IPO Review

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Alpine Texworld IPO presents a mixed investment opportunity. The company has delivered impressive revenue and profit growth over the past year and plans to use the IPO proceeds to expand its manufacturing capacity while reducing debt. However, investors should also pay close attention to its high leverage, dependence on government subsidies, customer concentration, and recent credit rating concerns before making an investment decision.

At the upper price band of ₹105 per share, the IPO appears reasonably valued compared to some listed textile peers. Yet, the company's earnings quality raises an important question, as nearly half of its FY26 profit was supported by government incentives rather than core business operations.

For investors seeking potential listing gains, the IPO may be worth tracking, especially as subscription demand builds. Long-term investors, however, should evaluate whether the company's expansion plans can generate sustainable earnings beyond subsidy-driven growth.

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Alpine Texworld IPO at a Glance

Before diving into the company's fundamentals, here's a quick overview of the issue.

Key takeaway: Since the IPO is entirely a fresh issue, the funds raised will be invested back into the business instead of providing an exit to existing shareholders. This generally reflects the company's intention to finance future growth rather than promoter monetisation.

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What is Alpine Texworld?

Alpine Texworld Limited is an Ahmedabad-based textile manufacturer engaged in producing cotton yarn and grey fabric, the raw fabric widely used to manufacture denim, shirts, trousers, uniforms, home furnishings, and several other textile products.

Formerly known as Alpine Spinweave Limited, the company has built an integrated manufacturing model that combines spinning and weaving under one roof. This enables better control over production quality, operating efficiency, and manufacturing costs.

Unlike apparel brands that sell finished garments directly to consumers, Alpine primarily operates as a business-to-business (B2B) textile manufacturer, supplying grey fabric to downstream textile processors and garment manufacturers.

Today, grey fabric contributes nearly 97% of the company's revenue, making it the core driver of its business performance.

Why is Alpine Texworld Launching an IPO?

Every IPO tells a story. In Alpine Texworld's case, the company isn't raising capital simply to expand, it is also looking to strengthen its financial position.

The proceeds from the public issue will primarily be utilised for three purposes:

• Setting up a new manufacturing facility equipped with imported weaving machines.
• Repaying a portion of its existing debt.
• Meeting general corporate requirements.

The dual objective of expansion and debt reduction is particularly important. While additional manufacturing capacity could improve future revenue, lowering borrowings may reduce finance costs and improve profitability over the long run. For investors, this means the success of the IPO should ultimately be measured not just by listing gains but by how effectively the company executes these expansion plans over the next few years.

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Alpine Texworld IPO Details

Here are the complete issue details investors should know before applying.

Investor Allocation

One aspect that stands out is the allocation structure.

The unusually high retail allocation means individual investors will have a larger share of the issue. However, institutional participation remains an important indicator, as strong QIB demand often reflects greater confidence in a company's long-term fundamentals.

How was the Subscription on Day One?

The IPO witnessed a relatively quiet start on its opening day.

At first glance, these numbers may appear underwhelming. However, IPO subscriptions frequently accelerate during the final day as institutional investors and high-net-worth individuals place their bids closer to the closing deadline.

That said, investors should closely monitor Qualified Institutional Buyer (QIB) participation. Institutional demand often serves as an important indicator of how professional investors assess the company's fundamentals and valuation.

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What does Alpine Texworld Do?

Understanding the business is just as important as understanding the IPO.

Alpine Texworld is not a fashion brand or garment manufacturer. Instead, it operates at an earlier stage of the textile value chain by converting raw cotton into yarn and weaving that yarn into grey fabric.

Grey fabric acts as the foundation for a wide range of textile products. After leaving Alpine's manufacturing units, the fabric undergoes dyeing, printing, finishing, and processing before being transformed into products sold to consumers. The company follows an integrated manufacturing process consisting of:

• Cotton procurement
• Yarn spinning
• Fabric weaving
• Sale of grey fabric

Its manufacturing infrastructure includes modern Toyota air-jet looms, open-end spinning machines, and additional equipment supplied by globally recognised manufacturers such as Picanol, Karl Mayer, and Saurer.

This integrated production model helps the company maintain quality consistency while reducing dependence on third-party suppliers.

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Manufacturing Capacity: A Competitive Advantage?

Manufacturing scale remains one of Alpine Texworld's biggest strengths.

One notable differentiator is the company's investment in renewable energy.

Electricity represents one of the highest operating costs in textile manufacturing. By developing more than 10 MW of solar power capacity, Alpine aims to reduce energy expenses while improving operational efficiency. Unlike many largely symbolic sustainability initiatives, this investment has the potential to generate tangible cost savings over time.

How will the IPO Money be Used?

The utilisation of IPO proceeds offers valuable insight into management's priorities.

The planned manufacturing expansion is expected to increase annual weaving capacity by approximately 77.5 lakh metres, enabling the company to meet future demand.

At the same time, reducing debt could improve the balance sheet and lower future interest expenses, provided the company continues to generate healthy operating cash flows.

How Strong are Alpine Texworld's Financials?

Financial performance is often the first thing investors look at before applying for an IPO, and Alpine Texworld certainly grabs attention on that front.

The company reported robust growth in both revenue and profitability during FY26. However, headline numbers tell only part of the story. Investors should also examine how sustainable these earnings are and whether the growth has been driven by core operations or one-time factors.

Financial Performance

What do these numbers mean?

On the surface, Alpine Texworld's financial performance looks impressive. Revenue grew by nearly 50%, while profit more than doubled within a year. The improvement in margins and return ratios also suggests the company became more efficient during FY26. However, investors should avoid looking at these figures in isolation.

A significant portion of the company's profit growth was supported by government subsidies, rather than higher operating profitability alone. According to available financial disclosures, nearly half of FY26's reported profit came from government incentives. For long-term investors, the answer to that question may matter more than last year's growth numbers.

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Earnings Quality: The Story Behind the Profit Growth

Revenue growth generally reflects improving business demand. Profit growth, however, can sometimes be influenced by non-operating income. That's exactly what investors need to understand in Alpine Texworld's case.

While the textile business itself performed well, government incentives significantly boosted the company's bottom line during FY26. Such incentives can improve reported profitability, but they are dependent on government policies and may not continue indefinitely.

If future profits rely primarily on stronger manufacturing operations rather than subsidies, the investment case becomes considerably stronger. Until then, investors should treat FY26 earnings with cautious optimism rather than assuming similar growth will continue every year.

This doesn't necessarily weaken the IPO, it simply means investors should focus on earnings quality, not just earnings growth.

Is Alpine Texworld IPO Fairly Valued?

Valuation helps investors understand whether the IPO price appropriately reflects the company's growth prospects and risks. Based on FY26 earnings, Alpine Texworld is priced at a Price-to-Earnings (P/E) ratio of 18.49x.

Peer Comparison

At first glance, Alpine appears attractively priced compared to its listed peers. But valuation should never be viewed in isolation.

Companies with lower P/E multiples often carry additional risks that justify the discount. In Alpine's case, those include relatively high borrowings, customer concentration, and dependence on subsidies for a meaningful portion of recent earnings.

Another important point often missed by investors is that the valuation changes significantly depending on which year's earnings are considered. Using FY25 profits, the same IPO price translates to a P/E of nearly 46.5x, highlighting just how much FY26's earnings were boosted by exceptional growth.

Therefore, while the valuation appears reasonable, investors should ask whether FY26 profitability represents a new normal—or simply an unusually strong year.

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What are Alpine Texworld's Key Strengths?

Despite the risks, Alpine Texworld has several strengths that deserve attention.

Integrated Manufacturing Operations

Unlike companies that outsource parts of the production process, Alpine controls spinning and weaving under one roof. This improves operational efficiency, product consistency, and supply chain control.

Expansion-Focused IPO

The company is using IPO proceeds to expand manufacturing capacity rather than merely offering an exit to existing shareholders. Capacity expansion could support higher production volumes in the coming years.

Renewable Energy Advantage

Power costs account for a significant portion of textile manufacturing expenses. Alpine's investment in more than 10 MW of solar power capacity provides a structural advantage by reducing electricity costs while improving long-term sustainability.

Modern Manufacturing Infrastructure

The company operates advanced weaving machinery sourced from globally recognised manufacturers, including Toyota, Picanol, Karl Mayer, and Saurer.

This enables higher productivity and better product quality compared with older manufacturing setups.

Improving Profitability

Even after adjusting for subsidy support, the company has demonstrated meaningful revenue growth and improved operating margins, suggesting underlying business momentum.

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What are the Key Risks?

Every IPO carries risks, and Alpine Texworld is no exception.

Some of these risks are operational, while others relate directly to the company's financial profile.

Why These Risks Matter

Individually, none of these risks may be alarming. Collectively, however, they increase the uncertainty around future earnings. For example, if textile demand weakens while subsidies reduce and borrowing costs remain high, profitability could come under pressure.

That doesn't mean the company cannot grow, it simply means investors should build realistic expectations rather than assuming FY26's performance will automatically continue.

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Alpine Texworld IPO GMP: What Does the Grey Market Premium Indicate?

Grey Market Premium (GMP) is often one of the most searched aspects of an IPO. While it offers an indication of current market sentiment, investors should remember that GMP is unofficial, unregulated, and can change significantly before listing.

Alpine Texworld IPO GMP Trend

A GMP of ₹5 suggests a modest premium over the upper price band of ₹105, implying an estimated listing price of around ₹110.

However, this isn't a strong bullish signal. Instead, it indicates cautious optimism among grey market participants. Unlike IPOs commanding double-digit premiums, Alpine Texworld's GMP reflects a market that is still evaluating the company's strengths against its financial and operational risks.

Investor takeaway: Treat GMP as one of many indicators not the deciding factor. Company fundamentals, subscription trends, valuation, and long-term business prospects deserve far greater weight in your investment decision.

What are Analysts Saying About Alpine Texworld IPO?

Brokerage opinions on Alpine Texworld are measured rather than outright bullish.

While most acknowledge the company's strong financial growth and planned capacity expansion, they also highlight concerns around leverage, subsidy-supported earnings, and customer concentration.

Swastika Investmart's View

According to Swastika Investmart's research team, Alpine Texworld has demonstrated encouraging revenue growth and operational expansion. However, the company's relatively high debt, reliance on government subsidies, and competitive operating environment limit visibility on the sustainability of earnings. The research team believes the IPO may be more suitable for investors with a higher risk appetite who understand the cyclical nature of the textile industry and are comfortable with potential earnings volatility.

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Should You Apply for Alpine Texworld IPO?

There's no single answer that suits every investor. Whether you should apply depends largely on your investment objective and risk tolerance.

If You're Looking for Listing Gains

Investors aiming for short-term listing gains may consider the IPO, provided they continue monitoring:

• Subscription trends, particularly QIB participation.
• Grey Market Premium movement.
• Overall market sentiment during the IPO period.

A strong pickup in institutional demand towards the closing day could improve investor confidence.

If You're a Long-Term Investor

Long-term investors should look beyond the impressive FY26 growth numbers.

Some important questions to ask include:

• Can the company maintain profitability without significant government subsidies?
• Will the new manufacturing capacity generate higher returns?
• Can management gradually reduce debt while sustaining growth?
• Will customer concentration become less significant over time?

If these questions have positive answers over the next few years, the investment thesis becomes considerably stronger.

Who Should Consider This IPO?

The IPO may be suitable for investors who:

• Are comfortable with medium to high investment risk.
• Understand cyclical manufacturing businesses.
• Want exposure to India's textile manufacturing sector.
• Are seeking potential listing gains while accepting moderate uncertainty.

It may be less suitable for conservative investors looking for highly predictable earnings and stable cash flows.

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Frequently Asked Questions (FAQs)

What is Alpine Texworld IPO?

Alpine Texworld IPO is a mainboard book-built public issue worth ₹126.25 crore. The company plans to use the proceeds to expand its manufacturing capacity, repay a portion of its existing debt, and meet general corporate requirements.

What is the Alpine Texworld IPO price band?

The price band for the Alpine Texworld IPO is ₹100 to ₹105 per equity share. Investors can place bids within this range during the IPO subscription period.

What is the minimum investment required for Alpine Texworld IPO?

The minimum investment required is ₹14,910. Investors need to apply for at least one lot consisting of 142 equity shares at the upper price band.

How will Alpine Texworld use the IPO proceeds?

Alpine Texworld will use the IPO proceeds for business expansion and debt repayment. The funds will primarily finance a new manufacturing unit, reduce existing borrowings, and support general corporate purposes.

Is Alpine Texworld IPO good for long-term investment?

Alpine Texworld IPO may suit long-term investors with a higher risk appetite. While the company has reported strong financial growth and expansion plans, investors should also consider its high debt, subsidy-supported earnings, and customer concentration before making a long-term investment decision.

What are the major risks of investing in Alpine Texworld IPO?

The biggest risks include high debt, dependence on government subsidies, and customer concentration. Investors should also consider the company's recent credit rating downgrade, geographic concentration, and the competitive nature of the textile industry.

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Conclusion

Alpine Texworld IPO offers a mix of promising growth opportunities and notable risks. While the company's capacity expansion, improving financial performance, and integrated manufacturing operations support its long-term growth story, factors such as high leverage, subsidy-supported earnings, customer concentration, and recent credit rating concerns cannot be overlooked. Investors should look beyond short-term listing expectations and carefully evaluate the company's fundamentals, valuation, and risk profile before making an investment decision.

To stay informed about upcoming IPOs and make well-researched investment decisions, explore the latest IPO reviews, market insights, and research-backed analysis from Swastika Investmart. Whether you're looking for expert opinions on new listings, stock market opportunities, or investment ideas, Swastika Investmart helps you invest with greater confidence.

The Kusumgar IPO has attracted significant investor attention due to its strong Grey Market Premium (GMP), healthy Day 1 subscription numbers, and the company's niche presence in India's defence and aerospace manufacturing sector. However, while the listing sentiment appears positive, long-term investors should look beyond the GMP and understand the company's financial performance, business fundamentals, valuation, and key risks before investing.

Kusumgar Limited is not a traditional textile manufacturer. It specialises in engineered technical fabrics used across defence, aerospace, automotive, industrial, and outdoor applications. Its products include military parachutes, camouflage netting, cold-weather clothing fabrics, and coated textiles designed for high-performance use.

If you're wondering whether the Kusumgar IPO is worth applying for, what the latest GMP indicates, or whether the company has long-term growth potential, this guide covers everything you need to know.

Kusumgar IPO Highlights

Before evaluating the company's investment potential, let's look at the key details of the public issue.

The Kusumgar IPO is entirely an Offer for Sale, meaning the company will not receive any funds from the issue. Instead, existing shareholders are selling part of their holdings. Investors should understand that unlike a fresh issue, the IPO proceeds will not be used for expansion, debt repayment, or business growth.

What Does Kusumgar Limited Do?

A primary question on many investors' minds is whether Kusumgar Limited qualifies as a defence enterprise.

Partially, yes. Kusumgar Limited manufactures engineered technical fabrics that are widely used in defence and aerospace applications. At the same time, it also serves industrial, automotive, and outdoor lifestyle markets.

Its product portfolio includes:

• Military parachute fabrics
• Stealth camouflage netting
• Extreme weather military clothing fabrics
• Industrial coated textiles
• Automotive fabrics
• Outdoor performance fabrics

Unlike conventional textile manufacturers, Kusumgar focuses on specialised products that require advanced technical expertise and lengthy customer approval processes. This specialisation creates higher entry barriers compared to regular textile businesses.

How is the Kusumgar IPO Valued?

One of the first questions investors ask before applying for an IPO is whether the company is fairly valued. The Price-to-Earnings (P/E) ratio helps compare the IPO's pricing with its earnings and listed peers.

The table below highlights Kusumgar's valuation at the upper end of the price band and compares it with its closest listed competitor.

At the upper price band, Kusumgar is valued at 44.8 times its FY26 earnings, which appears slightly higher than its closest listed peer, Garware Technical Fibres. However, some analysts believe the valuation becomes more reasonable at around 35x forward FY27 earnings, assuming the company delivers the expected earnings growth. Investors should therefore evaluate whether Kusumgar can sustain its growth trajectory and justify the premium valuation over the long term.

Why is the Kusumgar IPO Attracting Investor Interest?

Several factors have contributed to the strong interest in the IPO.

First, the company operates in India's growing defence manufacturing ecosystem, which continues to receive policy support under initiatives such as Make in India and increased defence spending.

Second, the IPO received backing from well-known institutional investors during the anchor allocation. Finally, the Grey Market Premium (GMP) and strong retail participation have boosted investor sentiment ahead of the listing.

While these factors have generated excitement, investors should remember that IPO decisions should be based on business fundamentals rather than market sentiment alone.

Kusumgar IPO Subscription Status

Subscription numbers indicate how much demand exists across different investor categories. The following table shows the Day 1 subscription status.

This indicates that retail and HNI investors showed strong interest on the opening day. The relatively lower QIB subscription should not be viewed negatively, as institutional investors typically place most of their bids on the final day of the issue.

Kusumgar IPO Subscription Status (Day 1)

One of the strongest indicators of investor interest in an IPO is the subscription status. It shows how different investor categories are responding to the public issue during the bidding period.

The table below presents the updated subscription status as of 4:15 PM on July 8, 2026.

The Kusumgar IPO witnessed strong demand on the very first day, driven primarily by Non-Institutional Investors (HNIs), whose category was subscribed 6.92 times. Retail investors also showed healthy participation with 3.37 times subscription, indicating positive sentiment among individual investors. Meanwhile, the QIB portion stood at 0.47 times, which is not unusual, as institutional investors often place the majority of their bids on the final day of the issue. With the IPO remaining open until July 10, 2026, subscription levels may increase further before the issue closes.

Kusumgar IPO GMP: What Does It Suggest?

A frequent inquiry among investors is whether Kusumgar Limited operates as a defence corporation.

According to market reports, the Grey Market Premium (GMP) stood at approximately ₹168 on July 8, 2026. Based on the upper price band of ₹419, this indicates an estimated listing price of around ₹587, suggesting a potential listing premium of about 40%.

However, investors should remember that GMP is an unofficial market indicator. It reflects current market sentiment but does not guarantee listing gains or future share price performance. Investment decisions should never be based solely on GMP.

Who Invested Before the IPO?

Anchor investors often provide confidence to the market because they are typically large domestic and international institutions. Kusumgar raised nearly ₹193.9 crore from anchor investors before the IPO opened.

Some of the notable investors include:

• BlackRock Global Funds
• Goldman Sachs
• Kotak Mahindra Life Insurance
• SBI Mutual Fund
• ICICI Prudential ELSS Tax Saver Fund

Strong institutional participation indicates confidence in the company's long-term business prospects, although it should not be the only factor influencing an investment decision.

How has Kusumgar Performed Financially?

Financial performance is one of the most important factors investors should evaluate before applying for any IPO. The table below summarises the company's latest financial performance.

At first glance, the business appears profitable. However, investors should note that both revenue and net profit declined during FY26 compared to FY25. The decline was mainly driven by lower execution of large defence contracts rather than weakness across the company's entire business.

Meanwhile, industrial and outdoor fabric segments continued to grow strongly. This highlights an important point. The company's revenue can fluctuate significantly because defence orders are often project-based rather than recurring.

What makes Kusumgar Different from Other Textile Companies?

Kusumgar's biggest strength lies in its specialised manufacturing capabilities. Unlike ordinary textile companies, Kusumgar operates in highly regulated industries where product approvals can take several years. Some of its competitive advantages include:

Long Customer Approval Cycles

Products used in defence and aerospace require extensive testing before approval. Once approved, customers rarely switch suppliers.

Technical Expertise

The company possesses specialised knowledge in manufacturing engineered fabrics using advanced synthetic fibres and coatings.

Integrated Manufacturing

Kusumgar handles multiple manufacturing processes under one roof, including weaving, coating, lamination, and fabrication.

Diverse Product Portfolio

The company manufactures over 1,000 fabric variants for different industrial applications. These factors create meaningful entry barriers for new competitors.

What are the Biggest Risks in the Kusumgar IPO?

Every IPO carries risks, and Kusumgar is no exception. Here are some important concerns investors should understand.

Dependence on Large Defence Orders

The company's revenue depends on a relatively small number of high-value defence contracts. Delays or postponements can significantly impact financial performance.

Underutilised Capacity

Although Kusumgar has expanded its manufacturing capacity considerably, utilisation dropped to around 50%. This means the company must increase demand to improve operational efficiency.

Rising Working Capital

Trade receivables increased sharply during FY26, indicating that cash collections have become slower. This may temporarily affect cash flow.

Raw Material Price Volatility

The company uses petrochemical-based raw materials. Fluctuations in crude oil prices could impact profitability.

No Fresh Capital

Since the IPO is entirely an Offer for Sale, the company will not receive any funds to support expansion or strengthen its balance sheet.

How does Kusumgar Compare with Listed Peers?

Investors often compare IPO valuations with existing listed companies before making a decision. The following comparison provides useful context.

Compared to these companies, Kusumgar operates on a much smaller scale. However, it focuses on a highly specialised niche with relatively fewer direct competitors.

Should You Apply for the Kusumgar IPO?

The answer depends on your investment objective. If you're looking for listing gains, the healthy GMP, strong retail participation, and reputed anchor investors indicate positive market sentiment.

From a valuation perspective, the IPO is priced at a post-issue P/E of 44.8x FY26 earnings, which is higher than some listed peers. Investors should assess whether the company's niche positioning, technical expertise, and expected earnings growth justify this premium valuation before subscribing.

However, if you're investing for the long term, it's equally important to consider the company's declining revenue, dependence on large defence orders, underutilised manufacturing capacity, and the fact that the IPO does not raise fresh capital for the business.

Investors should evaluate the company's long-term growth prospects alongside its current financial performance before making a decision.

Expert View

According to the research team at Swastika Investmart, Kusumgar operates in a niche segment with strong technical capabilities and high entry barriers, particularly in defence and aerospace fabrics. While the robust GMP, healthy subscription, and marquee anchor investors reflect positive market sentiment, investors should carefully assess the company's revenue concentration, capacity utilisation, and valuation before applying for the IPO. 

Frequently Asked Questions (FAQs)

Should you apply for the Kusumgar IPO?

The answer depends on your investment objective. Investors looking for potential listing gains may find the IPO attractive due to the strong Grey Market Premium (GMP), healthy subscription, and participation from marquee anchor investors. However, long-term investors should evaluate the company's financial performance, valuation, revenue visibility, and business risks before making an investment decision.

Is Kusumgar IPO good for listing gains?

Current market sentiment suggests the possibility of positive listing gains. The IPO has witnessed a healthy Grey Market Premium and strong demand from retail and HNI investors. However, GMP is an unofficial indicator and can change before listing, so it should not be the sole basis for investing.

Is Kusumgar a defence company?

Kusumgar is a technical textile manufacturer with a strong presence in the defence and aerospace sector. It manufactures engineered fabrics used in military parachutes, camouflage netting, protective clothing, and other specialised defence applications. The company also serves industrial, automotive, and outdoor lifestyle segments.

Why is the Kusumgar IPO a 100% Offer for Sale?

The IPO is entirely an Offer for Sale (OFS), meaning existing shareholders are selling their shares. The company will not receive any funds from the public issue. As a result, the IPO proceeds will not be used for expansion, debt repayment, or business operations.

What are the biggest strengths of Kusumgar Limited?

Kusumgar's biggest strengths include its niche product portfolio, technical expertise, and high entry barriers. Long qualification cycles in the defence and aerospace sectors make it difficult for new competitors to enter the market. The company also has an integrated manufacturing setup and a diversified portfolio of engineered fabrics.

What are the major risks investors should consider?

The company's dependence on large defence orders, underutilised manufacturing capacity, rising receivables, and exposure to raw material price fluctuations are some of the key risks. Investors should also note that since the IPO is a pure OFS, the company will not receive fresh capital to support future growth initiatives.

How can investors check the Kusumgar IPO allotment status?

Investors can check the allotment status through the registrar, Bigshare Services Private Limited. Once the basis of allotment is finalised, applicants can use their PAN, application number, or DP Client ID to verify whether shares have been allotted.

What should investors track after the IPO?

Beyond the listing, investors should monitor order inflows from the defence and aerospace sectors, capacity utilisation, revenue growth, operating margins, working capital management, and the company's ability to improve cash flows. These factors will provide a better indication of Kusumgar's long-term growth potential than listing-day performance alone.

Conclusion

The Kusumgar IPO offers investors an opportunity to invest in a company operating in the niche technical textiles segment with a strong presence in defence and aerospace applications. While the healthy Grey Market Premium (GMP) and robust subscription reflect positive market sentiment, investors should focus on the company's business fundamentals, financial performance, valuation, and long-term growth potential rather than short-term listing expectations. Before investing, ensure the IPO aligns with your financial goals, investment horizon, and risk appetite instead of relying solely on GMP or market buzz.

For the latest IPO updates, expert reviews, and research-backed investment insights, follow Swastika Investmart and stay informed to make well-informed investment decisions.

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After years of regulatory hurdles and multiple delays, the NSE IPO is once again gaining momentum. India's largest stock exchange is preparing for one of the biggest public offerings in the country's history, with an estimated issue size of around $3 billion and a target valuation of nearly ₹5 lakh crore.

Unlike earlier reports that largely focused on regulatory approvals, the latest developments indicate that the National Stock Exchange has entered the next phase of its IPO journey. The exchange is preparing to launch global investor roadshows starting July 17th. These critical investor meetings are planned across major financial hubs, including the US, London, Singapore, Hong Kong, the Middle East, and India.

The exchange is currently targeting a listing in the second half of September. While official offer documents are still awaited, the anticipated issue size is expected to be roughly 6% of the exchange's market capitalisation.

These developments suggest that the listing process is progressing steadily. However, investors should note that the final size, valuation, and exact timing remain subject to market deliberations and the results of the upcoming roadshows. Here is everything you need to know about this landmark market event.

Also Read: NSE IPO: Date, Valuation, Review & Complete Investor Guide

NSE IPO 2026 Highlights

Before diving into the latest developments, here's a quick overview of the proposed public issue.

What does this mean?

The figures mentioned above are based on the latest market reports. The final issue size, valuation, stake offered, and listing schedule will only be confirmed after regulatory approvals and the filing of the final offer documents.

What's New in the NSE IPO?

The biggest update is that the IPO process has reportedly entered an advanced stage. According to recent reports, the NSE is preparing to begin global and domestic investor roadshows during July. These meetings are designed to introduce the investment opportunity to large institutional investors before the IPO opens for public subscription.

The exchange is also targeting a September 2026 listing, subject to regulatory approvals and favourable market conditions. 

These developments indicate that the IPO is moving beyond speculation and entering the execution phase, although investors should remember that the timeline is still subject to change.

Why are Global Roadshows Important?

Before launching a large IPO, companies typically meet institutional investors to understand market sentiment and generate demand. For an IPO of this scale, attracting participation from global investors is just as important as generating domestic interest.

The reported roadshow schedule includes several major financial centres, such as the US, London, Singapore, Hong Kong, the Middle East, and India. These meetings allow the management team to present the company's growth story, answer investor questions, and receive feedback on valuation expectations.

Roadshows also help build confidence among large investors such as sovereign wealth funds, pension funds, insurance companies, and global asset managers before the IPO launches.

Why is the NSE IPO Expected to Be So Large?

The proposed NSE IPO is expected to raise around $3 billion, making it one of India's largest public offerings. At the reported valuation of approximately ₹5 lakh crore, the issue could rank among the biggest IPOs in Indian capital market history.

The scale of the offering reflects the exchange's strategic importance within India's financial ecosystem. As India's largest stock exchange, NSE facilitates a significant portion of the country's equity and derivatives trading. Over the past few years, the rapid growth in retail investor participation, increased trading activity, and rising interest in capital markets have strengthened the exchange's position.

If the IPO proceeds as planned, it could become one of the landmark listings of 2026.

The IPO Will Be a 100% Offer for Sale

One important aspect investors should understand is the issue structure. According to current reports, the IPO will be an Offer for Sale (OFS) only.

This means existing shareholders will sell a portion of their holdings to public investors, while the exchange itself will not issue new shares or receive fresh capital from the IPO.

For investors, this is a common structure used by mature businesses, in which existing shareholders seek partial monetisation while expanding public ownership. The exact shareholders participating in the OFS and the number of shares offered will become clear once the company files the official offer documents.

When is the NSE IPO Expected to Launch?

Although there is significant excitement surrounding the listing, the IPO schedule has not been officially announced. Market reports suggest that the exchange is targeting the second half of September 2026. Before reaching that stage, the following milestones are expected.

Investors should treat these timelines as indicative until official announcements are made by the company.

What Should Investors Watch Before the NSE IPO Opens?

While the reported valuation and timeline have attracted attention, several important developments are still pending.

Investors should closely monitor the following factors before making an investment decision.

Final Valuation

The reported valuation of approximately ₹5 lakh crore is still indicative. The final pricing could change depending on investor demand and prevailing market conditions.

Price Band

The company is yet to announce the IPO price band. This will be one of the most important factors in determining the attractiveness of the issue.

Regulatory Approvals

The IPO remains subject to approvals from SEBI and other regulatory authorities. Any delay could impact the proposed timeline.

Investor Response

The participation of anchor investors and institutional investors during the book-building process often provides valuable insight into market confidence.

Market Conditions

Broader market sentiment, interest rates, and global economic conditions can also influence IPO pricing and subscription levels.

Why This IPO Matters for Indian Capital Markets

The proposed listing is significant not only because of its size but also because of what it represents.

The NSE is a core part of India's financial infrastructure. A successful listing could boost confidence in the primary market, attract global investment, and reinforce India's position as one of the fastest-growing capital markets.

For retail investors, it also represents a rare opportunity to participate in the ownership of the country's largest stock exchange.

Frequently Asked Questions About NSE IPO Update

Has the NSE IPO been officially announced?

No. While preparations have accelerated and the exchange is reportedly targeting a September 2026 listing, the IPO has not yet been officially launched.

Why is NSE conducting global roadshows?

Global roadshows help the company engage with institutional investors, understand market demand, and gather feedback before finalising the IPO pricing and structure.

Which countries will be part of the NSE IPO roadshows?

According to reports, investor meetings are expected to take place in the United States, London, Singapore, Hong Kong, the Middle East, and India.

Is the NSE IPO date confirmed?

No. The second half of September 2026 is currently an expected timeline and remains subject to regulatory approvals and market conditions.

Will the IPO valuation remain the same?

Not necessarily. The reported valuation of around ₹5 lakh crore is indicative and may change based on investor demand, market conditions, and the final pricing process.

Why is the NSE IPO attracting so much attention?

The IPO is expected to be one of the largest public offerings in India and offers investors a rare opportunity to own a stake in the country's leading stock exchange.

Conclusion

The NSE IPO has entered an important phase, with global roadshows, institutional investor meetings, and preparations for a potential September 2026 listing gathering pace. Although the IPO is yet to receive final approvals, these developments suggest that one of India's most anticipated public offerings is moving closer to reality.

Investors should avoid making decisions based solely on market speculation. Instead, they should wait for the official offer documents, evaluate the final valuation, understand the issue structure, and monitor regulatory developments before applying. As more information becomes available, staying informed will be key to making a well-researched investment decision.

For the latest IPO news, expert analysis, and market insights, follow Swastika Investmart to stay updated on the NSE IPO and other upcoming public issues.

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If you've ever wanted to invest in Coca-Cola's India business, you may soon have that opportunity. Reports suggest that Hindustan Coca-Cola Holdings (HCCH), the parent company of Hindustan Coca-Cola Beverages (HCCB), is preparing for a public listing that could raise around $1 billion (approximately ₹9,000 to ₹9,500 crore).

However, here's the most important point investors should know. The IPO has not yet been officially announced. HCCB is still in the pre-DRHP stage, which means the company is yet to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Until then, the issue size, valuation, timeline, and price band remain subject to change.

Despite this, the proposed IPO has generated significant interest because it could become one of India's largest consumer sector listings and provide investors with exposure to Coca-Cola's Indian bottling business for the first time.

This guide answers the questions investors are actively searching for, explains how HCCB operates, analyses why Coca-Cola is considering the IPO, discusses the opportunities and risks, and highlights the factors investors should monitor before making an investment decision.

HCCB IPO Highlights at a Glance

Before exploring the business in detail, here's a quick overview of what is currently known about the proposed IPO.

The above details are based on publicly available reports and may change once the company files its DRHP.

Can You Invest in Coca-Cola India Right Now?

No. Retail investors cannot invest in HCCB yet because the company is still unlisted. Although reports indicate that Coca-Cola is preparing to list its Indian bottling business, the IPO process has not officially begun. Investors will only be able to apply once the company files its DRHP, receives regulatory approvals, and announces the IPO dates.

Until then, investors should treat the current information as preliminary and continue tracking official announcements.

What is HCCB?

HCCB is Coca-Cola's principal bottling and distribution company in India. While most consumers associate Coca-Cola with brands such as Coca-Cola, Thums Up, Sprite, Fanta, Limca, Maaza, and Minute Maid, HCCB is the company responsible for manufacturing, bottling, and delivering many of these beverages to retailers across India.

Unlike The Coca-Cola Company, which owns the global brands and develops beverage concentrates, HCCB operates the manufacturing plants, manages logistics, and supplies products to millions of retail outlets.

The following table provides an overview of HCCB's operational scale. The scale of these operations makes HCCB one of India's largest beverage bottling companies.

Is HCCB the Same as The Coca-Cola Company?

No. HCCB and The Coca-Cola Company are two different businesses with different roles. Many investors assume they would be investing directly in Coca-Cola's global business. That is not the case. The following comparison explains the difference.

This distinction is important because HCCB's financial performance depends on manufacturing efficiency, distribution strength, and domestic beverage demand rather than Coca-Cola's worldwide earnings.

Does HCCB's IPO Affect Coca-Cola Share Price?

No, the proposed HCCB IPO is unlikely to directly impact the Coca-Cola share price in the United States. The Coca-Cola share price reflects the financial performance of The Coca-Cola Company, which owns the global beverage brands and operates in multiple countries.

The proposed HCCB listing represents only the Indian bottling business. Although a successful listing may highlight the strength of Coca-Cola's operations in India, the global stock price will continue to be influenced by worldwide revenue, profitability, and broader market conditions.

What is Coca-Cola's Market Cap and Why Does It Matter?

The Coca-Cola Company has a market capitalisation of approximately $350 billion, making it one of the world's largest publicly listed beverage companies. Market capitalisation, or market cap, represents the total market value of a company's outstanding shares and is often used by investors to assess its size and overall market value.

However, investors should understand that the Coca-Cola market cap represents the global parent company listed in the United States and should not be confused with the proposed valuation of HCCB in India.

Media reports suggest the Indian bottling business could be valued at approximately $10 billion, which is significantly smaller than the market capitalisation of The Coca-Cola Company.

Why is Coca-Cola Planning This IPO?

The proposed IPO is part of Coca-Cola's long-term global strategy to become a more asset-light business. Over the years, Coca-Cola has shifted away from directly owning manufacturing facilities. Instead, it has focused on brand building, marketing, product innovation, and concentrate production while allowing bottling businesses to operate independently. 

India is now following the same strategy. The transformation has taken place in three major stages.

First, Jubilant Bhartia Group acquired a 40% stake in HCCH in 2025.

Second, Coca-Cola transferred several manufacturing plants to franchise bottlers across different states.

Finally, the company is preparing to list its Indian bottling business on the stock market.

This strategy allows Coca-Cola to unlock value while reducing the capital required to operate manufacturing facilities.

Why is This IPO Important for Investors?

The proposed HCCB IPO could provide investors with direct exposure to India's growing beverage consumption story. India remains one of Coca-Cola's fastest-growing markets, supported by increasing disposable incomes, urbanisation, organised retail expansion, and rising demand for branded beverages.

If listed, HCCB would become one of the country's largest beverage manufacturing companies available for public investment. For investors seeking exposure to India's consumer sector, the IPO could become an attractive opportunity, subject to valuation and financial performance.

How Strong is HCCB's Business?

HCCB operates one of India's largest beverage manufacturing and distribution networks. Its extensive retail presence, diversified beverage portfolio, and established supply chain provide significant operational advantages.

At the same time, the company benefits from globally recognised brands that enjoy strong consumer demand across urban and rural markets. These factors contribute to stable business fundamentals, although profitability will depend on execution, cost management, and competitive intensity.

According to Shyam Bhartia and Hari Bhartia, Chairman and Co-Chairman of the Jubilant Bhartia Group, the acquisition of a 40% stake in Hindustan Coca-Cola Holdings (HCCH) aligns with their long-term value creation strategy. They expressed enthusiasm about the partnership, stating that the move would help "reap the benefits of the public listing to create value for all shareholders," reflecting their confidence in the company's growth prospects and the potential value that a future IPO could unlock.

Can HCCB Become the Next Varun Beverages?

Possibly, but investors should compare financial performance rather than brand names. Whenever HCCB enters the stock market, comparisons with Varun Beverages Limited (VBL) are inevitable.

Just as Varun Beverages bottles PepsiCo products in India and several international markets, HCCB manages Coca-Cola's bottling operations across a significant part of India. The following comparison provides a broad overview.

Investors are likely to compare revenue growth, EBITDA margins, return ratios, debt levels, and valuation before deciding whether HCCB deserves a premium valuation.

What Risks Should Investors Consider?

Strong brands alone do not eliminate business risks. Although HCCB benefits from Coca-Cola's global brand portfolio, investors should evaluate the challenges that could affect future performance. The following table summarises the major risks.

Understanding these risks is essential because they can influence long-term earnings and shareholder returns.

What Should Investors Watch Before the IPO Opens?

The DRHP will be the most important document for evaluating HCCB. Before making any investment decision, investors should focus on the following disclosures once the company files its DRHP.

• Revenue and profit growth
• EBITDA margins
• Return on Equity and Return on Capital Employed
• Debt levels
• Capital expenditure plans
• Objects of the issue
• Valuation
• Promoter shareholding
• Risk factors
• Dividend policy

These details will provide a much clearer picture of the company's financial strength and growth potential.

Should You Track the HCCB IPO?

Yes, but invest based on fundamentals rather than the Coca-Cola brand name. The proposed HCCB IPO has the potential to become one of India's largest consumer sector listings. The company benefits from a strong distribution network, an established portfolio of leading beverage brands, and long-term demand driven by India's growing consumption economy.

However, investors should avoid making investment decisions solely because of the Coca-Cola brand. The final investment case will depend on financial performance, profitability, competitive positioning, IPO valuation, and management's future growth strategy.

Once the DRHP is released, investors will have sufficient information to evaluate whether the IPO offers attractive long-term investment potential.

For the latest IPO updates, detailed company analysis, and expert insights, stay connected with Swastika Investmart to make informed investment decisions.

Frequently Asked Questions (FAQs)

Can I invest in Coca-Cola India right now?

No. HCCB is not yet listed on Indian stock exchanges. Investors will only be able to apply after the company files its DRHP with SEBI and officially launches the IPO.

Is HCCB the same as The Coca-Cola Company?

No. HCCB is Coca-Cola's Indian bottling and distribution business, while The Coca-Cola Company owns the global beverage brands and is listed on the New York Stock Exchange.

Why is Coca-Cola bringing HCCB to the stock market?

The proposed IPO is part of Coca-Cola's asset-light strategy. Listing the bottling business allows the company to unlock value while focusing on brand development and concentrate production.

When is the HCCB IPO expected?

Media reports suggest the IPO could be launched in late 2026 or 2027. However, no official timeline has been announced because the company has not yet filed its DRHP.

Is HCCB a good investment?

It is too early to determine. Investors should wait for the DRHP to review the company's financial performance, valuation, business risks, and use of IPO proceeds before making an investment decision.

Who are HCCB's biggest competitors?

Varun Beverages, Campa, and several regional beverage brands are among HCCB's major competitors. Competition in India's beverage market has increased significantly in recent years.

What makes HCCB different from Varun Beverages?

Both companies operate beverage bottling businesses, but they partner with different global brands. HCCB bottles Coca-Cola products, while Varun Beverages bottles PepsiCo products.

What is the biggest factor investors should watch?

The DRHP is the single most important document to monitor. It will disclose financial statements, valuation, risk factors, IPO structure, and the intended use of funds, helping investors make an informed decision.

Are Coca-Cola Shares Available in India?

No, Coca-Cola shares listed on Indian stock exchanges are not available at present. While many investors search for Coca-Cola shares or the Coca-Cola share price, these refer to The Coca-Cola Company, which is listed on the New York Stock Exchange (NYSE) under the ticker symbol KO.

The Indian packaging industry has witnessed steady growth over the past few years, supported by increasing demand from sectors such as agriculture, food processing, chemicals, construction, and industrial manufacturing. Within this growing market, Knack Packaging Limited has established itself as one of the prominent manufacturers of Printed and Laminated Woven Polypropylene (PP) bulk bags.

The Gujarat-based company is now preparing to launch its Initial Public Offering (IPO) on the NSE and BSE Mainboard. The IPO includes a fresh issue of shares to raise capital for business expansion along with an Offer for Sale (OFS), where existing shareholders will sell a portion of their holdings.

With an issue size of ₹439.50 crore and a price band of ₹161 to ₹170 per share, the Knack Packaging IPO provides investors an opportunity to participate in a company that has shown strong financial growth, expanded its global presence, and is investing heavily in increasing its manufacturing capacity.

This detailed IPO guide covers all important aspects of the issue, including the company background, business model, financial performance, valuation, growth plans, strengths, risks, and key factors investors should evaluate before making an investment decision.

Knack Packaging IPO Quick Summary

For investors looking for a quick overview of the IPO, the following table summarises the key details of the issue, financial performance, valuation, and growth plans.

Knack Packaging IPO Overview

The Knack Packaging IPO consists of a fresh issue and an Offer for Sale component. The fresh issue will bring additional capital into the company, which will primarily be used for expansion activities, while the OFS will allow existing shareholders to sell part of their stake.

The following table provides a quick summary of the IPO structure and important issue related details.

Knack Packaging - Company Overview

Knack Packaging Limited is engaged in manufacturing flexible bulk packaging solutions, mainly printed and Laminated Woven Polypropylene (PLWPP) bags. These bags are widely used by industries that require durable and lightweight packaging solutions for transporting and storing bulk materials.

The company's products are supplied to sectors including agriculture, chemicals, food grains, cement, fertilisers, and other industrial applications. Due to their strength, moisture resistance, and customisation options, woven PP bags have become an important packaging solution for businesses handling large quantities of materials.

One of the key strengths of Knack Packaging is its ability to provide customised packaging solutions at scale. The company has developed a large library of more than 73,000 printing cylinders, allowing it to meet specific design and branding requirements of customers across different industries.

Apart from its domestic presence, the company has built a strong export network and supplies its products to more than 70 countries. This international presence helps the company diversify its revenue base and reduce dependence on a single market.

The following table provides an overview of the company's important business details, including its headquarters, product portfolio, international presence, and operational strengths. 

Market Position and Industry Opportunity

The packaging industry in India has been expanding due to rising industrial production, increasing exports, and growing demand for efficient transportation packaging. Bulk packaging solutions are becoming increasingly important as companies look for cost-effective and reliable ways to handle large volume goods.

Knack Packaging currently holds an estimated 10.1% share of the Indian PLWPP bulk bag market as of FY2025. The company operates in a market that is expected to witness strong growth in the coming years.

The following table highlights the size and expected growth opportunity of the PLWPP bulk bag industry. It helps investors understand the broader market environment in which Knack Packaging operates.

The company's growth strategy is focused on increasing manufacturing capacity, strengthening international operations, and improving operational efficiency. Its upcoming expansion project at Borisana, Gujarat, is expected to play an important role in supporting future growth.

However, investors should also evaluate factors such as execution capability, raw material dependency, market competition, and industry cycles before considering the IPO.

Knack Packaging IPO - Important Dates

Understanding the IPO timeline is important for investors as it helps them plan their application process, track allotment status, and prepare for the expected listing date.

The IPO process includes multiple stages, starting from anchor investor bidding, followed by the opening and closing of the issue for public subscription. After the issue closes, the company completes the allotment process before the shares are listed on the stock exchanges.

The table below highlights the key dates associated with the Knack Packaging IPO.

Investors should note that allotment and listing dates mentioned above are indicative and may change depending on regulatory approvals and the IPO process timeline.

Knack Packaging Financial Performance Analysis

Financial performance is one of the most important factors investors evaluate before investing in an IPO. A company's revenue growth, profitability, margins, and return ratios provide insights into its business stability and future growth potential.

Knack Packaging has reported consistent improvement in its financial performance over the last three financial years. The company has recorded growth in revenue, EBITDA, and profit after tax, supported by higher production capacity, increasing exports, and operational efficiency.

The following image presents the company's key financial performance indicators for FY23, FY24, and FY25.

The company has shown strong improvement in profitability during the period. Profit after tax increased significantly from ₹198.70 million in FY23 to ₹738.10 million in FY25, indicating improved operational efficiency and better utilisation of resources.

The improvement in EBITDA also highlights the company's ability to maintain healthy operating margins despite operating in a competitive manufacturing segment.

Knack Packaging - Growth Highlights

The following points highlight the company's financial growth over recent years:

• Profit after tax increased at a CAGR of 50.30% between FY22 and FY24.
• EBITDA increased at a CAGR of 36.50% during the same period.
• Debt-to-equity ratio improved to 0.7 times in FY25 compared to 1.1 times in FY24 and 1.2 times in FY22.
• Return on Net Worth improved from 23.40% in FY23 to 41.54% in FY25.

A consistently improving return ratio indicates that the company has been generating better returns from shareholder capital. However, investors should also consider whether these growth rates can be maintained after the IPO and during the company's expansion phase.

According to Swastika Investmart's research team, as quoted by Mint, Knack Packaging IPO offers an attractive short-term investment opportunity backed by healthy financial growth, improving profitability, strong return ratios, and robust operating margins. The research team believes the IPO is reasonably valued at a pre-issue P/E of around 18.3x FY26 earnings, while highlighting the company's fully integrated manufacturing operations, extensive portfolio of over 13,000 SKUs, and a library of more than 73,000 customised printing cylinders as key competitive strengths. However, the team also advises investors to consider risks such as customer concentration, the absence of long-term supplier contracts, and execution risks associated with the proposed manufacturing facility, recommending long-term investors reassess the company after its post-listing performance.

Working Capital and Operational Efficiency of Knack Packaging

For manufacturing companies, working capital management plays an important role because businesses need to maintain inventory, manage supplier payments, and provide credit periods to customers.

The following table highlights important operational metrics that reflect the company's working capital cycle and customer relationships.

The increase in the working capital cycle from 95 days in FY24 to 106 days in FY25 indicates that more capital is being blocked in daily operations. While this is common during expansion phases, investors should monitor whether the company can improve working capital efficiency in the future.

The company has also maintained long-term relationships with several customers. Clients such as KRBL Limited and Repi Soap and Detergent PLC have been associated with Knack Packaging since 2013, highlighting customer trust and repeat business potential.

Knack Packaging IPO Valuation and Peer Comparison

Valuation analysis helps investors understand whether an IPO is reasonably priced compared to similar listed companies operating in the same industry.

Knack Packaging is being valued at a price-to-earnings ratio of approximately 18.34 times at the upper price band of ₹170 per share based on the company's reported earnings. Investors generally compare this valuation with industry peers to understand the attractiveness of the issue.

The following table compares Knack Packaging with selected listed packaging companies based on important valuation and profitability parameters.

The comparison indicates that Knack Packaging is available at a relatively competitive valuation compared with many peers. The company also reports stronger return ratios and EBITDA margins compared with the selected companies.

However, investors should remember that valuation should not be considered in isolation. Factors such as company size, industry competition, expansion execution, and future earnings visibility are equally important while evaluating an IPO.

According to CARE Ratings, Knack Packaging’s credit profile is supported by sustained business growth, healthy profitability, a comfortable financial position, and experienced promoters. The company has been assigned CARE A-minus with Stable outlook for long-term facilities and CARE A2 plus for short-term facilities. The rating agency also highlights risks related to volatile raw material prices and foreign exchange fluctuations.

Objects of the Knack Packaging IPO Issue

The purpose of raising funds through an IPO provides investors with insight into how the company plans to use the capital received.

In the case of Knack Packaging, the majority of the fresh issue proceeds will be utilised towards expanding manufacturing capacity through a new facility at Borisana, Mehsana, Gujarat. This expansion is expected to support future production growth and help the company cater to increasing demand.

The table below explains how the company plans to utilise the proceeds raised through the IPO.

The Offer for Sale component of ₹59.50 crore will be received by the selling shareholders and will not directly contribute to the company's growth capital.

From an investor perspective, the IPO proceeds are primarily growth-focused. The success of this investment will depend on how efficiently the company completes the expansion project and converts additional capacity into revenue growth.

Promoters, Management and Shareholding Structure

The strength of a company is often closely linked with the experience of its management team and the vision of its promoters. In a manufacturing business, where long-term customer relationships, operational execution, and capacity expansion play a crucial role, experienced leadership becomes an important factor for sustainable growth.

Knack Packaging is promoted and managed by professionals with experience in the packaging industry. The management team has been involved in expanding manufacturing capabilities, developing export markets, and building relationships with customers across multiple industries.

The following table provides details about the key members of the company's management team.

Promoter Holding and Lock-In Details

Promoter holding and lock-in periods provide investors with an understanding of promoter commitment after the IPO. A longer lock-in period generally indicates that promoters continue to have a long-term interest in the growth of the company.

The following table explains important promoter and investor lock-in details related to the IPO.

A key point investors should evaluate is that some important company properties, including the registered office and the upcoming Borisana project site, are leased from promoter-related entities. While such arrangements are common in promoter-driven businesses, investors should carefully review the terms, duration, and renewal conditions mentioned in the Red Herring Prospectus.

Sustainability Initiatives and Technology Advantage

The packaging industry is undergoing significant changes as customers increasingly focus on sustainability, recycling, and efficient manufacturing processes. Companies that can provide environmentally responsible packaging solutions may have better opportunities to attract global customers.

Knack Packaging has focused on sustainability initiatives by increasing the use of recycled materials, adopting renewable energy sources, and implementing technology-driven systems to improve operational visibility.

The following table highlights the company's major sustainability and technology initiatives.

These initiatives can help the company improve operational efficiency, reduce dependency on conventional energy sources, and strengthen its position among customers that prioritise sustainable packaging solutions.

However, investors should also consider that sustainability initiatives require continuous investment and their financial benefits depend on effective implementation and customer acceptance.

Key Intermediaries Involved in Knack Packaging IPO

An IPO involves several financial institutions and professional agencies responsible for managing different aspects of the issue process. These intermediaries ensure regulatory compliance, investor servicing, and smooth execution of the public offering.

The following table provides details of the major intermediaries associated with the Knack Packaging IPO.

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How to Apply for Knack Packaging IPO

Applying for an IPO has become simpler with digital banking facilities and online application platforms. Retail investors can participate through the ASBA process, where the application amount remains blocked in the bank account until the allotment process is completed.

The following table explains the important application requirements for investors.

Investors should ensure that their PAN details, bank account information, and UPI details are correctly updated before applying. Any mismatch in details may lead to rejection of the application.

Key Strengths of Knack Packaging IPO

Before investing in an IPO, investors should evaluate the factors that can support the company's long-term growth. Knack Packaging has several business strengths that differentiate it within the packaging industry.

Strong Product Customisation Capability

The company's large library of more than 73,000 printing cylinders provides it with an advantage in serving customers requiring customised packaging solutions. This capability can help improve customer retention as businesses often prefer suppliers who can efficiently manage specific design requirements.

According to Nidhi Thakur of Swastika Investmart, Knack Packaging IPO offers a balanced growth opportunity backed by its premium packaging segment. The company’s 73,000+ printing cylinder library creates a strong competitive advantage. While valuation is supported by robust profitability, investors should consider moderated growth and the delayed impact of the Borisana facility before subscribing. 

Established Export Presence

With exports reaching more than 70 countries, Knack Packaging has developed a diversified customer base across international markets. A global presence can provide additional growth opportunities and reduce dependency on domestic demand.

Healthy Financial Performance

The company has reported great improvement in revenue, profitability, and return ratios. Rising RoNW and improving debt levels indicate better capital efficiency and financial discipline.

Competitive Valuation Compared With Peers

At the upper price band, the company's valuation appears reasonable compared with several listed packaging companies. The combination of healthy margins and return ratios makes valuation an important factor for investors evaluating the IPO.

Long-Term Customer Relationships

The company's association with customers for several years indicates business stability and repeat order potential. Strong customer relationships are particularly valuable in the B2B packaging industry.

Focus on Sustainability

Higher usage of recycled materials and renewable energy adoption can support the company's positioning among customers looking for sustainable packaging solutions.

International Expansion Opportunities

The company's presence through its South African subsidiary and Mexican joint venture provides opportunities to expand its global footprint, especially in emerging markets.

Key Risk Factors Investors Should Consider

While Knack Packaging has demonstrated strong financial growth and has several business advantages, every investment opportunity comes with certain risks. Understanding these risks is important before making an IPO investment decision.

Investors should evaluate both the growth potential and possible challenges that may impact the company's future performance.

Expansion Project Execution Risk

A significant portion of the fresh issue proceeds will be utilised towards the company's new manufacturing facility at Borisana, Gujarat. The success of this expansion will depend on timely completion, effective utilisation of the new capacity, and the company's ability to generate sufficient demand.

Any delay in project completion, increase in project cost, or slower than expected capacity utilisation could impact future growth expectations.

Dependence on Raw Material Prices

The company's primary raw material is polypropylene, whose prices are linked to crude oil movements and global market conditions. Any significant increase in raw material costs without a corresponding increase in selling prices could affect profit margins.

Additionally, the company has some dependence on key suppliers, which creates concentration risk in procurement.

The following table highlights the company's raw material supplier concentration.

Currency Fluctuation Risk

Since Knack Packaging exports its products to more than 70 countries, changes in foreign currency exchange rates can impact revenue and profitability.

A stronger Indian rupee against major global currencies may reduce export competitiveness, while adverse currency movements can affect margins if not effectively managed.

Employee Retention Challenges

Manufacturing businesses require skilled employees for production operations, quality control, and technical processes.

The company's employee attrition rate increased from 9.43% in FY23 to 21.39% in FY25. A continued increase in employee turnover could create challenges related to recruitment, training costs, and operational efficiency.

Related Party Lease Arrangements

Certain important properties, including the registered office and the upcoming project location, are leased from promoter-related entities.

While such arrangements are common among promoter-driven companies, investors should review the lease agreements carefully to understand rental terms, renewal conditions, and any potential dependency on related parties.

Increasing Working Capital Requirement

The working capital cycle increased from 95 days in FY24 to 106 days in FY25. A longer working capital cycle means more funds remain blocked in inventory and receivables.

If the company continues expanding rapidly, efficient management of working capital will become increasingly important to maintain healthy cash flows.

Restated Financial Statement Considerations

The financial statements included in the IPO documents have been prepared specifically for the public issue process. Investors should review the restated financial statements and auditor observations provided in the Red Herring Prospectus before making an investment decision.

Legal and Regulatory Matters

The company is involved in certain legal matters, including recovery cases related to dishonoured cheques and a pending direct tax dispute.

While the financial impact of these matters appears limited based on available information, investors should consider all disclosed legal proceedings before investing.

Final Thoughts on Knack Packaging IPO

Knack Packaging enters the IPO market with a combination of strong financial growth, an established manufacturing base, international customer presence, and expansion plans aimed at increasing future capacity.

The company's strengths include healthy profitability, improving return ratios, a wide export network, long-standing customer relationships, and a differentiated position through customised packaging capabilities.

The valuation also appears competitive when compared with several listed peers, especially considering the company's profitability metrics and operating margins. The planned capacity expansion could provide the next phase of growth if executed successfully.

However, investors should also consider the associated risks, including dependence on raw material prices, working capital requirements, supplier concentration, export-related currency exposure, and execution challenges related to the new manufacturing facility.

Overall, the Knack Packaging IPO represents an opportunity in a growing industrial packaging segment, but investors should evaluate the company's growth potential, valuation comfort, and risk factors based on their individual investment objectives and risk appetite.

Before investing, investors are advised to carefully read the Red Herring Prospectus and consider consultation with a registered financial advisor.

For detailed IPO analysis, market insights, and expert guidance on IPO investments, investors can connect with Swastika Investmart, a trusted financial services provider helping investors make informed market decisions.

India's largest asset management company is heading to the public markets. SBI Funds Management Limited, the AMC behind SBI Mutual Fund, filed its Draft Red Herring Prospectus with SEBI on March 19, 2026. With an expected fundraise of Rs. 13,000 to Rs. 13,500 crore and a potential market capitalisation approaching Rs. 1.75 to 1.80 lakh crore, this is one of the most significant listings in India's financial services sector this year.

This guide covers everything an investor needs to know before applying, from how the IPO is structured and what the financials look like, to the risks the company itself has disclosed and the factors that will determine whether this IPO makes sense at the offer price.

About SBI Funds Management Company, and Why is This IPO Seeking Investors’ Attention?

SBI Funds Management is India's largest asset management company, and it is not close. It manages a mutual fund quarterly average AUM of Rs. 12.5 lakh crore with a 15.4% market share as of December 31, 2025. When you include its institutional portfolio management and advisory books, total AUM reaches Rs. 29.04 lakh crore, making it one of the largest asset managers in Asia.

The company leads in two of India's fastest-growing investment categories simultaneously: actively managed mutual funds and passive products like ETFs and index funds. That dual dominance is rare, and it is a key reason this IPO is generating significant institutional and retail interest.

To understand the scale of what is being listed, here is a snapshot of where SBI Funds Management stands today across its key business metrics:

IPO Structure of SBI Funds Management: 100% Offer for Sale

The SBI Funds Management IPO is a 100% Offer for Sale. This is the most important structural fact investors must understand before applying. No new shares are being issued, and SBI Funds Management itself will not receive a single rupee from the IPO proceeds. All the money raised goes directly to the two selling shareholders. Before you apply, here are the core IPO details you need to have in front of you:

Who is Selling and at What Profit?

Understanding who is selling, how much they paid for their shares, and how much they stand to gain puts the IPO in its proper context. The numbers below tell an important story about where the value creation has already happened.

SBI acquired its stake at effectively Rs. 0.15 per share and Amundi at Rs. 4.35 per share. At an expected valuation of Rs. 1.75 to 1.80 lakh crore, both sellers are realising extraordinary returns on their original investments. IPO investors should assess honestly whether meaningful upside still remains after this re-rating has already occurred.

Revenue, Profit, and Dividends: How Has SBI Funds Management Performed Financially?

SBI Funds Management is a genuinely profitable and cash-rich business. It reported a profit after tax of Rs. 2,540.15 crore on revenue from operations of Rs. 3,597.76 crore for fiscal 2025. Its operating expense ratio of 0.08% of QAAUM is the lowest among India's top 10 AMCs, a direct result of the cost efficiency that comes with managing assets at this scale.

The dividend number is particularly telling. In just the third quarter of fiscal 2025, the company paid an interim dividend of Rs. 3,560.13 crore to its shareholders. A dividend larger than the full-year profit figure signals two things: the company carries significant retained earnings, and management is confident in the continuity of cash generation. In December 2025, the board also executed a 3:1 bonus share issue, tripling the share count, another signal of financial confidence.

The full financial picture, including contingent liabilities that investors should not overlook, is presented below:

According to CS Setty, Chairman of State Bank of India, speaking at the Citi India 2026 Conference, investors should stop watching daily market movements and start thinking about India as a long-term opportunity. He acknowledged that global geopolitical pressures have made markets choppy but urged investors not to lose sight of the bigger picture, describing India as one of the defining growth stories of this century that has moved well beyond the catch-up phase. 2.

What Makes SBI Funds Management Difficult to Compete With?

Distribution Through SBI Branches is an Unmatched Advantage

No AMC in India can replicate SBI Funds Management's distribution reach without the backing of a parent like State Bank of India. SBI operates 23,125 branches nationwide, covering urban centres, semi-urban towns, and rural areas that private sector banks and independent distributors rarely penetrate at comparable depth. Alongside this physical network, SBI's YONO digital platform serves over 96 million users, each of whom is a potential mutual fund investor already within the SBI ecosystem.

This is not a passive advantage. Every SBI account holder nudged toward an SIP through a branch visit, a teller recommendation, or a YONO notification adds to an AUM base that compounds over years. Building a comparable network from scratch would take decades and hundreds of thousands of crores. No private competitor can do it.

Amundi Provides the Investment Expertise Behind the Scenes

SBI brings distribution. Amundi brings investment depth. As Europe's largest asset manager, Amundi has embedded its risk management processes, investment frameworks, and product development capabilities into SBI Funds Management over a partnership spanning more than a decade. The stake now held by Amundi India Holding was originally held by Societe Generale S.A. before being transferred in June 2011, reflecting the long-standing and evolving nature of this international collaboration.

The SIP Book is One of the Stickiest in the Industry

SBI Funds Management runs 1.576 crore live SIPs. What makes this number particularly valuable is not its size but its staying power. The stickiness of this investor base is best captured by looking at how long those SIPs have remained active:

When 97.7% of SIP investors have stayed for more than three years without stopping their plan, it means they have already weathered market corrections and continued investing. For the AMC, this translates into a highly predictable monthly inflow of capital that grows AUM steadily regardless of short-term market sentiment. That predictability is itself a competitive advantage.

Leadership Across Multiple Business Segments

Most AMCs are dominant in one segment. SBI Funds Management holds the number one position across four separate business lines simultaneously. This breadth of leadership provides revenue diversification that most competitors simply do not have. The four segments and the company's standing in each are as follows:

A Research Engine That Supports Active Management

The company's investment decisions are supported by a research framework covering more than 400 listed companies and more than 200 fixed income issuers. This analytical infrastructure is a genuine entry barrier. Smaller AMCs operating at a fraction of SBIFM's scale simply cannot afford research teams of comparable depth, giving SBIFM a sustainable edge in active fund management quality.

Key Risks: What Has SBI Fund Management Disclosed in Its DRHP That Investors Must Read?

The DRHP for SBI Funds Management is candid about a substantial set of risks, and every investor should read them before applying. These are not hypothetical concerns invented by analysts. They are disclosures made by the company itself under regulatory obligation. Here is what the company has flagged and translated into what each risk actually means for you as a shareholder:

The trademark risk is worth pausing on because it has no easy fix. SBI Funds Management's brand identity, and a significant portion of its ability to attract and retain retail investors, is built around a name it does not legally own. The promoter relationship makes disruption unlikely, but the structural vulnerability is real and cannot be hedged away.

Peer Comparison: How Does SBIFM's Valuation Stack Up Against HDFC AMC and Nippon AMC?

Valuing the SBIFM IPO in isolation is difficult. The most practical approach is to benchmark it against its two closest listed peers, HDFC AMC and Nippon India AMC. This comparison reveals where SBIFM has a clear edge, where it falls short, and what those gaps mean for the multiple it should reasonably command.

The comparison below shows why SBIFM deserves a premium on AUM scale and cost efficiency, but why that premium may be partially offset by lower active equity performance and a compressed blended fee yield:

This comparison matters because HDFC AMC and Nippon India AMC are the reference points the market will use to price SBI Funds Management. SBI's AUM is significantly larger than both, and its cost efficiency is superior. However, its active equity performance metrics lag, and its blended fee yield is lower due to its heavy passive fund exposure. These factors will weigh on the valuation multiple relative to HDFC AMC's historical premium.

Pre-IPO Lock-In Rules: Can You Sell Your Unlisted Shares After Listing?

If you currently hold pre-IPO unlisted shares of SBI Funds Management, you cannot sell them immediately after the stock lists. SEBI's lock-in regulations determine when you are permitted to exit, and the rules differ depending on what category of investor you are and, in some cases, when you originally bought the shares.

The category-wise lock-in rules are straightforward, but the starting date of the lock-in period differs for institutional investors:

These rules follow SEBI's August 2021 regulatory amendments. With unlisted shares recently trading at Rs. 850 to Rs. 870 per share, investors holding pre-IPO stock should factor in this six-month restriction before making any assumptions about post-listing liquidity or exit timing.

Domestic and Global Reach: How Does SBI Fund Management Distribute and Serve Investors?

Domestic Investor Touchpoints

SBIFM's domestic distribution infrastructure combines physical branch access through SBI with a growing digital presence through its own platforms. The scale of this network is what gives SBIFM a sustainable AUM mobilisation advantage that no standalone private AMC can replicate:

International Investor Access

Beyond India, SBIFM has built a multi-entity international structure to capture demand from global investors seeking India-focused investment products. Each entity serves a specific regulatory or investor purpose in its respective jurisdiction:

Should You Apply for the SBIFM IPO? The Bull Case and the Bear Case

The Bull Case: Why SBIFM Is Worth Owning for the Long Term

SBI Funds Management holds a market position that is structurally protected in ways that most businesses are not. Its SBI branch distribution network is irreplaceable. Its SIP book, with 97.7% of plans active for more than 37 months, delivers a recurring, compounding inflow of capital that cushions revenue even in difficult markets. Its simultaneous leadership across mutual funds, PMS, specialised investment funds, and passive products provides genuine revenue diversification.

For investors who believe in India's long-term financialisation story, SBIFM is one of the most direct and defensible ways to participate. Every new SIP started, every mutual fund account opened, and every ETF unit purchased through its channels strengthens the AUM base that drives fee income. The tailwind is structural and multi-decade in nature.

The Bear Case: What Could Disappoint Investors Post-Listing

The active equity performance gap is the most immediate concern. With only 11.36% of equity schemes in the top performance quartile over three years, SBIFM is not consistently winning on the dimension that matters most to active fund investors. In a maturing market where investors increasingly compare performance data before choosing an AMC, this could pressure active equity AUM retention over time.

SEBI's fee compression effective April 2026 is already confirmed and will reduce management fees across the industry. Given SBIFM's already significant exposure to low-fee passive products, its blended fee yield will come under further pressure even as total AUM continues to grow. Revenue growth will lag AUM growth, and margin expansion will be harder to achieve than historical trends suggest.

Finally, the pure OFS structure means that at the IPO price of Rs. 850 to Rs. 870 in the unlisted market, you are buying at a valuation where both promoters, who acquired shares at Rs. 0.15 and Rs. 4.35 respectively, have already realised the bulk of the value creation. The upside from here depends entirely on future earnings growth and multiple expansion, not on any post-IPO transformation of the business.

Final Verdict: Is the SBIFM IPO a Buy, Hold Off, or Avoid?

SBI Funds Management is a rare business. It is profitable, cash-rich, debt-free, and sits at the centre of India's growing mutual fund industry. The fundamentals are hard to argue with. The only real debate is whether the IPO price leaves enough room for the next investor to make a meaningful return.

If the price band is set reasonably, this is a quality business worth holding for the long term. If it comes at a premium that already prices in years of future growth, patience may serve you better than enthusiasm on listing day.

Either way, this is not a straightforward IPO to evaluate on your own. The OFS structure, SEBI's new fee regulations, the trademark dependency, and the active fund performance gap all carry different implications depending on where you stand financially. What makes sense for one investor may not make sense for another.

That is exactly where a conversation with an expert helps. Swastika Investmart's research team has been closely following the SBI Fund Management IPO since its DRHP filing and can walk you through the valuation, the risks, and the right entry strategy based on your specific goals and portfolio.

Reach out to Swastika Investmart before the subscription window opens. A ten-minute conversation could make a meaningful difference to the decision you take.

Frequently Asked Questions About SBI Fund Management IPO

What is the SBI Funds Management IPO date?

The SBI Funds Management IPO is expected to open for subscription in July or August 2026. The DRHP was filed with SEBI on March 19, 2026, and the listing is targeted for the same calendar year.

What is the price band of the SBI Funds Management IPO?

The official price band for the SBI Funds Management IPO has not yet been announced. Based on unlisted market activity, shares have recently traded between Rs. 850 and Rs. 870, though the IPO price band may be set at a discount to these levels.

What is the GMP of the SBI Funds Management IPO?

Unlisted shares of SBI Funds Management have recently traded between Rs. 850 and Rs. 870 in the grey market, reflecting strong investor interest ahead of the official listing.

What is the issue size and valuation of the SBI Funds Management IPO?

The SBI Funds Management IPO is expected to raise between Rs. 13,000 and Rs. 13,500 crore through a 100% Offer for Sale of approximately 20.37 crore equity shares. The implied market capitalisation is estimated at Rs. 1.75 to 1.80 lakh crore based on current unlisted market prices.

Is the SBI Funds Management IPO a fresh issue or an OFS?

The SBI Funds Management IPO is a 100% Offer for Sale. No new shares are being created, and the company itself will not receive any proceeds from the listing. All funds raised go directly to the selling shareholders, State Bank of India and Amundi India Holding.

Should I invest in the SBI Funds Management IPO?

SBI Funds Management is a fundamentally strong business with consistent profitability, a debt-free balance sheet, and dominant market positions across mutual funds, PMS, and passive funds. Whether the IPO is right for you depends on the final price band, your investment horizon, and your personal financial goals. Consult a SEBI-registered financial advisor before applying.

What are the allotment and listing dates for the SBI Funds Management IPO?

The official allotment and listing dates have not yet been announced. The IPO is expected to list in July or August 2026. Check the Swastika Investmart website for updates as the listing timeline is confirmed.

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Jio Platforms Limited, the parent company behind Reliance Jio, is India's largest telecom operator with over 524 million customers. But calling it just a telecom company undersells what it actually is. Beyond mobile and broadband connections, Jio also runs a growing stack of digital apps, enterprise services, and a serious push into artificial intelligence. It is trying to become India's homegrown version of a global technology giant, not just a phone network.

On June 19, 2026, Jio filed its Draft Red Herring Prospectus, setting up what is expected to be the largest IPO in Indian history. Unlike many headline IPOs that are simply existing investors cashing out, this one works differently. Jio itself will raise the money, and it already knows exactly what it plans to do with it.

This guide breaks down everything a potential investor needs to know, in simple language, with every number explained rather than just listed.

JIO IPO - Key Takeaways

• Jio's IPO is a fresh issue of up to 27 crore shares, expected to raise around 25,000 to 33,000 crore rupees. There is no offer for sale, so no existing shareholder is selling stock.
• Most of the money raised, 27,500 crore rupees, will go toward paying off debt at Jio's telecom subsidiary, reducing interest costs and strengthening the balance sheet.
• Jio added 9.1 million new customers in a single quarter and crossed 30,000 crore rupees in annual profit for the first time in FY26.
• A close look at the numbers shows a business growing fast in revenue but slowing in capital efficiency, return on capital employed has fallen from 12.83% to 10.76% over two years.
• Reliance Retail alone accounts for more than 77% of Jio's prepaid distribution, making the business unusually dependent on a single sister company.
• Jio is significantly under-insured for a company of its size, with insurance covering only about 43.57% of its physical assets.
• Investors should not expect dividends any time soon. Returns here would come entirely from the share price rising over time, not from regular payouts.

JIO IPO Snapshot - The Complete IPO Detail

Forget the size of the number for a second and focus on the structure, because it explains everything else.

There are two ways a company can raise money through an IPO. It can let existing shareholders sell off part of their stake, in which case the company itself sees none of that cash. Or it can issue fresh shares, where the money lands directly in the company's own account. Jio has chosen the second route entirely. Every rupee from this offer goes to Jio Platforms itself, not to Reliance Industries, not to its early backers, nobody.

That single fact reframes the whole IPO. This isn't an exit for anyone. It's a fundraise, and a tightly targeted one at that. Here are the core facts of the offer at a glance (Jio DRHP).

The special reservation for Reliance Industries shareholders deserves attention. If you already hold RIL shares in your demat account, you will have preferential access to this IPO through a dedicated quota. This is not standard practice and is worth checking before the issue opens.

Where is the IPO Money Actually Going

This is one of the more reassuring parts of Jio's IPO story for investors, because the company has been very specific about its plans.

• The single biggest use of funds, 27,500 crore rupees, will go toward repaying External Commercial Borrowings, which are loans Jio's telecom arm took from a consortium of major global and Indian banks, including Bank of America, HSBC, DBS, Mizuho, State Bank of India, Citibank, and ANZ.
• As of March 2026, Jio's total outstanding borrowings stood at approximately 30,057 crore rupees, meaning this IPO would clear most of that debt in one go.
• Paying down this debt reduces the interest expense Jio pays every year, which directly improves how much of its revenue eventually turns into profit.
• The company has framed this prepayment as a way to free up financial room for its next phase of investment, particularly in 5G, 6G, and artificial intelligence infrastructure.

In simple terms, this IPO is about strengthening the balance sheet first, before pushing harder into new growth areas. A company with less debt has more flexibility to invest aggressively when opportunities come up, without being weighed down by interest payments.

How the Shares Will Be Divided Among Investors

Two reservations here are worth pointing out specifically. Jio has set aside a dedicated portion for its own employees, a common practice that rewards staff for the company's growth. More notably, there is also a dedicated reservation for existing shareholders of Reliance Industries, Jio's parent company. This means if you already own Reliance Industries shares, you may get a preferential shot at this IPO, a detail current Reliance investors should not overlook.

What Jio's Business Actually Looks Like Today

Jio is best understood as three layers stacked on top of each other, not a single product.

• The connectivity layer: This is the core telecom business most people know, mobile data, calling, and home broadband through JioFiber and JioAirFiber. With more than 524 million subscribers, this remains India's largest telecom customer base by a wide margin.
• The digital platforms layer: This includes a range of apps and digital services that sit on top of the network, designed to keep customers engaged within Jio's ecosystem rather than just paying for a data connection.
• The enterprise and future technology layer: This is where Jio is investing most heavily for the future, including artificial intelligence infrastructure, 6G research, and its own Low Earth Orbit satellite project aimed at providing connectivity from space, an answer to growing competition from satellite-based internet providers.

This layered structure is exactly why Jio describes itself as moving from a telecom company toward what it calls a new-age technology enterprise. The phone network funds the business today, but the company's ambitions clearly extend well beyond it.

Jio's Financial Performance, FY26

A couple of these numbers deserve a bit more explanation. ARPU rising from 206.2 rupees to 214 rupees might look like a small change, but across more than 524 million users, even a small increase adds up to a meaningful jump in revenue. It also tells investors that Jio is not just adding customers, it is getting each existing customer to pay slightly more over time, often by upgrading them to better data plans or bundled services.

The wide EBITDA margin range, from roughly 40% up to 56.2%, reflects the fact that Jio's different business lines do not all earn at the same rate. Its newer digital and enterprise services tend to carry higher margins than the core mobile network, so as those businesses grow as a share of the total, overall profitability could improve further.

A Closer Look at Capital Efficiency, the Number That Needs Context

This is the one statistic in Jio's story that genuinely needs careful explanation, because on its own it can sound more alarming than it should.

Return on Capital Employed, or RoCE, measures how much profit a company generates for every rupee it has invested in its business. Jio's RoCE has declined from 12.83% in FY24 to 10.76% in FY26. Taken alone, a falling RoCE usually raises a red flag, since it can mean a company is not using its money as efficiently as before.

In Jio's case, the more likely explanation is the sheer scale of its ongoing investment. The company has been spending heavily on 5G rollout, fibre infrastructure, and now 6G and AI capabilities, all of which require enormous upfront capital before they start generating meaningful returns. When a company invests faster than its profits can grow to match, RoCE naturally dips, even if the underlying business is healthy and the investments eventually pay off.

The honest way to read this number is as a signal to watch, not necessarily a warning sign on its own. Investors should track whether RoCE stabilises or continues falling in the next year or two, since that will reveal whether this recent spending is starting to convert into proportional profit growth.

Expert Insight: Jio IPO Could Be a Key Value Unlock for Reliance’s Next Growth Phase

Santosh Meena, Head of Research, Swastika Investmart, featured in Business Standard, highlights that Jio’s IPO marks an important milestone in Reliance’s transformation from a traditional energy company into a technology-led enterprise.

He also mentioned, “The AGM reinforces Reliance’s transition from traditional energy to a tech-energy-retail powerhouse. The Jio IPO is the near-term catalyst for value unlocking. Long-term growth levers in AI, green energy, and consumer businesses signal sustained high-teens earnings growth potential, though execution risks in capex-heavy new areas and commodity volatility remain.”

He concludes, Jio’s IPO, combined with its AI initiatives, satellite broadband ambitions, and digital ecosystem expansion, could become a significant growth driver. However, investors should continue monitoring execution, capital allocation, and the ability of these new-age businesses to deliver sustainable returns.

Major Stakeholders of Jio

None of these shareholders is selling in this IPO. That fact alone is worth understanding in the right light. Meta and Google invested in Jio years before this listing was even a possibility. They remain fully invested today. The same is true of some of the world's most sophisticated sovereign wealth and private equity funds.

These are not passive investors. They have access to Jio's internal data, its long-term plans, and its competitive position in ways that outside investors do not. Their collective decision to hold, rather than use this IPO as an exit opportunity, suggests they continue to see significant value ahead.

Why Jio's Business is Hard to Replicate

• Scale that took over a decade to build: With more than 524 million subscribers, Jio has a customer base that took years of aggressive investment and pricing strategy to build, something a new entrant could not realistically replicate quickly.
• A growing, increasingly profitable customer base: Adding 9.1 million customers in just one quarter while also raising average revenue per user shows Jio is growing in both directions at once, more customers and more revenue from each one.
• A genuine technology pipeline beyond telecom: Investments in AI infrastructure, 6G research, and satellite connectivity position Jio to compete in markets well beyond traditional telecom, a transition most telecom companies globally have struggled to make successfully.
• Backing from world-class global investors: Having Meta, Google, and some of the largest investment funds in the world as long-term shareholders lends Jio a level of credibility and access to expertise that few Indian companies can match.
• A debt position about to improve significantly: Once this IPO clears roughly 30,000 crore rupees of borrowings, Jio's balance sheet becomes meaningfully lighter, freeing up cash flow for future investment instead of interest payments.

Key Risks Investors Should Know Before Applying

No IPO is without risk, and Jio has a few that deserve genuine attention before applying.

• Capital spending is outpacing returns for now: As explained above, RoCE has fallen from 12.83% to 10.76% over two years, meaning Jio's massive investments have not yet translated into proportionally higher profits. This needs to reverse over time for the investment case to fully play out.
• Heavy reliance on one sister company for distribution: Reliance Retail accounts for more than 77% of Jio's prepaid distribution. This level of dependence on a single related party, rather than a broader, more independent distribution network, is an unusual concentration for a company of this size.
• Significant under-insurance of physical assets: Jio's insurance coverage for material damages stands at about 1.37 lakh crore rupees, which covers only 43.57% of its total tangible assets and ongoing construction value. Major assets like spectrum and certain infrastructure rights are excluded entirely, meaning more than half the physical value of its network is effectively uninsured if something goes wrong.
• Real-world infrastructure can fail: A two-hour outage in Gujarat during FY26 was a reminder that a business this dependent on uninterrupted network performance is vulnerable to server failures and fibre cuts, incidents that directly affect millions of customers at once.
• Regulatory costs could rise: The telecom sector is closely regulated by TRAI and the Department of Telecommunications. Jio currently pays a license fee equal to 8% of its adjusted gross revenue, and any increase in this fee, or unfavourable changes to how that revenue is defined for tax purposes, could directly affect profitability.
• New technology could disrupt the model: Jio's JioAirFiber service relies on unlicensed band radio spectrum, which is shared with other users. As more people use this spectrum, signal interference can increase in ways Jio cannot legally control, potentially weakening the fibre-like experience it promises customers. Separately, the broader shift toward satellite-based internet is a long-term competitive threat the company is actively trying to get ahead of through its own satellite plans.
• No dividends expected soon: Investors should not expect regular income from this stock in the near term. Any return on investment would have to come from the share price rising over time, not from periodic payouts.

A Quieter Conflict Worth Knowing About

There is one detail that does not get much attention but is worth understanding. Jio's aggressive push into home broadband through JioAirFiber puts it in direct competition with two other companies in the broader Reliance Group, Hathway, and Den Networks, which together serve about 16.74 million broadband and cable subscribers. Since these are separately listed companies with their own minority shareholders, this overlap creates a level of internal competition within the same corporate family, something investors in any of these entities should be aware of when evaluating long-term strategy.

How This IPO Fits Into India's Bigger Picture

If Jio's issue size meets expectations, it would not just be large, it would reset the record books entirely. According to Financial Express, the JIO IPO will break the record of India’s biggest IPO. Here is how it would compare to India's previous biggest IPOs.

Since FY20, 56% of all new investors entering India's stock market have been under the age of 30. This younger demographic grew up with Jio data in their pockets. They are comfortable with the brand, comfortable with digital investing, and represent the single largest new cohort of retail participants in the history of Indian markets.

This context matters because it shapes who will be applying for this IPO and holding it afterwards. A younger, longer-horizon investor base is generally more tolerant of the kind of growth and reinvestment story Jio is telling than an older cohort seeking dividends and near-term returns would be.

Final Outlook: Is Jio Worth Considering

Jio comes into this IPO in a genuinely strong position. Over half a billion paying customers, growing revenue per user, a profit milestone crossed for the first time, and a purpose-built plan to use this money to clean up the balance sheet rather than simply fund vague expansion.

The company's ambition is real and backed by serious global investors who are not selling. Its technology roadmap, spanning 5G, 6G, AI infrastructure, and satellite connectivity, positions it to compete in markets that do not yet exist at meaningful scale in India today. And the fresh issue structure means the money raised strengthens the company itself.

But several risks deserve genuine weight and not just a mention. The declining return on capital employed is the most important number to track going forward. The 77% distribution dependence on Reliance Retail is an unusual structural concentration for a business this large. The insurance coverage gap on physical assets represents a real exposure that could matter enormously in a bad scenario. And the absence of any dividend means patience is not just advisable but mandatory.

This is a serious, long-term investment case built on genuine scale and genuine ambition. It is not a quick listing gain story. Investors who approach it expecting fast returns based on brand name alone may find themselves waiting longer than they anticipated.

The right approach is to wait for the final Red Herring Prospectus and the confirmed price band, read the complete risk factors section rather than skipping it, and invest only what you are comfortable holding through the volatility that any large, hyped listing will inevitably see in its early months.

Make your investment decisions wisely, and where you need guidance specific to your financial situation, consult a qualified financial advisor. For more IPO research, market updates, and investment insights, visit Swastika Investmart.

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JIO IPO - Quick Reference 

National Stock Exchange of India Limited (NSE) is the country's largest stock exchange and the operator of the core market infrastructure through which the vast majority of India's equity, derivatives, currency, and debt trades are executed. Through its subsidiaries, NSE also runs India's largest clearing corporation, manages the Nifty family of indices, and provides market data, analytics, and investor education services, which makes it a near-complete ecosystem for India's capital markets rather than a single-product business.

With its proposed IPO, investors will get an opportunity to own a stake in one of India's most profitable financial infrastructure businesses. However, the key question is not only "Will the NSE IPO generate listing gains?" but also: "Does NSE justify its expected premium valuation for long-term investors?"

In this guide, we take a closer look at NSE to help investors understand its business, significance in India's capital markets, and key factors that help them in evaluating the IPO opportunity.

NSE IPO Details

The key metrics and structural details of this landmark public issue are outlined in the table below. This core data is sourced directly from the official SEBI Initial Filings.

A quick explanation of two terms in this table that often confuse first-time investors. A DRHP, or Draft Red Herring Prospectus, is the detailed document a company files with SEBI before an IPO. It contains the company's financials, business details, and risks, and it is the starting point of the entire IPO process. An Offer for Sale, or OFS, simply means existing shareholders are selling their shares to the public, rather than the company printing brand new shares. NSE's entire IPO is structured this way.

The scale of this offer is why it is already being called the biggest IPO in Indian history. At an estimated ₹30,000 crore, it would be larger than Hyundai Motor India's 2024 IPO, which currently holds the record.

Structure of the IPO (Offer for Sale)

Because this is a pure Offer for Sale, the structure is simpler than most IPOs, there's no fundraising objective to evaluate:

• The entire issue consists of existing shareholders selling their shares to the public.
• NSE itself will not receive any proceeds from this offer.
• No portion of the issue will be used for capital expenditure, debt repayment, or working capital, since none is being raised by the company.
• The IPO's sole purpose is to provide an exit route for long-term institutional shareholders and to meet public shareholding norms for a Market Infrastructure Institution (MII).

Key Selling Shareholders of NSE Stocks

The breakdown below highlights the big institutional players selling their shares in this IPO, based on the latest data from Fortune India. The real story here isn’t just who is cashing out, but it’s about who is choosing to stay, which gives us a clear look at how much long-term confidence these massive investors have in NSE.

These names matter because of what their decisions reveal. SBI bought its NSE shares so long ago that it paid less than one rupee per share. If NSE lists anywhere close to the expected price of ₹2,000 per share, SBI's original investment could turn into a payout of nearly ₹5,000 crore. This single example shows how much value NSE has built up over the years for its earliest investors.

LIC's choice tells a different but equally important story. As the single biggest shareholder in NSE, LIC has decided not to sell even one share in this offer. When the investor who stands to gain the most from selling chooses to hold on instead, it is usually seen as a strong signal that they expect the company's value to keep growing well after listing.

NSE IPO - Company Profile

NSE operates as a parent to a wide financial ecosystem, not just a trading venue:

• NSE Clearing Ltd (NCL): India's largest clearing corporation, carrying a CARE AAA/Stable rating since 2008.
• NSE Indices Ltd: Manages the Nifty family of indices, tracked by 265 index funds and 230 ETFs as of March 2026.
• NSE Data & Analytics Ltd: Sells real-time and historical market data — a high-margin, recurring revenue stream.
• NAL Academy Ltd: Runs financial education and skill-development programs that help grow the long-term investor base.
• NSE Administration and Supervision Ltd (NASL): Supervises research analysts and investment advisers as part of NSE's regulatory mandate.

There is one more important thing to understand about NSE's structure. Under SEBI rules, NSE is officially recognised as a Market Infrastructure Institution, which means it is treated as a kind of first-level regulator for the market it runs. Because of this, at least half of its board members must be Public Interest Directors, people whose job is to protect investors rather than maximise profits for shareholders. This is unusual for a company that is also trying to be a profitable, publicly listed business.

NSE IPO - Market Position & Segment-wise Dominance

The breakdown below illustrates the National Stock Exchange’s massive market share and segment-wise dominance, according to official regulatory disclosures in the NSE DRHP. Rather than operating as a typical market participant, these figures reveal that NSE functions as the foundational backbone of India's financial infrastructure.

These numbers explain why investors often describe NSE as a near monopoly rather than just a market leader. In categories like currency options and interest rate futures, it effectively has no competition at all. This kind of dominance gives NSE strong pricing power and makes its income far more stable and predictable than most ordinary businesses, where competitors are constantly fighting for the same customers.

Additionally, NSE's size is not just an India story either. According to the World Federation of Exchanges, here is where it stands globally for the 2026 financial year.

NSE IPO - Competitive Strengths

Near Total Control Of The Market: As shown above, NSE dominates cash equities, derivatives, and currency trading, which makes its revenue unusually steady and predictable year after year.

A Business That Grows Without Growing Its Costs: Once NSE's trading systems are built, handling extra trades costs the company very little. This means that as trading activity increases, most of the additional money earned turns straight into profit instead of being spent on new expenses.

No Debt On The Books: NSE owes nothing to lenders and sits on a large amount of surplus cash, giving it the freedom to fund new projects on its own instead of borrowing money or asking shareholders for more capital.

Income From Many Different Sources: Beyond charging fees on trades, NSE earns money from clearing services, index licensing, data sales, and financial education, which means it does not depend too heavily on any single source of income.

A Customer Base That Is Hard To Copy: With a presence across 99% of India's postal codes and more than 129 million registered investors, NSE has built relationships and trust that would take a new competitor years, if not decades, to replicate.

A Quiet But Steady Income Stream: NSE earns interest by investing the security deposits that brokers are required to keep with it, along with its own cash reserves. This alone brought in ₹1,929 crore in the 2026 financial year, money that comes in even on days when very little trading happens.

NSE IPO - Key Concerns Investors Should Know Before Applying

Too Much Dependence On Options Trading: Around 60% of NSE's core income comes from fees on options trading alone. SEBI has already been tightening rules around retail trading in this segment to protect smaller investors from heavy losses. If these rules get stricter, it could directly hurt NSE's biggest source of income.

An Old Legal Issue Still Not Fully Resolved: Years ago, NSE faced allegations that some brokers were given unfair, faster access to its trading systems, an issue known as the co-location controversy. This is actually the reason NSE's IPO was delayed for nearly a decade. The company has filed for a settlement with SEBI and set aside a large provision for it, but the matter has not been fully closed yet.

A Conflict Built Into Its Own Structure: NSE is both a profit-seeking company and a market regulator at the same time. This means it sometimes has to choose between protecting fairness in the market and pushing for faster revenue growth, a balancing act that most ordinary listed companies never have to deal with.

Heavy Reliance On Technology Never Failing: NSE processes between 12 and 14 billion messages every single day, with peaks close to 22 billion. If its systems ever fail on a high-traffic day, it could lead to a trading halt, financial penalties from regulators, and a serious dent in investor trust.

Almost Entirely Dependent On India: Since NSE's business is tied almost completely to the Indian stock market, its fortunes rise and fall with India's economy and regulations, unlike global exchanges that spread their business across many countries.

According to Santosh Meena, Head of Research at Swastika Investmart, in an interview with Outlook Business, the National Stock Exchange's (NSE) IPO is structured entirely as a 100% Offer for Sale (OFS), meaning the exchange will receive zero proceeds as the funds go directly to selling shareholders like LIC and SBI. Meena noted that this structure reflects the exchange's immense financial strength, as it is already highly profitable and cash-rich, requiring no fresh capital for expansion. He advised investors to evaluate the company differently from a traditional growth IPO, treating it instead as an acquisition of secondary shares in a proven business, and cautioned them to carefully scrutinise its valuation, competitive moat, and long-term prospects. 

NSE's Financial Performance (FY26)

The breakdown below highlights the National Stock Exchange’s core financial health and profitability metrics for the 2026 financial year, according to official disclosures in the NSE DRHP and a report by Outlook Business. Beyond the massive revenue numbers, these figures reveal an incredibly efficient business model that converts a remarkably high percentage of its income directly into pure profit.

A couple of these figures deserve a closer look because the number alone does not tell the full story. The fact that only 22.73% of NSE's costs are fixed means most of its expenses do not rise much even when trading volumes go up sharply. This is exactly why the company is able to turn so much of its extra revenue into pure profit, which is reflected in that very high 76.23% operating margin. The ₹1,929 crore in interest income is also worth noting separately, since this money comes in from interest on cash and deposits, meaning NSE earns it even on slow trading days when fewer people are buying and selling shares.

Final Outlook - Is NSE Worth Considering?

NSE is the backbone of India's stock market, with industry-leading margins, zero debt, and near-total control over major trading segments. Its plans, spanning coal, gold, electricity, GIFT City, and index investing, add real growth potential on top of that. That said, the risks are still worth weighing. Around 60% of core income depends on options trading, a space regulators are watching closely, the old co-location legal matter isn't fully settled, and given the excitement around the ₹5 lakh crore valuation, the IPO may well be priced on the higher side, meaning much of the good news could already be baked into the price.

In short, NSE combines genuine strength with real risk. The sensible move is to wait for the final prospectus and price band before deciding, invest only as much as fits your own risk appetite, and make your investment decisions wisely, consulting your financial advisor where needed. For more IPO and market-related updates, visit Swastika Investmart.

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NSE IPO Information - A Quick Reference

The breakdown below provides a quick reference to the National Stock Exchange's foundational data and key metrics for the 2026 financial year, sourced directly from the official NSE DRHP. Rather than just looking at isolated numbers, evaluating this comprehensive summary gives investors a clear view of the sheer scale, efficiency, and financial health behind this historic public offering.

BLS E-Services Limited is a technology-enabled digital service provider, offering (i) Business correspondent services to major banks in India, (ii) Assisted E-services; and (iii) E-Governance Services at grassroots levels in India. Through its robust network, it provides access points for the delivery of essential public utility services, social welfare schemes, healthcare, financial, educational, agricultural, and banking services for governments (G2C) and businesses (B2B).

OBJECTS OF THE ISSUE

• Strengthening the technology infrastructure to develop new capabilities.
• Funding initiatives for organic growth by setting up of BLS Stores.
• Achieving inorganic growth through acquisitions.

Rahul Sharma

Executive Director and Chief Financial Officer (CFO) of the Company. He was appointed as the Chief Financial Officer of the Company since December 21, 2022. He has been associated with BLS group since the year 2011. He has over 16 years of experience in the field of taxation, finance and accounts.

Shikhar Aggarwal

Chairman and Non-Executive Director of the Company. He has over 6 years of experience in providing technology enabled services to governments and citizens with his association with BLS group of companies since 2016 and is presently, the joint managing director of BLS International Services Limited.

Sanjay Kumar Rawat

Company Secretary & Compliance Officer of the Company since March 14, 2023. He is an associate member of the Institute of Companies Secretaries of India. He has over 12 years of experience in secretarial and legal compliance. Prior to joining this Company, he was associated with Terracis Technologies Limited and TaraSpan Solutions Private Limited.

Lokanath Panda

Chief Operating Officer of the Company with effect from April 12, 2023. He has over 20 years of experience in in the field of payment systems, financial inclusion, citizen services portfolio and expansion of retail channel for other value added services and products. Presently, he is also a whole time director in the Subsidiary i.e., ZMPL.

COMPANY PROFILE

• Through its tech-enabled integrated business model, we provide digital and physical products and services in the G2C, B2C, and B2B categories in semi-urban, rural, and remote areas.
• The Company organizes its business along three primary business segments, (i) Business Correspondents Services; (ii) Assisted E-services; and (iii) E-Governance Services.
• A key stakeholder in each of its business segments are merchants, with whom it collaborate for delivery of its products and services to the citizens.
• Its merchants act as its interface with the consumers and play a critical role in delivering goods and services. Presently, its merchants are organized into two categories i.e. BLS Touchpoints and BLS Stores. As of September 30, 2023, it has 98,034 BLS Touchpoints, which includes 1,016 BLS Stores.

COMPETITIVE STRENGTHS

• Asset light business mode.
• It enables social and financial inclusion in India.
• Multiple cross-selling and up-selling opportunities, network effect, and wide reach for customer acquisition.
• Business model with diverse sources of revenue and negligible customer acquisition and retention costs. Successful track record of the acquisition.
• Experienced senior management.

KEY STRATEGIES

• Strengthening and integrating its technology backbone. Grow its merchants and BLS Stores network.
• Pursue strategic investments and acquisitions to enhance product and service capabilities.
• Leverage existing market position to grow each business segment, with an aim to improve cross-selling results.

KEY CONCERNS

• The Company As a result of its limited operating history, it may not be able to compete successfully, and it may be difficult to evaluate its business and future operating results.
• None of the e-governance projects are awarded to the Company directly. All of its contracts to E- Governance projects are awarded to its Corporate Promoter, BLS International Services Limited. Deterioration in the performance of its Subsidiaries may adversely affect its results of operations. It is dependent on and derives a substantial portion of its revenue from, a single customer, one of the largest PSU Bank.
• The Company provides E-Governance Services only in the states of Punjab, Uttar Pradesh and West Bengal.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

BLS E Services Limited is a digital service provider, and it could be a beneficiary of digital India initiatives by the government. The company operates on an asset-light business model, has a wide reach for customers, and has a business model with diverse sources of revenue. The company has also reported consistent growth in its financials. A few concerns are that the company has a limited operating history, making it difficult to evaluate its business and growth; secondly, it is dependent on a single customer for major revenue; and third, it has geographical concentration. Finally, it is valued at a P/E of 44x, which seems fairly priced, so considering all the factors, we give a subscribe rating to this.

Nova AgriTech Limited an agri-input manufacturer and it offer soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, wherein it mainly offer ecologically sustainable and nutritionally balanced products based on its Research and Development.

OBJECTS OF THE ISSUE

• Funding capital expenditure for the expansion.
• Payment of certain outstanding loans of the company.
• General corporate purposes.

KEY MANAGERIAL PERSONNEL

Adabala Seshagiri Rao

Chairperson and Independent Director of the Company. He holds Degree of Bachelor of Science and Degree of Bachelor of Laws from the Andhra University. He has over 35 years of experience in the banking industry. His last employment before retirement was with the Union Bank of India.

Malathi S

Promoter and Executive Director of the Company. She has completed her Bachelor of Commerce from Kakatiya University. She has been associated with the Company since 2011 and oversees the operations of the Company.

Kiran Kumar Atukuri

Promoter and Managing Director of the Company. He has almost two decades of experience. He is the guiding force behind all the corporate decisions and is responsible for the entire business operations specifically manufacturing and sales operations of the Company.

Gunupudi Kamoji Srinivas

Chief Financial Officer – Finance and Account. He holds a degree in Bachelor of Commerce from Andhra University and is a member of the Institute of Chartered Accountants of India. He has 27 years of experience with several organizations.

Neha Soni

Company Secretary of the Company. She holds a degree of Bachelor in Commerce and Bachelor of Law from Devi Ahilya Vishwavidyalya and is a member of the Institute of Company Secretaries of India (“ICSI”). She has 2 years of experience having worked with C.R. Broadcasting Hyderabad Limited as a Company Secretary.

COMPANY PROFILE

• Nova AgriTech manufactures, distributes, and markets a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) biostimulant products; (d) biopesticide products (e) Integrated Pest Management products; (f) new technologies; and (g) crop protection products.
• As of November 30, 2023, it has received a total of 720 product registrations comprising 7 registrations in the soil health management category, 176 registrations in the crop nutrition category, 4 registrations in the biopesticide category, 7 registrations under Technical Indigenous Manufacture, and 526 registrations in the crop protection category.
• It has a total dealer network comprising approximately 11,722 dealers out of which approximately 6,769 dealers are active in the current fiscal year and this network is currently spread across 16 states of India.
• The Company intends to import and distribute Technicals, which will be a prominent factor in the growth of the agriculture sector in India in the near future.

COMPETITIVE STRENGTHS

• One-stop solution for soil health management, crop nutrition, biostimulants, biopesticides, Integrated Pest Management (IPM), and crop protection through a diversified branded product portfolio.
• Established a distribution network across various geographies through many dealers. Strengthening farmer outreach through Nova Kisan Seva Kendra.
• Technology-driven product development and marketing. Experienced Management Team and Promoters.
• Well Equipped Research and development facility.

KEY CONCERNS

• The Company is subject to strict technical specifications, quality requirements, regular inspections, and audits by various authorities and/or regulators.
• The business is subject to climatic conditions. Seasonal variations and unfavorable weather patterns may have an adverse effect on its business.
• It may be subject to fluctuations in prices or any unavailability of the raw materials that it uses in its products.
• A substantial part of the revenue generated by the Company is from the jurisdiction of Andhra Pradesh, Karnataka, and Telangana only.
• The company is currently dependent on a single manufacturing unit located in Telangana.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Nova Agritech is an agri-input manufacturer that provides a one- stop solution for the health of soil and crops through its diversified branded product portfolio. It has a strong presence across geographies, and its effective marketing strategy positions the company for continued growth.

Nova Agritech's financial performance has been impressive, with consistent growth over the past three years and expansion plans firmly in place.

However, some key risks require consideration. The company's business is inherently linked to climatic conditions and relies on a limited geographical area for the majority of its revenue.

Additionally, the agri-input sector is highly competitive. However, the issue is valued at a P/E of 13.05x, and its RoNW of 38.27% is also attractive, thus considering all the factors we suggest to Apply for this IPO for listing benefits.

EPACK Durable Limited is the second largest room air conditioner original design manufacturer (“ODM”) in India in terms of number of units (indoor units + outdoor units) manufactured in Fiscal 2023. Its current product portfolio currently comprises i) Room air conditioners where it designs and manufactures complete RACs. ii) Small domestic appliances. and iii) Components.

OBJECTS OF THE ISSUE

• Funding capital expenditure for the expansion.
• Payment of certain outstanding loans of the company.
• General corporate purposes.

KEY MANAGERIAL PERSONNEL

Bajrang Bothra

Chairman and Whole-time Director on the Board of the Company. He oversees the business operations and management of the Company. He has a master’s degree in commerce from Shri Ram College of Commerce, University of Delhi, Delhi. He has approximately 27 years of experience in the electronics manufacturing sector.

Ajay DD Singhania

Managing Director and Chief Executive Officer of the Company. He has approximately 24 years of experience in the electronics manufacturing sector. He oversees the sales and marketing, production, supply chain management, and R&D departments of the Company.

Rajesh Kumar Mittal

Chief Financial Officer of the Company. He has been associated with the Company since June 8, 2020. He has approximately 25 years of post-qualification work experience in the finance and accounting.

Esha Gupta

Company Secretary and Compliance Officer of the Company. She has been associated with the Company since April 3, 2023. She has approximately 15 years of experience in the secretarial sector.

COMPANY PROFILE

• Since 2003, EPACK has been on a journey of evolution , where it initially started as an OEM for RAC brands.
• Driven by its focus on product development and innovation , it evolved into an ODM partner for RACs for its customers.
• The company also identified the opportunity to increase its value addition in its offerings to customers, and accordingly, started manufacturing various components such as sheet metal, injection moulded, cross-flow fans, and PCBA components.
• In parallel, it capitalized on its existing manufacturing infrastructure to strategically expand its operations in the small domestic appliances (“SDA”) market.
• The Company has dedicated R&D centers in Greater Noida, Bhiwandi, and Dehradun and it has 4 manufacturing facilities in Dehradun and two other facilities as Bhiwandi Manufacturing Facility and the Sri City Manufacturing Facility.
• Its top customers include Blue Star Limited, Daikin Air conditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited.

COMPETITIVE STRENGTHS

• Long-standing relationships with established customers.
• Among the key manufacturers in the fast-growing RAC and SDA manufacturing industries.
• Advanced vertically integrated manufacturing operations with a product portfolio aimed at capturing the full spectrum of the RAC and SDA value chain.
• Robust product development and design optimization capabilities.
• Experienced Promoters supported by the senior management team.

KEY STRATEGIES

• Expanding its existing product portfolio.
• Continue to drive operational efficiencies through expansion of its integrated manufacturing capabilities and continued investment in its R&D infrastructure.
• Increase wallet share with existing customers and continue to focus to expand its customer base. Further, explore initiatives to strengthen control over its supply chain.

KEY CONCERNS

• A significant portion of the company’s revenue is generated from its top 5 customers.
• The Company’s customers do not make long-term commitments to it and may cancel or change their sourcing requirements.
• Failure to maintain its quality accreditations and certifications may negatively impact its brand and reputation.
• The industry is competitive and company’s inability to compete effectively may adversely affect its business.
• Its RAC business is subject to seasonal variations and cyclicality.

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COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

EPACK Durable is India's second-largest room air conditioner (RAC) ODM. The company boasts long-standing relationships with top customers, leverages advanced vertically integrated manufacturing and possesses robust product development capabilities. EPACK Durable prioritizes continuous product portfolio expansion. And its consistent financial performance demonstrates operational efficiency and growth potential.

However, some key risks warrant consideration. The company's dependence on a limited number of major customers. Additionally, the RAC industry is highly competitive, and the business experiences seasonal fluctuations.

The issue is fully priced at a P/E valuation of 56.4x; thus, considering all the factors ,we recommend that investors apply for this IPO with a mid- to long-term view. However, they should carefully evaluate their risk tolerance and current market sentiments.

Azad Engineering manufactures and supplies high-precision forged and machined components to global original equipment manufacturers (“OEMs”) in the energy, aerospace, defense, and oil and gas industries, manufacturing highly engineered, complex, and mission and life-critical components. The Company’s products include 3D rotating airfoil/ blade portions of turbine engines and other critical components.

OBJECTS OF THE ISSUE

• Funding capital expenditure of the Company.
• Payment of certain of the borrowings availed by the Company.

KEY MANAGERIAL PERSONNEL

Rakesh Chopdar

Chairman and CEO of the Company. He has completed his education until the 10th standard from Trinity Public School, Hyderabad, Telangana. He has been involved with the Company since 2003 and has more than two decades of experience in engineering and manufacturing activities.

Ronak Jajoo

Chief Financial Officer of the Company. He has previously worked with Pransa Financial Consultants Private Limited as vice president. He joined the Company on April 15, 2021.

Ful Kumar Gautam

Company Secretary and Compliance Officer of the Company. He has passed the examination in relation to bachelor’s degree in commerce (insurance) from Loyola Academy Degree & P.G. College and is an associate member of the Institute of Company Secretaries of India. He is also an associate member of the Insurance Institute of India.

COMPANY PROFILE

• Azad Engineering’s components have been supplied to countries such as the USA, China, Europe, the Middle East, and Japan since its inception.
• Its customers include global OEMs across the energy, aerospace, defense, and oil and gas industries such as General Electric, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd., Siemens Energy, Eaton Aerospace, and MAN Energy Solutions SE.
• The demand for its precision, forged and machined components is driven by requirements relating to energy turbines (industrial, gas, nuclear, and coal), and aircraft (commercial and military), amongst others.
• In the energy industry, its Company produces high-precision rotating and stationary 3D airfoils/ blades, special machined parts, and combustion component assemblies.
• Its aerospace and defense products include airfoils/ blades and components for engines, auxiliary power units (“APUs”), hydraulics, actuating systems, flight controls, fuel, and inerting sections of commercial and defense aircraft and spacecraft.

COMPETITIVE STRENGTHS

• A preferred name in the manufacturing of highly engineered, complex, and mission and life-critical high- precision components for global OEMs.
• Supplying to OEMs with high global market penetration.
• Long-standing and deep customer relationships.
• Advanced manufacturing facilities with a diverse range of products and solutions.
• Consistent track record of financial performance.
• Experienced Promoter and management team backed by marquee investors.

KEY STRATEGIES

• Leverage its industry-leading capabilities by continuing to diversify its customer base.
• Augment its manufacturing capabilities, including by way of inorganic acquisitions.
• Strengthening its core capabilities across the focus industries.
• Further reduce operating costs, improve operating efficiencies, and deploy new technologies.

KEY CONCERNS

• Business is dependent on the sale of its products to key customers.
• The Company faces competition globally in its business against other manufacturers of high precision and mission-critical components manufacturing.
• The global nature of its operations exposes it to numerous risks that could materially adversely affect its business.
• There may be problems with the products it manufactures that could result in liability claims against it.
• It is subject to strict compliance with quality requirements which results in incurring significant expenses to maintain its product quality.
• The company had negative cash flows in prior periods and may continue to have negative cash flows in the future.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Azad Engineering stands as a prominent player within its segment, boasting strong, long-standing relationships with renowned global OEMs. Its diverse product offerings and technologically advanced manufacturing facilities position it for continued growth. Additionally, the company's consistent financial track record instills confidence.

However, investors should carefully consider potential risk factors. Stringent compliance and quality requirements inherent in the business, reliance on a limited number of key clients, and global market exposure all require careful monitoring.

Currently, the IPO is fully priced at a P/E ratio of around 50x. While this may appear fully priced, Azad Engineering's strong market position, promising future growth prospects, and current optimistic market sentiment could still present a potential opportunity for investors. Thus, we suggest Subscribe rating for this IPO.

RBZ Jewellers Limited is one of the leading organized manufacturers of gold jewellery in India, specializing in Antique Bridal Gold Jewellery and distributing it to reputable nationwide retailers and significant regional players in India. It also operates its retail showroom under the brand name “Harit Zaveri” and is an established player in Ahmedabad.

OBJECTS OF THE ISSUE

• Funding working capital requirements of the Company.
• General Corporate Purposes.

KEY MANAGERIAL PERSONNEL

Rajendrakumar Kantilal Zaveri

Promoter and the Chairman & Managing Director of the Company. Being a Promoter, he has been associated with the Company since its incorporation. He has thirty-five years of experience in manufacturing and trading of gold jewellery.

Harit Rajendrakumar Zaveri

Promoter and the Joint Managing Director of the Company. Being a Promoter, he has been associated with the Company since its incorporation and has established a retail division of the Company under the name of “Harit Zaveri Jewellers” in 2014. He has over seventeen years of experience in jewellery industry and has contributed to the growth of the Company.

Heli Akash Garala

Company Secretary and Compliance Officer of the Company. She joined the Company on October 1, 2022. She has almost six years of experience in corporate secretarial, SEBI LODR and other related compliances. Prior to joining this Company, she was associated with Ushanti Colour Chem Limited, Amradeep Industries Limited, Sun and Shine Worldwide Limited and Ultra Denim Private Limited.

Harshvardhan Bhardwaj

Chief Financial Officer of the Company. He joined the Company with effect from March 10, 2023 and was subsequently appointed as Chief Financial Officer of the Company with effect from April 01, 2023. He has an experience of nearly nine years with competencies in the areas of finance and international trade remedies.

COMPANY PROFILE

• RBZ Jewellers Limited holds approximately 1% of the total organized wholesale gold jewelry market in India. It has a history of more than fifteen years in the jewellery industry.
• It designs and manufactures a wide range of Antique Bridal Gold Jewellery which consists of jadau, Meena, and Kundan work, and sells it on a wholesale and retail basis.
• Its customer base in wholesale business includes reputed national, regional, and local family jewellers spread across 20 States and 72 cities within India.
• It has a well-equipped and modern gold jewellery manufacturing facility situated at Sarkhej Gandhinagar Highway, Ahmedabad, Gujarat.
• The Company has a workforce of 189 employees. It also has a permitted capacity of 250 artisans for its manufacturing facility.

COMPETITIVE STRENGTHS

• Organized manufacturing setup under one roof. Client Mix and geographical spread.
• Design and Innovation in its product range.
• Brand is built on the core values of trust, transparency, and innovation. Established systems and procedures to mitigate risk.
• Experienced Promoters with young leadership.

KEY STRATEGIES

• Deepen and penetrate its existing customer relationships.
• Increase its production and enhance its product portfolio.
• Continue to invest in its marketing and brand-building initiatives.
• Strengthen its Inventory Management practices.

KEY CONCERNS

• The Company requires a significant amount of working capital for continued growth.
• It does not currently have exclusive or fixed supply arrangements with any of its suppliers of gold. The Company does not have any formal arrangement with its in-house artisans.
• Its manufacturing facility and showroom are located only in Ahmedabad, Gujarat.
• It derives a significant portion of its revenue from operations from its top 10 customers.
• The business may be subject to fluctuations in prices or any unavailability of gold that it use in its products.
• High Competition.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

RBZ Jewellers manufactures and distributes gold jewelry, serving both wholesale and retail markets. The company's organized manufacturing infrastructure, geographical reach, and risk mitigation systems are promising strengths.

RBZ Jewellers has demonstrated consistent financial growth, reflected in its rising top- and bottom-line figures. However, potential investors should carefully consider key risks such as gold price volatility, significant dependence on a limited number of clients, the absence of formal arrangements with in-house artisans, and intense competition within the industry.

The IPO valuation of 13.4x P/E appears fair on the surface, but the aforementioned risks necessitate a cautious approach. We recommend this IPO only for high-risk investors.

Credo Brands Marketing Limited offers casual clothing for men with its flagship brand "Mufti". The company's product range consisted only of shirts, T-shirts and trousers. Today, however, the company offers a wide range of products including sweatshirts, jeans, cargos, chinos, jackets, blazers and sweaters. The company currently operates 1,773 retail outlets across India (as of May 31, 2023).

OBJECTS OF THE ISSUE

• The IPO is full of Offer for Sale.

KEY MANAGERIAL PERSONNEL

Kamal Khushlan

Chairman and Managing Director of the Company. He has been associated with the Company since its incorporation and has over 25 years of experience in the field of apparel retail.

Poonam Khushlani

Promoter and Whole-Time Director of the Company. Poonam Khushlani has been associated with the Company since its incorporation and is a co- founder of the Company. She has over 25 years of experience in the field of apparel retail.

Rasik Mittal

Chief Financial Officer of the Company. He was appointed as the first auditor of the Company on April 30, 1999. He was the statutory auditor of the Company from the year 2000 until the year 2009. He has also provided certification and advisory services until March 31, 2019.

Sanjay Kumar Mutha

Company Secretary and Compliance Officer of the Company. He previously worked with Mather & Platt Pumps Ltd., Mahindra and Mahindra Limited, CMI FPE Limited and Future Lifestyle Fashions Limited. He has been associated with the Company since January 16, 2023

Biswajeet Ghosa

Vice President of retail and business development of the Company. He has prior experience in working with various industries including textiles, telecom, and fashion. Prior to joining the Company, he was associated with organizations like The Arvind Mills Ltd, Levi Strauss Pvt. Ltd., Shoppers Stop Limited.

COMPANY PROFILE

• Credo Brands Marketing (CBMPL) is engaged in the marketing of men‘s fashion garments in the lifestyle category under the brand name `Mufti’.
• The company‘s product mix has evolved significantly since its inception from consisting of only shirts, t- shirts and trousers in the year 1998 to a wide range of products including sweatshirts, jeans, cargo, chinos, jackets, blazers and sweaters in relaxed holiday casuals, authentic daily casuals to urban casuals, party wear and also athleisure categories as on date.
• The company's reach extends from major metropolitan areas to Tier 3 cities. As of March 31, 2023, March 31, 2022, and March 31, 2021, the company is present in 582, 598 and 569 cities, respectively. The company currently operates 1,773 retail outlets across India (as of May 31, 2023). These include 379 exclusive brand stores (EBOs), 89 large format stores (LFSs) and 1,305 multi-brand stores (MBOs).

COMPETITIVE STRENGTHS

• Strong brand equity with presence across categories. Multi-channel pan-India distribution network.
• Strong in-house design competencies to deliver innovative and high-quality products with end-to- end tech-enabled supply chain capabilities.
• Scalable asset light model. Financially stable business model.

KEY STRATEGIES

• Expand the company’s domestic store network in existing and new cities.
• Deeper penetration to grow sales through online channels by capitalizing on the increasing e- commerce demand in Indian retail.
• Focused expansion of the product portfolio to become a men’s lifestyle brand.
• Leverage technology to improve supply-chain management and enhance customer experience.

KEY CONCERNS

• Company is unable to predict customer demands and maintain optimum inventory level there may be an adverse effect on our results of operations, financial condition, and cash flows.
• The company operates in highly competitive markets in each of the product segments in both offline and online channels and an inability to compete effectively may adversely affect the business.
• Negative reviews from customers may have an adverse impact on brand reputation and ability to market products.
• Business is subject to seasonality. Lower sales and revenue may adversely affect business, financial condition, and results of operations.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Under the brand name "Mufti," Credo Brands Marketing (CBMPL) is in the position of marketing men's fashion apparel in the lifestyle sector. The organization is present throughout India, including tier 3 cities as well as large metropolises.

Even though the company operates in a highly competitive market, its profits have grown significantly. The company had 1807 touchpoints operating in 591 cities.

The IPO is coming with a P/E of 23.22x which looks fairly priced when compared with the industry average. Therefore, we recommend considering this IPO for listing gains as well as for long-term.

DISCLAIMER:

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Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components. The company manufactures, designs and tests various products such as crankshafts, front axle carriers, steering knuckles, differential housings, transmission parts, pinion shafts, suspension products and valve bodies for different industries and customers.

OBJECTS OF THE ISSUE

• Purchase of equipment, plant and machinery.
• Prepayment of all or a portion of certain outstanding borrowings.

KEY MANAGERIAL PERSONNEL

Paritosh Kumar

Chairman and Managing Director of the Company. He has been associated with the Company since incorporation and accordingly has over 44 years of experience in the industrial sector. He is involved in the strategic decision making of the Company, oversees the Company’s business activities and is involved in setting up the governance standards of the Company.

Ashish Garg

Managing Director of the Company. He has approximately 17 years of experience in the industrial sector. He currently manages the Company’s business operations, financial performance, growth strategies and investments in different capacities and product developments.

Narinder Singh Juneja

Chief Executive Officer and Whole- time Director of the Company. He has over 35 years of experience in the industrial sector. Prior to joining our Company, he served as the assistant engineer with Krishna Forgings.

Pankaj Kumar Goyal

Chief Financial Officer of the Company. He has been associated with the Company since April 1, 2013. In the Company, he handles finance and accounts department. He has over 10 years of experience in the finance sector.

Bindu Garg

Company Secretary and Compliance Officer of the Company. She has been associated with the Company since November 2, 2021 and was appointed as the Company Secretary of the Company since July 12, 2022. In the Company, she handles the secretarial functions. She has over 18 years of experience in the finance and secretarial sector.

COMPANY PROFILE

• The company's customer base includes AAM India Manufacturing Corporation Private Limited, Ashok Leyland Limited, Bonfiglioli Transmissions Private Limited, Dana India, IBCC Industries (India) Private Limited, International Tractors Limited, JCB India Limited, Liebherr CMCtec India Private Limited, Mahindra & Mahindra Limited, Meritor HVS AB, Meritor Heavy Vehicle Systems Cameri SPA, SML ISUZU Limited, Swaraj Engines Limited and others.
• With over 40 years of experience of manufacturing and supplying quality and complex components according to customers' specifications, it has emerged as a leading player in the domestic crank shaft manufacturing industry with the second largest production capacity.
• The company has served customers in various regions including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom and the United States of America.
• Happy Forging Limited has three manufacturing facilities, two in Kanganwal and one in Dugri, all located in Ludhiana, Punjab. As of FY2023, the operational revenue of the company has increased by 43.02%.

COMPETITIVE STRENGTHS

• Fourth largest engineering-led manufacturer of complex and safety-critical, heavy forged, and high precision machined components in India.
• Integrated manufacturing operations coupled with in-house product and process design capabilities. Diversified business model, well placed to take advantage of potential alternative engine technologies. Long-standing relationships with customers across industries.
• Track record of consistently building capabilities and infrastructure, with a focus on capital efficiency.
• Experienced Promoters and senior management team.

KEY STRATEGIES

• Leverage in-house engineering and product development capabilities.
• Foray into light weight forging and machining with the introduction of aluminum components. Increase the wallet share and acquire new business.
• Capitalize on increasing demand from international markets to grow exports. Expand capacity at its existing manufacturing facilities.

KEY CONCERNS

• Its business largely depends upon its top 10 customers.
• The company does not have agreements having commitment on the part of its customers. It depends on a few suppliers for the supply of steel, its primary raw material.
• Its business is dependent on the performance of certain industries, particularly commercial vehicles. It faces competition in India and overseas in its business.
• Due to the geographic concentration of its manufacturing facilities, its operations are susceptible to local and regional factors.
• Pricing pressure from its customers may adversely affect its business.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Happy Forging is a well-experienced and fourth-largest manufacturer of complex machine components. The company shares along-standing relationship with its large customer base. It has a diversified business model and a track record of consistent growth. The financial performance of the company has also been strong. Further, it has plans for capacity expansion and new business acquisitions.

However, investors should remain mindful of certain business dependencies. Reliance on the top 10 customers, potential pricing pressure from clients, and competition within the industry introduce some risks. Dependence on a limited number of suppliers also merits consideration.

Despite these considerations, Happy Forgings' attractive valuation of 36.44x P/E, coupled with its impressive track record and promising outlook, makes it a worthy investment option for investors seeking exposure to the manufacturing sector.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Suraj Estate Developers Limited is a real estate construction company. The company develops residential and commercial real estate in the South Central Mumbai region. The company's projects include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavan(Phase-I up to 6th floor) and Tranquil Bay-I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and Tranquil Bay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-I and Gloriosa Apartments and others.

OBJECTS OF THE ISSUE

• Repayment of the aggregate outstanding borrowings.

• Acquisition of land or land development rights.

KEY MANAGERIAL PERSONNEL

Rajan Meenatha konil Thomas

Chairperson and Managing Director of the Company. He has been associated with Company since its incorporation. He has received Lifetime Achievment Award from ET Now in the year 2022. He has over 36 years of experience in various aspects of real estate business.

Rahul Rajan Jesu Thomas

He holds a bachelor’s degree in Commerce from the University of Mumbai and corporate finance certificate from Harvard University. He has received 40 under 40 award from Realty+ in the year 2022. He has over 16 years of experience in various aspects of real estate business.

Shreepal Shah

Chief Financial Officer ofCompany. He holds a bachelor’s degree in Engineering from University of Mumbai and a master’s degree in Business Administration from University of Pune. Prior to joining Company, he was working with P.Raj & Co., Chartered Accountants providing business and finance advisory.

Shivil Kapoor

Company Secretary of the Company. He holds a bachelor’s degree in Commerce from Devi Ahilya Vishwavidyalya, Indore, bachelor’s degree in Law from Devi Ahilya Vishwavidyalaya , Indore and is a member of the Institute of Company Secretaries of India.

Dipen Sheth

Vice President - Sales of the Company. He holds a bachelor’s degree in Commerce from University of Mumbai. Prior to joining Company, he was associated with Kanakia Spaces Private Limited and Oasis Lifespaces Private Limited.

COMPANY PROFILE

• Suraj Estate has developed more than 10lakh square feet of land in Mumbai.

• In the residential portfolio, Suraj Estate is present in the "Value Luxury' and "Luxury' segments invariouspricecategorieswithunitvaluesrangingfromRs.10.00milliontoRs.130.00million.

• The company focuses primarily on value luxury, luxury segments , and commercial segments. SEDL is now venturing into residential real estate development in the Bandra sub-market.

• The company's projects include Suraj Eleganza-II and ICICI Apartments, CCIL Bhavanand Tranquil Bay- I, Elizabeth Apartment and Mon Desir, St. Anthony Apartments, Lumiere and TranquilBay-II, Brahmsidhhi CHS, Jacob Apartments, Suraj Eleganza-Iand Gloriosa Apartments and others.

COMPETITIVE STRENGTHS

• Established brand with along-standing presence in Value Luxury Segment and Luxury Segment in the residential real estate market of South Central Mumbai region
• Diversified portfolio encompassing product offerings across various price points in value luxury and luxury segments.
• Strong expertise in tenant settlement in redevelopment projects Experienced promoters and management team.

KEY STRATEGIES

• Enhance leading market position in the South Central Mumbai region by leveraging Upcoming Projects
• Continue to focus on redevelopment projects through asset - lightmodel
• Continue to expand Land Reserves in the South Central Mumbai region and opportunistically build a position in other sub-markets within the MMR region.
• Continue to selectively develop Commercial Projects in the South Central Mumbai region.

KEY CONCERNS

• Business is dependent on the performance of, and the conditions affecting, the real estate sub- markets in the South-Central Mumbai region.
• Any uncertainty in the title to real estate assets could have a material adverse impact on current and future revenue.
• The industry in which the company operates is competitive and highly fragmented resulting in increased competition that may adversely affect results.
• Any negative cash flows in the future would adversely affect cash flow requirements.

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‍COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Since 1986, SEDL has been a real estate developer in the South Central Mumbai area, working on projects in both the residential and commercial sectors.The residential portfolio of SEDL is situated in the sub-markets of Mahim, Dadar, Prabhadevi, and Parel, which are part of the South Central Mumbai micro market. It has shown consistent growth over the stated periods, and the manage mentis optimistic that this trend will continue.

With extensive market knowledge ,SED Lisa market leader in the combined South-Central Mumbai submarkets; yet, the company must contend with competition from a range of national and regional real estate developers.

The IPO is coming at a P/E of 35.64 which looks fairly priced so we recommend applying for this IPO for listing gains.

‍DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Motisons Jewellers Limited is a Jewellery retail player with a history of more than 2 decades in the jewellery industry. It has experienced entrepreneurs as its Promoters with over 20 years of experience. Its jewelry business includes selling jewellery made of gold, diamond, kundan, and other jewellery products that include pearl, silver, platinum, precious, semi-precious stones, and other metals. Its other offerings include gold and silver coins, utensils, and other artifacts.

OBJECTS OF THE ISSUE

• Funding the working capital requirements of the Company.
• General corporate purposes.

Sandeep Chhabra                          

Promoter, Chairman and Whole Time Director of the Company. He has been associated with the company since 1997. He has more than two decades of experience in the business of manufacturing and retailing of jewellery. He mentors, guides and provides perspective to the Board and management of the Company for strategic planning and enriching the brand for long run.

Sanjay Chhabra

Promoter and Managing Director of the Company. He has been associated with the company since 1997. He has an experience of more than two decades in jewellery industry. Being a part of the top management, Mr. Sanjay Chhabra is responsible for devising long-term business plans, new business initiatives and achieving customer service excellence.

Laksh Chhabra

Joint Managing Director of the Company. He has joined the Company in 2022. He has entered into the business with innovation driven vision and is currently responsible for finance and accounting operations.

Kaustubh Chhabra

Chief Financial Officer of the Company. He holds bachelor’s degree in administration from Kalinga University, Raipur. He has the experience of 5 years. Prior to joining this Company, he has worked as Director of Finance in Khyati Gems DMCC, Dubai. He joined the Company in July 2022.

Naresh Kumar Sharma

Company Secretary and Compliance Officer of the Company. He joined the Company as the Company Secretary and Compliance Officer in September 2023. He has 18 years of experience in secretarial sector. He is responsible for undertaking various functions in the Company including ensuring conformity with the regulatory provisions applicable to the Company.

COMPANY PROFILE

• The Company started its jewellery business in 1997 with a single showroom in Jaipur, Rajasthan and since then, it expanded its network of showrooms and the product portfolio and currently operates 4 showrooms under the “Motisons” brand, located across the city of Jaipur, Rajasthan.
• In addition to selling products at showrooms, it also sells its products through online platform. The Company primarily source finished jewellery from third-party suppliers located across India. Additionally, to cater to the increasing demand in the market, it also engage artisans on job work basis and has its own manufacturing facilities located in Jaipur, Rajasthan.
• Its product profile includes traditional, contemporary, and combination designs across jewellery lines.
• It  has a dedicated design team, focused on developing new products and designs that meet customers’
• requirements.

COMPETITIVE STRENGTHS

• Established brand name with heritage and a legacy of over two decades. Strategic location of showrooms.
• Diversified product portfolio.
• Established systems and procedures to mitigate risks and efficiencies in inventory management. Promoters with strong leadership and a demonstrated track record.

KEY CONCERNS

• The Company is heavily dependent on third parties for supplying its products. All its four showrooms are in one geography namely Jaipur, and Rajasthan.
• It operates in a highly competitive market. Its competitors include both organized pan-India
• Jewellers as well as unorganized local players.
• Any customer complaints or negative publicity or concerns about the purity and quality of its products may have an adverse effect on its business.
• Under-utilization of manufacturing capacity may have a negative impact on the future financial condition of the Company.
• Its income and sales are subject to seasonal fluctuations.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Motisons Limited, a well-established brand exceeding 20 years in the jewelry industry with strategically located showrooms in Jaipur, Rajasthan, The company has a diversified product portfolio and has demonstrated a strong track record of growth.

Motison's commitment to retail network expansion and technology integration further strengthens its growth prospects. However, the highly competitive landscape and dependence on third-party suppliers present key challenges. Additionally, the company is susceptible to negative publicity and seasonal demand fluctuations.

Despite these considerations, the IPO's attractive valuation of 16x P/E offers a degree of risk mitigation. Considering Motisons' strong brand, proven track record, and growth plans, alongside

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for

information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. :  NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Honasa Consumer is the largest digital-first beauty and personal care ("BPC") company in India in terms of revenue. The Company has its flagship brand Mama earth. Along with that the Company has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth's, and has built a 'House of Brands' architecture.

OBJECTS OF THE ISSUE

• Advertisement expenses towards enhancing brand awareness.

• Capital expenditure to be incurred by the Company for setting up new EBOs.

• Investment in the company's Subsidiary, Blunt for setting up new salons.

‍KEY MANAGERIAL PERSONNEL
‍

Varun Alagh

Chairman, Whole-time Director and the Chief Executive Officer of the Company. He has been associated with the Company as a promoter and a director since September 16, 2016. Previously, he has worked with corporations such as Hindustan Lever Limited, Diageo India Private Limited for over a year and Coca-Cola India Private Limited.

Ghazal Alagh

She is a Whole-time Director and the Chief Innovation Officer of the Company. She holds a bachelor’s degree of computer applications from Panjab University, Chandigarh and a certification in software engineering from the academic council of the NIIT Academy, New Delhi. She has been associated with the Company as a promoter and director since September 16, 2016.

Raman Preet Sohi

Chief Financial Officer of the Company. He is responsible for establishing and executing the financial strategy of the Company. He joined the Company on April 27, 2020. Previously, he worked with Drums Food International Private Limited as the chief financial officer for a period of over a year.

Dhanraj Dagar

Company Secretary and the compliance officer of the Company. He joined the Company on May 11, 2022. He holds a bachelor’s degree of commerce from Bangalore University and a bachelor’s degree of law from Maneklal Nanavati Law College, Gujrat University. He was also admitted as an associate member of the Institute of Companies Secretaries of India.

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COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

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FINANCIALS (RESTATED CONSOLIDATED)

COMPANY PROFILE

Honasa’s portfolio of brands with differentiated value propositions includes products in the baby care, face care, body care, hair care, color cosmetics, and fragrances segments.

The Company's success with Mama earth and its ability to identify and cater to emerging trends has enabled it to develop repeatable brand-building playbooks that have helped in G scaling its newer brands at a fast pace.

It has a dedicated in house innovation team, consisting of 47 members, that drives end-to-end ideation and execution of new product launches.

For manufacturing, it has set up an asset-light contract manufacturing model that gives it the benefit of economies of scale at small batch sizes while also providing the flexibility to scale up production as needed.

The Company makes its products available to its customers through omni channel distribution networks across both online and offline touch points.
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COMPETITIVE STRENGTHS

Brand-building capabilities and repeatable playbooks. Consumer-centric product innovation.

Digital-first omni channel distribution. Data-driven contextualized marketing.

Ability to manufacture a diverse range of products and maintain optimal inventory levels. Founder-led company with strong professional management.

KEY STRATEGIES

Expand distribution and brand awareness. Incubate or acquire new engines of growth. Strengthen business efficiency drivers.

KEY CONCERNS

The company does not manufacture any of its products and relies entirely on third-party.

It has recorded losses in the past. Any losses in the future may adversely impact its business. The Company does not hold any patents over its product formulae and has not made any applications in this respect.

It faces intense competition which may lead to a reduction in its market share.

Subsidiaries that it has acquired in the past, have incurred losses for certain historical periods. The company incurs significant advertising expenses.

The company’s majority revenue comes from the sale of products under its flagship Mama earth brand.

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OUTLOOK & VALUATION

Honasa Consumer is a new-age company that is well-known for its flagship brand, Mama earth. The company offers a diverse range of products under its portfolio of six brands.The company has brand- building capabilities and it follows data-driven, context utalized marketing.

However the financial performance of the company has been inconsistent, and it has reported losses in recent fiscals. Subsidiaries that it has acquired have also incurred losses. Additionally, the company does not manufacture its products and relies on third parties for that, and it also does not hold any patents over its product formulas.

The business' return on advertising has also been consistent for a few years, i.e., 2.5%, thus the company's client retention is very low. As it is a loss-making company, we cannot derive its actual P/E, but even after considering its outflow in the latest investment, the company is coming at an extremely high valuation. Thus, I will suggest to Avoid this IPO.

 DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

IRM Energy Limited is a gas distribution company. The company is involved in developing, operating, and expanding of local natural gas distribution network. IRM Energy is a value-driven energy enterprise serving industrial, commercial, domestic, and automobile customers.

OBJECTS OF THE ISSUE

• Funding capital expenditure requirements for the development of the City Gas Distribution network.
• Repayment of all or a portion of certain outstanding borrowings availed by the Company.

KEY MANAGERIAL PERSONNEL

Maheswar Sahu

He is a Non-Executive Director of the Company and the Chairman of the Board of Directors of company. He had active involvement in handling various portfolios in Government including PSU management.

Karan Kausha

He is Chief Executive Officer (CEO) of the Company on July 13, 2020. He has been associated with the Company since September 5, 2016. He has 16 years of experience in the field of General Management, Strategy, Business Development and Project Management.

Harshal Anjaria

Harshal Anjaria was appointed as the Chief Financial Officer (CFO) of the Company on July 13, 2017. He has been associated with the Company since July 11, 2016. He has been associated with the Company since July 11, 2016.

Shikha Jain

Shikha Jain was appointed as the Company Secretary and Compliance Officer of the Company on January 4, 2020 and November 7, 2022, respectively. She has been associated with the Company since September 2, 2019. She has over 5 years of experience in corporate secretarial and other related compliances.

COMPANY PROFILE

• Company develop natural gas distribution projects in the geographical areas (“GAs”) for industrial, commercial, domestic and automobile customers.
• The company has marked its presence in Banaskantha District in the state of Gujarat, Fatehgarh Sahib in the state of Punjab, and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat.
• The company is fulfilling the natural gas requirements of 48172 domestic clients, 179 industrial units, and 248 commercial clients.
• As of September 2022, the company has 216 CNG gas stations across its operating geographical areas.
• The company has received an award of City Gas Distribution- Growing Company of the Year 2020 from the Federation of Indian Petroleum Industries.
• Company supply natural gas to two primary set of customer segments that are CNG and PNG.

COMPETITIVE STRENGTHS

• Exclusivity in CNG and PNG supply in the awarded geographical areas.
• Diverse customer portfolio and distribution network of CNG and PNG.
• Strong parentage, experienced board and management team and strong execution team.
• Technology adoption and digital initiatives for efficient and optimal operations.
• Connectivity to gas pipelines and establishing cost-effective gas sourcing arrangements.
• Strong financial performance with consistent growth and profitability supported by healthy operating efficiency and favourable regulations.

KEY STRATEGIES

• Expand company’s presence in existing and newer geographical areas through an improved captive distribution channel.
• Infrastructure roll-out for development and operation of the new licensed geographical areas of Namakkal & Tiruchirappalli, Tamil Nadu.
• Technology adoption to increase operational efficiency and enhance customer value.
• Business integration for transition into a complete energy solution provider.

KEY CONCERNS

• Transporting natural gas is hazardous and could result in accidents, which could adversely affect the company’s reputation, business, financial condition, results of operations, and cash flows.
• The Company typically requires 15-18 months to generate revenue in its geographical areas. Any further delay in realizing revenue may affect projections, results of operations, and cash flows.
• Its operations are restricted to defined geographical boundaries and the natural gas requirements in these regions may be affected by various factors.
• Companies require various licenses and approvals for undertaking their businesses.
• The company is heavily reliant on CNG and industrial PNG supply operations and any decrease in the sales may have an adverse effect on the business.
• The company is dependent on Government policies for the allocation of natural gas and the cost of gas supplied for CNG and domestic PNG customers.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

IRM has showcased consistent development of its gas distribution business in its key GAs. The company has a diverse customer portfolio and distribution network of CNG and PNG and a strong relationship with its customers. It has also reported strong financial performance in the last few years, except in FY23, when profit was impacted by a rise in gas prices due to geopolitical situations.

The company is still in the early stages of growth and may be impacted by unforeseen factors and other risks like limited geographic reach, government policies, delayed revenue generation, etc.

The issue is coming at a P/E valuation of 24.12x, which appears fairly priced. Thus, considering all these factors and the positive growth outlook, we will recommend a Subscribe rating to this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Plaza Wires Limited is engaged in the business of manufacturing and selling wires, and selling and marketing LT aluminum cables and fastmoving electrical goods (“FMEG”) under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”. Its product mix comprises different type of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgear, PVC insulated electrical tape, and PVC conduit pipe & and accessories.

OBJECTS OF THE ISSUE

• Funding capital expenditure requirements of the Company. Funding the working capital requirements of the company.
• General corporate purposes.

Mr. Sanjay Gupta

Managing Director and one of the Promoters of the Company. He has been on the Board of Directors of the Company since March 12, 2008 and was appointed as the Managing Director and Chairman of the Company since March 10, 2022. He possesses approximately 26 years of experience in the electrical industry.

Mrs. Sonia Gupta

Whole-time Director and one of the Promoters of the Company. She has been on the Board of Director of the Company since March 21, 2008. She has approximately 26 years of work experience in the electrical industry. She has been instrumental in planning and formulating the overall business and commercial strategy and managing the financial planning of the Company.

Mr. Ajay Kumar Batla

Chief Financial Officer of the Company. He joined the Company on April 1, 2009. He has been appointed as CFO of the Company with effect from March 10, 2022. He participates in the key decisions of the Company and inter-alia develops financial and tax strategies and monitors budgeting of the Company.

Ms. Bhavika Kapil

Company Secretary and Compliance Officer of the Company. She was appointed as the Company Secretary and Compliance Officer of the Company with effect from March 10, 2022. She is responsible for handling secretarial compliances in the Company. She has a work experience of approximately 3.5 years as she was appointed in Fiscal 2022.

COMPANY PROFILE

• Plaza Wires Limited’s key products in the wires and cables segment include house wires, single & and multicore round flexible industrial cables, and industrial cables for submersible pumps & and motors up to 1.1kv grade.
• The company also provides other wires and cable products such as LT power control cables, TV dish antenna co-axial cables, telephone & and switchboard industrial cables, computer & LAN networking cables, close circuit television cables and solar cables, PVC insulated tape, and PVC conduit pipe & accessories, through third-party manufacturers.
• The Company sells its products through a variety of distribution channels depending on the geography and industry norms and trends. Its business model includes 1) Its dealer & and distribution network. 2) Securing government tenders, and 3) Direct sales to infrastructure projects
• The existing Manufacturing Unit is located at Baddi, Himachal Pradesh with an installed production capacity of 12,00,000 coils per annum.

COMPETITIVE STRENGTHS

• Product portfolio focused on various customer segments and markets. Distribution network.
• Management and dedicated employee base. Strategically located Manufacturing Facility.

KEY STRATEGIES

• Setting up the Proposed Manufacturing Unit to widen its product portfolio and increase its capacity. Enhance its position in the Wires and Cables Industry.
• Expand its dealer network in existing markets and enter new geographical markets. Strengthen its brand value.
• To use technology to further optimize its sales & and marketing operations.

KEY CONCERNS

• Inadequate or interrupted supply and price fluctuation of its raw materials and packaging materials could adversely affect its business.
• The company requires significant amounts of working capital.
• Its existing and proposed manufacturing facilities are concentrated in a single region.
• The industry segments in which it operates are fragmented, and it face competition from large players.
• It relies on certain third-party manufacturers for manufacturing some of its products.
• Pricing pressure from dealers and distributors may affect its gross margins and ability to increase its prices.
• The Company does not have any long-term or definitive agreements with its dealers or customers.

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COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Plaza Wires operates in the wires and cables segment, and it also offers fast-moving electrical goods. The company is focused on various customer segments and has a large distribution network. Its financial performance has been stable.

However the company relies on certain third-party manufacturers for some of its products, and it also faces competition from large players in the industry. Also, it does not have any long-term contracts with its dealers and customers.

Though the IPO is coming at a fair P/E valuation of 21.95x, considering its small issue size, current market conditions, and other related risks, we will avoid this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.