Blue Water Logistics

• Blue Water Logistics is coming out with an initial public offering (IPO) of 30,00,000 equity shares in a price band Rs 132-135 per equity share.
• The issue will open on May 27, 2025 and will close on May 29, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 13.20 times of its face value on the lower side and 13.50 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Priya Bharat Dholu.

Profile of the company

Blue Water Logistics is engaged in the business of providing logistics and supply chain solutions to its customers. The company’s key services include freight forwarding, custom clearance and transportation handling services. It is a Multimodal Transport Operator registered under the Multimodal transportation of Goods Act 1993 to carry on the business of multimodal transportation.

The company operates from its registered office situated in the city of Hyderabad and through 5 branch offices situated in the city of Chennai, Delhi, Jaipur, Visakhapatnam and Thane, respectively. It majorly provides services to its customers who are engaged in imports and exports of different commodities. Over the years, it has served its customers in different industries including confectionary products, chemicals, crockery, natural stones, textile, electronics and fitness equipments.

In the course of its business operations, it arranges various goods transportation services, including arranging commercial vehicles, air freight space, rail transport, and, when necessary, warehouse/ custom freight station facilities for the storage and handling of goods. As of March 31, 2025, it owns 25 commercial vehicles used for diverse transportation purposes. Further, it also intends to purchase 20 commercial vehicles as one of the Objects of this Issue. Access to such large vehicle network enables it to scale its business as the demand increases and also cater to various business opportunities.

Proceed is being used for:

• Funding of capital expenditure requirements by purchase of Vehicles and its body building
• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the country's economic growth as it connects various elements of the economy and consists of transportation, warehousing and other supply chain solutions ranging from suppliers to end customers. The Department of Commerce set up a logistics division in July 2017 to oversee the integrated development of the sector. Led by the Special Secretary to the Government of India, the division aims to enhance the sector by devising action plans for policy reforms and process enhancements, addressing challenges, and embracing technology.

The industry is characterised by dynamism, undergoing rapid evolution to meet escalating demands. Technological advancements, infrastructure enhancements and governmental initiatives, including GST implementation and the National Logistics Policy (NLP), are precipitating substantial transformations within the sector. Digitalisation, augmented connectivity, and the adoption of cutting-edge innovations such as Radio Frequency Identification (RFID) and Global Positioning System (GPS) are bolstering operational efficiency while mitigating costs. Furthermore, the surge in ecommerce activities and international trade is propelling demand for streamlined logistics solutions.

The Indian logistics sector stands as one of the world's largest and plays a crucial role in driving economic growth. Following a 2% contraction in FY21, the market experienced a robust post-COVID recovery in FY22, witnessing a remarkable 14% growth and reaching a value of $435 billion. As per the projections from EY, a leading global consulting firm, the logistics market in India is poised to expand further, reaching $591 billion by FY27. The report further states that in FY22, organised players represented only 5.5-6% of the logistics market segments, encompassing road transportation, warehousing, and supply chain services. However, organised players are anticipated to exhibit a notable CAGR of approximately 32% between 2022 and 2027. Consequently, their market share is expected to reach 12-15% by FY27. This transformation is expected to be led by organised players’ capacity to provide integrated services, leverage network- and scale-driven efficiencies, and make substantial investments in technology and engineering. These efforts are projected to promote their market competitiveness and capture a larger share of customer business. 

Pros and strengths

Well established relationship with clients: The company through regular communication and flexible logistics solutions, has a client base who provide it repeated business for their different logistics needs. The revenue generated from such repeated customers as a percentage of total revenue from operations for the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023, respectively are 85.48%, 93.27% and 91.66% of the total revenue from operations. This relationship with clients has been important for it to sustain competition in the industry. By regularly meeting with its clients, it gains a deep understanding of their requirements and provides tailored solutions, whether through multimodal transport or other efficient methods. Its priority is to ensure that goods reach their destinations on time and in optimal condition.

Wide customers’ portfolio across different industry verticals: As of March 31, 2025, the company has successfully served a diverse range of customers spanning across various industries, including chemicals, confectionery, crockery, pharma, paper, automobile, textile, electronics, fitness equipment and agricultural products. Each of these sectors presents unique challenges, and its ability to cater to such varied industries demonstrates its operational efficiency and versatility in addressing their specific logistics needs. Furthermore, during the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023, respectively, it has welcomed 211, 209 and 143 new customers and the revenue generated as a percentage of total revenue from operations from such customers accounted for 14.52%, 6.73% and 8.34% of its total revenue from operations.

Wide range of logistics services: As a multimodal transport operator, the company is equipped to offer a comprehensive range of logistics services, customized to meet the varied and evolving needs of its clients. Its service offerings encompass ocean freight forwarding, customs clearance, transportation, and other value-added services such as fumigation services, container handling services, all designed to optimize service levels, reduce operational costs, and enhance the quality of its clients' supply chains. With a robust logistics and transportation network, coupled with a diversified service portfolio, it is able to provide end-to-end solutions that ensure the seamless movement of goods across borders and regions. This integrated approach enables it to offer flexibility and efficiency, helping its clients navigate the complexities of their supply chains.

Risks and concerns 

Maximum revenue comes from ocean freight services: A significant portion of the company’s revenue is derived from its ocean freight services, which constitutes a substantial part of its operations. The company’s revenue from ocean freight services contributes 83.03%, 76.26% and 84.32% of its revenue from operations for the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023, respectively. As a result, any disruption in the uninterrupted operations of its ocean freight services could have a material adverse effect on its business, financial condition, results of operations, and future prospects.

Dependent on a few suppliers for purchases of product/service: The company’s top ten suppliers contribute 75.00%, 79.28%, and 83.00% of its total purchases from freight and other terminal handling charges for the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023, respectively, based on restated financial statements. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Depend on certain key customers for its revenues: The company depends on a limited number of customers, which exposes it to a high risk of customer concentration. Fluctuations in the performance of the industries in which certain of its customers operate may result in a loss of customers, a decrease in the volume of work it undertakes or the price at which it offers its services. Any decline in its quality standards, growing competition and any change in the demand for its services by these customers may adversely affect its ability to retain them. It cannot assure that it shall generate the same quantum of business, or any business at all, from these customers, and loss of business from one or more of them may adversely affect its revenues and profitability.

Outlook

Blue Water Logistics provides logistics and supply chain solutions. The company's primary services include freight forwarding, custom clearance and transportation handling services. The company has wide customer portfolio across different industry verticals. It also has a strong domestic and global network coverage. On the concern side, majority of the company’s revenue from operation is derived from its ocean freight services. Any disruption in the continuous operations of its services in ocean freight segment would have a material adverse effect on its business, results of operations and financial. Moreover, the company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect its business operations.

The company is coming out with a maiden IPO of 30,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 132-135 per equity share. The aggregate size of the offer is around Rs 39.60 crore to Rs 40.50 crore based on lower and upper price band respectively. On performance front, revenue from operations has increased by 41.47% from Rs 13,867.37 lakh in Fiscal 2024 to Rs 19,618.04 lakh in Fiscal 2025. For Fiscal 2025, the company reported a net profit of Rs 1,067.08 lakh as compared to Rs 594.05 lakh in Fiscal 2024. This increase was driven by the increase in the number of ocean trips in Fiscal 2025.

The company continues to focus on enhancing operational controls and cost efficiencies through optimal freight mix and cost management. To meet these objectives, it proposed to utilize part of the Net Proceeds amounting to Rs 1,051.73 lakh towards purchase of 20 commercial vehicles and its body building which will add to its own fleet of vehicles. Operating its owned vehicles enables it to reduce hiring and operational costs. In addition, availability of outsourced vehicles may be uncertain during periods of high demand. Its fleet of owned vehicles therefore allows it to reduce dependence on outsourced vehicles, improve its service quality and maintain its reputation for reliable and timely delivery of consignments. The company will also obtain all required national permits for the passage of such commercial vehicles.

Prostarm Info Systems 

• Prostarm Info Systems is coming out with a 100% book building; initial public offering (IPO) of 1,60,00,000 shares of Rs 10 each in a price band Rs 95-105 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on May 27, 2025 and will close on May 29, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.50 times on the higher side.
• Book running lead manager to the issue is Choice Capital Advisors.
• Compliance Officer for the issue is Sachin Gupta.

Profile of the company

Prostarm Info Systems is engaged in designing, manufacturing, assembling, sale, service and supply of Energy Storage Equipment and Power Conditioning Equipment (Power Solution Products) in India. Its manufactured Power Solution Products comprise of UPS system, inverter system, lift inverter system, solar hybrid inverter systems, lithium-ion battery packs, servo-controlled voltage stabilisers (SCVS), isolation transformers and other power solution products. It offers both customized and standard products and solutions, manufactured and assembled at its in-house facilities and also through third party contract manufacturers. In addition to its core manufactured products, it also deals in sale and supply of third party power solution products such as batteries, reverse logistics/end-of-life products and other assets such as IT Assets, solar panel and allied products.

The company also undertakes rooftop solar photovoltaic power plant projects across India on EPC basis. Its comprehensive range of value-added services include installation, rental, after-sales services (including warranty and post-warranty services), Annual Maintenance Contracts (AMC) which supplements its Power Solution Products, catering to a wide spectrum of customers and their requirements.

The company specializes in power electronics solutions, offering reliable and affordable products to businesses across various sectors and have built a reputation for delivering dependable UPS systems that ensure continuous power availability in critical sectors like banking, finance, and healthcare. Over the years, it has leveraged its expertise, processes and infrastructure to cater to diverse end-use industries such as healthcare, aviation, research, BFSI, railways, defense, security, education, renewable energy, information technology and oil & gas. As on date, the company is empaneled vendor for Airports Authority of India; West Bengal Public Health Engineering Department; West Bengal Electronic Industry Development Corporation Limited; Telangana State Technology Services Limited; Railtel Corporation of India Limited; and NTPC Vidyut Vyapar and Nigam Limited.

Proceed is being used for:

• Funding working capital requirements of the company
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
• Achieving inorganic growth through unidentified acquisitions and other strategic initiatives and General corporate purposes

Industry Overview

The Indian Lithium - Ion battery market in India was recorded at Rs 5,58,078 million in FY24 and grew at a CAGR of 7.66% between FY19 and FY24. Further, going ahead the market is expected to grow at a 19.67% till FY30. It is forecasted to reach Rs 16,39,090 million by FY30. The Indian Lithium-Ion Battery Market is growing rapidly, driven by the surging demand for energy storage solutions in various sectors, including automotive, consumer electronics, and renewable energy. The rising popularity of electric vehicles (EVs) is a major driver of market expansion, backed by government programs like the FAME scheme that promote the use of EVs and build infrastructure. Furthermore, the increasing presence of smartphones, laptops, and other portable devices in the consumer electronics industry is also driving the demand for these batteries.

Meanwhile, the power back-up systems market is growing due to the problem of power shortage in the country and with the technological advancements. The gap between the demand and supply of power in the country is increasing the demand for uninterrupted power supply by the industrial sectors. The UPS are used to prevent damage from power loss and common electric occurrences, prevention of loss of data, it prevents connectivity issues. It provides clean, continuous power and is used in various sectors like banking, power, manufacturing, transportation, retail, healthcare, and entertainment, etc. The difference between an inverter device and a UPS is that an inverter is a power backup device while the UPS provides backup as well as power conditioning. Since typically, UPS system provides surge suppressions and voltage regulations, it helps in power conditioning too. The integral part of the UPS is the battery bank since it acts as back-up power source that supports the UPS system. The most common battery system being used in the UPS is the Lead Acid battery system.

Furthermore, there is a growing market for rooftop solar installations, driven by lower installation expenses and favorable policies like net metering and accelerated depreciation. Opting for rooftop solar EPC services presents an opportunity to tap into the expansion within the residential, commercial, and industrial sectors. Additionally, the rise in urbanization and energy requirements in urban areas enhances the prospects for rooftop solar solutions. The need for clean energy solutions is also being driven by rising environmental consciousness and the need to cut carbon emissions. India's renewable energy strategy places a strong emphasis on solar power, which is becoming more and more popular in the commercial, industrial, and residential sectors. This is driving up market growth.

Pros and strengths

Diversified and continuously evolving and expanding product portfolio: The company has a diverse and continuously evolving product portfolio, product verticals and customer base. Further, it offers its customers multiple products to meet their power storage and power conditioning requirements. It has a diverse customer base comprising of government, project contractors, industrial and institutional clients, dealers and distributors, and cater to a range of industries including healthcare, aviation, research, BFSI, railways, defence, security, education, renewable energy, information technology and oil & gas.

Established relationships with customers and wide customer base: It has established and will continue to focus on strengthening its relationships with domestic customers across its product verticals. The varied applications of its products have helped it to build a wide customer base across various industries. Some of its marquee customers across the industries that it caters to, include certain PSU Banks, Larsen & Toubro Limited, Tata Power Co. Limited and Bajaj Finance Limited.

Wide geographical presence and distribution network: The company’s operations are supported by a network of 21 branch offices and 2 storage facilities across 18 states and 1 union territory within India. This infrastructure not only supports sales but also enables it to provide after-sales services, ensuring that its customers receive reliable and timely assistance for maintenance and operational needs. In addition to offering its products directly to government, institutional and corporate customers, it also relies on a strong network of dealers and distributors for sale of its products to institutional and corporate clients efficiently.

Consistent track record of financial performance leading to strong balance sheet position: The company’s commitment to continuous efficiency improvements, enhanced productivity and cost rationalization has allowed it to achieve consistent and strong financial performance. Its revenue from operations, EBITDA, and restated profit after tax have steadily increased from Fiscal 2022 to nine month period ended December 31, 2024. Specifically, its revenue from operations reached Rs 25,787.04 lakh in Fiscal 2024, Rs 23,036.32 lakh in Fiscal 2023, and Rs 17,130.73 lakh in Fiscal 2022, demonstrating a CAGR of 22.69% during this period. Further, revenue from operations during the nine month period ended December 31, 2024 amounted to Rs 26,862.66 lakh.

Risks and concerns

Maximum revenue comes from limited customers: The company has garnered 71.80%, 51.88%, 39.60% and 44.30% of its total revenue from top 10 customers for the nine-month period ended December 31, 2024 and for Fiscals 2024, 2023 and 2022, respectively. The loss of one or more key customers for any reason, such as an inability to negotiate acceptable purchase terms, contract renewals, disputes, adverse financial changes like bankruptcy, mergers, declining sales, delayed requirements, or work stoppages, could negatively impact its business, operations, and financial condition.

Heavily dependent on its suppliers: The company’s business operations are significantly dependent on third party suppliers at all stages of product development and sales. It relies on a network of third party domestic and international suppliers for supply of materials, components and products. Its purchase includes batteries, UPS, lithium-ion cells, electronic components and spares, wiring harness, plastic and metal parts, cabinets, process consumables and solar panels, etc. Its suppliers are majorly situated in India and China, and it procures its material on a purchase order basis. Such suppliers may not perform or be able to perform their obligations in a timely manner, or at all and any delay, shortage, interruption, reduction in the supply of or volatility in the prices of materials and components on which it relies may have a material adverse effect on its business, results of operations, financial condition, cash flows and future prospects.

Geographical constrain: The company is operating three manufacturing units out of which, two are situated in Pisoli, Pune, Maharashtra and one is situated in Mahape, Mumbai, Maharashtra. Given the geographic concentration of its manufacturing operations in one state i.e. Maharashtra, its operations are susceptible to disruptions which may be caused by certain local and regional factors, including but not limited to political, economic and weather conditions, natural disasters, demographic factors, and other unforeseen events and circumstances. If any such disruptions occur, its operations may be affected leading to significant delays in the manufacturing and sale of its products which could materially and adversely affect its business, financial condition and results of operations.

Limited operating history in manufacturing: The company has a limited operating history in manufacturing. Established in year 2008, it initially focused on the sale, supply, and installation of batteries and uninterruptible power supply systems sourced from third-party vendors. From the year 2021, it has gradually transitioned into full-scale design, manufacturing, and assembly of products such as UPS systems, lift inverters, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers, isolation transformers, and other power solutions. Its business and prospects must be evaluated in light of the risks and challenges associated with being a new entrant in manufacturing power solution products. These include its ability to develop and manufacture reliable products, deliver and service a large volume of orders, adapt to customer demands and feedback, respond to technological advancements and changes in the competitive landscape, and manage growth effectively and efficiently. Due to inadequate experience of handling a manufacturing facility, it may also not be able to carefully handle situations such as labour unrest and strikes, plant shutdowns, natural or man-made disasters, fire or epidemics.

Outlook

Prostarm Info Systems is an Indian company specialising in designing, manufacturing, and selling Energy Storage and Power Conditioning Equipment, known as Power Solution Products. The company has established relationships with the customers and wide customer base. It also has consistent track record of financial performance leading to strong balance sheet position. On the concern side, the company’s revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Moreover, the company is heavily dependent on its suppliers and any disruptions in the supply or an increase in prices of materials and components could adversely affect its operations.

The issue has been offering 1,60,00,000 shares in a price band of Rs 95-105 per equity share. The aggregate size of the offer is around Rs 152.00 crore to Rs 168.00 crore based on lower and upper price band respectively. Minimum application is to be made for 142 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations has grown by 11.94% to Rs 25,787.04 lakh for the Fiscal 2024, compared to Rs 23,036.32 lakh in Fiscal 2023. Moreover, the company reported a 17.85% increase in profit after tax, rising from Rs 1,934.55 lakh in the Fiscal 2023, to Rs 2,279.80 lakh for the Fiscal 2024.

The company plans to explore opportunities for investing in additional facilities and enhancing its production capabilities, including the design, customization, and integration of automation technologies into its processes. Optimizing its production will improve output and quality, increase economies of scale, lower supply chain logistics costs and reduce its time to market. This will ultimately boost its profitability and enable it to provide faster turnaround times for its clients. To support its growth and expansion, it continues to assess strategic investment opportunities in domestic markets, aiming to further increase its market share and diversify its product portfolio. Further, it will pursue acquisitions or partnerships that add value for its business, stakeholders, and customers. These growth opportunities may include acquisitions, joint ventures, and strategic alliances.

Aegis Vopak Terminals

• Aegis Vopak Terminals is coming out with a 100% book building; initial public offering (IPO) of 12,55,60,538 shares of Rs 10 each in a price band Rs 223-235 per equity share.
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on May 26, 2025 and will close on May 28, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 22.30 times of its face value on the lower side and 23.50 times on the higher side.
• Book running lead managers to the issue are ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India and HDFC Bank.
• Compliance Officer for the issue is Priyanka Sunil Vaidya.

Profile of the company

Aegis Vopak Terminals is the largest Indian third-party owner and operator of tank storage terminals for liquified petroleum gas (LPG) and liquid products in terms of storage capacity, as of December 31, 2024. It owns and operates a network of storage tank terminals having an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tons (MT) of static capacity for LPG as of December 31, 2024, and offer secure storage facilities and associated infrastructure for liquids such as petroleum, vegetable oil, lubricants, and various categories of chemicals and gases such as LPG (including propane and butane). It has the largest storage capacity in India’s LPG tank storage sector, contributing to approximately 11.50% of the total national static capacity, as of December 31, 2024. 

In terms of storage of liquid products, it is the largest third-party tank storage company in India, contributing to approximately 25.53% of India’s third-party liquid storage capacity as of December 31, 2024. As of December 31, 2024, the company has a diversified network of terminals spread strategically across five key ports in operation on the West and East coast of India. These key ports together handle approximately 23.00% of liquid and 61.00% of total LPG import volumes in India. At these terminals, it owns and operates facilities for different functions including product storage tanks, firefighting facilities, self-owned pipelines connected to jetty, ship loading and unloading infrastructure, as well as infrastructure for product evacuation by ship, rail, road and pipelines.

Proceed is being used for:

• Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company
• Funding capital expenditure towards contracted acquisition of the cryogenic LPG terminal at Mangalore
• General corporate purposes

Industry Overview

As per the usage-based classification, chemicals can be grouped into basic chemicals and petrochemicals and specialty chemicals. Basic chemicals and petrochemical intermediates are used to produce the finished products, which serve specific purposes. The finished products include polymers (synthetic fibres, synthetic rubbers, performance plastics) or other specialty chemicals (colorants, agrochemicals, surfactants, textile chemicals, construction chemicals and polymer additives). Specialty chemicals are a critical input for a range of industries and they are low in volume but high in value. Ocean transport through ships is the most prevalent and cost-effective mode of chemical movement. Other modes are ISO tank containers or general purpose (GP) containers. Liquid chemicals transported through chemical ships are typically stored in tank farms located at port terminals, before transporting to hinterland locations for respective end-user industries.

Meanwhile, Chemicals are classified into different types based on their flash points, which determine their flammability and the specific storage requirements for safe storage. A typical tank farm at port has a collection of different tank types capable of handling various liquids as per end user requirements. Specific treatments such as compressed air, nitrogen flushing, etc may be required before reuse of tanks. Tank farm terminals can be industrial terminals or those built by operators. 

Industrial terminals typically serve multiple plants at the same time under long-term contracts, where the customer provides land and terminals can be constructed on a build, hold and operate basis. These terminals offer customised storage infrastructure for multiple production units in a manufacturing cluster such as petrochemical crackers, chemical plants and refineries, which are connected to the industrial terminal through pipelines for inward and outward product flows. These terminals provide benefits of economy of scale, optimisation of operating expenses and reduction of risk footprint associated with storage and product logistics.

Pros and strengths

India’s largest third-party owner and operator of tank storage terminals for LPG and liquid products: It is the largest Indian third-party owner and operator of tank storage terminals for LPG and liquid products in terms of storage capacity, as of December 31, 2024. It has the largest storage capacity in India’s LPG tank storage sector, contributing to approximately 11.52% of the total national static capacity, as of December 31, 2024. In terms of storage of liquid products, it is the largest third-party tank storage company in India, contributing to approximately 25.53% of India’s third-party liquid storage capacity as of December 31, 2024.

Strategically located necklace of terminals across the Indian coast: As of December 31, 2024, the company has a diversified network of terminals spread strategically across five key ports in operation on the West and East coast of India. These key ports together, handle approximately 23.00% of liquid and 61.00% of total LPG import volumes in India, enabling efficient distribution and affording accessibility to its customers. Further, it owns and operates two LPG storage terminals across two Indian ports, and 18 liquid storage terminals across six Indian ports. The location of storage terminals at specific ports is a major differentiator in the terminalling business, and storage terminals at ports that are closer to major shipping routes enjoy a competitive advantage as shipping from those ports will help importers and exporters save cost. Its terminals are located at ports which create a unique ‘necklace of terminals’ that enables it to cater to storage requirements in different regions across India.

Relationships with diversified customer base: The company has been able to build relationships with a diverse range of customers, partially built on the foundation of its promoter, Aegis’, years of operations. Aegis has established long-standing relationships with several Indian and global customers in course of its operations of over five decades. Consequently, it has been able to inherit these long-standing relationships to develop its own customer base. Through its strategic locations, distinct from Aegis and complementing its offerings, it has been able to procure business from Aegis’ customers, who it continues to service. As of December 31, 2024, it has a diversified customer base of over 400 customers including major national OMCs.

Focus on sustainability and health and safety: The company is committed to ESG principles, and its business operations are guided by its aim of sustainably optimizing financial outcomes while protecting the environment and contributing to community development. Its promoters have outlined a 'sustainability vision' that it strives to implement consistently in course of its business and operations. To this effect, it has developed a comprehensive sustainability framework factoring in key principles of various national and international guidelines. Its focus on ESG is facilitated by its promoters' respective commitments towards ESG, for which they have been recognized and rated.

Risks and concerns

Maximum revenue comes from limited customers: The company derived 42.07%, 44.56%, 47.20% and 44.76% of its revenue from its top 10 customers in the last in Fiscal 2023 and 2024 and in the nine months ended December 31, 2023 and 2024, respectively. Any deterioration of their business, substantial reduction in their dealings with it or a loss of any of these customers could have an adverse effect on its business, results of operations, financial condition and cash flows.

Geographical constrain: The majority of its terminals are situated across the west coast of India. It generated 91.61%, 92.28%, 91.31% and 92.82% in Fiscal 2023 and 2024 and in the nine months ended December 31, 2023 and 2024, respectively. As it derives a substantial portion of its revenue from terminals located along the west coast of India, its operations at these terminals are susceptible to local and regional factors, such as weather conditions, natural disasters, government policies, political developments and other unforeseen events and circumstances. Other than disruption at its Kandla terminal in 2023 on account of the Biparjoy Cyclone, it has not faced any significant disruptions in its terminals located across the west coast of India in the past nine Fiscals, and the nine months ended December 31, 2024. Such disruptions in the future could adversely impact its business, financial condition, results of operations and cash flows.

Limited operating history: The company entered into business transfer agreements, each dated November 30, 2021, effective from May 20, 2022, with one of its Promoters, Aegis, to acquire its LPG and liquid storage business at Kandla, and liquid storage business at Pipavav, Mangalore and Haldia. In addition, the company entered into a business transfer agreement dated November 30, 2021, effective from May 20, 2022, with one of its Promoter Group entities, Aegis Gas LPG Private Limited, to acquire its LPG storage business at Pipavav. As such, it has only limited operating results to demonstrate its ability to operate its business on which a potential investor may rely to evaluate its business and prospects. As such, it is also subject to the business risks and uncertainties associated with any new business, including the risk that it will not achieve its operating objectives and business strategy.

Stiff competition: The industry continues to be highly competitive. In addition, it may encounter consolidation in the markets in which it operates. The company’s competitors may have longer operating histories, larger customer bases and greater financial, sales and marketing, manufacturing, technical and other capabilities than it does. These competitors may be able to adapt more quickly to changes in customer and/or regulatory requirements. Existing or new competitors may offer storage services that more effectively address its markets with enhanced features and functionality, greater levels of integration and at lower costs. It may not be able to continue to compete successfully against current or new competitors. If it fails to compete successfully, it may lose market share in its existing markets, which could have an adverse effect on its business, financial condition and results of operations.

Outlook

Aegis Vopak Terminals Limited (AVTL) is a company that owns and operates storage terminals for liquefied petroleum gas (LPG) and various liquid products. The company operates two LPG storage terminals and 16 liquid storage terminals located across five major ports in India. These terminals handle coastal shipping, imports, and exports. On the concern side, the company derived significant revenue from its top 10 customers and any deterioration of their business, substantial reduction in their dealings with it or a loss of any of these customers could have an adverse effect on its business, results of operations, financial condition and cash flows. Moreover, the majority of its terminals are situated across the west coast of India and any adverse developments affecting its operations in such region, could have an adverse impact on its business, financial condition, results of operations and cash flows.

The issue has been offering 12,55,60,538 shares in a price band of Rs 223-235 per equity share. The aggregate size of the offer is around Rs 2800.00 crore to Rs 2950.67 crore based on lower and upper price band respectively. Minimum application is to be made for 63 shares and in multiples thereon, thereafter. On performance front, revenue from operations increased by 58.99% to Rs 5,617.61 million in Fiscal 2024 from Rs 3,533.32 million in Fiscal 2023, as a result of an increase in revenue from the liquid and gas terminal divisions. Moreover, restated profit for the year was Rs 865.44 million in Fiscal 2024 compared to a loss of Rs 0.75 million in Fiscal 2023. 

Household segment and robust industrial consumption are expected to raise overall LPG demand to 36-37 MMTPA by Fiscal 2029, at a CAGR of 3-4%. The demand will largely be met through imports; as domestic supply is unlikely to keep pace with the projected demand. To cater to the storage infrastructure requirements for gas, the company has initiated construction in Fiscal 2023 of a greenfield LPG terminal at New Mangalore port in Karnataka with cryogenic static storage capacity of 82,000 MT. In addition, the company is expanding its presence in the Pipavav Terminal with an LPG cryogenic facility with a static storage capacity of 48,000 MT. These terminals are being designed to handle a maximum throughput of 6 MMTPA and 4 MMTPA, respectively.

Schloss Bangalore

• Schloss Bangalore is coming out with a 100% book building; initial public offering (IPO) of 8,47,45,762 shares of Rs 10 each in a price band Rs 413-435 per equity share.
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on May 26, 2025 and will close on May 28, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 41.30 times of its face value on the lower side and 43.50 times on the higher side.
• Book running lead managers to the issue are JM Financial, BofA Securities India, Morgan Stanley India Company, J.P. Morgan India, Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, IIFL Capital Services, ICICI Securities, Motilal Oswal Investment Advisors and SBI Capital Markets.
• Compliance Officer for the issue is Jyoti Maheshwari.

Profile of the company

Schloss Bangalore owns, operates, manages and develops luxury hotels and resorts under “The Leela” brand. The Leela brand was ranked as #1 among the world’s best hospitality brands in 2020 and 2021, and among the world’s top three hospitality brands in 2023 and 2024, by Travel + Leisure World’s Best Awards Surveys. In 1986, the Late Captain C.P. Krishnan Nair laid the foundation of The Leela brand, and it has since then focused on building a luxury brand specializing in Indian hospitality. The Leela brand and properties have won over 250 awards since January 2021, which demonstrates its contribution to India’s luxury hospitality landscape. Its mission is deeply rooted in the traditional Indian hospitality belief of “Atithi Devo Bhava” (Guest is God). Its goal is to offer its guests luxury experiences with premier accommodation, exclusivity and personalized service, inspired by the ethos of Indian hospitality. It aims to maintain its position as a world-class luxury hospitality brand.

The company’s Portfolio includes five owned hotels, seven hotels that are managed by it pursuant to hotel management agreements and one hotel which is owned and operated by a third-party owner under a franchise arrangement with it. The company has a strategic footprint across 10 key Indian business and leisure destinations, covering 80% of international air traffic and 59% of domestic air traffic in India in the Financial Year 2025. Further, its portfolio is present in all seven top business markets and three of the top five leisure markets of India, as of December 31, 2024. It accounts for nearly 18% of the total existing luxury keys across these markets that it is present in as of December 31, 2024.

The company’s Owned Portfolio includes five iconic hotels located in the top luxury hospitality destinations in India. Built at attractive locations, these hotels are designed as “modern palaces” and aim to blend traditional Indian architecture with contemporary world-class amenities and services. Its modern palace hotels in Bengaluru (Karnataka), Chennai (Tamil Nadu) and New Delhi (Delhi) are recognized hospitality landmarks and benefit from high barriers to entry. Its properties are a luxury ecosystem, comprising of luxurious accommodations, curated experiences, wellness programs and award-winning food and beverage (F&B) options.

Proceed is being used for:

• Repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings, interest accrued and prepayment penalties, as applicable, availed by: (a) The company; and(b) Certain of its wholly owned Subsidiaries and step-down subsidiaries, namely, Schloss Chanakya, Schloss Chennai, Schloss Udaipur and TPRPL, through investment in such Subsidiaries
• General corporate purposes

Industry Overview

India’s hospitality industry has an inventory of approximately 3.4 million keys as of March 31, 2024, of which the organized sector, which includes branded, aggregators, and quality independent hotels, represents only approximately 11% or approximately 375,000 keys. The organized hotel stock is further segmented into branded and independent hotels, of which branded hotels constitute approximately 45% of the keys, i.e., approximately 170,000 keys. The stock of luxury hospitality remains constrained - constituting only 17% of the branded hotel market i.e., approximately 29,000 keys. Hospitality in India is typically undertaken through Owner, Manager and Franchiser business models and any combinations of these. The business model of an Owner-Manager combines asset ownership and management and provides alignment with an optimal focus on asset level profitability, brand progression and management fee growth. The hospitality industry comprises luxury, premium (upper upscale and upscale), economy and midscale segments, which provide a wide range of offerings, services, and experiences.

Hotel operating structures are stratified into layers, each performing a key role. This specialization of focus can create greater efficiency in the operation of the overall asset. While property owners are largely focused on maximizing asset value and underlying profitability, operators/managers are generally incentivized to drive revenues with lesser focus on asset value growth. The business model of an owner-manager combines asset ownership and management and provides alignment with an optimal focus on asset level profitability, brand progression and management fee growth. The Leela is one of the few players with an owner-manager model and the only institutionally managed and owned pure-play luxury hospitality company in India.

Rising disposable income, widening demand-supply gap, shift in consumer preference towards premium experiences, and limited inventory of luxury hotels in India have driven ARR growth and occupancy for the luxury segment from Financial Year 2014-24. Further, supply in the luxury segment is expected to remain constrained due to high barriers to entry including limited availability of land, extensive regulation, restrictive zoning, high cost of capital and long gestation periods. As a result, a favorable demand-supply outlook is expected for the luxury hospitality segment in India, with total demand estimated to grow at a CAGR of 10.6% over Financial Year 2024 to Financial Year 2028 against supply growth of a CAGR of 5.9% over the same period.

Pros and strengths

Leading luxury hospitality brand with rich heritage and global appeal: With over 250 industry awards since January 2021, The Leela brand is associated with luxury and is established as a leading luxury hospitality brand in the world. Its properties are widely recognized for the superior quality of architecture, guest facilities and services, repeatedly earning top rankings among the world’s best hotels and travel experiences by recognized publications such as Travel + Leisure and Conde Nast Traveler. The Leela brand was ranked as #1 among the world’s best hotel brands in 2020 and 2021 and among the world’s top three best hotel brands in 2023 and 2024 by Travel + Leisure World’s Best Award Surveys, reflecting its brand’s strong global recognition.

Comprehensive luxury ecosystem resulting in diversified revenue sources: The hotels in its Portfolio have a comprehensive luxury ecosystem that caters to evolving customer preferences, by providing luxurious accommodation, curated experiences, and F&B venues offering award-winning dining experiences spanning multiple cuisines, award-winning wellness offerings and several other amenities. This ecosystem has enabled it to attract a diverse clientele spanning leisure travelers, business travelers and groups, while also diversifying its revenue base across non-room revenue sources such as F&B, MICE and banqueting venues. For the Financial Year 2025, it derived 56.96% of its room revenues from retail and leisure guests, 16.97% from corporate bookings and 25.45% from group bookings, demonstrating the strength of its diversified customer base.

Track record of driving operational efficiency by its active asset management approach: As owners and operators of properties, it drives operational efficiencies through its structured and disciplined approach to asset management, which has helped it to deliver superior EBITDA margins. It has also been able to increase its RevPAR for its Owned Portfolio from 1.2 times in the Financial Year 2019 to 1.4 times in the Financial Year 2025, as compared to the luxury hospitality segment in India.

Highly experienced, cycle-tested senior management team, guided by an experienced and distinguished board: The company is a professionally managed, institutionally backed company, committed to creating long-term shareholder value. It has a highly experienced management team with deep domain expertise that has helped drive operational excellence as demonstrated by the growth in key metrics such as RevPAR, TRevPAR, revenue from operations, EBITDA and the expansion of its Portfolio. Its leadership team comprising of three Key Managerial Personnel and seven members of its Senior Management team, who are responsible for its strategic direction, and are supported by 13 general managers and regional vice presidents, who oversee various aspects of its daily operations.

Risks and concerns

Maximum revenue comes from five hotels owned by the company: The company derived a significant portion of its total income for the past three Financial Years from its five owned hotels, namely The Leela Palace Bengaluru, The Leela Palace Chennai, The Leela Palace New Delhi, The Leela Palace Jaipur and The Leela Palace Udaipur. These hotels are directly owned and managed by the company. For the Financial Years 2025, 2024 and 2023, its direct ownership keys as a percentage of total keys across its overall portfolio was 34.45%, 35.96% and 35.96%, respectively. Any decrease in its revenues from these hotels, including due to increased competition and supply or reduction in demand in the markets in which these hotels operate, any other unfavorable state or local economic, policy or political developments, the occurrence of political elections or adverse weather conditions (including heatwaves) in these regions affecting the demand for its hotels, may have an adverse effect on its business, results of operations and financial condition.

Business is subject to seasonal and cyclical variations: The hospitality sector in India is subject to seasonal variations. The periods during which the hotels in its Portfolio experience higher revenues vary from property to property, depending principally on their location and the guests they serve. Its room rates and occupancies are generally higher during the second half of each Financial Year due to greater demand for domestic and international leisure travel during this period. Such seasonality can be expected to cause quarterly fluctuations in its operating and financial performance especially for leisure travel destinations such as Jaipur (Rajasthan) and Udaipur (Rajasthan). The timing of opening of new hotels and the timing of any hotel acquisitions or dispositions may cause a variation of revenue and earnings from quarter to quarter. Further, the hospitality sector is also subject to weekly variations. 

Significant proportion of room revenues comes from retail and leisure guests: As the company is a luxury hospitality company, it derives a significant proportion of its room revenues from retail and leisure guests. For the Financial Year 2025, it derived 57.0% of its room revenues from retail and leisure guests. Spending on hospitality by retail and leisure guests is of a discretionary nature. Any factors which lead to a reduction in such spending (which may include factors outside its control, such as macroeconomic factors) could adversely impact its business, financial condition and results of operations.

Inability to increase average occupancy levels at its Portfolio may impact financial condition: Average occupancy for its hotels is a measure of its revenue generation capabilities over a period of time. Average occupancy for its hotels may be affected by a variety of factors, including increased competition and supply or reduction in demand in the markets in which its hotels operate, unfavorable state or local economic, policy or political developments, the occurrence of political elections or adverse weather conditions (including heatwaves) in these regions. If the company is unable to improve its average occupancy across its Portfolio, it will hamper its ability to grow its revenue from operations and adversely affect its business, financial condition and results of operations. The company’s inability to increase average occupancy levels at its Portfolio (65.19% for Financial Year 2025, 63.05% for Financial Year 2024 and 61.06% for Financial Year 2023), may adversely affect its business, results of operations and financial condition.

Outlook

Schloss Bangalore is a luxury hospitality company operating under “The Leela” brand in India. It owns, operates, manages, and develops luxury hotels and resorts, offering premier accommodations and personalised services inspired by Indian hospitality. The owned portfolio comprises five landmark hotels with 1,216 keys across key business and leisure destinations: Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur. These hotels, renowned as modern palaces, blend traditional Indian architecture with contemporary luxury. On the concern side, a significant portion of its total income is derived from the five hotels owned by the company (aggregating to 93.46%, 93.77% and 91.13% of its total income for the Financial Year 2025, Financial Year 2024 and Financial Year 2023, respectively) and any adverse developments affecting such hotels or regions could have an adverse effect on its business, results of operations and financial condition.

The issue has been offering 8,47,45,762 shares in a price band of Rs 413-435 per equity share. The aggregate size of the offer is around Rs 3500.00 crore to Rs 3686.44 crore based on lower and upper price band respectively. Minimum application is to be made for 34 shares and in multiples thereon, thereafter. On performance front, revenue from operations increased by 11.02% to Rs 13,005.73 million for the Financial Year 2025 from R 11,714.53 million for the Financial Year 2024. Moreover, its restated profit was Rs 476.58 million for the Financial Year 2025 as compared to a net loss of Rs 21.27 million for the Financial Year 2024. 

The company’s primary strategic objective is to maintain its position as a leading luxury hospitality brand, resulting in sustainable growth and enhanced stakeholder value. To achieve this, it is focused on optimizing the operating performance of its existing properties through proactive asset management and strengthening its industry position through a focused portfolio expansion, both within India and internationally. It aims to capitalize on the strengths of its core management operations, strong brand reputation and service culture to create value for its stakeholders. It also looks to capitalize on opportunities to leverage its brand through complementary business extensions such as serviced residences, branded residential offerings and members-only clubs. It also seeks to pursue selective partnerships with and acquisitions of luxury hospitality companies that align with its Portfolio.

Unified Data- Tech Solutions

• Unified Data- Tech Solutions is coming out with an initial public offering (IPO) of 52,92,000 equity shares in a price band Rs 260-273 per equity share.
• The issue will open on May 22, 2025 and will close on May 26, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 26.00 times of its face value on the lower side and 27.30 times on the higher side.
• Book running lead manager to the issue is HEM Securities.
• Compliance Officer for the issue is Khadija Taher Raniwala.

Profile of the company

Unified Data - Tech Solutions is a technology company specializing in system integration. It provides comprehensive IT solutions, including data centre infrastructure, virtualization, data protection, networking, cybersecurity, secure application delivery etc. Its services cater to a wide range of industries, such as Banking, Finance, Insurance, Manufacturing, Pharmaceuticals, IT and IT enabled services etc. It collaborates closely with clients to develop, implement, and manage cost-effective, secure, and high performance IT solutions that meet their unique requirements, providing ongoing support to optimize their systems.

By focusing on quality delivery and customer satisfaction, it aims to be a trusted partner in delivering cutting-edge solutions that meet the diverse needs of its clientele. It procures products and services relative to Data Center Infrastructure, Virtualization and Private Cloud, Data Protection and Resiliency, Networking and Cybersecurity Solutions and Secure Application Delivery etc. The company is authorized partners of various original equipment manufacturers (OEMs) for distribution of IT products and services along with maintenance contracts and subscriptions etc.

The company’s products and services portfolio comprise of Servers, Storage Solutions, Networking equipment, Firewall and VPN Solutions, Intrusion Detection and Prevention Systems, Endpoint Security Solutions, Network Segmentation and access controls, Application Firewalls, Load Balancing, Application Monitoring and Performance Optimization, Secure Access Solutions, Backup and Restore Solutions, Disaster Recovery Planning, High Availability Solutions, Server Virtualization, Desktop Virtualization, Private Cloud Deployment, Management Tools, Hybrid Cloud Design and Implementation, Cloud Management Platforms. In addition to these product and services, it provides a comprehensive range of services including Technology Advisory Services, System Integration, Expert Technical Services and Operational Management Services among others. 

Proceed is being used for:

• The objects of the offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and the sale of Equity Shares by the Selling Shareholder in the Offer.

Industry Overview

India's IT & BPM sector fuels 7.5% of GDP, projected to hit 10% by 2025. India's IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country’s GDP. The IT industry added 2.9 lakh new jobs taking the industry’s workforce tally to 5.4 million people in FY23. Generative artificial intelligence (GenAI) could enhance productivity in India’s retail industry by 35-37% over the next five years. India's IT industry is likely to hit the $350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP), Infomerics Ratings said in a report. The Indian IT industry’s revenue touched $227 billion in FY22, a 15.5% YoY growth and was estimated to have touched $245 billion in FY23. Further, India is expected to have nine times more digitally skilled workers by 2025. This indicates that a total of 3.9 billion digital skill trainings are expected by 2025. India will need 30 million digitally skilled professionals by 2026.

The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth Rs 7,53,893 crore ($87.46 billion) between April 2000-September 2024. The sector ranked second in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT). Computer software and hardware make up 15.11% of the cumulative FDI equity inflows. This push towards cloud services has boosted hyper-scale data centre investments, with global investments estimated to exceed $200 billion annually by 2025. India is expected to gain a significant share in the global market, with the country's investment expected to hit $5 billion annually by 2025. India’s technology industry is on track to double its revenue to Rs 43,10,000 ($500 billion) by 2030.

Indian IT firms have delivery centres across the world. IT & BPM industry is well diversified across verticals such as BFSI, telecom and retail. Increasing strategic alliance between domestic and international players to deliver solutions across the globe. The Union Budget 2025-26 has sanctioned Rs 2,000 crore ($232 million) to accelerate AI adoption and infrastructure development. The Union Budget 2025-26 allocates Rs 500 crore ($58 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education. The government prioritizes cybersecurity, hyper-scale computing, AI, and blockchain. With data costs at Rs 10/GB ($0.12/GB), India ranks among the world's cheapest. The Ministry of Electronics and Information and Technology (MeitY) had approved 14 eligible applicants under the production linked incentive scheme (PLI) for IT hardware. 

Pros and strengths

Extensive and reliable delivery network: As the company is based in India and generates its revenue from India region. It has developed system to deliver goods and services as required and wherever the client requires the equipment to be installed across the nation. Over the years, it has delivered its products across the country as well as overseas.

Established relationships with suppliers: The company has established strategic partnerships with several major technology companies, commonly referred to as Original Equipment Manufacturers (OEMs). To facilitate these partnerships, it teams up with authorized OEM distributors, enabling it to become authorized resellers of their Information Technology products and services. These offerings empower organizations to enhance their operational efficiency while safeguarding their networks, data, and applications from emerging cyber threats. its robust partnerships allow it to provide a comprehensive suite of solutions across diverse industries, encompassing web security, data protection, virtualization, and cloud security. By directly collaborating with industry leaders, it is able to deliver cutting-edge tools to its clients, empowering them to secure their digital assets effectively.

Robust client relationships and diverse clientele: The company has started business from the year 2010, since, then company has made its mark by delivering quality products and services. The company has built enduring partnerships with its core customer accounts. Supporting the testament to its services, it has secured 62.29%, 79.40 %, 72.79 % and 62.49 % of the company's total business from top five customers for the period ended on February 28, 2025 and for the Financial Year ended on March 31, 2024, March 31, 2023 and March 31, 2022, which comes from these clients, who continue to rely on it for their IT needs.

Risks and concerns  

Maximum revenue comes from few customers: The substantial portion of the company’s revenue is significantly dependent on certain key customers. For instance, its top five customers for the period ended February 28, 2025 and financial years 2023-24, 2022-23 and 2021-22 accounted for 62.29%, 79.40%, 72.79% and 62.48% of its revenue from operations for the respective period/financial years. Moreover, its revenue from its top customer being one of the leading BFSI Institution constituted 32.69%, 41.29%, 38.88% and 23.27% of its revenue from operations for the period ended on February 28, 2025 and financial year ended at March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its key customers, acceptance of the provisional order, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Geographical constrain: The company generates its major turnover from the Western India, particularly from the state of Maharashtra. For the period ended on February 28, 2025 and financial years 2023-24, 2022-23 and 2021-22, it derived major portion of its revenue from the state of Maharashtra i.e. 68.12%, 52.51%, 71.80% and 54.88% of total revenue from operations, respectively. Any adverse developments affecting its operations in this region could have an adverse impact on its revenue and results of operations.

Dependent on few key suppliers for procurement of products and services: It procures products and services from various suppliers. For the period ended on February 28, 2025, financial years 2023-24, 2022-23 and 2021-22, purchases from its top five suppliers amounted to Rs. 14,177.47 lakh, Rs 20,466.48 lakh, Rs 7,555.82 lakh and Rs 6,172.64 lakh respectively, which represented 95.14%, 95.94%, 89.25% and 88.77% of its total products and services purchased, respectively, for the said period. It does not have any long-term supply contracts with these suppliers and therefore, it cannot assure that it shall always have a steady supply of products and services at prices favourable to it. 

Outlook

Unified Data- Tech Solutions is a Mumbai-based IT service provider specializing in delivering innovative and customized technology solutions. The company has proven track record of financial success. It also has seasoned leadership and skilled workforce. On the concern side, the company is dependent on a few customers for a major part of its revenues. Further, it does not have any long-term commitments from customers and any failure to continue its existing arrangements could adversely affect its business and results of operations. Moreover, the company is primarily dependent on few key suppliers for procurement of products and services. Any delay, interruption or reduction in the supply of products and services may adversely affect its business, results of operations, cash flows and financial conditions.

The company is coming out with a maiden IPO of 52,92,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 260-273 per equity share. The aggregate size of the offer is around Rs 137.59 crore to Rs 144.47 crore based on lower and upper price band respectively. On performance front, the revenue from operation of the company increased to Rs 26,037.87 lakh in FY24 as against Rs 11,048.66 lakh in the FY23 representing an increase of 135.67%. The main reason for the increase in revenue is due to increase in sale of products and services. Moreover, the company reported restated profit after tax for the financial year 2023-24 of Rs 2,512.59 lakh in comparison to Rs 1,040.09 lakh in the financial year 2022-23. The increase of 141.57% is due to increase in sale of products and services along with reported increase in other income.

The company has built strong, enduring relationships with its clients by deeply understanding their needs and tailoring innovative solutions to address their unique challenges. Its commitment to helping clients achieve greater efficiency and responsiveness has established it as a trusted partner capable of transforming complex business processes into streamlined, impactful systems. Leveraging its expertise in technology customization, it continues to deliver value-added services that empower its clients to succeed in an evolving business landscape. As it grows, the company is focusing on securing government and public sector projects, which offer significant opportunities for scalability and showcase its capability to deliver large-scale IT solutions. These projects allow it to demonstrate its technical proficiency, reliability, and ability to meet the demands of critical and impactful initiatives. 

Dar Credit and Capital

• Dar Credit and Capital is coming out with an initial public offering (IPO) of 42,76,000 equity shares in a price band Rs 57-60 per equity share.
• The issue will open on May 21, 2025 and will close on May 23, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 5.70 times of its face value on the lower side and 6.00 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance Officer for the issue is Priya Kumari.

Profile of the company

Dar Credit and Capital offers three primary types of financial products: (i) Personal Loans, (ii) Unsecured MSME Loans, and (iii) Secured MSME Loans. The company specializes in offering credit solutions to low-income individuals, particularly those in class-four (Group D) employment role such as cleaners, sweepers, and peons working in municipalities. The company also extends credit to small-scale shopkeepers and vendors, with a strong focus on empowering women entrepreneurs. With extensive experience in the financing and investment sector in India, the company has built a deep understanding of the market since its inception. In addition to its headquarters in Kolkata and regional office in Jaipur, it operates through its branch offices across West Bengal, Rajasthan, Bihar and Jharkhand also Camp Offices are set up in the States of Madhya Pradesh and Gujarat.

Over the past 30 years, the company has developed a profound understanding of the financial needs of underbanked and underserved customers. Throughout this journey, the company has not only gained insights into customer behaviour and requirements within this segment but have also implemented various initiatives to enhance the customer experience. These improvements have been driven by measures such as the adoption of digital sourcing and the digital disbursement of loans. 

In line with its vision, the company has been constantly upgrading its technology platforms. A significant proportion of its sourcing and collections across assets and liabilities are digitalized using mobile phones / tablets, with an emphasis on Straight Through Processing (STP) while incorporating fraud and regulatory checks. PAN validation, e-KYC, Credit Bureau Data checks supporting multiple bureaus, and checks are fully automated using a robust integration layer. 

Proceed is being used for:

• Augmenting the capital base of the company
• Meeting the general corporate purposes
• Meeting the issue expenses

Industry Overview

India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non- banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payment banks to be created recently, thereby adding to the type of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64% of the total assets held by the financial system. The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs).

As of March 2024, AUM managed by the mutual funds industry stood at Rs 53.40 lakh crore ($641.75 billion) Inflow in India's mutual fund schemes via systematic investment plans (SIP) from April 2023 to March 2024 stood at Rs 2 lakh crore ($24.04 billion). Equity mutual funds registered a net inflow of Rs 22.16 trillion ($294.15 billion) by end of December 2021. The net inflows were Rs 7,303.39 crore ($888 million) in December as compared to a 21-month low of Rs 2,258.35 crore (US$ 274.8 million) in November 2022. Another crucial component of India’s financial industry is the insurance industry. The insurance industry has been expanding at a fast pace. The total first-year premium of life insurance companies reached US$ 32.04 billion in FY23. In FY23 (until December 2022) non-life insurance sector premiums reached Rs 1.87 lakh crore ($22.5 billion).

India’s financial services industry has experienced huge growth in the past few years. This momentum is expected to continue. India’s private wealth management Industry shows huge potential. India is expected to have 16.57 lakh HNWIs in 2027. This will indeed lead India to be the fourth-largest private wealth market globally by 2028. India’s insurance market is also expected to reach $250 billion by 2025. This will further offer India an opportunity of $78 billion in additional life insurance premiums from 2020-30. 

Pros and strengths

Quick and efficient loan processing along with flexible lending practices: As an NBFC, the company is known for its streamlined processes and quick decision-making, which often leads to faster loan approvals and disbursements compared to banks. This agility is particularly beneficial for businesses needing quick access to working capital or individuals seeking immediate financing. The use of digital platforms and technology in the loan application process further enhances the efficiency of loan disbursement, reducing paperwork and turnaround time. The company has greater flexibility in its lending practices, allowing it to cater to a wider range of customer needs.

Strong underwriting process and risk management strategies: The company employs a strong underwriting process and robust risk management policies that are integral to its commitment to maintaining financial stability and safeguarding its clients’ interests. The underwriting process is meticulously designed to assess each applicant’s creditworthiness comprehensively, utilizing advanced analytics and data-driven insights to evaluate various risk factors effectively. This thorough evaluation not only helps it to make informed lending decisions but also ensures that it credit to individuals and businesses that demonstrate the capacity to meet their obligations. Coupled with this rigorous underwriting, its risk management strategies are tailored to identify, assess, and mitigate potential risks across its portfolio.

Strong understanding of local markets: The company has developed a profound understanding of local markets and regional economies, which empowers it to assess the financial needs of local businesses and individuals with greater accuracy and effectiveness. This localized expertise enables it to craft financial products that are not only tailored to meet the unique requirements of its customers but also resonate with their specific contexts and challenges. By maintaining strong relationships with its clients, it fosters trust and loyalty, which are essential for long-term partnerships.

Risks and concerns  

Geographical constrain: The company operates its business operations from its registered office in West Bengal. However, the company has its presence five more states in India. These states contribute to a substantial portion of its revenues for the period ended December 31, 2024 and year ended on March 31, 2024, 2023 & 2022. Any factors relating to political and geographical changes, growing competition and any change in demand may adversely affect its business. The company cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

Rating given by Care Ratings “CARE BBB-” is considered to have moderate degree of safety: Securities with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligation. Such security carries moderate credit risk. Further in future it may downgrade with rating if (i) it is unable to raise resources for growth in scale of operations. (ii) Significant decline in liquidity position due to impact on collection efficiency. (iii) Deterioration in asset quality with Gross NPA (180+ DPD) above 3.00% on sustained basis. (iv) Significant deterioration in its scale of operation with ROTA below 1% on sustained basis. Further, the company’s rating may get upgrade if it sustained growth in scale of operation and improvement in profitability with ROTA above 3.00% on sustained basis.

Credit monitoring and risk management policies may not be adequate to control its NPA: The company’s credit monitoring and risk management policies may not be properly designed or appropriately implemented. In addition, it may not be able to anticipate future macro-economic developments, which could lead to an increase in its NPAs. There are several factors beyond its control which may affect its ability to manage NPAs. These factors include developments in the Indian and global economy, domestic and global macroeconomic and political factors, changes in customer behaviors, their loan repayment capabilities and demographic patterns, government decisions, natural calamities, widespread diseases, changes in interest rates and changes in regulations, including with respect to regulations requiring it to lend to certain sectors identified by the RBI, or the Government of India. In addition, the expansion of its business may cause its NPAs to increase and the overall quality of its loan portfolio to deteriorate. If its NPAs increase or provisioning levels deteriorate, it could have an adverse effect on its financial condition and results of operations.

Outlook

Dar Credit and Capital is a Non-Banking Finance Company (NBFC) offering three primary types of financial products: (i) Personal Loans, (ii) Unsecured MSME Loans, and (iii) Secured MSME Loans. The company has quick and efficient loan processing along with flexible Lending Practices coupled with strong understanding of local markets. On the concern side, the company’s top two states contribute its major revenue for the period ended December 31, 2024 and year ended March 31, 2024, 2023, 2022. Any loss of business from one or more of these states may adversely affect its revenues and profitability. Moreover, Rating given by Care Ratings “CARE BBB-” is considered to have moderate degree of safety, therefore, in future it may give Challenges to the business.

The company is coming out with a maiden IPO of 42,76,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 57-60 per equity share. The aggregate size of the offer is around Rs 24.37 crore to Rs 25.66 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2024 was Rs 3,204.88 lakh against Rs 2,479.27 lakh for Fiscal year 2023, an increase of 29.27% in revenue from operations. This increase was due to increase of loan disbursement. Moreover, profit after tax for the Fiscal year 2024 was at Rs 396.83 lakh against profit after tax of Rs 293.00 lakh in fiscal year 2023, an increase of 35.34%.

Digital Transformation enable the company to enhance its operations, reach more customers, and offer a seamless experience to the loan processing. By adopting digital loan originating platform, it provides the borrowing process faster and more accessible. Advanced technologies like AI and machine learning allow its team to assess borrower creditworthiness accurately, even for individuals with limited credit histories, opening financial access to underserved segments. Automated processes such as digital KYC streamline customer onboarding and loan processing help it to expand its product offerings and reach. Together, these innovations position it as agile, customer-centric financial providers in a rapidly evolving market. The company is in the process of implementing a mobile application for the loan underwriting process by leveraging AI technology.

Belrise Industries

• Belrise Industries is coming out with a 100% book building; initial public offering (IPO) of 25,29,41,176 shares of Rs 5 each in a price band Rs 85-90 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on May 21, 2025 and will close on May 23, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 17.00 times of its face value on the lower side and 18.00 times on the higher side.
• Book running lead managers to the issue are Axis Capital, HSBC Securities and Capital Markets (India), Jefferies India and SBI Capital Markets.
• Compliance Officer for the issue is Manish Kumar.

Profile of the company

Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and agri-vehicles. Its product portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components and exhaust systems, among others. Its products are largely agnostic to vehicle powertrain types, reflecting its ability in catering to both electric vehicles and internal combustion engine vehicles, thus positioning it favorably to adapt to the growing electric vehicle market.

The company specializes in precision sheet metal pressing and fabrication (i.e., the process of joining sheet metal components to create unified structures for assembling vehicle subsystems and bodies), and it is one of the top three companies with a market share of 24% in the overall two-wheeler metal components segment in India as of March 31, 2024, in terms of revenue. As a large and well-established precision sheet metal pressing and fabrication company in India, it is well-positioned to capitalize on the growing two-wheeler, three-wheeler and four-wheeler markets in India and internationally.

Over the course of nearly three decades of operations, the company has expanded its operational capabilities to include precision sheet metal pressing and fabrication, the manufacturing of polymer components, the design and production of suspension systems, along with coating and painting services. Consequently, it has consistently increased the value and complexity of the components it supplies per vehicle. This strategic expansion is not only limited to its home state of Maharashtra but also extended to other Indian states where prospective customers establish their manufacturing facilities, with its facilities designed for future scalability. It has also implemented a ‘just-in-time’ inventory model that optimizes its inventory levels and enhances its ability to meet its OEM customers’ needs with agility.

Proceed is being used for:

• Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by its company
• General corporate purposes

Industry Overview

Auto component production (which includes sales to OEMs, exports and the replacement market) has increase at 8.7% CAGR to Rs 7,881 billion in fiscal 2024 from Rs 5,196 billion in fiscal 2019. While domestic sales are more volatile due to various factors such as regulations, fuel prices, economic cycles, etc. that impact short-term demand, exports and the aftermarket help buffer overall growth in auto component production from similar fluctuations. Auto component production revenue increased at 8.7% CAGR between fiscals 2019 and 2024, helped by the economic recovery, buoyant demand from the OEM and replacement markets as well as increase in exports. Domestic auto component production revenue is estimated to increase 9-11% in fiscal 2025.

Auto component market size is expected to grow at 9-11% CAGR between fiscals 2024 and 2029 to reach Rs 12,000-13,000 billion. This is more than the 9% CAGR during fiscals 2019 to 2024. Long-term growth will appear higher over a low base wherein the auto component industry witnessed a significant decline in the preceding two fiscals (fiscals 2020 and 2021). Demand from all segments has grown further post fiscal 2023. The auto component revenue is expected to increase 9-11% in fiscal 2025. The growth in FY25 will be aided by recovery in the economy (GDP growth of 6.4%), buoyant demand from OEM and replacement market. Auto component exports (accounting for 22% of the overall demand in FY24) are projected to record a 7-9% on year growth in fiscal 2025.

Growth this fiscal will be aided by economic recovery (GDP growth of ~6.4%), buoyant demand from OEMs and the replacement market. OEM demand is expected to clock 10-12% CAGR between fiscals 2024 and 2029 on the back of robust production growth across asset classes in the medium term (on a low base) and aided by realisation growth via OEM price increases. The adoption of the Just-In-Time (JIT) model within the auto component industry has fostered a profound understanding of customer needs, enabling the development of intricate products with rapid turnaround times. At the same time, the rigorous testing and validation processes, established long-term OEM contracts, impose significant barriers for new entrants, further strengthening the industry's competitive edge.

Pros and strengths

Distinguished market leader in the high-growth field of precision sheet metal pressing: The company is one of the top three companies with a market share of 24% in the overall two-wheeler metal components segment in India as of March 31, 2024, in terms of revenue. The two-wheeler metal products market size is projected to grow at a 11-13% CAGR over the next five years through Financial Year 2030. This enables it to realize significant economies of scale and benefit from geographic diversification, including opportunities across multiple product component markets and mitigation of customer, product and regional risks. The global two-wheeler metal components market was valued at Rs 1,453.85 billion in 2023, and is expected to be valued at Rs 1,767.28 billion in 2029, growing at a CAGR of 3.29% between 2024 and 2029.

Technology-enabled, innovation driven development and process engineering capabilities: The company has an established track record in process engineering and through the use of technology, it endeavors to maintain high levels of manufacturing proficiency across all its facilities. Its manufacturing facilities are equipped with several advanced features such as real-time tracking, information transparency and visualization and modularity in operations. It also develops and utilize special purpose machines to improve the quality and accuracy of certain critical business operations such as notching, boring and drilling. It utilizes IoT and centralized monitoring systems across its manufacturing facilities for processes such as surface coating and cathodic electro-deposition plating, thereby enabling it to proactively detect bottlenecks in its production in order to resolve them on a real-time basis.

Vertically integrated manufacturing facilities offering a diverse range of products: The company has specialized in precision sheet metal pressing and fabrication, progressively enhancing its manufacturing capabilities through both backward integration (including tool making, tube bending and press operations) and forward integration (including system assembly and coating and painting). Over the years, the company’s strategic expansion in these areas has led to higher value addition per product, reduced dependence on suppliers and enhanced quality control through stringent internal systems. Moreover, it has strategically diversified its product offerings to polymer components and suspension systems, thereby increasing the components it supplies per vehicle and enhancing its competitive positioning in the market.

Largely EV-agnostic product portfolio, strategically positioned to scale in tandem with burgeoning electric vehicle market in India: The company’s product portfolio includes chassis systems, body-in-white components, polymer components and suspension systems, and is agnostic to powertrain types, placing it in a strong position to capitalize on the growth of electric vehicles while continuing to meet the demands of its internal combustion engine OEM customers. During the Financial Year 2024, products suitable for both electric vehicles and internal combustion engine applications constituted 56.00% of its revenue from operations. Additionally, its revenue from products specifically designed for electric vehicles rose to (i) Rs 2,368.79 million in Financial Year 2024, from Rs 1,525.70 million in Financial Year 2022, growing at a CAGR of 24.60%, and (ii) Rs 2,425.88 million during the nine months period ended December 31, 2024 from ₹1,821.36 million during the nine months period ended December 31, 2023.

Risks and concerns

Maximum revenue comes from limited customers: The company derives a significant portion of its revenue from operations from its ten largest customers, and thus it is dependent on these entities. Revenue from its ten largest customers comprises a significant portion of its revenue from operations (63.82% for the nine months period ended December 31, 2024, 49.26% for the nine months period ended December 31, 2023, 50.77% for the Financial Year 2024, 57.93% for the Financial Year 2023 and 64.43% for the Financial Year 2022). The company cannot assure that it will be able to maintain or increase business from these customers. While it has not faced any instances of complaints from its key customers that have materially and adversely affected its results of operations for the nine months period ended December 31, 2024 or the past three Financial Years, any failure by it to maintain its relationships with its key customers in the future may have an adverse effect on its business, results of operations, financial condition and cash flows.

Derive significant portion of revenue from sale of automotive components for two-wheeler vehicles: The company derives a significant portion of its revenue from operations from the sale of automotive components for two-wheeler vehicles (64.56% for the nine months period ended December 31, 2024, 59.92% for the nine months period ended December 31, 2023, 63.30% for the Financial Year 2024, 65.48% for the Financial Year 2023 and 73.18% for the Financial Year 2022). Any decrease in demand for two-wheeler vehicles or any development that makes the sale of automotive components for the two-wheeler vehicle market less beneficial economically may adversely affect its business, results of operations, financial condition and cash flows.

Geographical constrain: As of March 31, 2025, the company had 17 manufacturing facilities located across 10 cities in nine states in India. Seven out of these 17 manufacturing facilities are located in the state of Maharashtra. The geographical location of its seven manufacturing facilities in the state of Maharashtra renders its operations susceptible to regional risks, adverse changes and events occurring in and around the state. Regional risks, adverse changes and events that may affect its business operations may include disruptions to its infrastructure, natural disasters, workforce disruptions, as well as changes in the general economic conditions, regulatory environment and state and local government policies.

Business requires significant capital expenditure: The company’s business requires significant capital expenditure, and it requires a significant amount of capital to establish new manufacturing facilities, maintain or upgrade equipment and machinery across its existing manufacturing facilities, and develop the required systems and production lines to introduce new products. Any delays in procurement of capital required for its operations may lead to a delay in its operations such as, among others, setting up of new manufacturing facilities, upgrading equipment at its manufacturing facilities, product diversification and enhancement of technological initiatives, which may lead to losses on account of cost viability and loss of market opportunities.

Outlook

Belrise Industries manufactures Automotive Sheet Metal and casting parts, Polymer components, Suspension, and mirror systems specifically for Two-Wheel, Three-Wheel, and Four-Wheel Passenger and Commercial vehicles. It is distinguished market leader in the high-growth field of precision sheet metal pressing and fabrication within a large and growing automotive component industry. It has enabled, innovation-driven development and process engineering capabilities. On the concern side, seven out of the company’s 17 manufacturing facilities are located in the state of Maharashtra. This concentration poses potential for regional risk exposure, which may adversely affect its business, results of operations, financial condition and cash flows. Revenue from its ten largest customers comprises a significant portion of its revenue and any failure to maintain its relationship with these customers or any adverse changes affecting their financial condition will have an adverse effect on its business, results of operations, financial condition and cash flows.

The issue has been offering 25,29,41,176 shares in a price band of Rs 85-90 per equity share. The aggregate size of the offer is around Rs 2150.00 crore to Rs 22,76.47 crore based on lower and upper price band respectively. Minimum application is to be made for 166 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 13.70% to Rs 74,842.41 million for the Financial Year 2024 from Rs 65,824.96 million for the Financial Year 2023, primarily attributable to an increase in sales of products by 14.78% to Rs 72,480.30 million for the Financial Year 2024 from Rs 63,146.61 million for the Financial Year 2023. Moreover, its profit for the period marginally decreased by 0.89% to Rs 3,108.79 million for the Financial Year 2024 from Rs 3,136.63 million for the Financial Year 2023. 

In a bid to increase its wallet-share from its customers and to improve its profit margins, it intends to increase its content per vehicle, which is the value of the vehicle’s components to an OEM customer. The company plans to continue to expand and enhance its product portfolio and introduce newer product offerings across a variety of powertrain agnostic product lines (i.e., applicable to electric vehicle, internal combustion engine and CNG engine types), including suspensions, steering columns and brakes, among others. It also plans to consolidate its market leadership in the sheet metal pressing and fabrication industry by focusing on premiumization and production of higher value and more expensive chassis systems for premium two-wheelers.

Borana Weaves

• Borana Weaves is coming out with a 100% book building; initial public offering (IPO) of 67,08,000 shares of Rs 10 each in a price band Rs 205-216 per equity share.
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on May 20, 2025 and will close on May 22, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 20.50 times of its face value on the lower side and 21.60 times on the higher side.
• Book running lead manager to the issue is Beeline Capital Advisors.
• Compliance Officer for the issue is Seema Luniya.

Profile of the company

Borana Weaves is a textile manufacturer based in Surat, specializing in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries, including fashion, traditional textiles, technical textiles, home decor, and interior design. The versatility of grey fabric allows it to complement a wide range of unbleached fabrics across different styles, making it a valuable resource in the textile supply chain. In addition to grey fabric, the company also manufactures polyester textured yarn (PTY Yarn), which is produced by heating polyester oriented yarn (POY Yarn), its raw material used in the production of grey fabric.

The company commenced its operations in 2020, and the production from its first unit, Unit 1 located at Hojiwala Industrial Estate, SUSML, Surat, Gujarat, was subsequently started in 2021. Currently, the company operates three manufacturing units in Surat, Gujarat, equipped with textile manufacturing technologies for, inter alia, texturizing, warping, water jet looms, and textile folding.

Most of the manufacturing and processing in its units are carried out using textile manufacturing technologies, pollution light machinery and tools which are supplied by domestic and global players in the synthetic fibre industry. As of December 31, 2024, the company had a total of 15 texturizing machines, 6 warping machines, 700 water jet looms and 10 folding machines active at its three units.

Proceed is being used to:

• Proposing to finance the cost of establishing a new manufacturing Unit to expand its production capabilities to produce grey fabric at Surat, Gujarat, India (Proposed Unit 4)
• Funding incremental working capital requirements
• General corporate purposes

Industry Overview

India is currently one of the largest manufacturers of readymade garments and amongst the largest exporters as well. Domestic market for readymade garments too has grown at a fast pace helping India emerge as one of the fastest growing and lucrative readymade garment markets in the world. Apparel manufacturing alone provides employment to a population of 12.3 million. Domestic demand in the last years witnessed a slowed down as consumers paired down their discretionary spending on the wake of economic uncertainty. Exports too suffered the same fate as recessionary scenario in key export markets - US and EU - dampened demand for readymade garments in those markets.

Synthetic fabrics are man-made textiles produced from chemical processes. These fabrics are derived from synthetic fibers such as polyester, nylon, acrylic, and spandex, which are made by polymerizing small molecules into long chains. Synthetic fabrics are widely used in various industries, including fashion, home furnishings, and industrial applications, due to their durability, versatility, and cost-effectiveness. In the fiscal year 2018-19, production of Synthetic fabrics was robust at 95,897 thousand metric tons. However, this was followed by a slight decline in 2019-20 to 92,452 thousand metric tons. The downturn continued into 2020-21, with production dropping to 83,296 thousand metric tons, a trend attributed to the global disruptions caused by the COVID-19 pandemic. Despite these challenges, the industry showed resilience, with a Compound Annual Growth Rate (CAGR) of approximately 5.19% over the period from 2018-19 to 2023-24, reflecting a steady recovery and growth trajectory.

Recent advancements in fabric technology have enhanced the quality and performance of synthetic textiles. Innovations such as moisture-wicking, breathability, and eco-friendly production processes have increased the appeal of synthetic garments to consumers. Despite historical criticisms regarding environmental impact, there is a growing interest in sustainable synthetic textiles, such as recycled polyester, which aligns with the rising consumer demand for eco-friendly fashion options. The influence of global fashion trends, particularly from Western markets, has also played a significant role in shaping the popularity of synthetic garments in India.

Pros and strengths

Well positioned to capitalize on the growing demand of unbleached synthetic grey fabric: The company is a textile manufacturer based in Surat, specializing in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries including fashion, traditional textiles, technical textiles, home decor, and interior design. The versatility of grey fabric allows it to complement a wide range of unbleached fabrics across different styles, making it a valuable resource in the textile supply chain. It is well positioned to capitalize on the growing demand in this sector. Its presence in the industry allows it to leverage the expertise of its Promoters and manufacturing capabilities to meet the needs of its customers. 

Investment in water jet looms capable of producing uniform textured fabric: Water jet looms offers significant advantages over traditional power looms in the manufacturing of synthetic grey fabric. The adoption of water jet looms presents significant benefits in the production of synthetic grey fabric. These machines offer greater precision in the weaving process, resulting in fabric that exhibits uniform texture and consistent quality. Unlike traditional power looms, which may require more mechanical components and labour-intensive setups, water jet looms can operate at higher speeds with reduced downtime. This efficiency enhances the ability to meet larger production demands without compromising on quality. Additionally, the water jet technology places less tension on the polyester textured yarn, decreasing the likelihood of breakage during weaving. This results in fewer interruptions in the production cycle, lower waste generation, and a more streamlined manufacturing process compared to traditional methods.

Delivering strong financial and operating metrics: The company has organically grown its operations and has demonstrated an increase in revenues and profitability. The company’s revenue from operations grew at a CAGR of 116.84% from Rs 4,233.40 lakh in Fiscal 2022 to Rs 19,905.56 lakh in Fiscal 2024, based on its Restated Financial Information. The company’s restated profit after tax margin was 13.85%, 11.85%, 12.04%, 4.25% in the nine months period ended December 31, 2024 and during Fiscals 2024, 2023 and 2022, respectively.

Experienced Promoters: The company attributes its growth to the experience of its Promoters. Its Promoter and Chairman and Managing Director, Mangilal Ambalal Borana has over 24 years of experience in textiles industry and has been responsible in augmenting relationships with various stakeholders which has helped the company expand its operations. He is also currently associated as a director with Borana Filaments Private Limited which is involved in manufacturing and processing industrial and synthetic fabrics, yarns, including cotton, wool, silk, nylon, polyester, and other fibrous materials. It also undertakes services like twisting, texturizing, dyeing, bleaching, printing, and processing of man-made and natural fibres in various forms.

Risks and concerns

Geographical constrain: The company’s customers are pre-dominantly based in South Gujarat, more than 98% of its revenue from its customers being derived from customers based in Gujarat, as of December 31, 2024. A decrease in business from its customers due to any adverse market conditions or the economic environment generally prevailing in the state or any neighboring state or region, may adversely affect its business, results of operations, cash flows and financial condition. The concentration of its customer base in Gujarat also exposes it to risks arising from fluctuations in the political, economic, and weather conditions of the state, as well as regional natural or man-made disasters that may disrupt operations.

Limited operating history: The company was incorporated in October 2020 and the production from its first unit, Unit 1 in Surat, was subsequently started in 2021. While it attributes its growth to the experience of its Promoters who have been associated with entities in the textile manufacturing sector that form part of its Promoter Group or Group Companies, such as, Borana Filaments Private Limited and R & B Denims Limited, it has a significantly limited operating history. Accordingly, investors are cautioned against placing undue reliance on the robust growth in its business operations and the significant improvement in its financial performance in such periods. It may not be familiar with the operations of its manufacturing units or the business, which may adversely affect its financial conditions and results of operations.

Maximum revenue comes from sale of Grey fabric: The company’s business is heavily dependent on the sale of grey fabric, which had contributed to 84.24% of its revenue from operations in the nine months ended December 31, 2024. The demand for grey fabric is closely tied to the performance of end industries such as apparel and home textiles. Any downturn in these sectors, either due to seasonal trends, changing consumer preferences, or economic conditions, could lead to reduced orders for grey fabric. Further, grey fabric prices are subject to fluctuation due to various factors such as changes in the prices of raw material, POY Yarn, exchange rate variations, and transportation costs. A reduction in prices could erode its profit margins, and a failure to pass on these cost changes to customers could adversely affect its financial performance.

Require significant financing to support growth strategies: The company requires a substantial amount of capital to build and maintain its manufacturing units, purchase equipment and machineries, implement new technologies in its new and existing plants and facilitate its expansion plans. Its ability to arrange financing and the costs of capital of such financing are dependent on numerous factors, including general economic and capital market conditions, existing terms under its financing agreements, credit availability from banks, investor confidence, the continued success of its operations and other laws that are conducive to its raising capital in this manner. If it decides to meet its capital requirements through debt financing, it may be subject to certain restrictive covenants. If the company is unable to obtain such financing in a timely manner, at a reasonable cost and on acceptable terms, it may be forced to delay its expansion plans, downsize or abandon such plans, which may materially and adversely affect its business, financial condition and results of operations, as well as future prospects.

Outlook

Borana Weaves is a manufacturer of unbleached synthetic grey fabric based in Surat, Gujarat. The company's unbleached synthetic grey fabric is often widely used as a base for further processing (including dyeing and printing) in industries such as fashion, traditional textiles, technical textiles, home decor, interior design, etc. Currently, the company had a total of 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines active at its three units. On the concern side, 98% of the company’s revenue comes from its customers based in Gujarat and it does not have long-term agreements with them. Any changes or cancellations of purchase orders from them or its inability to forecast demand for its products may adversely affect its business, results of operations and financial condition.

The issue has been offering 67,08,000 shares in a price band of Rs 205-216 per equity share. The aggregate size of the offer is around Rs 137.51 crore to Rs 144.89 crore based on lower and upper price band respectively. Minimum application is to be made for 69 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 47.01% from Rs 13,539.90 lakh in Fiscal 2023 to Rs 19,905.56 lakh in Fiscal 2024. This increase is primarily attributed to revenue generated from its sales of products and due to increase in installed capacity and actual production of its products. The company’s profit for the year increased by 44.69% to Rs 2,358.64 lakh for Fiscal 2024 from Rs 1,630.09 lakh for Fiscal 2023. 

The Indian market is experiencing a notable shift towards synthetic textiles, driven by their affordability, durability, and ease of maintenance. Current demand for polyester in India stands at approximately 4 million tonnes and is projected to rise to 6.7 million tonnes by 2025, indicating a growing consumer preference for synthetic materials. With the global end-use market for man-made fibers expected to expand by 3.7% by 2025, the Indian synthetic textile industry is well-positioned to benefit, with growth opportunities in both domestic consumption and exports. The demand for synthetic textiles has been expanding into various non-apparel applications due to their distinct properties and benefits. The company is well positioned to capitalize on the growing demand in this sector. The increasing preference for synthetic fabrics across various industries such as fashion, sportswear, home decor, and traditional textiles presents substantial growth opportunities.

Accretion Pharmaceuticals

• Accretion Pharmaceuticals is coming out with an initial public offering (IPO) of 29,46,000 equity shares in a price band Rs 96-101 per equity share.
• The issue will open on May 14, 2025 and will close on May 16, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.60 times of its face value on the lower side and 10.10 times on the higher side.
• Book running lead manager to the issue is Jawa Capital Services.
• Compliance Officer for the issue is Bhavika Dhaval Makadia.

Profile of the company

Accretion Pharmaceuticals is engaged in the business of manufacturing and marketing of Tablets, Capsules, Oral Liquid, External Preparations (Ointment, Cream, Gel, Lotion, Medicated Shampoo, Mouthwash, Dusting Powder), and Oral Powder (Sachet, Dry Syrup) etc.

Apart from manufacturing products for direct sales, the company also manufactures various pharmaceutical products for different marketers on loan license or contract manufacturing basis. Its business is majorly carried out on principle-to-principle basis with different marketers. Also, the company caters to multiple corporate clients on loan licence and/or contract manufacturing basis.

The company is ISO 9001:2015, ISO 14001:2015 and ISO 22000:2018 certified and is led by an experienced board of directors, and a professional and experienced management team with extensive experience in the pharmaceutical.

Proceed is being used for:

• Capital expenditure towards purchase of new equipment/machineries, etc.
• Capital expenditure towards upgradation of existing manufacturing facility
• Repayment/prepayment of certain borrowings availed by the company
• Funding working capital requirements
• General corporate purpose

Industry Overview

India’s pharmaceutical market currently valued at $50 Billion is the world's third largest by volume. With a diversified product base covering generic drugs, active pharmaceutical ingredients, bulk drugs, over-the-counter drugs, vaccines, biologics and biosimilars, the Indian pharmaceutical industry has a strong presence at the global level. “Pharmacy of the world” as it is often called offers around 60,000 generic brands across 60 therapeutic categories, accounting for 20 per cent of global generic drug exports by volume. Not surprisingly, eight of the top 20 global generic companies are based in India.

India’s pharmaceutical sector boasts high rates of quality compliance, with 70311 US FDA approved facilities (as of April 2023), 38612 European GMP-compliant plants (as of November 2022) and 241813 WHO-GMP-approved plants. To further bolster the regulatory framework, in December 2023, revised pharma manufacturing rules were notified under Schedule-M relating to Good Manufacturing Practices, a mandatory requirement that safeguards quality and brings the existing regime in line with global standards.

The pharmaceutical industry in India is expected to reach $65 billion by 2024 and to $130 Bn by 2030. The pharmaceutical industry in India is currently valued at $50 billion. India is a major exporter of Pharmaceuticals, with over 200 countries served by Indian pharma exports. India supplies over 50% of Africa’s requirement for generics, 40% of generic demand in the US and 25% of all medicine in the UK. India also accounts for 60% of global vaccine demand, and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHO’s vaccines (as per the essential Immunization schedule) are sourced from India. 

Pros and strengths

Wide range of products: Vision of the company is to ensure the quality health care products & to meet the standards of their clients, commitment to provide world class quality, competitive pricing and a constant urge expand their product portfolio has gained reputation as a global manufacturer of various formulation with world class quality products. The company’s variety of product offerings has enabled it to cater to a large customer base in the domestic market as well as international market.

Long-standing relationship with clients and suppliers: It continually invest in strengthening its relationships with its clients and suppliers. Its sales and marketing operations are led by its Promoters Hardik Mukundbhai Prajapati and Vivek Ashok Kumar Patel who has got rich experience in the business of the company.

Quality standards: Quality plays one of the most vital roles in the success of any organization. The company is focused on providing quality products. It constantly strives to improve its industrial processes at every step in the production chain. Its focus on quality is evidenced by the quality certification from ISO 9001:2015 for maintaining quality standards and ISO 14001:2015 for meeting safe environmental standards and policies. Ensuring global standard products will attract domestic and international customers to the company.

Risks and concerns  

Maximum revenue comes from few clients: The company is dependent on certain customers who have contributed a substantial portion of its total revenues. The company has garnered 72.98%, 70.01% and 38.31% of its total revenue from top 10 customers in FY24, FY23 and FY22, respectively. The company has not entered into long term agreements with majority of these customers and the success of its business is accordingly significantly dependent on maintaining good relationship with them. The loss of a significant client or clients may have a material adverse effect on its results of operations/cash flow.

Maximum revenue comes from exports: A substantial share of its revenue is generated from export sales, while its domestic sales contribute a comparatively smaller portion. Its profitability is largely influenced by factors affecting the export market, including fluctuations in foreign exchange rates, changes in international trade policies, regulatory requirements in different jurisdictions, geopolitical uncertainties, and competitive pricing pressures. Any reduction in export demand, increase in production or compliance costs, or unfavorable currency movements could negatively impact its profit after tax (PAT) and PAT margins.

Limited operating history as a company: The company was incorporated as Accretion Pharmaceuticals Limited on November 29, 2023, under the provisions of the Companies Act, 2013. Prior to the incorporation of the company, the current business was being carried its under M/s Accretion Pharmaceuticals, a partnership firm registered under the provisions of the Partnership Act, 1932 and whose erstwhile Partners are the current Promoters of the company, viz., Harshad Nanubhai Rathod, Vivek Ashokkumar Patel, Mayur Popatlal Sojitra and Hardik Mukundbhai Prajapati. It has a very limited operating history from which the investors might evaluate its business and future prospects and viability.

Outlook

Accretion Pharmaceuticals is a pharmaceutical company that manufactures and sells tablets, capsules, and other healthcare products. The company holds ISO 9001:2015, ISO 14001:2015, and ISO 22000:2005 certifications, reflecting its dedication to quality and environmental management systems. The company has expanded its global footprint, marking its presence in more than 20 countries, including regions in Africa, Southeast Asia, and the Middle East. On the concern side, a significant portion of its revenue is derived from exports, and any decline in export profitability may adversely impact its overall financial performance. Also, the company has a very limited operating history, which may make it difficult for investors to evaluate its historical performance or future prospects.

The company is coming out with a maiden IPO of 29,46,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 96-101 per equity share. The aggregate size of the offer is around Rs 28.28 crore to Rs 29.75 crore based on lower and upper price band respectively. On performance front, the company’s total revenue increased to Rs 3,393.86 lakh for the year ended on March 31, 2024, as compared to Rs 2,953.15 lakh for the year ended on March 31, 2023. Moreover, profits after tax as a percentage of total income is 13.72% during the year ended March 31, 2024. In absolute terms, profit after tax was Rs 465.77 lakh during the year ended March 31, 2024. During the year ended March 31, 2023, profit after tax was 0.35% of Total Income. In absolute terms, profit after tax was Rs 10.39 lakh during the year ended March 31, 2023.

The company’s product portfolio is primarily focused on offering differentiated products and registered formulations based on customer’s requirements. It intends to continue to grow its sales by registering more and new products in these markets as well new market. Its growth strategy will vary from country to country depending on their specific regulatory and product requirements. It may either form important relationships with companies having strong local presence or alternatively appoint local distributors through which it can undertake its own sales and marketing. Further, the company also proposes to get registration of its plant and products with the respective authority of the countries globally so as to enable the company to directly export its products to global market.

Integrity Infrabuild Developers

• Integrity Infrabuild Developers is coming out with an initial public offering (IPO) of 12,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 100 per equity share.
• The issue will open on May 13, 2025 and will close on May 15, 2025.
• The shares will be listed on SME Platform of NSE.
• The share is priced 10 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Aryaman Financial Services.
• Compliance Officer for the issue is Krupa Dholakia.

Profile of the company

Integrity Infrabuild Developers is an integrated Civil Contract Company registered as a Class-A contractor since August 24, 2018 and has received the renewed certificate dated June 29, 2024 with the Government of Gujarat. The company specializes in contracting and sub-contracting services for various government projects, including road construction, building, and bridge construction.

Subcontracting involves a main contractor, awarded a project by a government entity, delegating part or all of the work to specialized subcontractors. The main contractor retains overall responsibility for the project, ensuring deadlines, quality standards, and delivery are met. The subcontracting process includes identifying needs, selecting qualified subcontractors, formalizing agreements, and supervising execution.

The subcontractor completes the work as per the contract, while the main contractor ensures it aligns with project specifications, timelines, and budget. Both parties must adhere to legal, safety, and regulatory standards, with the main contractor ultimately accountable for the project's success. 

Proceed is being used for:

• Capital expenditure toward purchase of Machinery and Equipments
• Funding working capital requirements
• General corporate purpose

Industry Overview

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs 11.11 lakh crore ($133.86 billion), which would be 3.4 % of GDP. As per the Interim Budget 2023-24, a capital outlay of Rs 2.55 lakh crore ($30.72 billion) has been made for the Railways, an increase of 5.8% over the previous year. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of $1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.

Further, India has the second-largest road network in the world, spanning a total of ~6.7 million kilometres (kms). This road network transports 64.5% of all goods in the country and 90% of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with improvement in connectivity between cities, towns and villages in the country. National Highways Authority of India (NHAI) spent a record-breaking Rs 2,07,000 crore ($24.79 billion) on the construction of national highways in the fiscal year 2023-24. This was the highest capital expenditure ever recorded, representing a 20% increase from last year. India's road network has grown 59% to become the second largest in the world in the last ten years. As of December 2024, India has a total of 146,195 kilometres of National Highway and 2,474 National high-speed corridors.

The infrastructure sector has become the biggest focus area for the Government of India. India's GDP is expected to grow by 8% over the next three fiscal years, one of the quickest rates among major, developing economies, according to S&P Global Ratings. India and Japan have joined hands for infrastructure development in India’s Northeast states and are also setting up an India-Japan Coordination Forum for development of Northeast to undertake strategic infrastructure projects for the region. India being a developing nation is set to take full advantage of the opportunity for the expansion of the infrastructure sector, and it is reasonable to conclude that India's infrastructure has a bright future ahead of it. 

Pros and strengths

Focused on roads, buildings and bridge construction: Since FY 2021-22, the company has successfully completed 111 projects with a total contract value of Rs 21,336.63 lakh. The company’s objective is to utilize its project management skills to ensure quality in construction. The company has implemented industry best practices, including regular mock drills and safety orientation programs, to foster a safe working environment. The company’s fleet of construction equipment and vehicles allows it to handle multiple projects at once. Its understanding in project execution, focus on quality, financial performance, and reasonable pricing help it bid and complete projects.

Visible growth through a robust order book: The company has gained significant experience and have established track record and reputation for efficient project management, execution and timely completion. It has successfully completed more than 111 projects under various contracting and / or sub-contacting agreements. Its expertise in successful and timely implementation of projects provides it with significant competitive advantages. By diversifying its skill set and order book across different business and geographical regions, it is able to pursue a broader range of project tenders and therefore maximize its business volume and contract profit margins.

Technical capabilities and resources: The company is equipped with comprehensive resources, including advanced technical knowledge, specialized machinery, and skilled labour, enabling it to handle a wide range of construction projects. The company’s team consists of experienced individuals with extensive construction expertise and technical knowledge, supported by a pool of engineers, seasoned site staff, and project managers. Additionally, it has access to contractual labour for construction tasks and a dedicated employee base at its Registered office for administrative functions. It also owns a large fleet of equipment and has established relationships to secure necessary equipment for projects in various locations, allowing it to streamline its workflow and deliver projects efficiently and on schedule.

Risks and concerns  

Substantial portion of revenues comes from limited customers: The company derives a significant portion of its revenues from a limited number of clients. For the period ended December 31, 2024 and financial year ended March 31, 2024, March 31, 2023 and March 31, 2022, its top ten largest clients accounted for around 98.86%, 99.74%, 97.67% and 97.64% of its revenues from operations, respectively. The loss of a significant client or clients would have a material adverse effect on its financial results. It cannot assure that it can maintain the historical levels of business from these clients or that it will be able to replace these clients in case it loses any of them.

Geographical constrain: The company’s entire business is concentrated in the state of Gujarat. It is primarily dependent on the projects undertaken or awarded in the state of Gujarat by the Gujarat State Government, the local authorities in the state of Gujarat and other entities funded by the Gujarat State Government. Therefore, it derives its entire revenues from contracts with government entities and are exposed to risks emanating from economic regulatory and other changes in the State of Gujarat. Any adverse changes in the central or state government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

Business is subject to seasonal fluctuations: The company’s business operations may be affected by seasonal factors which may restrict its ability to carry on activities related to its construction projects and fully utilize its resources. Heavy or sustained rainfalls or other extreme weather conditions such as cyclones could result in delays or disruptions to its operations during the critical periods of its projects and cause severe damages to its premises and equipments. In particular, the monsoon season may restrict its ability to carry on activities related to its projects and fully utilize its resources and may slow its activities on construction projects, which shifts its revenue and accordingly profit recognition to subsequent quarters. Adverse seasonal developments may also require the evacuation of personnel, suspension or curtailment of operations, resulting in damage to construction sites or delays in the delivery of materials.

Outlook

Integrity Infrabuild Developers is a Class-A civil contractor registered with the Government of Gujarat. The company executes construction activities as a contractor for government projects in Gujarat and regularly subcontracts to expand its presence in the state's construction sector. The company is focused on roads, buildings and bridge construction. Also, the company has strong project management capabilities with industry experience. On the concern side, substantial portion of the company’s revenues has been dependent upon its few clients. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability. The company’s entire business is concentrated in the state of Gujarat. It is primarily dependent on the projects undertaken or awarded in the state of Gujarat by the Gujarat State Government, the local authorities in the state of Gujarat and other entities funded by the Gujarat State Government. Any adverse changes in the central or state government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

The company is coming out with an IPO of 12,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 100 per equity share to mobilize Rs 12 crore. On performance front, the company’s revenue from operation has increased by 42.67% to Rs 6,447.02 lakh in FY24 from Rs 4,518.95 lakh in FY23. Such increase was primarily attributable to an increase in tender and orders awarded by government for construction business during the period. Moreover, the company’s profit for the year increased to Rs 94.85 lakh in FY24 from Rs 29.44 lakh in FY23. With the increase in revenue for more than 40%, the profits also rose in line with the order books of the company.

The company intends to continue its practices of strict cost control through (i) ownership and maintenance of modern construction equipments and centralizing procurement of major construction equipments and raw materials; (ii) careful selection of projects; and (iii) cautious expansion into new businesses or new geographical areas. Further, in its efforts to avoid over-leveraging its balance sheet, the company intends to ensure that it is well funded in form of equity capital and hence it proposes to raise working capital finance from this Issue. Such balance sheet management shall augment its financial strength and will be the driving factor for the sustainable growth and expansion of its business in the future.