold, the gold price per gram it realised or making charges per gram, so the rise in realisation cannot be split into gold price, making charges and product mix. That is the finding. Finished goods inventory also rose from ₹131.40 million to ₹829.33 million over the period, so sales and production did not move together (DRHP p.333).

06Earnings quality

The item that needs explaining is the FY26 margin. Gross profit (revenue less materials and the change in inventories) was ₹730.19 million in FY26 against ₹325.80 million in FY25, a margin of 11.03% against 5.85% (DRHP p.353). In FY26 finished goods inventory rose ₹457.61 million and raw material inventory ₹262.72 million, and inventory is carried at the lower of cost and net realisable value (our arithmetic, DRHP p.333, DRHP p.330).

The company names "the benefit of rising gold prices on inventory held" as one reason for the margin (DRHP p.341). The document does not say how much of the ₹404.39 million rise in gross profit came from that and how much from making charges or mix (our arithmetic, DRHP p.353).

Cash went the other way. Inventory grew ₹720.33 million in FY26, so operations used ₹122.51 million of cash before ₹95.22 million of tax, and the gap was filled with ₹387.22 million of new short-term borrowing (DRHP p.82). Employee costs show a shift from job workers to in-house staff: labour charges paid to outside workers fell from ₹40.89 million to ₹12.90 million while salaries and wages rose from ₹17.05 million to ₹44.92 million (DRHP p.329).

07The balance sheet

At March 31, 2026 total assets were ₹1,477.68 million: inventories ₹1,143.82 million, trade receivables ₹193.09 million, other financial assets ₹56.20 million (including ₹44.00 million of fixed deposits lien-marked to the banks), property, plant and equipment ₹33.91 million, right of use assets ₹18.87 million and cash ₹0.95 million (DRHP p.80, DRHP p.345). The company owns no property (DRHP p.223).

Against that: borrowings of ₹882.74 million, all short term and repayable on demand, of which ₹684.43 million was cash credit and working capital demand loans from YES Bank Limited and HDFC Bank Limited and ₹198.31 million unsecured loans from the promoters and their relatives at 12% interest (DRHP p.347). Lease liabilities were ₹15.80 million and total equity ₹508.07 million (DRHP p.80). Sanctioned bank limits were ₹800.00 million (DRHP p.345).

By August 31, 2026 fund-based borrowings were ₹1,113.44 million, including cash credit of ₹756.88 million, an ECLGS loan of ₹153.39 million and ₹195.76 million of unsecured loans (DRHP p.357). The promoters and promoter group had given personal guarantees of ₹1,000 million and pledged personal property as collateral (DRHP p.51). Capital commitments were ₹42.50 million at March 2026 for the new premises (DRHP p.348).

Source: DRHP p.80, DRHP p.111, DRHP p.96, our arithmetic. No part of the fresh issue is set aside to repay loans; the company says that funding working capital will reduce its dependence on borrowings (DRHP p.113). The general corporate purposes amount and offer expenses are blank, so net worth after the issue cannot be stated (DRHP p.111).

08What the money is for

Source: DRHP p.111. The ₹1,431.63 million for working capital is to be spent ₹242.18 million in FY27 and ₹1,189.45 million in FY28 (DRHP p.111).

The company's own plan estimates net working capital of ₹2,435.83 million at March 2027 and ₹4,092.50 million at March 2028, against ₹1,281.30 million at March 2026, and assumes trade receivable days of 42 and 44, against 11 in FY26, because it intends to supply more retail chains that expect 30 to 60 days of credit (DRHP p.114, DRHP p.115, DRHP p.116).

These are the company's estimates, compiled and confirmed by an independent chartered accountant (DRHP p.115). The objects have not been appraised by any bank or financial institution (DRHP p.111).

Into the business ₹143.2 crore for working capital plus a general corporate purposes amount not yet stated, from a fresh issue of 19,550,000 shares (DRHP p.111, DRHP p.77). To selling shareholders 4,500,000 shares, 5.9% of the present share count; the rupee amount depends on the price, which is not set (DRHP p.77, our arithmetic).

09Who is selling

Source: DRHP p.78 for the offered shares, DRHP p.101 for holdings; the percentages are our arithmetic. The offer for sale is up to 4,500,000 shares by three selling shareholders, all promoters, alongside a fresh issue of up to 19,550,000 shares; together 24,050,000 shares (DRHP p.77). The offer for sale is 18.7% of the shares offered (our arithmetic, DRHP p.77). Each consented on September 21, 2026 (DRHP p.78).

Average cost of the shares held, as certified, is ₹1.67 a share for each of the three (DRHP p.102). The low figure arises because each holds 4,000,000 shares received for partnership capital at ₹10 and 20,000,000 bonus shares received for nothing (DRHP p.102, DRHP p.103).

10Promoters

The three promoters are Nikhil Tulsidas Vaya, aged 37, Chairman and Managing Director; Rahul Tulsibhai Vaya, aged 41, Whole-time Director, Operations; and Atul Jentilal Patt, aged 48, Whole-time Director, Finance (DRHP p.258, DRHP p.259). Each holds 31.33% of the company and together 93.99% (DRHP p.258). They were identified as promoters by the board on August 13, 2026 (DRHP p.259). The document states that Nikhil Tulsidas Vaya and Rahul Tulsibhai Vaya are brothers (DRHP p.240). Its promoter group table lists Harshaben Tulsidas Vaya as mother of the two Vaya promoters and as sister of Atul Jentilal Patt (DRHP p.261, DRHP p.262).

The document gives each promoter more than 20 years in jewellery design and manufacture; before the firm, each ran a sole proprietorship in the same line and worked at other jewellery businesses, Mahavir Chains, RRJ Enterprise and Al Khuloood Goldsmith respectively (DRHP p.239, DRHP p.240). Nikhil Tulsidas Vaya studied to upper primary level, Rahul Tulsibhai Vaya to secondary level and Atul Jentilal Patt under the Gujarat Secondary Education Board (DRHP p.239). None holds another directorship (DRHP p.237, DRHP p.238).

Pay: as partners, the three were paid ₹4.00 million each in FY24 and ₹12.00 million each in FY25; as directors, ₹12.00 million each in FY26 (DRHP p.84). Together that is ₹12.00 million in FY24 and ₹36.00 million in FY26, about ₹1.2 crore and ₹3.6 crore (DRHP p.334). They also received a partnership share of profit of ₹19.60 million each in FY24 and ₹30.95 million each in FY25, interest on capital, interest of ₹16.87 million in FY26 on their loans to the company, and rent (our arithmetic, DRHP p.318, DRHP p.319). From August 2026 the new terms are ₹18 million a year each (DRHP p.241, DRHP p.242).

Guarantees and pledges: the promoters and four promoter group members have given personal guarantees of ₹1,000 million for the company's loans (DRHP p.51). None of the promoters' shares is pledged (DRHP p.105).

Cases: none against the promoters, and no SEBI or stock exchange action in five years (DRHP p.361). None of the three holds a directorship in a listed company (DRHP p.237, DRHP p.238).

Group company: Momai Chains Private Limited is the group company; the promoters ceased to be its shareholders on March 30, 2026, citing strategic realignment, it is authorised to carry on the same business but carries on none at present, and it sold the company goods worth ₹23.11 million in FY26 (DRHP p.260, DRHP p.372, DRHP p.320).

Promoter economics: on March 21, 2025 the partnership capital of ₹120.00 million was converted into 12,000,000 shares at ₹10, 4,000,000 to each promoter (DRHP p.96, DRHP p.98). On September 21, 2026 each received 20,000,000 bonus shares (DRHP p.97). There has been no secondary purchase or sale by the promoters (DRHP p.103). The shares were placed privately at ₹376 each in May 2026, before the 5:1 bonus (DRHP p.96).

11Who already owns it

Source: DRHP p.100, DRHP p.101. Promoters hold 93.99% and the public 6.01%, across 22 shareholders; the promoter group holds nothing (DRHP p.100, DRHP p.104). There is no employee stock option scheme (DRHP p.99). If the full 19,550,000 fresh shares are issued and the full 4,500,000 offered shares sold, the promoters would hold 67,500,000 of 96,145,742 shares, 70.2% (our arithmetic, DRHP p.95).

When the others came in: all nineteen subscribed in the May 12, 2026 private placement of 765,957 shares at ₹376 each, ₹288.00 million in all, and then received bonus shares (DRHP p.96, DRHP p.129). The largest eight are individuals with the Jain surname holding 319,140 shares, 0.41%, each (DRHP p.106). The only company among them is Grover Jewells Limited, with 47,987 placement shares, 287,922 shares after the bonus (DRHP p.97, DRHP p.98); no fund or company outside the promoters holds 1% or more (DRHP p.101). No shareholder has special rights (DRHP p.103).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹320.1 crore in FY24 to ₹662.2 crore in FY26 and profit after tax from ₹5.8 crore to ₹39.0 crore (DRHP p.81).
• Margin: gross margin went from 5.85% in FY25 to 11.03% in FY26 and EBITDA margin from 3.72% to 9.09% (DRHP p.353, DRHP p.125).
• Production fell: installed capacity rose from 2,400 kg to 3,000 kg, but production fell from 1,292.26 kg in FY24 to 809.35 kg in FY26, so utilisation fell from 53.84% to 26.98%, about 27.0% (DRHP p.53).
• Customer mix changed: the largest customer went from 13.35% of FY24 revenue to 23.90% of FY26, the top five from 44.06% to 47.18% and the top ten from 62.81% to 60.77% (DRHP p.30). The top ten suppliers were 82.06% of FY26 purchases (DRHP p.32). Multi-store retailers went from 2.03% of revenue to 33.06% (DRHP p.206).
• Receivable days lengthened slightly from 9 in FY24 to 11 in FY26 (DRHP p.113).
• Promoter pay rose from ₹12.00 million in FY24 to ₹36.00 million in FY26 (DRHP p.334), and new contracts from August 2026 set ₹18 million a year each (DRHP p.241).
• The partnership became a company: on March 21, 2025, with ₹154.52 million of partners' capital turned into loans from the directors (DRHP p.3, DRHP p.275).
• The statutory auditor changed: Yogesh S Thakkar and Associates, the first auditor appointed April 15, 2025, ceased on completion of term on December 31, 2025, and Jain V. & Co. was appointed the same day for five years (DRHP p.89).
• New premises: the business moved to the Borivali building under a five-year leave and licence from March 1, 2026; the registered office moved on August 14, 2026 (DRHP p.223, DRHP p.233).
• A private placement at ₹376: 765,957 shares on May 12, 2026, raising ₹288.00 million (DRHP p.96).
• A bonus issue of 5:1: 63,829,785 shares allotted on September 21, 2026, the last allotment before the IPO, for no cash; the company says it capitalised ₹280.34 million of securities premium and ₹357.96 million of reserves (DRHP p.97, DRHP p.324).
• The company became public: converted with a certificate dated July 11, 2026 (DRHP p.3).
• Borrowing grew: from ₹258.60 million at March 2024 to ₹882.74 million at March 2026 and ₹1,113.44 million at August 2026 (DRHP p.80, DRHP p.357).
• Board and officers: three independent directors from August 13, 2026, a chief financial officer and a company secretary from September 1, 2026, and a chief operating officer from August 21, 2025 (DRHP p.245, DRHP p.256).
• The group company: the promoters left Momai Chains Private Limited as shareholders on March 30, 2026 (DRHP p.260).

13Capacity and expansion

Source: DRHP p.220, DRHP p.53, certified by an independent chartered engineer. Capacity is measured on 300 working days a year in one eight-hour shift (DRHP p.58). The new building cost about ₹50.00 million to fit out and was completed on August 15, 2026 (DRHP p.348, DRHP p.352).

The issue funds no capacity. The money goes to gold inventory and customer credit (DRHP p.111). The chain from capacity to revenue does not hold here in any simple way: utilisation fell by half while revenue doubled (DRHP p.53, DRHP p.81). The document does not explain why production fell in FY25 and FY26.

14Market size and industry structure

As claimed: the industry report is CareEdge's "Research Report on Gems & Jewellery Industry in India", dated September 29, 2026, commissioned and paid for by the company for the offer (DRHP p.28). It puts the India lightweight jewellery market at ₹3,772.24 billion in CY25, up from ₹2,052.37 billion in CY20, about 12.95% a year (DRHP p.175). It puts the wholesale gold jewellery market at ₹2,176.09 billion in CY25, of which unorganised manufacturers had 86.86% (DRHP p.170, DRHP p.171), and the Meenakari jewellery market at ₹350 to 380 billion (DRHP p.178). The report also projects these markets forward; this study does not repeat projections.

The part that is addressable: lightweight gold jewellery sold wholesale to jewellers in India, and a small export business to the UAE (DRHP p.200). The report does not give a separate size for the wholesale lightweight segment in the text read.

What the company is today: FY26 revenue of ₹6.62 billion is about 0.18% of the commissioned report's CY25 lightweight jewellery figure and about 0.30% of its wholesale gold jewellery figure (our arithmetic, DRHP p.81, DRHP p.175, DRHP p.170). The company's figures are for financial years and the report's for calendar years, so this is approximate.

On structure, the commissioned report says the organised share of jewellery retail has risen to about 35 to 40%, driven by GST, mandatory hallmarking and retail chains (DRHP p.39). Hallmarking with a unique identification number is mandatory in 392 districts (DRHP p.226). The report names a shortage of skilled karigars, fast-changing designs, dependence on imported gold and the working capital strain of high gold prices as industry challenges (DRHP p.190, DRHP p.191). India's gold imports were about ₹6,395.22 billion in FY26, according to the report (DRHP p.190).

15Competitive position

Source: DRHP p.127, DRHP p.128, converted from ₹ million. The document does not give the peers' borrowings in rupees, so debt to equity is shown instead (DRHP p.127). Installed capacity in FY26 was 3,000 kg for the company, 14,400 kg for Sky Gold, 2,700 kg for Shanti Gold and 4,000 kg for Shringar (DRHP p.127, DRHP p.128). The company's working capital days of 58 are the lowest of the four; the peers' are 63, 96 and 81 (DRHP p.127, DRHP p.128).

What the company puts forward: Meenakari and CNC work on very small gold components, in-house design and a catalogue of about 14,285 designs, an integrated plant, and relationships with large retail chains (DRHP p.202, DRHP p.205).

Against that, from the document: one leased plant, designs not registered under the Designs Act, a trademark application still pending, no long-term gold supply contracts, no hedging, a small marketing budget of ₹1.42 million in FY26, and dependence on 175 karigars (DRHP p.34, DRHP p.40, DRHP p.52, DRHP p.349, DRHP p.45, DRHP p.31).

Some customer agreements let the customer reject products, require the company to take back unsold products, and restrict supply of certain designs to others (DRHP p.40).

16Peers the company named

Peers named in the offer document: Sky Gold & Diamonds Limited, Shringar House of Mangalsutra Limited and Shanti Gold International Limited (DRHP p.123).

All three are listed gold jewellery makers selling mainly business to business; the commissioned report also names them as key competitors (DRHP p.191, DRHP p.223). Size differs widely: Sky Gold's FY26 revenue is about 9.5 times the company's, and Shanti Gold's and Shringar's about 3.0 and 3.4 times (our arithmetic, DRHP p.123). Shringar is mostly mangalsutras (DRHP p.192).

The company's FY26 PAT margin of 5.89% sits between the peers' 4.48% and 6.95%, while its return on net worth of 124.62% reflects a small equity base after the partnership years (DRHP p.123, DRHP p.80). The document prints the peers' P/E at 43.96, 15.72 and 15.34 on a September 2026 closing price (DRHP p.123). The company's FY26 basic EPS, adjusted for the bonus, is ₹5.42 (DRHP p.122).

With no price band, no P/E for the company can be stated.

17Risks, in plain words

Customers: the top ten customers were 60.77% of FY26 revenue (DRHP p.30) → the agreements do not assure any minimum business, and some allow rejection, take-back of unsold stock and set-off (DRHP p.41) → the largest customer alone was 23.90% (DRHP p.30).

Gold price: materials were 95.88% of FY26 revenue and the company does not hedge gold (DRHP p.32, DRHP p.349) → a fall in the gold price would cut the value of inventory, and the company names rising gold prices as one source of the FY26 margin (DRHP p.341) → a 1% move in gold changes inventory value by ₹11.44 million (DRHP p.349).

Working capital and cash: operating cash flow was negative in FY24, FY25 and FY26 (DRHP p.46) → growth has been funded with short-term debt repayable on demand (DRHP p.347) → borrowings were ₹1,113.44 million at August 2026 (DRHP p.357).

Credit terms: the company's plan assumes receivable days rise from 11 to 42 and 44 (DRHP p.115) → more credit to retail chains ties up more cash and adds collection risk (DRHP p.47) → the plan's net working capital is ₹4,092.50 million at March 2028 against ₹1,281.30 million at March 2026 (DRHP p.114).

One plant, much gold: all manufacturing is at one leased site in Mumbai, with ₹1,143.82 million of inventory at March 2026 (DRHP p.34, DRHP p.80) → theft, loss or shutdown would hit the whole business, and insurance is subject to limits (DRHP p.43, DRHP p.59) → insurance cover equalled the net value of fixed assets and inventory, ₹1,177.73 million (DRHP p.59).

Promoter loans: ₹198.31 million of borrowings at March 2026 were unsecured promoter and relative loans repayable on demand (DRHP p.347) → the general corporate purposes money may not be used to repay them, so they stay unless repaid from elsewhere (DRHP p.116) → interest on unsecured loans was ₹23.94 million in FY26 (DRHP p.334).

Statutory dues and filings: there were delays in provident fund, ESIC, TDS and professional tax payments in the last three years, and a charge filing with the Registrar of Companies was made late (DRHP p.54, DRHP p.48) → these are compliance lapses the company says have since been paid (DRHP p.54) → TDS delays included 12 instances in FY25 (DRHP p.54).

Issue-specific: the promoters' average cost is ₹1.67 a share (DRHP p.102) → shares were placed at ₹376 in May 2026, before a 5:1 bonus (DRHP p.96) → the general corporate purposes amount and offer expenses are blank (DRHP p.111).

18Litigation and regulatory matters

Criminal: none by or against the company, promoters, directors or key managerial personnel (DRHP p.361, DRHP p.362). Tax: one direct tax matter against the company of ₹0.68 million, which is also the only contingent liability (DRHP p.363, DRHP p.83). Statutory and regulatory: none, and no SEBI or stock exchange action against the promoters in five years (DRHP p.361). Civil: no material civil litigation (DRHP p.361). The company has applied for a fire NOC and trade licence for the new premises, and for changes of name and address on its professional tax and income tax registrations (DRHP p.49).

19Related-party transactions

Source: DRHP p.318 to DRHP p.320, DRHP p.334; the three-promoter totals are our arithmetic. Momai Chains Private Limited was paid labour charges in FY24 and FY25 and sold the company goods in FY26; the company had given it a ₹22.30 million advance for purchases at March 2025 (DRHP p.320). Loans from the three promoters stood at ₹174.69 million at March 2026 (our arithmetic, DRHP p.320). The company says all transactions were at arm's length (DRHP p.320). Trishant Pradeep Soni, described as the brother of the spouse of Nikhil Tulsidas Vaya, is employed as a sales executive (DRHP p.260).

What appeared or changed in the two years before filing: partnership remuneration, profit share and interest on capital ended with the conversion in March 2025 and were replaced by directors' remuneration and interest on loans (DRHP p.318); ₹154.52 million of partners' capital became loans from the directors (DRHP p.275); the promoter HUF loans of ₹35.45 million were repaid in FY26 (our arithmetic, DRHP p.319); purchases from Momai Chains Private Limited replaced labour charges in FY26, and the promoters left it as shareholders on March 30, 2026 (DRHP p.320, DRHP p.260). The new premises are leased from KGK Innovative Private Limited, which is not a related party (DRHP p.223, DRHP p.224).

20What the offer document does not say

Kilograms of jewellery sold, the gold price per gram realised and making charges per gram are not disclosed, so growth cannot be split into volume, gold price and making charges. How much of the FY26 gross margin came from gold price gains on inventory is not disclosed. Why production fell from 1,292.26 kg to 809.35 kg while capacity rose is not explained (DRHP p.53). Margins by product or customer type are not given.

Eight of the top ten customers and all top ten suppliers are not named (DRHP p.30, DRHP p.32). The general corporate purposes amount, offer expenses and price band are blank. The group company's financials are not in the document, only on the company's website (DRHP p.371).

Some inconsistencies are recorded as document matters, not business ones: the top ten customers total ₹3,989.98 million in one table and ₹4,024.29 million in another for FY26 (DRHP p.30); top ten suppliers are ₹5,426.27 million in one place and ₹5,326.27 million in another, both at 82.06% (DRHP p.32, DRHP p.352); FY26 repeat customers are shown as 30.47% of revenue when their ₹4,604.59 million is about 69.5% (DRHP p.206, our arithmetic);

FY26 return on capital employed is 42.16% in the KPIs and 44.16% in the ratio note (DRHP p.125, DRHP p.321); the bonus is said to come from securities premium alone in one place and from premium and reserves in another (DRHP p.99, DRHP p.324); one risk factor says the company has declared dividends in the past while the dividend chapter says none has been declared since incorporation (DRHP p.62, DRHP p.263);

one risk factor says insurance claims were filed for a warehouse theft and transit damage and the next sentence says no claims were filed (DRHP p.60); credit of 30 to 45 days to customers is described in one place and short credit terms with 11 receivable days in another (DRHP p.210, DRHP p.113);

the industry report's engagement letter is dated July 20, 2027 in one place and July 20, 2026 in another (DRHP p.26, DRHP p.28); the peers' prices are dated September 24 and September 25, 2026 (DRHP p.123); and Rahul Tulsibhai Vaya is also printed as Rahul Tulsidas Vaya (DRHP p.51, DRHP p.200).

21Five questions for management

1. How many kilograms of jewellery were sold in FY24, FY25 and FY26, and what were the average gold price per gram and the average making charge per gram realised?
2. How much of the ₹404.39 million rise in FY26 gross profit came from gold price gains on inventory, and what would the FY26 gross margin have been at the opening gold price?
3. Why did production fall from 1,292.26 kg in FY24 to 809.35 kg in FY26 while revenue doubled and capacity rose to 3,000 kg?
4. What credit terms do the multi-store retailers receive today, and what receivable days does the company expect to reach before the issue proceeds are deployed?
5. When will the ₹198.31 million of unsecured promoter and relative loans be repaid, and from what source, given that the general corporate purposes money may not be used for it?

1Sources and cited facts

This study was read from 1 document the company filed. The 153 figures it cites are listed under the document each came from, with the page and the sentence as printed.