Augmont Enterprises

Augmont Enterprises

Incorporated in October 2012 as RSBL Spot Trading, a wholly owned entity of Riddisiddhi Bullions Ltd, and renamed in 2015, Augmont Enterprises is an integrated gold and silver platform present across 24 states. It runs Augmont SPOT, a delivery based OTC bullion platform for GST registered jewellers and dealers (87% of FY26 revenue), consumer offerings through Gold For All (7%) and jewellery exports (6%). It owns two refineries with 284 TPA capacity, India's second largest. The Kothari family holds 92.75% pre-offer.

DRHP filed: 30 September 2025

IPO open & close: 21 August 2026 to 25 August 2026

Listing date: 31 August 2026 (tentative)

BRLM: Nuvama Wealth Management, Intensive Fiscal Services, JM Financial, Motilal Oswal Investment Advisors

Auditor: KKC & Associates LLP (formerly Khimji Kunverji & Co LLP)

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Delta's View

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Augmont runs one of India's largest online bullion platforms, selling gold and silver bars to jewellers and dealers at scale (53.4 MT of gold sold and ₹94,186 cr of revenue in FY26). Margins are tight (GM 0.62%) and the business is largely trading, so the edge is limited to procurement access and cash management. 27% of FY26 revenue came from promoter group company Riddisiddhi Bullions Ltd (RSBL), run by whole time director Ketan Kothari's uncle. While no proceedings are outstanding against Augmont itself, RSBL was fined ₹100 cr by the Directorate General of Foreign Trade (DGFT) in 2015 over alleged customs violations and barred by SEBI over illiquid stock options, and a promoter group member was arrested by the ED in a 2014 hawala case (Moneylife). Growth is very much dependent on gold & silver prices, making this closer to a commodity play than a growth story. The last run-up of this scale, 2008 to 2012, was followed by six flat years. At an IPO ask of 16.7x EV/EBITDA we do not find enough margin of safety. The governance and business risks stated above do not give us comfort at this stage, so we would avoid this as an investment. One may still subscribe purely for listing gains, going by the current GMP.

One can expect decent listing gains as per current GMP 47% (24 August 2026), provided the GMP sustains.

• RSBL was fined ₹100 cr by the DGFT in January 2015 and stripped of its nominated agency status over alleged customs violations on 200 kg of imported gold, a matter still pending before the Bombay High Court. Moneylife reported in September 2014 that the ED's Ahmedabad wing arrested Rakesh Kothari, son of promoters Manakchand and Devkumari Kothari and a first cousin of Ketan Kothari, in a hawala case, with no reported outcome since.

• RBI has barred lenders from financing the purchase of gold in any form since 2013, restated across lender categories in 2025. Borrowers who use gold as a manufacturing input are exempt, but a trading business like Augmont's does not qualify. So bank debt has never been an option here, and total borrowings stood at just ₹12.7 cr in FY26 against ₹94,186 cr of revenue, with inter-corporate deposits and equity funding the business instead. That will not change. The ₹465 cr set aside from this issue covers only 34% of the company's own FY27 working capital estimate of ₹1,366 cr, and the balance of ₹901 cr is meant to come from internal accruals and equity, with accruals having turned negative in FY26.
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• The fresh issue of ₹620 cr is almost entirely for working capital, with ₹465 cr going towards advance margin payments to suppliers, doré import advances and scaling up inventory, all to be deployed in FY27.
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• The government raised import duty on gold and silver from 6% to 15% in May 2026. Higher duties could reduce import volumes, raise procurement cost, constrain working capital and suppress consumer demand for bulk bullion purchases which are not reflected in FY26 numbers.

• Augmont's core business is bullion trading. It sells physical gold and silver bars to GST registered jewellers, bullion dealers and manufacturers through its online platform Augmont SPOT, which contributed ₹81,751 cr or 87% of FY26 revenue. This is a trading business and not a manufacturing one. Company-wide gross margins were 0.58% (FY24), 0.65% (FY25) and 0.62% (FY26), so Augmont earns a spread of under 1% on the value of metal it moves. 

• Augmont owns two refineries at Rudrapur and Mumbai with combined capacity of 284 TPA, but its FY26 utilisation was just 0.93% and 8.53% respectively. It refined 13.34 MT of gold against 53.41 MT sold on SPOT, down from 14.98 MT in FY24. The plants can only process doré (semi-refined gold from mines) and scrap, and Augmont's doré intake has dropped 28% over the same period to 10.78 MT, as duty-free routing through Dubai under the India-UAE trade deal has made importing finished bars easier than importing doré to refine here. So most of what Augmont sells is bought already refined and simply traded on, which is what keeps the margin this tight.

Facility

Owner

  Installed

   (MTPA)

  FY26 production

            (MT)

    FY26 utilisation

Rudrapur, UK (refining)

Augmont Enterprises

144

1.34

0.93%

Mumbai, MH (refining)

Augmont Enterprises

140

11.95

8.53%

Sitapur SEZ (jewellery)

Ideal Fiscal Services (subsidiary)

13.80

6.50

47.07%

• Revenue grew at a 64.2% CAGR from ₹34,921 cr in FY24 to ₹94,186 cr in FY26, which looks attractive but is driven almost entirely by gold and silver prices. Gold alone is close to 75% of revenue and silver another 18%. IBJA data shows Gold prices moved from ₹6,866 per gram on 31 March 2024 to ₹14,673 on 31 March 2026, up 114%, and silver from ₹75,111 per kg to ₹230,135, up 206%. Augmont's own procurement cost moved in step, gold up 112% to ₹11.81 mn per kg and silver up 129% to ₹0.16 mn per kg. Metal prices are governed by factors outside the company's control, and by 31 July 2026 gold had already eased to ₹14,286 per gram. Revenue here follows the metal price, and that cuts both ways. A downturn in gold or silver would pull the topline down just as fast as it lifted it.

• Gold sold on SPOT fell 14% in FY26 to 53.41 MT from 61.84 MT in FY25, and silver was near flat at 1,049 MT. Over FY24-FY26, gold volume is up just 21% from 44.04 MT in FY24, against a 114% move in the gold price during the period. GJEPC, citing World Gold Council data, reported Indian jewellery demand down 24% by volume in calendar 2025 to 430.5 t, with Q3 down 31% and Q4 down 23%. Jewellers are Augmont's customers, so their volume loss becomes its volume loss.

• Augmont's largest customer is Riddisiddhi Bullions Ltd (RSBL), the Kothari family's original bullion business, which set up Augmont in 2012 and is run by whole time director Ketan Kothari's uncle, Prithviraj Kothari. Its share of revenue increased from 7.4% in FY24 to 11.9% in FY25 to 27.4% in FY26. RSBL is also a top 5 supplier at 6.36% of procurement. Prithviraj Kothari is National President of IBJA, the body whose daily rates are India's benchmark for gold trade, gold lending and sovereign gold bonds. Ketan Kothari is IBJA's joint secretary.

• Inventory days averaged just 1.1 days over FY24 to FY26, because stock never sits: the customer pays only a token ₹0.30 mn per kg of gold on order, while Augmont has to pay its supplier bank 100% of the order value upfront and deliver within two working days. So it funds the full trade against a token deposit, and the more it sells the more cash stays blocked with suppliers. Net working capital was ₹149 cr in FY24, ₹354 cr in FY25 and ₹883 cr in FY26.

• FY26 operating cash flow was (₹42.2 cr) against post tax EBITDA of ₹261 cr. Both FY24 and FY25 generated ₹97 cr and ₹105 cr of operating cash flow respectively. At the end of FY25 Augmont was holding ₹1,132 cr of customer advances. Those orders were delivered in FY26 which caused significant cash outflow. 

• Augmont Gold For All is the consumer arm, a platform where retail buyers can purchase digital gold and silver, run gold SIPs, take jewellery on EMI and sell old gold for cash. Its revenue surged to ₹3,012 cr in FY26 from ₹639 cr in FY24, transactions from 2.85 cr to 5.49 cr, and 4.96 cr registered consumers. The wider consumer segment it sits within, at ₹6,687 cr, is still just 7.1% of revenue, and the average ticket is only ₹548 in FY26 against ₹224 in FY24.

Business

• Augmont operates across the gold and silver value chain covering procurement, refining, bullion trading, digital gold, jewellery manufacturing, exports and gold loan technology. It runs two proprietary platforms, Augmont SPOT for businesses and Augmont Gold For All for consumers, backed by a physical delivery network across 24 states. FY26 revenue was ₹94,186 cr with EBITDA of ₹386 cr and PAT of ₹348 cr. Materials procured were ₹93,683 cr, which is 99.5% of revenue.

• Revenue splits into enterprise sales through SPOT at ₹81,751 cr or 86.80%, consumer offerings at ₹6,687 cr or 7.10%, jewellery exports at ₹5,701 cr or 6.05% and other sales at ₹46.9 cr. Within SPOT, gold contributed 68.76% and silver 18.04% of total revenue.

• Augmont SPOT is a fully electronic over the counter delivery based bullion platform that has been live since 2012, with 5,223 registered members. GST registered jewellers, dealers and manufacturers order bars at live prices and collect physical delivery within two working days from 20 spot delivery centres across 13 states, nine company operated and 11 franchisee operated. Augmont charges no brokerage and is the transacting party on every trade, earning its spread inside the quoted price.

• Augmont Gold For All, launched in FY21, lets consumers buy, sell and store gold and silver digitally, run gold SIPs from ₹500 a month, buy coins from 0.1 gm, purchase jewellery on EMI at 20% upfront and sell old gold for cash. It had served 49.62 million registered consumers by March 2026 and handled 54.93 million transactions in FY26 . 

• Distribution runs through the 20 spot delivery centres, 106 Gold For All centres operated by group company Finkurve, over 218 third party app partners including Jar, Gullak, KreditBee and Navi, redemption at over 310 Kalyan and over 130 CaratLane stores, and investment jewellery across 3,700 Muthoot Fincorp branches. 

• The company owns refineries at Rudrapur with 144 TPA and Mumbai with 140 TPA, a combined 284 TPA that the industry report ranks second in India behind MMTC-PAMP at 300 TPA. Gold actually refined was 13.34 MT in FY26 against 15.08 MT in FY25, giving utilisation of 0.93% at Rudrapur and 8.53% at Mumbai. A jewellery unit at Sitapur SEZ, Jaipur with 13.80 TPA ran at 47.07% against 77.87% in FY25.

• Gold and silver are sourced four ways: refined bullion from Indian and international banks, imported doré bars which carry import duty 0.65% lower than refined gold, scrap from individuals, jewellers and auctions, and imports through IIBX via the GIFT City subsidiary. FY26 procurement was 81.83% domestic and 18.17% international.

• Augmont has five subsidiaries: Augmont Goldtech at 96.55%, Ideal Fiscal Services at 91.04%, and Augmont International, Augmont Trading and Augmont IFSC each at 99.99%. 

Promoters and Leadership

• The company was incorporated in October 2012 as a wholly owned entity of Riddisiddhi Bullions Ltd, the family bullion house founded in 1994, and is run by the second generation of the Kothari family. Ketan Bhawarlal Kothari, whole time director since April 2013, was vice president at RSBL from 2003 to 2011 and is joint secretary at IBJA (India Bullion and Jewellers Association)
• Ketan Kothari holds no shares in the company. His cousin Vivek Prithviraj Kothari, son of RSBL managing director Prithviraj Kothari, heads price discovery, hedging and treasury. 

Shareholding Pattern

• Nine Kothari family members hold 92.75% pre-offer, falling to 81.91% post-offer at 788 Rs Issue price. 

Issue Details

Fresh issue size - Amount → 620 cr ; To be utilized in -

• Funding future working capital requirements towards procurement, maintenance and scaling up of inventory, and funding advance margin requirements for procurement of inventory → 465 cr, to be deployed entirely in FY27
• General corporate purposes, capped at 25% of gross proceeds

Offer For Sale size - Amount → 205 cr ;

• Namita Ketan Kothari → 69.4 cr
• Vivek Prithviraj Kothari → 69.4 cr
• Dimple Mukesh Kothari → 66.2 cr

Financials