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Marushika Technology

• Marushika Technology is coming out with an initial public offering (IPO) of 23,05,200 shares in a price band of Rs 111-117 per equity share.
• The issue will open on February 12, 2026 and will close on February 16, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 11.10 times of its face value on the lower side and 11.70 times on the higher side.
• Book running lead manager to the issue is Nexgen Financial Solutions.
• Compliance Officer for the issue is Kavin Arora.

Profile of the company

Marushika Technology is engaged in the business of distribution of Information Technologies (IT) and Telecom Infrastructure products. It provides wide range of IT products and services to its clients in setting up their data centre’s infrastructure, active networking, telecom system, advanced surveillance systems, data protection, cybersecurity and power management. It also offers installation, maintenance services and assisting clients in selecting the right type of IT infrastructure for their specific need. Additionally, the company offers a range of smart solution including smart access control, parking, lighting, and waste management. Further, the company has expanded its offerings to include Auto-tech solutions for Defence, where it offers various services comprising of maintenance, refurbishment, and reverse engineering of tracked and wheeled military vehicles. The company generated some revenue from this vertical in the financial year 2024-25 and has additional assignments in the pipeline.

The company primarily operates on a Business to Business (B2B) model and Business-to-Government (B2G). It generates revenue by providing services to both government and non-government clients, where the ultimate end customer is often a government. Further, it provides products and services to Government sector including Bharat Electronic (BEL), Central Electronic (CEL), Delhi Metro Rail Corporation (DMRC) and National Security Guard (NSG). Further, it offers its product and service to Infrastructure projects of various verticals of Central & State Government and Public Sector Units (PSU) such as Defence, IT and Telecom Infra, Transportation, Education and Health.

Over the year, it has steadily expanded its execution capabilities and successfully completed more than 150 projects. As on December 31, 2025 it has ongoing projects of an aggregate amount of Rs 3,545.45 lakh. The company is an ISO/IEC 27001:2022 and ISO 9001:2015 certified company, issued by Delano Assessment and Care Certification in compliance with Information Security Management Systems and Quality Management System respectively. It is a technology company and focusing on quality delivery and customer satisfaction. It offers tailor made offerings right from advising clients on the appropriate product for serving their IT requirement to implementing the solution suggested.

Proceed is being used for:

• Repayment and/ or pre-payment, in part or full, of certain borrowings availed by the company
• Funding the working capital requirements of the company
• General corporate purposes

Industry Overview

With a thriving ecosystem encompassing diverse sectors, the domestic IT market in India mirrors the nation's relentless pursuit of technological advancement and innovation. Information technology in India is an industry consisting of two major components: IT services and hardware as well as Business Process Management (BPM). In fact, E-commerce has also been included in this industry since FY13 and contributes substantially to the growth of the industry. India is amongst the largest exporters of IT services in the world as it enjoys a cost advantage over other nations along with the required skills. Tier 1 cities like Bengaluru are 8-10 times more cost efficient than other low-cost destinations (considering required manpower skills as well). While IT services continue to have the dominant share in the industry, E-commerce is incremental in increasing market share of the domestic IT industry. IT companies are found in clusters in India, largely concentrated in urban cities like Bangalore, Chennai, Hyderabad, Mumbai, and Pune, cities that have easy availability of skilled workforce. The domestic IT market in India encompasses a wide spectrum of industries, including telecommunications, banking and finance, healthcare, retail, manufacturing, and government sectors. It comprises hardware, software, and services, with a robust network of indigenous and multinational players catering to diverse requirements.

India's technology start-up ecosystem has witnessed exponential growth fuelled by factors such as increasing internet penetration, availability of skilled talent, supportive government policies, and access to venture capital funding. Start-ups across various sectors including e-commerce, fintech, healthtech, edtech, and SaaS have proliferated, leveraging technology to address diverse market needs. The exponential growth of India's technology start-up ecosystem can be attributed to several key factors: Increasing Internet Penetration: According to TRAI, India witnessed a substantial increase in internet subscribers, reaching 1,181.13 million by September 2023. This rise in internet connectivity has facilitated greater access to digital services, driving demand for innovative tech solutions. Abundance of Skilled Talent: India's vast pool of skilled talent, particularly in the fields of technology, engineering, and business, has been instrumental in fueling the growth of technology start-ups. The availability of qualified professionals has enabled start-ups to build robust teams and drive innovation across various sectors. Supportive Government Policies: The Indian government has introduced several initiatives and policies to support the growth of the start-up ecosystem, including Startup India, Make in India, and Digital India. These initiatives provide incentives, funding support, and regulatory frameworks to nurture and promote entrepreneurial ventures.

The Indian IT industry is experiencing a period of significant growth, driven by a confluence of factors. According to estimates, the industry is expected to grow at CAGR of 7.2% to reach $323 billion by 2027. The global shift towards digitalization has fueled the demand for IT services across industries. Indian IT firms, with their expertise in software development, cloud solutions, and system integration, are well-positioned to capitalize on this trend. Compared to developed economies, India offers competitive rates for IT services, making it an attractive option for businesses worldwide. This advantage, coupled with a large pool of skilled professionals, continues to attract global clients. The rise of technologies like artificial intelligence, blockchain, and the Internet of Things (IoT) is creating new opportunities for the Indian IT industry. Companies are investing in developing expertise in these areas to meet evolving client need. Notably, the domestic IT market is expected to grow even faster. This rapid expansion presents exciting opportunities for both Indian businesses and the global IT landscape. The Indian government is actively promoting digital adoption through initiatives like ‘Digital India’, which aims to make government services more accessible online and bridge the digital divide. This creates significant demand for IT infrastructure and services within the country. The rising middle class in India is driving demand for consumer-focused IT products and services, such as e-commerce platforms, digital payment solutions, and online entertainment options. India's thriving start-up ecosystem is fueling demand for IT services as these new businesses require solutions for website development, app development, cloud infrastructure, and cybersecurity.

Pros and strengths

Presence in multiple industry verticals with long-standing customer relationships: The company has a diversified presence across multiple industry verticals such as Banking, Finance, Insurance, Railways, Defence, and Healthcare. Over the years, it has built and sustained strong, long-term relationships with its customers in these sectors. This wide industry reach not only provides it with a stable and recurring stream of business but also reduces dependency on any single sector. Further, its established credibility with reputed clients enhances its ability to participate in larger opportunities, expand into new verticals, and strengthen its position as a trusted partner across varied industries.

Established strong relationship with OEMs: It has established strong relationship with several major technology companies, commonly referred to as Original Equipment Manufacturers (OEMs). It teams up with authorized OEM distributors, enabling it to become authorized resellers of their Information Technology and Smart solutions 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. By directly teaming up with industry leaders, it is able to deliver cutting-edge tools to its clients, empowering them to secure their digital assets effectively. Its strong relationships with these distributors also help it negotiate better deals, which allow it to offer competitive pricing and value to its customers. Additionally, these partnerships enable it to provide expert technical support and training to ensure that its customers can fully utilize the solutions it offers.

Wide range and diversified IT solutions and offerings: The company offers wide range of diversified products and services. To streamline its operations, it has classified its business into three key verticals: IT & Telecom Infrastructure, Smart Solutions, and Auto-Tech Solutions for Defence. Within the IT & Telecom Infrastructure vertical, it provides offerings such as Data Center Infrastructure, Videowall Display Solutions, Public Address Systems, Servers, Electronic Surveillance Systems, Storage Solutions, and Power Solutions. These vertical forms the backbone of its business and contributes the largest share of its revenues. Its solutions are widely deployed across industries including Banking, Financial Services, Insurance, Railways, Defence, and Healthcare. The Smart Solutions vertical encompasses innovative offerings such as Smart Services, Physical Access Control Systems, and Solid Waste Management solutions. These are designed to drive efficiency, enhance safety, and promote sustainability within both urban and industrial ecosystems.

Risks and concerns

Significant reliance on GoI and defence sector projects: Its revenue is significantly dependent on projects awarded by the Government of India (GoI) and its associated entities, including public sector undertakings and government organisations. In many instances, its non-government clients obtain projects from GoI and subsequently engage it as a value added distributor to deliver IT and digital infrastructure solutions. As a result, its revenue streams are directly and indirectly reliant on government projects. Accordingly, any decline or reprioritisation of IT and digital infrastructure budgets, reduction in orders, termination of existing projects, delays in ongoing or anticipated projects, or any adverse change in the GoI’s policies relating to the IT sector may have a material adverse impact on its business, financial condition, and results of operations. It is actively engaged in providing IT and Telecom Infrastructure solutions, Smart Solutions and Auto Tech Solution for Defence, and it has obtained necessary registrations/approvals to participate in government and defence-related projects. As a result, its revenue is substantially dependent on projects undertaken by GoI, whether directly or indirectly through private contractors.

Dependence on a single business vertical: The company derives majority of its revenue from the products and services provided by it under IT and Telecom Infrastructure (IT) vertical. Specifically, the revenue from IT and Telecom Infrastructure (IT) vertical contributed 99.72%, 97.59%, and 97.57% for the period ending September 30, 2025, financial year ended March 31, 2025 and March 31, 2024, respectively. If the demand for these vertical declines due to changes in customer preferences, or technological advancements, the company's revenue can be severely impacted, dependency on one segment or vertical makes the company's revenue highly volatile and sensitive to any disruptions in the product and service. Any such events could limit its operational flexibility and adversely impact its business, cash flows, and financial position.

Revenue concentration risk in Delhi and Uttar Pradesh: The company’s business operations span various regions across India. Despite this diversified presence, it has a significant dependency on Delhi and Uttar Pradesh, which contributes 61.82%, 73.68%, 65.27% and 69.54% to its total revenue for the period ended September 30, 2025 and for the financial year ended March 31, 2025, 2024, and 2023. Relying heavily on these states exposes it to regional economic fluctuations, regulatory changes, and local market dynamics. Adverse conditions such as economic downturns, political instability, or natural disasters specific to that region could significantly impact its revenue stream and any decline in the economic prosperity or changes in regulations within that particular region could negatively affect its financial performance.

Outlook

Marushika Technology is engaged in the business of distribution of Information Technologies (IT) and Telecom Infrastructure products. It provides wide range of IT products and services to its clients in setting up their data centre’s infrastructure, active networking, telecom system, advanced surveillance systems, data protection, cybersecurity and power management. It also offers installation, maintenance services and assisting clients in selecting the right type of IT infrastructure for their specific need. Additionally, the company offers a range of smart solution including smart access control, parking, lighting, and waste management. On the concern side, it relies on third-party service providers for various critical functions, including technology infrastructure, Auto tech solution for defence and other operational support. If any of these third parties fail to meet their contractual obligations, experience disruptions, or otherwise underperform, its operations could be adversely affected. Delays, service interruptions, or quality issues caused by such third parties may result in increased operational costs, reduced customer satisfaction, and reputational damage. In certain cases, it may not be able to find timely or suitable alternatives, which could further impact its ability to deliver services efficiently. Any such disruption could have a material adverse effect on its business, results of operations, and financial condition. Moreover, it is dependent on various Original Equipment Manufacturers (OEMs) for the supply of products required for its projects. There can be no assurance that strong demand, any disruption in supply chain or other problems experienced by its suppliers will not result in occasional shortages or delay in their supply of products. If it experiences a significant or prolonged shortage of products from any of its suppliers and it cannot procure the product from other sources, it would be unable to meet its project execution schedules in timely manner, which would adversely affect its profit margins and customer relations.

The company is coming out with a maiden IPO of 23,05,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 111-117 per equity share. The aggregate size of the offer is around Rs 25.59 crore to Rs 26.97 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 8,524.87 lakh whereas in FY24 it was Rs 6,066.23 lakh representing an increase of 40.53%. Moreover, profit after tax for the financial year ended March 31, 2025, stood at Rs 628.64 lakh and for the financial year ended March 31, 2024 it was Rs 314.11 lakh representing an increase of 100.13%.

The company intends to drive growth in the Information Technologies (IT) Infrastructure, Smart Solutions, and Auto Tech Solutions for Defence sectors. It will integrate new technologies into its offerings. It will use cloud-based IT solutions such as hybrid and multi-cloud systems, serverless computing, and containerization to improve scalability and flexibility. It will also apply edge computing with AI and 5G to support real-time processing and reduce delays, which will help it improve connectivity and efficiency in important projects. On the other hand, it aims to strengthen its offerings with AI-driven personalization, AR/VR-based solutions, blockchain credentialing, and virtual assistants. This integration will improve customer engagement, ensure security, and create sustainable, future-ready solutions aligned with evolving industry demands. Further, it intends to expand its operations across India to better serve its customers. By extending its geographical reach, it aims to capitalize on the growing demand for IT, smart solutions, auto tech solutions for defence, Cloud and Digital Training services. This expansion will enable it to directly engage with customers in various regions, gain a deeper understanding of their specific needs, and provide tailored solutions to meet their unique requirements. Additionally, by establishing a stronger presence in new markets, it can leverage its expertise and experience to offer innovative and reliable IT services.

Fractal Analytics

• Fractal Analytics is coming out with a 100% book building; initial public offering (IPO) of 3,31,44,762 shares of Rs 1 each in a price band Rs 857-900 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 more 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 February 9, 2026 and will close on February 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 857 times of its face value on the lower side and 900 times on the higher side.
• Book running lead managers to the issue are Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company and Goldman Sachs (India) Securities.
• Compliance Officer for the issue is Somya Agarwal.

Profile of the company

The company is a globally recognized enterprise artificial intelligence (AI) company, with a vision to power human decisions in its clients’ enterprises by leveraging AI. It supports large global enterprises with data-driven insights and assist them in their decision making through its end-to-end AI solutions. It builds its AI solutions by leveraging its technical, domain and functional capabilities built over its operating history of over 25 years. Its full suite of AI solutions is organized under two segments: Fractal.ai (comprising AI services and AI products primarily hosted on Cogentiq) and Fractal Alpha (comprising AI businesses). Through these two segments, it caters to the diverse business needs of its clients across industries and business functions.

It works with large global enterprise clients to help them navigate the entire life cycle of AI transformation from ideation to adoption to drive decisions in the enterprise. It aims to become a trusted partner to its clients. It focuses on its Must Win Clients (MWCs), who it defines as its clients who are enterprises that meet one of three criteria: (1) over $10 billion in annual revenue, (2) over $20 billion in market capitalization, or (3) over $30 million end-customers.

It is a client-centric company, which focuses on prioritizing its clients’ success and creating long-term value for them. Its ‘client first’ value is reflected in the tenure of its relationship with its top clients and its Net Promoter Score (NPS) based on client surveys. It is India’s leading pure-play enterprise data, analytics and AI company, recognized globally, with capabilities across the data, analytics and AI (DAAI) value chain. It is uniquely placed among other industry players, with active investments in expanding its AI and Gen AI software portfolio and research and development (R&D) capabilities.

Proceed is being used for:

• Investment in one of its subsidiaries, Fractal USA, for pre-payment and/ or scheduled repayment, in full or in part, of its borrowings
• Purchase of laptops
• Setting-up new office premises in India
• Investment in research and development and sales and marketing under Fractal Alpha
• Funding inorganic growth through unidentified acquisitions and other strategic initiatives
• General corporate purposes

Industry Overview

AI has been a remarkable technology that has helped reshape industries, optimize processes, and redefine human-machine interactions. Over the last two decades, there have been significant advances in data (big data and non-relational database management systems), compute (public cloud offerings and hardware), and AI and Machine Learning (ML) techniques (deep learning, reinforcement learning, General Adversarial Network (GAN), and transformers), among others.

The overall DAAI market, valued at an estimated $143 billion (Rs 12 trillion) in Fiscal 2025 is expected to grow at 16.7% CAGR to $310 billion (Rs 23 trillion) by Fiscal 2030. Banking, financial services, and insurance (BFSI), healthcare and life sciences (HLS), retail and distribution, consumer packaged goods (CPG) and technology, media and telecommunications (TMT) were estimated to account for 80% of the global DAAI services market in Fiscal 2025. Increased Gen AI adoption is likely to drive CAGRs for BFSI (16.7%), HLS (18.2%), retail and distribution (15.2%), CPG (15.0%) and TMT (15.7%) over Fiscals 2025-2030.

The strategic adoption of DAAI and expansion of its deployment across functions, geographies, and the workforce, helps companies strengthen its competitive advantage. AI's ability to glean insights from vast datasets fosters a deeper understanding of customer behavior and market trends. This empowers businesses to proactively anticipate customer needs, optimize internal processes, and make data-driven choices that propel them forward. Furthermore, AI automates repetitive tasks, enabling human capital to focus on higher-value strategic endeavors. From personalized marketing campaigns to streamlined production lines, AI empowers businesses to accelerate time-to-market and lower operational costs to assist in achieving market leadership.

Pros and strengths

Leading player in a large and growing AI market: The company is India’s leading pure-play enterprise data, analytics and AI company, recognized globally, with capabilities across the DAAI value chain. It recorded revenue growth at a CAGR of 18.0% over Fiscals 2023 to 2025 compared to the DAAI global third-party market’s CAGR of 11.0%, demonstrating its ability to win market share. While it is incorporated in India, it caters to a global clientele, with 92.4% of its revenue in the six months ended September 30, 2025 and 91.6% of its revenue in Fiscal 2025 from clients located outside of India. It has also achieved global recognition through various industry awards, for example: (i) Everest Group recognized it as a ‘Leader’ in the Everest Group Data and AI Services Specialists PEAK Matrix Assessment in 2025 (and its predecessor Analytics and AI Services Specialists PEAK Matrix Assessment in 2021, 2022 and 2024); and (ii) Forrester categorized us as a ‘Leader’ in five Forrester Waves for Customer Analytics Service Providers in 2025, 2023, 2021, 2019 and 2017.

Deep and integrated technical, domain and functional expertise: It designs, builds and delivers end-to-end AI solutions for its clients across industries leveraging its technical, domain and functional capabilities and expertise built over its operating history of over 25 years. Technical expertise stems from the company’s strong AI, engineering and design (AED) capabilities including Gen AI, machine vision, algorithmic decision making, cloud and data engineering, behavioral science and human-centered design, amongst others. Domain expertise stems from the company’s experience across its focus industries positions us well to understand industry specific problems. Functional expertise stems from the company’s work with clients across their various business functions like sales and marketing, supply chain, finance & accounting and data & AI among others. 

Culture of trust, transparency & freedom to nurture talent: Its success relies heavily on its employee talent. As of September 30, 2025, it had 5,722 employees. Its cultural values, multiple hiring channels and consistent focus on training and development enable it to hire and retain talent. It continually strives to enhance its AED capabilities by scaling its teams and upskilling and reskilling them. It hires talent through scalable channels including Iqigai.ai (its proprietary, AI powered hiring assessment platform), Imagineer Program (its campus recruitment program), lateral hiring program and ReBoot (its return from career break (returnship) program) to attract employees. It is highly selective in is hiring. 

Track record of inventing and investing to benefit client: It has demonstrated a track record of inventing, by identifying emerging trends in AI, developing new AI solutions, which is evidenced by investments in R&D and acquiring businesses to expand its capabilities. As of January 19, 2026, it had 28 registered patents and 38 patent applications. its commitment to technological research and development is aligned with the view that the technology landscape is ever evolving and it is critical for enterprises to be well-prepared to incorporate the latest techniques and technologies to drive competitive differentiation.

Risks and concerns

Cybersecurity and data risk exposure in DAAI: Security breaches, cyber-attacks, computer viruses, hacking activities and other cybersecurity incidents that affect its systems and the systems of its clients, vendors and third parties whom it relies on for cloud storage and processing of its data, may cause material adverse effects on its business, financial performance and results of operations and may expose it to loss of clients or business, litigation and possible liability. Data-related concerns, such as data privacy concerns, data security threats, lack of data quality, and data silos within enterprises, remain the biggest challenges that enterprises face when adopting DAAI.

High revenue dependence on United States: It derived 64.9%, 64.1%, 65.2%, 61.9% and 66.0% of its revenue from operations from the United States of America (USA) for the six months ended September 30, 2025, six months ended September 30, 2024, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Its global operations involve challenges and risks that could increase its expenses, adversely affect its results of operations and require increased time and attention from its management. For example, the recent imposition of tariffs by the US government has prompted, and may prompt further counter-tariffs from other countries which could increase costs for entities in the USA and in other countries, disrupt supply chains, and adversely affect its revenue and profit margins.

Risk related to rapid technological changes: The company success depends on its ability to adapt to changes in client or market preferences and to adopt new technologies. Its industry is subject to rapid changes in technology, client requirements, competitive products, and industry standards. Its success depends on its ability to adapt to the latest technologies and offer advanced AI solutions to its clients, including without limitation, its ability to timely identify industry changes, adapt its strategies, and develop new or enhance and maintain existing products and technologies that meet the evolving needs of these markets, including due to unexpected changes in industry standards or disruptive technological innovation that could render its products incompatible with products developed by other companies. Its failure to do so could adversely affect its business and results of operations.

Exposure to foreign exchange risk and currency fluctuations: It is exposed to fluctuations of other currencies compared to its reporting currency for its Restated Consolidated Financial Information, Indian Rupees. Its clients are located across Americas, Europe and APAC and others, and it receives more than 70% of its revenue from operations each period/year in U.S dollars, and more than 90% of its revenue each period/year in currencies other than Indian Rupees (including U.S. dollars, pound sterling and euros). Exchange rate fluctuations may adversely affect its results of operations as a significant portion of its revenues are denominated in foreign currencies and may adversely affect the value of its Equity Shares.

Outlook

Fractal Analytics and its subsidiaries (the Group) is the leading provider of advanced analytics that helps companies leverage data driven insights in taking considered decisions. The analytics solution of Group helps companies to enhance profitability by powering their customer management efforts with scientific decision making. On the concern side, it faces ethical and reputational risks associated with the use of its AI (including Gen AI) technology and algorithms, and instances of negative publicity can affect its business, financial condition, results of operations and cash flows. Further, the development and use of AI, including Gen AI, requires it to retain skilled talent. If it fails to attract, retain, train and optimally utilize these professionals, or if there is an increase in employee costs, its business may be unable to grow and its results of operations and profitability could decline.

The issue has been offering 3,31,44,762 equity shares in a price band of Rs 857-900 per equity share. The aggregate size of the offer is around Rs 2840.51 crore to Rs 2983.03 crore based on lower and upper price band respectively. Minimum application is to be made for 16 shares and in multiples thereon, thereafter. On performance front, its total income increased by 25.6% to Rs 28,162 million in Fiscal 2025 from Rs 22,419 million in Fiscal 2024, primarily due to an increase in its revenue from operations by 25.9% to Rs 27,654 million in Fiscal 2025 from Rs 21,963 million in Fiscal 2024. Profit for the year was Rs 2,206 million in Fiscal 2025 compared to a loss of Rs 547 million in Fiscal 2024.

The company will continue to proactively innovate and invest to ensure it remains at the forefront of technological advancements, prepared to implement them as they become commercially viable for scale. This approach will allow it to enhance its value proposition for clients and align with their readiness and aspirations. Its strategy involves identifying emerging trends in AI, conducting fundamental AI research in areas such as Gen AI, quantum computing and computational neuroscience, developing new AI solutions and acquiring businesses to accelerate its capabilities. Its AI research team’s vision is to advance the frontiers of AI towards artificial general intelligence (AGI) by developing agentic systems that automate and augment tasks of varying complexity, enhancing both human and machine performance, through cutting-edge methods.

Aye Finance

• Aye Finance is coming out with a 100% book building; initial public offering (IPO) of 8,27,86,884 shares of Rs 2 each in a price band Rs 122-129 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 more 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 February 9, 2026 and will close on February 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 61 times of its face value on the lower side and 64.50 times on the higher side.
• Book running lead managers to the issue are Axis Capital, IIFL Capital Services, JM Financial and Nuvama Wealth Management.
• Compliance Officer for the issue is Vipul Sharma.

Profile of the company

The company is a non-banking financial company - middle layer (NBFC-ML) focused on providing loans to micro scale micro, small and medium enterprises (MSMEs) across India. It offers a range of business loans for working capital and business expansion needs, against hypothecation of working assets or against security of property to customers across manufacturing, trading, service and allied agriculture sectors. It is among the leading nonbanking financial companies (NBFCs) providing business loans to the largely underserved micro scale enterprises in India, with 5,86,825 active unique customers across 18 states and 3 union territories and with assets under management (AUM) of Rs 60,276.22 million, as of September 30, 2025. 

It offers small-ticket business loans with an average ticket size (ATS) on disbursement of Rs 0.18 million to micro enterprises. Its expertise in underwriting business cash flows of a variety of business clusters has enabled it to maintain stable credit costs and allowed it to profitably scale up its operations. It is the most geographically diversified lender amongst the Peer MSME Focused NBFCs.

Its target customers are micro scale businesses with annual turnovers ranging from Rs 2.00 million to Rs 10.00 million, predominantly located in semi-urban areas. The industries it serves include manufacturing, trading, service and allied agriculture. Customers operate with a permanent business setup and have been in the same line of business for at least two years. It aims to ensure that its customers are business owners that have established businesses. 

Proceed is being used for:

• It proposes to utilize the Net Proceeds towards augmenting its capital base to meet its future capital requirements arising out of the growth of its business and assets.
• It expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including enhancement of its brand name and the creation of a public market for its Equity Shares in India.

Industry Overview

NBFCs in India have demonstrated remarkable growth, driven by an increased focus on diversified loan segments catering to both individual and business needs. NBFCs have strategically expanded their portfolios across various segments, including auto loans, commercial vehicle loans, education loans, housing loans, personal loans, loans against property, tractor loans, two-wheeler loans, used car loans, and general as well as secured and unsecured business loans. NBFC non retail segment consists of secured MSME, Hypothecation MSME and unsecured MSME loans. This portfolio is growing at a moderate CAGR between 11% to 13% between Fiscal 2019 and Fiscal 2025. In NBFC retail the secured business loan segment stands out as the fastest-growing segment, with a CAGR of 54.8%.

India has over 57.7 million MSMEs, of which 98% of MSMEs are classified as micro enterprises as per annual report 2024-25 published by Ministry of Micro, Small and Medium Enterprise. MSMEs complement large corporates as suppliers or directly cater to end users. The MSME sector contributes to India’s socio-economic development by providing huge employment opportunities in rural and backward areas, reducing regional imbalances, and assuring equitable distribution of national wealth and income. MSMEs in India contribute around 30% to the national GDP and faces a substantial unmet credit demand estimated at Rs 103.00 trillion. The Government expects that MSMEs’ contribution to GDP to increase from 30% in Fiscal 2023 to 40-50% by Fiscal 2030.

Over past few years, players offering MSME loans have expanded their branch network with the intent to serve a larger customer base. Share of borrowers from top cities in India has been on a declining trend indicating that lenders are shifting their focus on MSMEs in rural and semi urban areas. In the future also, Crisil Intelligence expects lenders with a strong focus on MSME lending and healthy competitive positioning to continue to invest in branch expansion. With increasing branch network, customer acquisition and credit penetration, share of MSME loans is also expected to increase. 

Pros and strengths

Effective underwriting methodology: Its underwriting expertise gives it a key competitive advantage that has been honed over the years. Lending to MSMEs involves challenges such as limited financial records, small loan sizes, restricted access to traditional banks and financial institutions, and reluctance to provide property as collateral for smaller loans, making it difficult to underwrite loans for such customers. The foundation of its approach to evaluating creditworthiness is based on a reliable estimation of business cash flows and margins based on specific understanding of the ‘business cluster’ using observable data points. It has pioneered a ‘business cluster’ based underwriting methodology, developed from its specific understanding of over 70 business clusters, as of September 30, 2025. These clusters range from shoe manufacturing in Agra, Uttar Pradesh, to garment trading in Patna, Bihar to toys and wooden furniture in Channapatna, Karnataka.

Robust multi-tiered collection capabilities: The company collection processes have been designed to address the repayment behaviors of its target customer segment. This starts with ensuring that its customers have registered ACH mandates to minimize cash collection on the field. Additionally, to enhance repayment adherence, customers receive calibrated reminders prior to their EMI dates through SMS, voice bot, tele-calling, or field visits. Furthermore, it deploys a strong field collection team that is supported by data science models to optimize collection outcomes. Through the effective execution of its collection efforts, it ensures that the overdue buckets are managed tightly. its ratio of Stage 2 assets to total gross loans was 1.65% and 1.82% as of September 30, 2025 and March 31, 2025, respectively, which was the lowest among the Peer MSME Focused NBFCs in those periods.

Building resilience through technological prowess: It follows a ‘phygital’ business model that combines the strengths of physical and digital channels to optimize operations. This integrated model enables it to manage the complexity of cluster-based underwriting, economically source and service a small loan ticket size on disbursement of Rs 0.18 million and monitor and affect timely controls in its business operations. It also allows it to leverage the benefits of both physical presence and digital technology, delivering a seamless and cost-effective experience for its customers.

Access to diversified lender base and cost-effective financing: The company has historically funded its growth through a combination of equity and debt financing. Its debt-to-equity ratio was 3.02, 2.56, 2.73, 2.84 and 3.04 as of September 30, 2025 and September 30, 2024 and March 31, 2025, March 31, 2024 and March 31, 2023, respectively. It benefits from a diversified lender base, accessing capital from 82 different lenders as of September 30, 2025. Its lender base has increased from 56, as of March 31, 2023 to 80, as of March 31, 2025. It has historically secured and seek to continue to secure cost effective funding through a variety of sources, including public sector banks, private sector banks, small finance banks, foreign banks other non-banking financial institutions, developmental financial institutions, multilateral agencies and public investors, together with NCDs, pass through certificates, and direct assignment of loans.

Risks and concerns

Risk of non-payment or default by borrowers: The company typically serves micro scale businesses that are predominantly located in semi-urban areas including in tier II, tier III and tier IV cities and towns, with annual turnovers ranging from Rs 2.00 million to Rs 10.00 million. Lending to MSMEs may often be perceived as involving challenges such as inter alia limited financial records and reluctance to provide property as collateral for smaller loans. Its customers generally have limited sources of income and credit histories, and may not have tax returns, bank or credit card statements, statements of previous loan exposures, or other documents through which it can accurately assess their credit worthiness. As a result, they may pose a higher risk of default than borrowers with greater financial resources and more established credit histories. Its customers may delay and/or default on their repayment obligations due to various reasons including business failure, insolvency or lack of liquidity. It is subject to the risk of non-payment or default by its borrowers which may adversely affect its business, results of operations and financial condition.

Risk associated with unsecured loan: The company offers unsecured loans to its micro-enterprise customers. In the six months ended September 30, 2025 and September 30, 2024 and Fiscals 2025, 2024 and 2023, unsecured loans comprised 37.97%, 41.47%, 39.68%, 37.91% and 30.26% of its total assets under management, respectively. If it is unable to recover such receivables in a timely manner or at all, its business, results of operations, cash flows and financial condition may be adversely affected. Such unsecured loans pose a higher credit risk as compared to its secured loan portfolio because they are not supported by realisable collateral that could help ensure an adequate source of repayment for the loan and, in some cases, may be recalled at any time. It may be unable to collect its outstanding advances in part or at all in the event of non-payment by a borrower. 

Risk related to interest rate volatility and dependence on interest income: The company results of operations depend, to a large extent, on the amount of its net interest income, as its primary revenue source is interest income. Its business is vulnerable to interest rate risk. In the six months ended September 30, 2025 and September 30, 2024 and in Fiscals 2025, 2024 and 2023, its interest income accounted for 85.03%, 89.29%, 88.10%, 88.52% and 88.05% of its total income, respectively. Volatility in interest rates could have an adverse effect on its net interest income and net interest margin, thereby affecting its results of operations and cash flows.

Risk from RBI regulations and inspections: The company is subject to periodic inspections by the RBI as an NBFC-ML, of its balance sheet, financials and other records, including details of disbursements, non-performing assets, grievance redressal mechanism, and branches, among others, for the purpose of verifying the correctness or completeness of any statement, information or particulars furnished to the authorities. Non-compliance with observations made by the RBI during these inspections could expose it to penalties and restrictions, which may have an adverse effect on its business, results of operations, cash flows and financial condition.

Outlook

Aye Finance was incorporated to carry on the business of a finance company and to provide finance (whether short- or long-term loan or working capital finance, development finance, factoring, leasing, guarantees or any other debt related funding) to micro, small and medium scale enterprises and to individuals. The company is currently a systemically important non deposit taking Non-Banking Finance Company (ND-NBFC) as defined under Section 45 - IA of the Reserve Bank of India Act, 1934. On the concern side, the financial services market is being served by a range of financial entities, including traditional banking institutions, captive finance affiliates of players in various industries, NBFCs and small finance banks approved by RBI to enhance credit penetration. Its inability to compete effectively in an increasingly competitive industry may adversely affect its market share, business and financial condition. Additionally, the has experienced negative cash flows from operating activities in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect its ability to operate its business and implement its growth plans, thereby affecting its financial condition.

The issue has been offering 8,27,86,884 equity shares in a price band of Rs 122-129 per equity share. The aggregate size of the offer is around Rs 1010 crore to Rs 1067.95 crore based on lower and upper price band respectively. Minimum application is to be made for 116 shares and in multiples thereon, thereafter. On performance front, its total income increased by 40.42% from Rs 10,717.50 million in Fiscal 2024 to Rs 15,049.87 million in Fiscal 2025. Its profit for the year in Fiscal 2025 was Rs 1,752.52 million while its profit for the year in Fiscal 2024 was Rs 1,716.79 million.

The company strategy to leverage technology and data science for enhancing productivity and scalability includes several key initiatives. For instance, in terms of its underwriting capabilities, it aims to incorporate technology and data science to enable the aggregation of surrogate information to complement its cluster based underwriting methods, and it intends to enhance its existing credit scoring models as it adds new business clusters. It is in the process of developing image recognition models to enhance straight-through processing models to improve the productivity of its underwriting teams. For its collections, it intends to ensure the better use of geolocation-based analytics and digital footprints of customers to improve traceability of defaulting customers. It will also invest in developing multiple alternate digital payment options for its customers, as well as customer education to influence customer behaviour towards the most efficient method of repayment.

PAN HR Solution 

• PAN HR Solution is coming out with an initial public offering (IPO) of 21,84,000 shares in a price band of Rs 74-78 per equity share. 
• The issue will open on February 06, 2026 and will close on February 10, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 7.4 times of its face value on the lower side and 7.8 times on the higher side.
• Book running lead manager to the issue is Marwadi Chandarana Intermediaries Brokers.
• Compliance Officer for the issue is Anamika Sinha Roy.

Profile of the company

PAN HR Solution operates on a B2B model and provides comprehensive manpower solutions, catering to a range of roles from unskilled to skilled blue-collar workers. It has a PAN India presence and provides human resource, staffing services and compliance solutions to customers in E-commerce, logistics, manufacturing, information technology and other sectors which enables them in streamlining the hiring process, reduces administrative burden, and ensuring suitable candidates. It offers range of services i.e. Manpower services, Payroll services, Facility management, staffing solutions, Compliance Audit and E-commerce Logistics which enables it to design and deliver a range of customized solutions suited to the specific needs of its customers, which strengthens its customer acquisition and retention capabilities. As a part of facility management services, it provides personnel for roles such as housekeeping staff, pantry boys, office assistants, and other support roles.

It currently operates under a ‘Collect and Pay’ Model, wherein the company raises invoices on its Customers/Principal Employers for services rendered in accordance with the applicable terms and subsequently receives payment. The payments are then disbursed to the employees deployed at the client place. In addition, it is in process of gradually implementing ‘Pay and Collect’ model wherein the company shall make disbursements in advance to the concerned personnel or beneficiaries followed by the raising of invoices and recovery of the corresponding amounts from the Client/Principal Employer in accordance with agreed contractual terms. As on November 30, 2025, it has 10,374 personnel (non-core employees) deployed at various locations of its customers.

Till date, it has served to around 25 customers, who are well-established and renowned companies having presence in national and regional operations. It has been awarded from its clients for providing the services. It has been recognized as ‘Best performers for city logistics in BBD’22 by Flipkart’ and ‘Award for Runners-up support partner-Grocery in BBD’23 by Flipkart’. It has also received the ISO 14001: 2015, 45001: 2018 and 9001:2015 certificate from Environmental System Management, Occupational Health and Safety Management System and Quality System Management.

Proceed is being used for:

• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

The expansion of India’s services sector has been closely linked to the economic reforms of the 1990s. While the sector began to grow in the mid-1980s, it gained significant momentum after India initiated a series of structural reforms in response to a severe balance of payments crisis. Today, the services sector is not only the largest contributor to India’s GDP but also a major driver of employment, foreign investment, and exports. It encompasses a wide range of activities, including trade, hotels and restaurants, transport, storage and communication, finance, insurance, real estate, business services, community and personal services, and services associated with construction. To enhance India’s share in the global services market from 3.3% and enable multi-fold growth in GDP, the government has implemented several initiatives to strengthen commercial services exports. As a result, India’s services exports stood at around Rs 11,00,517 crore ($128 billion) in FY26 (April to July 2025), while imports were Rs 5,56,128 crore ($65 billion), highlighting India’s strong position in global trade. The services trade surplus during this period reached Rs 5,44,389 crore ($63.53 billion), up from Rs 4,65,639 crore ($54.34 billion) in FY25.

India’s services sector has steadily increased its share of Gross Value Added, rising from 50.6% in FY14 to about 55.3% in FY25, with an average growth of 8.3% since FY23. The sector also ranked first in attracting Foreign Direct Investment, according to data from the Department for Promotion of Industry and Internal Trade. India’s unique skills and competitive advantage in knowledge-based services, supported by initiatives such as Smart Cities, Clean India, and Digital India, have created a conducive environment for growth and innovation. The Confederation of Indian Industry has outlined a plan to position India as a global logistics hub, emphasizing collaboration among stakeholders to unlock opportunities across industries and regions. This initiative aims to create aspirational career paths, facilitate professional development, and cultivate leadership opportunities. Positive demand trends in the sector have driven growth in new business volumes and further job creation, with the gig economy comprising 12 million workers, over 2% of the workforce, growing at a 17% CAGR and posting a 38% YoY increase, fuelled by digital connectivity, urbanization, and flexible work preferences.

The growth of India’s services sector is being shaped by both domestic and global factors. A wide range of service industries has witnessed double-digit expansion in recent years, driven by digital technologies, innovation, and supportive institutional frameworks established by the government. The ease of doing business in India has improved significantly for both domestic and foreign firms, reflecting advancements in regulatory culture and government initiatives. Ongoing reforms, including the lowering of trade barriers, easing of FDI regulations, and deregulation, have further strengthened the sector’s growth prospects. The implementation of GST 2.0 has created a unified national market and reduced the overall tax burden on goods and services. This reform is expected to lower costs over the long term through the availability of input tax credit, ultimately contributing to more competitive pricing of services. With these structural reforms, technological adoption, and favourable policy measures, India’s services sector is poised for sustained growth, supporting the country’s broader economic development. The digital economy alone is estimated to reach $1 trillion by 2025, highlighting the transformative potential of the sector in driving employment, exports, and innovation.

Pros and strengths

Extensive workforce deployment: It manages a large number of personnel deployed across various locations nationwide. This enables consistent service delivery across different regions and supports operations in sectors like E-commerce, Manufacturing, Logistics, etc. The workforce is allocated based on client requirements, project timelines, and operational priorities. It has supervisory team who monitors the deployment of the workforce, keeps track of attendance and checks productivity & efficiency. This structure allows clients to maintain continuity, meet project targets, and respond to changing operational demands without delays or disruptions. It has deployed 10374, 9481, 9467 and 9884 personnel (non-core employees) for the period ended November 30, 2025 and Financial Year ended 2025, 2024 and 2023, respectively.

Comprehensive service portfolio: The company offers an end-to-end HR solution including recruitment, payroll management, compliance auditing, facility management, staffing solutions as a one-stop provider. Its range of offerings helps its clients achieve their business objectives and enable it to obtain additional business from existing clients and also expands its reach to a broader base of potential new clients.

Strong compliance and regulatory expertise: The company is in compliance with the statutory requirements like GST, PF, ESIC, labour laws for all its employees. This will the minimize risks and ensure the organization operates within legal boundaries. The company also commits to comply with new amendments introduced in labour laws from time to time. This approach helps to avoid legal disputes, penalties, and interruptions in service delivery, while also supports in transparency in all operations.

Risks and concerns

Reliance on major customers: Its business is dependent on its continuing relationships with its customers. It is dependent on contracts entered with its customers. It has maintained cordial relationships with its customers. Specifically, the Revenue from Top 10 Customers contributed 99.86%, 98.76%, 99.33 and 98.69% for the financial period ending November 30, 2025 and financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. However, there can be no assurance that it will be successful in maintaining such relationships or increasing the number of such relationships. Its customers may reduce the volume of services or terminate all services due to any reason including those beyond its control such as their adverse business and financial conditions. Further failure to retain current customers or acquire new customers due to inability to meet customer requirements, negotiate favourable terms, or deliver services in a timely manner may result in a decline of customers and as a result, its business, prospects, results of operations and financial condition could be adversely affected in the future. 

Uncertainty in contract duration, renewal, and customer demand: It typically enters into work orders/ contracts for a period ranging from one-year to three years with its customers. Within the duration of these contracts, the scope of services may vary depending upon the requirements of its customers. In an event, where such work orders/contracts are terminated or completed by its existing customers it may have to seek new customers in order to expand its business. Similarly, there is no assurance that customers availing its services will look to obtain further services from it or expand their relationship to avail its offerings. Failure to meet additional staffing requirements, changes in customer preferences, or an inability to maintain renewal rates and favorable contract terms may lead clients to engage competitors and could adversely affect its business, financial condition, cash flows, and results of operations. The loss or reduction of business from key customers, or delays in renewing contracts or acquiring new clients, may further impact its revenue and overall performance.

Impact of government regulations on business operations: Its business and industry are regulated by different laws, rules and regulations framed by the Central and State Government. These regulations can be amended/ changed on a short notice at the discretion of the Government. If it fails to comply with all applicable regulations or if the regulations governing its business or their implementation change adversely, it may incur increased costs or be subject to penalties, which could disrupt its operations and adversely affect its business and results of operations.

Outlook

PAN HR Solution operates on a B2B model and provides comprehensive manpower solutions, catering to a range of roles from unskilled to skilled blue-collar workers. It has a PAN India presence and provides human resource, staffing services and compliance solutions to customers in E-commerce, logistics, manufacturing, information technology and other sectors which enables them in streamlining the hiring process, reduces administrative burden, and ensuring suitable candidates. On the concern side, it derives a significant portion of its revenue from operations from regions like Delhi, Haryana and Uttar Pradesh. Such geographical concentration of its business in these regions increases its exposure to adverse developments arising out of competition, economic changes and demographic changes in the aforementioned states, which may adversely affect its business prospects, financial conditions and results of operations. Moreover, its business and industry are regulated by different laws, rules and regulations framed by the Central and State Government. These regulations can be amended/ changed on a short notice at the discretion of the Government. If it fails to comply with all applicable regulations or if the regulations governing its business or their implementation change adversely, it may incur increased costs or be subject to penalties, which could disrupt its operations and adversely affect its business and results of operations.

The company is coming out with a maiden IPO of 21,84,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 74-78 per equity share. The aggregate size of the offer is around Rs 16.16 crore to Rs 17.04 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 28,318.88 lakh whereas in FY24 it was Rs 28,107.99 lakh representing an increase of 0.75%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 501.58 lakh and for the year ended March 31, 2024 it was Rs 420.46 lakh representing an increase of 19.29%.

The company aims to drive organic growth by expanding its presence in new geographic regions and strengthening its footprint in existing ones. This will enable it to reach out to a larger market and have direct access to the clients which will allows it to have better understanding of their requirement. Further, it plans to expand its services portfolio by introducing the Third-Party Logistics (3PL) model. Under this model, end-to-end logistics operations such as transportation, warehousing, inventory management, and order fulfillment on behalf of its clients shall be provided by it which will help them to streamline their supply chain by outsourcing the non-core functions.

Brandman Retail

• Brandman Retail is coming out with an initial public offering (IPO) of 48,91,200 shares in a price band of Rs 167-176 per equity share. 
• The issue will open on February 04, 2026 and will close on February 6, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 16.70 times of its face value on the lower side and 17.60 times on the higher side.
• Book running lead manager to the issue is Gretex Corporate Services.
• Compliance Officer for the issue is Sanchita Rameka.

Profile of the company

The company is engaged in the distribution and retail of premium international brands through non-exclusive distribution agreements. Its sales are carried out through multiple channels, including Exclusive Brand Outlets (EBOs) operated under specific brand arrangements, Multi-Brand Outlets (MBOs) under its trademark ‘Sneakrz,’ e-commerce marketplaces and its own website. In addition to the offline stores, the company has entered into agreements with retailers of shoes under which, the company supplies its products to stores and the same are thereafter sold to end-customers through online and offline modes. This multi-channel presence allows it to cater to customers across physical retail formats as well as online platforms.

Its Promoters, Arun Malhotra and Kavya Malhotra, each with over 22 years of experience in the luxury goods branding solutions business, established the company in 2021. In 2024, Kashika Malhotra joined as a Promoter, following her prior exposure to internships and training programs in the retail and consulting sectors. The Promoters, together with a professional team, manage the company’s operations in the distribution and retail of international brands through licensing, re-seller arrangements, and reseller distribution networks. The company distributes and retails branded products and adjusts its product offerings in accordance with observed consumer demand.

Proceed is being used for:

• Funding Capital Expenditure for expansion of its Retail Network by launching 15 new Exclusive Brand Outlets (EBOs) / Multi-Brand Outlets (MBOs) 
• Working capital requirements for new EBOs and MBOs 
• Working capital requirements for existing EBOs and MBOs 
• General corporate purposes
• Meeting the Issue expenses 

Industry overview

The Indian apparel market is one of the largest discretionary categories, valued at around $77 billion in 2023 and projected to reach approximately $120 billion by 2027, representing a compound annual growth rate (CAGR) of 9-10%. This makes India one of the fastest-growing apparel markets globally, driven by favourable demographics, rising urbanisation, premiumisation, and greater adoption of branded products. Globally, the apparel market is estimated at around $1.7 trillion in 2023, with major contributions from China, the United States, and the European Union. India, while smaller in absolute size compared to these markets, is projected to record higher growth rates than most mature economies. This positions India as a key growth driver in global apparel consumption over the coming decade.

The Indian footwear market is among the most important discretionary retail categories, valued at around $25 billion in 2023. It is projected to grow at a CAGR of 5-6% to reach $34 billion by 2028, supported by premiumisation, lifestyle shifts, and greater penetration of branded products. Globally, the footwear market is estimated at $400 billion in 2023.  India’s contribution, though relatively modest in global terms, is set to rise as domestic demand increases and export capacity strengthens. India is also the second largest footwear producer worldwide, accounting for over 10% of global output, supported by established clusters in Agra, Kanpur, Ambur, Ranipet, and other regions.

India’s apparel and footwear retail industry is at an inflection point. While risks remain in terms of discounting pressures, regulatory compliance, and competitive intensity, the sector’s long-term fundamentals are robust. The combination of favourable demographics, rising aspirations, digital adoption, and structural formalisation provides a strong foundation for sustained growth. Companies with disciplined supply chains, differentiated brand portfolios, and strong omnichannel execution are well placed to capture the opportunities ahead.

Pros and strengths

Omni-Channel distribution network: The company operates through multiple channels, including EBOs, MBOs, e-commerce marketplaces, and its own online store. This integrated presence across offline and online platforms allows the company to reach customers through different points of sale and adapt to varying consumer preferences.

Asset-Light and scalable business model: The company follows an asset-light trading model, which reduces fixed capital requirements. Inventory is primarily managed through a central warehouse and store-level stock, with sales facilitated through both offline and online channels. This structure allows the company to expand its operations without significant investment in manufacturing infrastructure.

Brand associations and market opportunity: The company has associations with certain international brands, which enables it to offer products in the athleisure and footwear segment. Demand for premium activewear and performance products in India has been increasing, and the company intends to expand in line with this market trend.

Risks and concerns

High revenue concentration in footwear segment: Its business comprises sale of footwear, apparel and accessories. A significant portion of its revenue is derived from the sale of footwear products. In the for the nine months period ended on December 31, 2025 and Financial Year 2024- 25, 203-24 and 2022-23, revenue from footwear products contributed around 72%, 85%, 96% and 89%, respectively, of its total revenue from operations. This concentration exposes it to risks associated with demand, consumer preferences and competitive dynamics specific to the footwear segment. Its revenue is highly dependent on sale of footwear products, and any adverse developments in this product category may materially affect its business, financial condition and results of operations.

Dependence on top ten customers for revenues: It is dependent on such customers for a certain portion of its revenues. There can be no assurance that all such top customers will continue to place similar orders with it in the future. The revenue of its top ten customers for the nine months ended December 31, 2025 stood at Rs 5,288.95 lakh (55.49%). For FY2024-25, and FY2023-24 revenue from the top ten customers amounted to Rs 9,377.56 lakh (69.31%), and Rs 7,210.67 lakh (58.47%), respectively. Any significant portion of its revenue is generated from its top ten customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, revenues, profitability, financial condition and cash flows.

Dependence on contractual arrangements with customers: Its business operations are significantly dependent on contractual arrangements entered into with its customers, including large e-commerce platforms and retailers. These agreements typically impose obligations on it relating to timely supply, adherence to quality specifications, compliance with applicable laws, and other performance-related conditions. Non-fulfilment of these obligations may expose it to penalties, claims, or termination of such contracts. For instance, one of such agreements includes a penalty structure for cancellation of orders, whereas another such agreement provides for penalties in the event of delayed delivery. These provisions expose it to the risk of financial liabilities in the event of non-performance or delays, irrespective of whether such lapses arise due to factors within or beyond its control, such as supply chain disruptions, delays by third-party logistics providers, or unforeseen operational challenges.

Outlook

Brandman Retail is engaged in the trade of Footwear, Apparels and accessories. Its sales are carried out through multiple channels, including Exclusive Brand Outlets (EBOs) operated under specific brand arrangements, Multi-Brand Outlets (MBOs) under its trademark ‘Sneakrz,’ e-commerce marketplaces and its own website. The company object is to expand the business of multiple international brand of mainly Footwear & Apparels through verticals retail and distribution business. On the concern side, it relies on third-party suppliers for purchase of finished products for its retail sales and distribution business. It has not entered into any long-term supply agreements with them, except with the brand-owner suppliers. Any shortage and cessation in supply could adversely affect its business and results of operations. Further, its revenue generation is majorly concentrated in the particular geographical regions of Delhi and Uttar Pradesh and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 48,91,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 167-176 per equity share. The aggregate size of the offer is around Rs 81.68 crore to Rs 86.09 crore based on lower and upper price band respectively. On performance front, the Revenue from operations increased by 9.70%, rising from Rs 12,333.26 lakh in FY 2023-24 to Rs 13,529.49 lakh in FY 2024-25. Profit after tax for FY 2024-25 recorded over two-fold increase, climbing to Rs 2,095.42 lakh from Rs 827.41 lakh in FY 2023-24.

Meanwhile, the company is working to enhance its e-commerce operations by entering into arrangements with digital advisors and specialists to support online sales growth. In the B2B segment, the company aims to increase volumes through partnerships with established e-commerce platforms and other retailers. To strengthen its e-commerce presence, it has expanded its engagement with e- commerce marketplace by listing its products directly on their platform in addition to its existing B2B wholesale arrangement, thereby enhancing visibility and accessibility to end consumers. In the B2B segment, it has further broadened its reach by onboarding well-known retail company focused on e-commerce branding as a key B2B partner, which supports its objective of increasing volumes and expanding its customer base through established retail networks.

Grover Jewells

• Grover Jewells is coming out with an initial public offering (IPO) of 38,44,800 shares in a price band of Rs 83-88 per equity share. 
• The issue will open on February 04, 2026 and will close on February 6, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 8.3 times of its face value on the lower side and 8.8 times on the higher side.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Drishti Jaiswal.

Profile of the company

The company specializes in the manufacturing and designing of a wide range of wholesale gold jewellery. Its collections include plain gold, studded, and semi-finished jewellery, mostly available in 22 Karat, 20 Karat, and 18 Karat. It also sells hallmarked as well as non-hallmarked jewellery in its showrooms. The company commenced its operations with a specialization in the large-scale manufacturing of gold chains, serving both wholesale and retail markets. Over the years, with consistent focus on quality, precision, and design innovation, it has significantly broadened its product range. 

By offering products across various styles and price segments, the company is able to cater to a wide customer base while maintaining the highest standards of craftsmanship, reliability, and trust that form the cornerstone of its brand. While its primary focus remains on the B2B segment, the company is also undertaking initiatives to strengthen its presence and increase revenue in the B2C segment. In addition, it operates a job work segment, wherein small jewellers entrust the company with gold and designs, and it transforms them into finished jewellery. This stream generates stable revenue through labour charges, though it contributes only a minor share compared to its core business segments.

The company operates a fully integrated, in-house gold jewellery manufacturing facility. The facility is equipped with advanced machinery, including casting machines, induction melters, steamers, air compressors, and other specialized equipment, enabling the company to maintain precision and consistency at every stage of production. All functions ranging from design and development to manufacturing and packaging are executed within the facility, ensuring seamless coordination and complete quality control. The company’s design capabilities are strengthened by a dedicated team of skilled CAD designers, supported by select freelance designers, allowing it to consistently introduce fresh, intricate, and market-relevant designs. It supplies to a wide network of local dealers, jewellery showrooms, and small-scale retailers, many of whom rely on the company for bulk orders.

Proceed is being used for:

• Meeting working capital requirements
• General corporate purposes

Industry overview

India’s gold and diamond trade contributed around 7% to India’s Gross Domestic Product (GDP). The Gems & Jewellery sector has employs around 5 million. Based on its potential for growth and value addition, the Government declared the Gems & Jewellery sector as a focus area for export promotion. The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India.

India’s Gems & Jewellery market size was at $78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and the fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. In FY25, India's Gems & Jewellery exports stood at Rs 2,43,162 crore ($28.50 billion). In March 2025, India's Gems & Jewellery exports stood at Rs 2,20,379 crore ($25.82 billion).

In the coming years, growth in the Gems & Jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry. The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilisation of gold prices at lower levels is also expected to drive volume growth for jewellers over the short to medium term.

Pros and strengths

Integrated In-house production facility: Its in-house manufacturing setup provides comprehensive control over every stage of jewellery production, from initial design to final packaging. This fully integrated model enables it to consistently meet the highest standards of quality while accommodating diverse client specifications. The facility is equipped with advanced Italian, Chinese, and German machinery, including precision casting systems, induction melters, steamers, and air compressors, which together ensure efficiency, scalability, and accuracy in production. By consolidating critical processes under one roof, it is able to deliver products of exceptional craftsmanship while maintaining the agility required to respond to market demands.

Expansive product portfolio driven by innovation: It specializes in high-demand product categories such as Casting Jewellery, Cuban Chains, CZ Casting Jewellery, and Machine Chains, while also offering a comprehensive range of rings, pendants, chains, necklaces, anklets, bracelets, bangles, and earrings crafted in 22 Karat, 20 Karat and 18 Karat gold. Its diverse portfolio, designed by an experienced in-house team, spans traditional, contemporary, and fusion styles, ensuring relevance across all age groups, occasions, and price points. In addition to standardized collections, it has strong capabilities in creating custom designs tailored to exclusive client requirements, which enhances customer loyalty and broadens its market reach. This strategic combination of product diversity, design innovation, and customization not only allows it to capture emerging trends but also mitigates concentration risk, strengthens its competitive positioning, and creates sustained opportunities for revenue growth in both domestic and international markets.

Established B2B presence backed by rigorous quality: Standards Quality is central to its value proposition, and it has established rigorous systems to ensure that every piece of jewellery meets the highest standards. While some of its products undergo BIS Hallmarking in line with regulatory and customer requirements, a significant portion of its portfolio is focused on the B2B segment, where hallmarking is generally not mandated. Instead, it ensures product integrity through strict, multi-level quality control procedures implemented across the production cycle to maintain uniformity, precision, and reliability in every design. Its integrated in-house facilities further strengthen this framework by incorporating advanced units for XRF purity testing, plating, and polishing. These capabilities allow it to validate gold purity with high accuracy, apply superior finishing techniques, and ensure durability in every product.

Risks and concerns

High revenue dependence on chain roll/chains: It derives a significant portion of its revenue from the sale of chains and any reduction in demand or in the manufacturing of such product could have an adverse effect on its business, results of operations and financial condition. For the seven-months period ended October 31, 2025 and financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, its revenue from the sale of Chain Roll/Chains was Rs 45,655.39 lakh, Rs 44,794.85 lakh, Rs 25,320.37 lakh and Rs 25,238.34 lakh respectively. Sales of Chain Roll/Chains accounted for 96.48%, 97.21%, 98.17% and 98.94% of its total revenue from operations during these periods. This concentration exposes it to risks related to market demand, pricing pressures, changes in customer preferences and any industry-specific developments affecting chain manufacturing.

Overdependence on B2B sale: Its revenue is almost entirely derived from sales to wholesalers, small retailers, and local jewellery shop owners (B2B segment). For the period ended October 31, 2025, the B2B segment contributed Rs 46,823.43 lakh, accounting for 98.95% of total revenue. In FY2024-25, B2B revenue stood at Rs 45,785.73 lakh (99.36%), while in FY2023–24 and FY2022–23, it amounted to Rs 25,744.89 lakh (99.82%) and Rs 25,508.80 lakh (99.99%), respectively. Such high reliance on this segmental business model exposes it to concentrated market risks, including reduced resilience to changes in demand, pricing pressures, or adverse developments within the wholesale and small retail jewellery trade.

Impact of gold price fluctuations on business: Its gold jewellery business is subject to significant risks arising from market volatility and changing consumer preferences, further compounded by the current record-high gold prices, which may continue to rise. Fluctuations in commodity prices, particularly gold, have a direct impact on its raw material costs and overall profitability. Sustained increases in gold prices could elevate its production expenses and exert pressure on its margins unless appropriately offset through pricing adjustments. Conversely, any sudden decline in gold prices may adversely affect inventory valuation and profitability, especially where inventory has been procured at higher price levels.

Outlook

Grover Jewells specializes in the manufacturing and designing of a wide range of wholesale gold jewellery which includes finely crafted jewellery, comprising of gold chains, bangles, rings, necklaces, and complete sets, designed to meet the diverse preferences of its clientele. While its primary focus remains on the B2B segment, it is also undertaking initiatives to strengthen its presence and increase revenue in the B2C segment. In addition, it operates a job work segment, wherein small jewellers entrust it with gold and designs, and it transforms them into finished jewellery. On the concern side, its business is primarily concentrated in the central and northern part of India, especially around Delhi and its neighbouring states, i.e. Uttar Pradesh, Haryana and Uttarakhand and it is significantly dependent on these states for revenue generation. Any adverse development affecting such states may have an adverse effect on its business, prospects, financial condition and results of operations. Further, intense competition in the Indian Jewellery Market could result in loss of customers, reduced market share, and adverse impact on its business and financial performance.

The company is coming out with a maiden IPO of 38,44,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 83-88 per equity share. The aggregate size of the offer is around Rs 31.91 crore to Rs 33.83 crore based on lower and upper price band respectively. On performance front, the revenue from operations has been increased from Rs 25,791.13 lakh in FY 2023-24 to Rs 46,080.29 lakh in FY 2024-25 i.e. revenue from operation increased by 78.67% for the said period. The restated profit after Tax for FY 2024-25 recorded a nearly three-fold jump, rising to Rs 762.28 lakh from Rs 278.05 lakh in FY 2023-24.

As part of its future growth strategy, it plans to enhance its manufacturing capabilities through the integration of advanced technology and automation. A key initiative will be the installation of automatic laser welding machines, which will enable greater precision and superior finishing, particularly in the production of machine chains. This will allow it to deliver higher-quality products with improved efficiency and scalability. It also intends to strengthen its capacity by adding cutting-edge imported machinery from Italy and Germany. These investments are expected to significantly increase output, improve product consistency, and reduce process variability.

Biopol Chemicals

• Biopol Chemicals is coming out with an initial public offering (IPO) of 28,94,400 shares in a price band of Rs 102-108 per equity share. 
• The issue will open on February 06, 2026 and will close on February 10, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 10.2 times of its face value on the lower side and 10.8 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Deepti Nama.

Profile of the company

The company is engaged in the business of trading, manufacturing and distribution of specialty chemicals under the categories of silicones, emulsifiers, biochemicals and polyelectrolytes. Its product portfolio consists of 66 products which comprises of 40 silicone-based products, 5 emulsifier-based products, 15 biochemical products and 6 polyelectrolyte products. These products are used in applications across various industry segments, including softeners, emulsions and hardeners for textiles; silicone fluids and cleaning chemicals for home care; silicone adjuvants and surfactants in agriculture; and release agents in industrial chemicals. 

In addition, the company also provides technical consultancy services to customers. These services are offered either in connection with the sale of its products or in certain cases, separately at the request of customers for specific requirements. Its consultancy services includes support on the application of specialty chemicals in textile processing, guidance relating to the manufacture of dyes and advice on the use of specialty chemicals in industrial formulations, enabling customers in achieving specific application requirements. 

The company operates on a business-to-business (B2B) model, catering to institutional clients rather than retail end-users. It conducts its business through a combination of direct sales and a network of distributors, enabling it to serve customers across both domestic and international markets. In the domestic market, its sales are spread across several regions, including West Bengal, Gujarat, Maharashtra, Tamil Nadu and Karnataka, with a significant portion of revenue derived from West Bengal and Gujarat. While its exports are currently focused on Bangladesh, which is a global hub for textiles and apparel manufacturing. It has four establishments located in Gujarat and West Bengal, comprising its manufacturing unit, corporate office and warehouse in West Bengal; and its registered office in Gujarat. 

Proceed is being used for:

• Acquisition of industrial land
• Repayment or prepayment, in full or in part, of borrowings availed by the company from banks, financial institutions and non-banking financial companies
• General corporate purposes

Industry Overview

Indian Chemicals Market Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. India's chemical sector, which was estimated to be worth around Rs 21,50,750 crore ($250 billion) in 2024, is anticipated to grow to $300 billion by 2025 and Rs 86,03,000 ($1 trillion) by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty. Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world's production of dyestuffs and dye intermediates. Indian colourants industry has emerged as a key player with a global market share of around 15%. The country’s chemicals industry is de-licensed, except for a few hazardous chemicals. 

India has traditionally been a world leader in generics and biosimilars and a major Indian vaccine manufacturer, contributing more than 50% of the global vaccine supply. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at the global level (excluding pharmaceuticals). From (April-February) FY25, India's dye exports (Dyes and Dye Intermediates) totalled Rs 20,088 crore ($2.3 billion). India’s specialty chemicals companies are expanding their capacities to cater to rising demand from domestic and overseas. With global companies seeking to de-risk their supply chains, which are dependent on China, the chemical sector in India has the opportunity for a significant growth. The Dahej PCPIR project in Bharuch, comprising 180 existing and 650 under construction industrial units has attracted an investment of Rs 1 lakh crore (around $12 billion) and is expected to generate 32,000 jobs. The Indian chemical industry is currently valued at $220 billion and is expected to reach $300 billion by 2030 and $1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.

A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector. The government plans to implement production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters. 100% FDI is allowed in the chemical sector under automatic route with exception to few hazardous chemicals. In April 2023, Cabinet approved the National Medical Devices Policy, 2023. Industrial licensing is approved in most sectors, except for few hazardous chemicals. The Indian Government supports the industry in research & development, reduced the basic customs duty on several products and offers support through the ‘Make in India’ campaign. Four Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) were set up as the investment regions for petroleum, chemicals and petrochemicals along with associated services. The Government of India is considering launching a production-linked incentive (PLI) scheme in the chemical sector to boost domestic manufacturing and exports.

Pros and strengths

Efficient manufacturing unit: It operates a manufacturing facility located at 74, Nilgunj Road, P.O. Agarpara, Panihati, P.S. Khardah, North 24 Parganas, Kolkata, West Bengal. The facility comprises a two storied unit, with the ground floor measuring around 5,000 sq. ft. and the first floor measuring around 900 sq. ft. The manufacturing unit has an installed capacity of 18,25,000 litres per annum and is equipped with reactors, mixers, homogenizers, blenders, and other process equipment, enabling the production of its range of specialty chemical products. The first floor houses the quality control laboratory for sample testing and designated areas for workers and support functions. The unit is operated and managed by a team consisting of a supervisor and 8 employees across various functions including production, quality control, maintenance, procurement, packaging and dispatch. This functional structure facilitates effective production management while ensuring compliance with quality standards and operational efficiency.

Quality certification and quality assurance: Its manufacturing facility has been accredited with ISO 9001:2015 - Quality Management Systems, ISO 14001:2015 - Environmental Management Systems and ISO 45001:2018 - Occupational Health and Safety Management Systems for manufacturing and exporting specialty chemicals across categories such as silicones and downstream chemicals, surfactants, polyelectrolytes, home care chemicals and bio-chemicals. These certifications evidence its commitments to adhering to stringent quality standards, given the nature of its operations where consistency is of paramount importance and tolerance for variation in product specifications is minimal. It has 42 products (20 silicone-based products, 1 emulsifier-based product, all 15 biochemical products and all 6 polyelectrolyte products) under ZDHC Level 3 certification, which represents the highest level of product certification in its industry. These measures collectively ensure that its products meet industry standards and applicable regulatory requirements.

Export operations in Bangladesh: The company has maintained a consistent export presence in Bangladesh. Revenue from exports to Bangladesh was Rs 591.63 lakh for the period ended on December 31, 2025, Rs 369.08 lakh in FY25, Rs 166.79 lakh in FY24, and Rs 253.31 lakh in FY23, representing 12.11%, 7.51%, 6.55%, and 13.11%, respectively, of its total revenue from operations during the relevant periods. In addition to regular exports, it actively engages with the Bangladesh market through participation in industry exhibitions. For instance, its participation in the Textile Series of Exhibitions 2025 in Bangladesh enabled it to showcase its specialty chemical products, interact directly with potential customers, obtain industry feedback and generate new business leads. Such presence and engagement highlight the acceptance of its products in international markets, while also strengthening its overall visibility and competitiveness.

Risks and concerns

Business dependence on silicone-based chemicals: A significant portion of its product portfolio is dependents on silicone-based products, which form the core of its business operations. As on the date of this Red Herring Prospectus, its portfolio consists of 66 products, of which 40 are silicone based, 5 are emulsifier-based, 15 are biochemical, and 6 are polyelectrolyte products. Its silicone-based products are used across a variety of industries, including agriculture, textiles, and other specialty chemical applications. Any reduction in demand for silicone-based chemicals, whether due to regulatory changes, customer preference for alternative solutions, technological advancements, or environmental considerations, could materially and adversely impact its business. There is also a risk of obsolescence if competing products or substitutes with superior performance or cost advantages gain wider market acceptance. In such circumstances, its revenues and margins may decline if it is unable to adjust pricing, introduce new products, or develop new applications for its existing products. 

Risks associated with operations at its manufacturing unit in West Bengal: It operates a manufacturing unit at 74, Nilgunj Road, P.O. Agarpara, Panihati, P.S. Khardah, North 24 Parganas, Kolkata, West Bengal. The unit has an installed capacity of 18,25,000 litres per annum and is equipped with reactors, mixers, homogenizers, blenders, and other process equipment, enabling the manufacture of its range of specialty chemical products. Its manufacturing unit is integral to its business operations. Its business performance depends on its ability to effectively manage this manufacturing facility, which is subject to various operational and external risks, including breakdown or failure of equipment, power or water supply interruptions, inefficiencies in production processes, equipment obsolescence, industrial accidents, natural disasters, and compliance with directives from relevant government authorities. Although it has undertaken routine repairs and maintenance during the period ended on December 31, 2025 and for the financial years ended March 31, 2025, 2024, and 2023, it cannot assure that a major breakdown or operational disruption will not occur in the future, which could materially affect its business operations and financial position. Any local social unrest, natural disaster, or disruption of utilities and services in the surrounding areas could adversely impact the operation of its manufacturing unit.

Exposure to raw material supply disruptions: The primary raw materials used in its manufacturing process are silicone fluids, silicone oil, plasticizer, solvents, surfactants, binder, emulsifiers and other chemical intermediaries and a substantial portion of its purchases is concentrated among a limited suppliers. A significant reliance on a limited number of suppliers increases its exposure to risks including supply interruptions, insolvency, changes in pricing, logistical challenges, regulatory or trade restrictions, and the inability to establish alternative supply arrangements in a timely and cost-effective manner. Any such disruption could adversely impact its production schedules, operational efficiency, costs and margins. The company has done 96.56%, 94.69%, 95.27% and 98.55% of its purchase from top 10 suppliers during the period ended December 31, 2025, FY25, FY24, and FY23 respectively.

Outlook

Biopol Chemicals is engaged in the business of trading, manufacturing and distribution of specialty chemicals under the categories of silicones, emulsifiers, biochemicals and polyelectrolytes. Its product portfolio consists of 66 products which comprises of 40 silicone-based products, 5 emulsifier-based products, 15 biochemical products and 6 polyelectrolyte products. These products are used in applications across various industry segments, including softeners, emulsions and hardeners for textiles; silicone fluids and cleaning chemicals for home care; silicone adjuvants and surfactants in agriculture; and release agents in industrial chemicals. On the concern side, its revenue is derived through a combination of direct sales and distributor-driven sales, and any disruption or inefficiency in either channel may materially and adversely affect its business, financial condition, results of operations and cash flows. Additionally, it does not have long-term agreements with certain distributors, which exposes it to the risk of losing them or facing unfavourable commercial terms. Moreover, its expansion plans, including the acquisition of industrial land in Gujarat, may expose it to operational, regulatory, and execution risks, and any delay or inability to complete the project as envisaged could adversely affect its business, results of operations, and financial condition.

The company is coming out with a maiden IPO of 28,94,400 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 102-108 per equity share. The aggregate size of the offer is around Rs 29.52 crore to Rs 31.25 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 4,912.84 lakh whereas in FY24 it was Rs 2,546.97 lakh representing an increase of 92.89%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 433.01 lakh and for the year ended March 31, 2024 it was Rs 296.23 lakh representing an increase of 46.17%.

The company intends to continue to focus on being a cost-efficient manufacturer and to deepen its penetration in its regional markets as well as in its export market of Bangladesh, thereby capturing a larger share of the markets in which it operates. It seeks to strengthen relationships with its repeated customers by providing a wider array of products and by enhancing production capacities to meet their requirements. Further, it has in the past participated in various industry exhibitions and intends to continue doing so in the future. Such participation enables it to showcase its product portfolio, demonstrate product applications and interact directly with potential and existing customers. Participation in trade fairs and exhibitions provides it with an opportunity to enhance its visibility, understand emerging industry trends, obtain feedback from stakeholders and identify prospective business opportunities.

NFP Sampoorna Foods

• NFP Sampoorna Foods is coming out with an initial public offering (IPO) of 44,60,000 shares in a price band of Rs 52-55 per equity share. 
• The issue will open on February 04, 2026 and will close on February 06, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 5.2 times of its face value on the lower side and 5.5 times on the higher side.
• Book running lead manager to the issue is 3Dimension Capital Services.
• Compliance Officer for the issue is Babli.

Profile of the company

NFP Sampoorna Foods is a food processing and trading company engaged in the procurement, import, processing, grading, packaging, marketing, and distribution of dry fruits. The company’s product portfolio includes cashew nuts (raw and processed), makhana (fox nuts), almonds and Walnut, catering to domestic and regional markets through B2B, B2C and institutional channels. The company sources its Raw Cashew Nuts (RCN) directly from selected farms in African countries as well as from registered domestic importers, ensuring access to raw materials at competitive prices. These nuts are then processed in-house to produce cashew kernels in a variety of grades, delivering the crispiest and crunchiest cashews to wholesalers and households across India.

To address the growing demand for health-oriented foods, the company diversified its offerings. In August 2024, makhana was introduced, followed by almonds in March 2025 and Walnut in September 2025 (available exclusively through the B2C channel)-almonds and makhana available exclusively through the B2C channel to align with consumer preference for convenient and nutritious products. Furthermore, cashew nuts continue to be distributed through both Business-to-Business (B2B) and B2C channels, enabling the company to effectively cater to a wide range of customer segments and maximize market reach. The company procures makhana directly from smallholder farmers and aggregators in Bihar, the primary region for makhana cultivation in India. Almonds are sourced through importers, mandi traders, and bulk suppliers, primarily located in the Delhi NCR region and Walnuts are procured from the wholesalers present in Delhi market.

The company also adheres to quality control measures and has obtained certifications such as ISO 9001:2015 and ISO 22000:2018, underscoring its commitment to quality management and food safety. These certifications validate the company’s dedication to delivering dry fruits that meets international standards and customer expectations. The company operates in full compliance with FSSAI guidelines, ensuring that all products undergo rigorous quality checks at every stage of the supply and processing chain. Its unit situated at RIICO Industrial area Behror, Rajasthan, India, is well-equipped with plant and machinery to facilitate an efficient production process, including cleaning, grading, boiling, cooling, sorting, and packaging of products. All products are processed at its unit with utmost care and by way of natural process with scientific methods so as to retain the natural properties of the food. Its processing unit also is accredited with FSSAI license under Food Safety and Standards Act 2006.

Proceed is being used for:

• To meet working capital requirements of the company
• To prepayment or repayment of a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry Overview

India is the fifth largest economy in the world and expected to be the fastest-growing economy among major G20 countries, with GDP growth estimated to be around 8% in FY24. The food processing sector has become a key contributor to India's economy over the past few years, thanks to progressive policy measures by the Ministry of Food Processing Industries (MoFPI). The sector has performed exceptionally well with an impressive average annual growth rate of 7.3% from 2015 to 2022. It has significantly contributed to Gross Domestic Product (GDP), employment, and investment. As of 2024, it contributes around 8.80% and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13% of India's exports and 6% of total industrial investment. India's diverse agro-climatic conditions allow for abundant production of cereals, pulses, fruits, and vegetables, making it a leading producer of various foods. As of 2024, the Indian food and grocery market is the world's sixth largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the country's total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. A strong food processing industry is essential for the nation to tackle food and nutritional security issues. Processed food offers convenience, extended shelf life, easy transport to remote areas, and improved accessibility, serving as a valuable source of nourishment. Additionally, it offers its farmers increased opportunities for better price realization and expanded selling prospects.

The Indian food processing sector offers a promising growth journey ahead and presents several opportunities with the sector being recognised as a key priority industry under the ‘Make in India’ initiative. The MoFPI has undertaken several initiatives aimed at enhancing infrastructure and fostering food processing industries to stimulate investment in this domain. The Indian Government has sought to involve multiple stakeholders to improve interactions between farmers, processors, distributors, and retailers to establish strong supply chains linking farmers to processing and marketing to empower them with nearby grading and storage facilities which will enhance the value of their products. There are substantial investment prospects totalling $2.36 billion across 31 projects under Common Infrastructure for Industrial Parks which includes facilities such as specialized processing units, effluent treatment plants, testing laboratories, common warehouses, and logistics support. Foreign investment opportunities in India's food processing sector are also promising due to favourable policies, a vast consumer market, and government initiatives focused on improving the sector's competitiveness and sustainability.

India is one of the largest populated countries in the world and is expected to continue having one of youngest populations in the world till 2030. The growing consumption of food is expected to reach $1.2 trillion by 2025-26, owing to urbanization and changing consumption patterns. The processed fruits and vegetables industry was valued at $15.4 billion in 2019. With heightened consumer awareness during lockdowns, there's increased demand for processed foods, especially in RTE/RTC, dairy, and fruit and vegetable segments. India's food processing sector's market size is estimated to more than double to Rs 60,40,300 crore ($700 billion) in 2030 from Rs 26,49,103 crore ($307 billion) in 2023, driven by growing demand for processed products, according to industry body PHD Chamber of Commerce and Industry (PHDCCI). According to the Viksit Bharat@2047 report, India's food processing sector will grow significantly, reaching $1,100 billion by FY35, $1,500 billion by FY40, $1,900 billion by FY45, and $2,150 billion by FY47.

Pros and strengths

Direct procurement network from Africa, Bihar & licensed importers: Direct Procurement Network spans key sourcing regions - Africa and registered domestic importers for Cashews, Bihar for Foxnuts, and licensed importers in the mandi markets of Delhi NCR for Almonds - leveraging regional diversity, local expertise, and strategic market access. By directly sourcing cashews and foxnuts from producers, it eliminates multiple layers of intermediaries, thereby ensuring fair pricing, greater traceability, and quality control. For almonds, it collaborates with a network of established and licensed importers operating in mandi markets, enabling it to maintain consistency in quality and pricing. This integrated procurement approach gives it end-to-end oversight across its supply chains, minimizes operational risks, reduces lead times, and enhances its ability to respond quickly to dynamic market demands.

Consistent year-round demand driven by long shelf life: It leverages the natural advantage of dry fruits’ consistent demand, it enjoys throughout the year. Unlike many fresh agricultural products that are highly seasonal and perishable, dry fruits can be stored for extended periods without significant loss of quality or nutritional value. This durability allows processors, distributors, and retailers to maintain steady inventory levels and supply across diverse markets and seasons. Consequently, dry fruits are less affected by seasonal fluctuations, enabling stable production planning and sales forecasting. Moreover, their availability year-round supports continuous consumer consumption, whether for daily snacking, cooking, gifting, or festive occasions, which helps companies achieve sustained revenue and growth.

Established client relationship: The company has built strong relationships with its clients by consistently delivering quality dry fruits. Its team focuses on understanding each client's needs through regular communication. It listens to their requirements, ensures timely deliveries, and offers support to help them with their procurement needs. This approach has led to many clients returning to it for repeat orders, which shows the trust they've placed in its products and services. It has discovered that its focus on quality and reliability has not only allowed it to meet immediate needs but also build long-term trust and confidence among its clients. As a result, its brand has gained a reputation in the market. The ongoing trust from its clients has played a key role in establishing its product’s presence and driving growth in the market.

Risks and concerns

Significant reliance on cashew sales: The company is significantly dependent on the sale of products, namely cashews. Any adverse change in the market, supply, or regulatory environment relating to cashews may materially affect its business, financial condition, cash flows, and reputation. The company derives a substantial portion of its revenue from the sale of cashews and cashew products, which accounted for around 97.82% of revenue for the period ended November 30, 2025 and 97.49% for the period ended March 31, 2025, 99.99% for the period ended from December 21, 2023 to March 31, 2024, 96.22% for the period ended from April 01, 2023 to December 20, 2023 and 100% for the period ended March 31, 2023. The company’s significant dependence on cashew sales exposes it to risks associated with fluctuations in demand, supply constraints, price volatility, changes in import/export regulations, and adverse climatic conditions affecting cashew production. Any reduction in demand for cashew products or disruption in their supply chain could have a material adverse effect on the company’s business, financial condition, results of operations, and cash flows.

Exposure to raw material supply disruptions and price fluctuations: The raw materials it uses in its processing process are primarily sourced from Africa, including countries such as Ghana, Ivory Coast, Benin, Togo, and Conakry and third-party suppliers in India which import from west African region. In addition, it usually does not enter into long-term supply contracts/ agreements with any of its raw material suppliers and typically sources raw materials from the open market. The absence of long-term contracts/agreements at fixed prices exposes it to volatility in the prices of raw materials that it requires and it may be unable to pass these costs onto its customers, which may reduce its profit margins. It may face a risk that one or more of its existing suppliers may discontinue their supplies to it, and any inability on its part to procure raw materials from alternate suppliers in a timely manner, or on commercially acceptable terms, may adversely affect its business, financial condition and results of operations.

Dependence on third-party transportation service providers: Its business relies on timely procurement of raw materials from its suppliers and prompt delivery of finished goods to its customers, particularly during peak demand periods such as festivals. To facilitate this, it depends on third-party transportation service providers. Any delay, inefficiency, or default on the part of these transporters may result in supply chain disruptions, delayed customer deliveries, and potential loss of business and goodwill, which could adversely affect its operations and financial performance. Moreover, fluctuations in fuel prices due to changes in government policies may lead to increased transportation costs. If it is unable to pass on such increased costs to its customers, it may adversely impact its margins and profitability. It has not entered into formal contracts or long-term agreements with these transportation service providers. Transportation arrangements are made based on mutual understanding and prevailing market rates. In the absence of binding contracts, it cannot assure the continuous availability of such services on favorable terms. Any such occurrence may adversely impact its business, results of operations, and financial condition.

Outlook

NFP Sampoorna Foods is a diversified and growing food processing and trading company engaged in the procurement, import, processing, grading, packaging, marketing, and distribution of dry fruits. The company’s core product portfolio includes cashew nuts (raw and processed), makhana (fox nuts), almonds and walnut, catering to domestic and regional markets through B2B, B2C and institutional channels. On the concern side, the company has a limited number of customers generating significant portion of revenue from sales. The loss of a key customer in a financial period could significantly reduce its revenue and could have a material adverse effect on its business, future prospects, results of operations and financial condition. Moreover, the company is exposed to risk of doing business in foreign countries due to the constantly changing economic, regulatory, social and political conditions in the jurisdictions in which it operates and seek to operate, which could adversely affect its business, financial conditions including margins and results of operations.

The company is coming out with a maiden IPO of 44,60,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 52-55 per equity share. The aggregate size of the offer is around Rs 23.19 crore to Rs 24.53 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 3,563.67 lakh whereas in FY24 it was Rs 2,300.36 lakh representing an increase of 54.92%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 267.41 lakh and for the year ended March 31, 2024 it was Rs 101.70 lakh representing an increase of 162.94%.

The company intends to strengthen its position in the healthy snacking segment by expanding its product offerings and enhancing processing capabilities. A key area of focus is the makhana (fox nut) category, which the company views as a high-potential growth vertical. To support this, the company intends to introduce value-added variants such as roasted, flavored, and vacuum-packed makhana targeted at health-conscious urban consumers seeking convenient and nutritious snack options. This strategic focus is expected to enhance the company’s market positioning by enabling it to tap into the rapidly growing demand for healthy, ready-to-eat snacks. Expanding the makhana portfolio with value-added products will allow the company to improve its gross margins, deepen brand engagement, and increase its share in the market. Further, the company is actively strengthening its brand and retail presence as a key pillar of its growth strategy. Leveraging increasing consumer demand for healthy snacking options, the company plans to scale up its existing retail brand through a multi-channel approach. This includes targeted expansion across leading e-commerce platforms such as Amazon, Blinkit and Mystore, as well as entry into modern trade outlets and footfall retail stores in metro and Tier I cities.

CKK Retail Mart  

• CKK Retail Mart is coming out with an initial public offering (IPO) of 54,00,000 shares in a price band of Rs 155-163 per equity share. 
• The issue will open on January 30, 2026 and will close on February 3, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 15.50 times of its face value on the lower side and 16.30 times on the higher side.
• Book running lead manager to the issue is Oneview Corporate Advisors.
• Compliance Officer for the issue is Shivam Singla.

Profile of the company

The company is engaged in the distribution of packaged products catering to both retail and wholesale businesses. The company commenced its business operations in the Financial Year 2020-21 and since year 2023, the company has focused on the distribution and trading of packaged agro-commodities such as sugar, pulses and ghee across regions including Maharashtra, Bihar, West Bengal, and the north-eastern states. 

In April 2025, the company expanded the product portfolio with the launch of ‘FruitzzzUp’, a fruit pulp-based juice brand, reinforcing its commitment to offering a diverse and evolving product range that caters to changing consumer preferences. Its business primarily involves the distribution of packaged agro-commodities such as sugar, rice, and pulses along with packaged products such as milk powder and soft drinks (carbonated as well as fruit based). In addition to its core business operation, it also occasionally undertakes consultancy assignments.

It has strategically expanded its distribution network through a three-tier distribution model and a direct-to-distributor model. Under the three-tier distribution model, the company supplies products to super stockists, who in turn distribute them to distributors. These distributors then supply the products to retailers and wholesalers, ensuring widespread availability across markets. A super-stockist purchases products from the company on an upfront payment basis, thereby providing immediate cash inflow and reducing its exposure to credit risk. Once goods are procured, the super-stockist is responsible for managing the distribution to distributors, including the collection of payments from them. Super stockists purchase goods at a significant discount which results in a reduced realisation per unit sold and has a direct impact on its gross margins and bottom line. However, this model enables it to reduce its working capital cycle and efficiently handle larger volumes with a lower working capital requirement, as the inventory and receivables risk is partially transferred to the super-stockists. In the direct-to-distributor model, the company supplies products directly to distributors, bypassing super stockists. These distributors then deliver the products to retailers and wholesalers, enabling efficient and timely availability to the end consumer.

Proceed is being used for:

• Funding the acquisition of Leasehold Plots along with warehouse constructed upon the Leasehold Plots
• Undertaking repair and refurbishment of the warehouses situated on the Leasehold Plots
• Funding of working capital requirements
• General corporate purposes

Industry Overview

India’s sugar industry is poised for steady growth and structural transformation in the coming decade, driven by rising domestic consumption, proactive government policies, technological adoption, and export opportunities. With India being the world’s second-largest sugar producer, the sector plays a crucial role in the agricultural economy and rural employment. Increasing focus on sustainable and organic sugar production, alongside value-added products like specialty sugars and beverages, is expected to expand market potential both domestically and internationally

The Indian Sugar Industry, based on production data, is estimated at 31,964 thousand tonnes in FY 2024 and is projected to reach 34,678 thousand tonnes by FY 2033 registering a modest CAGR of 0.82% over the period. The production trend has remained relatively stable in recent years, fluctuating between 31,000-36,000 thousand tonnes, highlighting the cyclical nature of sugarcane cultivation and the stabilizing impact of policy interventions. On the demand side, population growth, rising consumption in processed foods and beverages, and continued household use underpin steady domestic demand for sugar. 

The Indian non-alcoholic beverage industry, valued at $23.51 billion in 2024, is projected to nearly double to $46.06 billion by 2033, reflecting a healthy CAGR of 7.76%. This growth highlights the rising consumer shift towards diverse, branded, and healthier beverage options, driven by increasing disposable incomes, rapid urbanization, and wider distribution through both traditional and modern trade channels. The steady CAGR also signals strong underlying demand resilience, positioning the sector as a key contributor to India’s fast-moving consumer goods (FMCG) market expansion over the coming decade.

Pros and strengths

Well established relationships with suppliers and wide channel of sales and distribution network: It has developed relationships with its suppliers which gives it a competitive advantage by ensuring efficient and timely sourcing. Over the years, it has built a distribution network across India. As of September 30, 2025, it had 23 distributors and 15 super stockists. Its distribution network has enabled the company to effectively manage its marketing strategies, penetrate new markets, and increase its turnover consistently over time.

Leveraging market skills and relationships: At the core of its growth strategy is its ability to leverage deep market knowledge and strong industry relationships. This is an ongoing process in its organization and the skills that it imparts in its people, gives importance to customers. It aims to enhance the growth by leveraging its relationships and further enhancing customer satisfaction. Its approach focuses on building and nurturing long-term relationships with both new and existing clients. Customer satisfaction remains a top priority, and it is committed to strengthening its market position by exceeding expectations and being responsive to its clients’ evolving needs.

Diversified products portfolio: The company offers a variety of products, including various types of sugar, carbonated beverages, enabling the company to serve a diverse customer base and address a wide range of market needs. This product diversification not only helps the company cater to various consumer preferences but also strengthens its competitive edge by attracting a broader customer in the market. Furthermore, its procurement team constantly monitors market trends and conducts thorough research on demand patterns. As a result, it is able to swiftly adapt and shift from one product to another, ensuring it effectively meets customer requirements and demands.

Risks and concerns

Dependence on sugar industry for revenue: The majority of its revenue is generated from distribution and trading of agricultural commodities, with a primary focus on sugar. As on September 30, 2025 and for the Financial Year ended on March 31, 2025, March 31, 2024, and March 31, 2023, it derived Rs 15,933.35 lakh, Rs 30,052.49 lakh, Rs 22,647.77 lakh, and Rs 10,019.62 lakh from trading of sugar, constituting 99.94%, 99.78%, 97.19%, and 97.02% respectively of its revenue from operations. The aforementioned concentration of its revenue from sugar, renders it particularly vulnerable to a range of risks and challenges that are distinctive to the sugar industry.

Business heavily dependent on top ten customers: The company has developed long- standing relationships with certain key customers i.e. super stockists and distributors. Accordingly, it is dependent on its arrangements with such customers, and its business depends on the continuity of its relationship with them. The majority of its revenue is derived from its top 10 customers. For the period ended September 30, 2025, and the financial years ended March 31, 2025, 2024, and 2023, revenue from operations generated from its top ten customers accounted for 90.62%, 89.58%, 88.92%, and 99.60% of its total revenue from operations, respectively. Since it largely depends on certain key customers for a significant portion of its revenue, the loss of any of its key customers or a significant reduction in demand from such customers could have a material adverse effect on its business, financial conditions, results of operations and cash flows.

Dependency on limited suppliers: The company sources its agro-commodities such as sugar, rice, pulses and milk powder from third-party suppliers located across India under its own brand name. It does not manufacture these products in-house. Its reliance on external suppliers is significant and concentrated. Purchases from its top five suppliers for the period ended September 30, 2025 and for the Financial Years ended March 31, 2025, March 31, 2024, and March 31, 2023 constituted 80.18%, 65.64%, 88.54%, and 97.03%, respectively, of its total purchases. Any failure of its suppliers to deliver these agro-commodities in the necessary quantities or to adhere to delivery schedules, credit terms or specified quality standards and technical specifications may adversely affect its business and its ability to deliver orders on time at the desired level of quality.

Outlook

CKK Retail Mart is engaged in the retail and wholesale distribution sector, focusing on the distribution and trading of packaged agro-commodities and beverages, including refined Indian sugar and carbonated drinks. It has strategically expanded its distribution network through a three-tier distribution model and a direct-to-distributor model. On the concern side, it operates in a highly competitive environment, particularly in the sugar and carbonated and fruit-based beverages segments. In the sugar industry, it faces competition from numerous small to medium-sized producers. Although the sector has witnessed some consolidation, it remains highly fragmented. Additionally, its ability to compete effectively is influenced by several factors such as the quality and consistency of its products, rejection ratios, pricing, brand perception, customer service, and logistical convenience.

The company is coming out with a maiden IPO of 54,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 155-163 per equity share. The aggregate size of the offer is around Rs 83.70 crore to Rs 88.02 crore based on lower and upper price band respectively. On performance front, the Revenue from operations increased from Rs 23,302.48 lakh in FY 2023-24 to Rs 30,118.67 lakh in FY 2024-25, registering a growth of 29.25%, primarily on account of increase in sale of sugar to 76,459 MT in FY 2024-25 from 58,297 MT in FY 2023–24. The company’s Restated Profit After Tax increased to Rs 1,636.10 lakh in the financial year ending March 31, 2025 from Rs 1,267.31 lakh in the financial year ending March 31, 2024, registering a growth of 29.10%.

Going forward, the company has built a wide network of super stockists and distributors, who actively sell its products. As part of its ongoing business strategy, it is evaluating ways to optimise its distribution structure by reducing its dependence on the super stockist model and expanding distributor network. A shift towards a more direct distribution approach, will allow the company to improve operational profitability through better price realisation and greater control over the supply chain. Its strategy includes diversifying and increasing its presence in states such as Delhi, Telangana, Karnataka, Chhattisgarh, and Gujarat in the coming years. Additionally, it plans to sell its products through various online retail platforms to further broaden its reach. For operationalising the same, the company has appointed 43 distributors for sale of beverages and agro commodities. Further, the company has implemented a monthly performance review system to monitor distributor sales and ensure efficient supply-chain coverage.

Accretion Nutraveda

• Accretion Nutraveda is coming out with an initial public offering (IPO) of 19,20,000 shares in a price band of Rs 122-129 per equity share. 
• The issue will open on January 28, 2026 and will close on January 30, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 12.20 times of its face value on the lower side and 12.90 times on the higher side.
• Book running lead manager to the issue is Sobhagya Capital Options.
• Compliance Officer for the issue is Payal Hareshbhai Kotadiya.

Profile of the company

The company is in the business of the Manufacturing of Ayurvedic and Nutraceutical products across several dosage forms, including Tablets, Capsules, Oral liquids, Oral Powders, External Preparation and Oils. It is a healthcare focused company specialising in contract manufacturing, serving domestic as well as export markets in various countries like Sri Lanka, Singapore and the USA. It offers a diverse range of dosage forms, leveraging both Classical Ayurvedic principles and modern nutraceutical science. Since its inception in 2021, the company has established itself as a reliable Contract Development and Manufacturing Organization (CDMO), offering specialized services to a wide range of clients across various industries.

Its product portfolio includes Tablets, such as film-coated and chewable varieties, for applications in liver care, gynecological care, bone and joint health, and respiratory support. It also manufactures Capsules, including hard gelatin and HPMC capsules, targeting areas like liver detoxification, women’s health, and cognitive support. Its oral liquids include syrups, suspensions, and tonics, which are particularly suited for paediatric and geriatric segments. Additionally, it produces Traditional Ayurvedic Powders known as churans for digestive health, medicated ayurvedic oils for musculoskeletal and dermatological applications using traditional processes, and a range of external preparations like balms, ointments, creams, and gels for pain relief, skin care, and hair care.

Its leased manufacturing facility spans a built-up area of around 10,763 square feet over two floors. The facility is designed for ayurvedic and nutraceutical production and is equipped with significant infrastructure that includes 13 Air Handling Units with HEPA filters, dedicated processing areas, and separate dispensing booths to prevent cross-contamination. The facility holds multiple certifications that attest to its adherence to quality and safety standards, including GMP certification for the manufacture of Ayurveda, Siddha & Unani Drugs from the Gujarat FDCA, WHO-GMP certification, FSSC 22000 for Food Safety Systems, ISO 9001:2015 for Quality Management Systems, ISO 45001:2018 for Occupational Health and Safety, as well as Halal certification and an FSSAI license.

Proceed is being used for:

• Purchase of machineries for automation in existing manufacturing unit
• Purchase of machineries for new manufacturing setup
• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

The Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally. Transformed over the years as a vibrant sector, presently Indian pharma ranks third in pharmaceutical production by volume. The pharmaceutical industry in India is the third largest in the world in terms of volume and 14th largest in terms of value. The pharma sector currently contributes to around 1.72% of the country’s GDP. The Indian pharmaceuticals industry is expected to grow 9-11% in the financial year 2024, as per ICRA. In FY23, the Indian pharma market saw a year-on-year growth of nearly 5%, reaching $49.78 billion. During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market. Major segments of the pharmaceutical industry are Generic Drugs, OTC Medicines, API/Bulk Drugs, Vaccines, Contract Research & Manufacturing, Biosimilars, and Biologics. The market size of India’s pharmaceuticals industry is expected to reach $65 billion by 2024, around $130 billion by 2030, and around $450 billion by 2047.

India is the 3rd largest market for APIs globally, with an 8% share in the Global API Industry. More than 500 APIs are manufactured in India, contributing 57% of APIs to the prequalified list of the WHO. Pharmaceuticals is one of the top ten attractive sectors for foreign investment in India. The pharmaceutical exports from India reach more than 200 nations worldwide, including highly regulated markets of the USA, Western Europe, Japan, and Australia. The market size of the medical devices sector in India was estimated at $11 billion in 2023, accounting for a 1.5% share in the global market. The government has set an ambitious target to elevate the medical devices industry in India to $50 billion by 2030. The pharmaceutical sector targets Rs 11,08,380 crore ($130 billion) by 2030, while biotechnology aims for Rs 25,57,800 crore ($300 billion) by the same year.

India’s drugs and pharmaceuticals exports stood at Rs 2,59,658 crore ($30.38 billion) in FY25 and Rs 2,43,119 crore ($27.82 billion) in FY24. About 20% of the global exports in generic drugs are met by India. India's pharmaceutical industry is projected to experience substantial growth, with exports expected to reach Rs 30,76,500 crore ($350 billion) by 2047, marking a 10-15x increase from current levels. The government has set an ambitious target to elevate the medical devices industry in India from its current $11 billion valuation to $50 billion by 2030. Besides this, the Government of India is launching various schemes such as the Pradhan Mantri Jan Aarogya Yojana (PM-JAY), Ayushman Bharat Yojana, Pradhan Mantri Suraksha Bima Yojana, and Aam Aadmi Bima Yojana (AABY) to provide health insurance to the economically weaker sections of the country. These schemes also offer comprehensive healthcare facilities to central government pensioners and officials under the Central Government Health Scheme (CGHS). At present, there is a rise in demand for healthcare insurance among the masses due to increasing medical costs. This, coupled with a growing geriatric population, represents a key factor offering a favorable market outlook in India.

Pros and strengths

Diverse product portfolio: The company is engaged in the manufacturing, and marketing of products in the segments of Nutraceuticals and Ayurveda. It currently has a product basket of more than 72 formulations across multiple dosage forms. These include Tablets, Capsules, Oral Liquids, Traditional powders (churans), oils, and external applications such as ointments, creams, balms, and gels. The company operates under two business verticals: i) domestic sales and merchant export on loan-license basis; and ii) direct export sales.

Relationships with clients and suppliers: The company has established relationships with clients and suppliers which are integral to the conduct of its business. The Promoters, who are also involved in sales and marketing functions, oversee the maintenance of these relationships through business transactions and operational engagements. These relationships support procurement of raw materials, distribution of finished goods, and continuity of business operations. The company considers such relationships to be relevant for the stability of operations and for supporting future business activities.

Commitment to quality standards: Quality is at the core of its operations. It follows rigorous quality control processes across all stages of production to ensure product consistency, safety, and efficacy. The company has established Quality Assurance (QA) and Quality Control (QC) systems to ensure compliance with FSSAI, AYUSH, GMP and other applicable guidelines. QA covers regulatory compliance, SOPs, vendor qualification, documentation (BMR, BPR, and master formula), employee training, internal audits, and validation of equipment and processes. QC involves testing of raw materials (identity, purity, potency, and contaminants), in-process checks such as blend uniformity, and verification of packaging materials and labelling. Its manufacturing facilities are WHO-GMP approved and operates under ISO 9001:2015 and ISO 45001:2018 certifications. Its manufacturing facilities are aligned with internationally accepted standards.

Risks and concerns

Uncertainty and margin pressure from new product category expansion: In recent years, it has expanded the product categories available across its platforms and websites. New product categories require it to understand and make informed judgments about consumer demand, trends, and preferences. It may misjudge these factors for new products offered by suppliers, sellers, and brand partners on its platforms, and face challenges in inspecting and controlling quality, regulatory requirements, handling, storage, and delivery of such new products. It may also need to price aggressively in new categories to gain traction with consumers and improve brand awareness, which may not be possible in instances where its customers impose restrictions on its ability to offer such products at a discount, thereby adversely affecting its gross margins. It may also make substantial investments in launching such new products or business verticals on its platform. Additionally, it expects to obtain new products as a result of acquisition activity, which may require further investment. Expanding its offerings or business verticals may strain its management and operational resources. Achieving profitability with new product categories and business verticals may be difficult, and as a result, its profit margins may be lower than anticipated, which would adversely affect its results of operations. 

Dependence on the nutraceutical industry and competitive developments: The company is primarily engaged in the manufacturing of nutraceutical products, and as such, its revenues are highly dependent on its customers in the nutraceutical industry. The loss of any of its customers within this industry could adversely affect its sales and, consequently, its business and results of operations. Furthermore, if there is a shift in the practice of developing products in-house within the nutraceutical industry, it may negatively impact the demand for its products. Similarly, if its competitors or customers achieve a breakthrough in the development of a novel product or raw material, its products may become obsolete or be substituted by such alternatives, which would adversely impact its revenues and profitability. Additionally, if its competitors are able to improve the efficiency of their manufacturing processes, distribution, or raw material sourcing, and offer similar or higher-quality products at a lower price, The company may be unable to adequately respond to such developments, which could further affect its revenues and profitability.

Risks related to raw material procurement and supplier dependence: It purchases various kinds of raw materials from third-party suppliers domestically. It does not have long-term contracts with its third-party suppliers. Instead, prices are negotiated for each purchase order, and it generally maintain relationships with multiple suppliers for each raw material. The terms and conditions, including the return policy, are outlined in the purchase orders. It prioritizes sourcing materials from reputable suppliers and typically seeks quotations from several sources. As it does not have long-term contracts with its suppliers, and prices are based on quotes it receives, its suppliers are not contractually obligated to supply materials to us. They may choose to sell their products to its competitors instead. Any non-availability, shortage, or use of substandard raw materials could materially adversely affect its business. Additionally, power shortages or failures in the manufacturing process may impact its operations and financial results. Moreover, any discontinuation of production or failure by its suppliers to adhere to delivery schedules or quality and quantity requirements could disrupt its manufacturing operations. 

Outlook

Accretion Nutraveda is a healthcare-focused Contract Development and Manufacturing Organization (CDMO). The company specializes in ayurvedic and nutraceutical products including tablets, capsules, oral liquids, oral powders, external preparations and oils. Its portfolio spans diverse healthcare segments such as bone and joint care, respiratory care, gynec care, digestive care, cardiac care, liver care, paediatric care, skin and hair care, urinary and UTI care, baby care products and memory and neuron care. The company holds ISO, WHO-GMP, and Halal certifications, ensuring global quality and safety standards. On the concern side, its working capital requirements, towards which it intends to deploy Rs 550 lakh from the Net Proceeds, are based on certain assumptions. Any change in working capital requirements on account of such assumptions may materially adversely affect its results of operations and profitability. Moreover, it is dependents on several third-party service providers to sell or distribute its products to consumer, and on third party technology providers for certain aspects of its operations. Any disruptions or inefficiencies in these operations may adversely affect its business, financial condition, cash flows and results of operations.

The company is coming out with a maiden IPO of 19,20,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 122-129 per equity share. The aggregate size of the offer is around Rs 23.42 crore to Rs 24.77 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 1600.18 lakh whereas in FY24 it was Rs 500.52 lakh representing an increase of 219.70%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 261.28 lakh and for the year ended March 31, 2024 it was Rs 82.19 lakh representing an increase of 217.90%.

The company intends to further strengthen its sales and marketing network by expanding its presence in new domestic geographies. At present, its products are sold in both domestic and select international markets such as Sri Lanka, Singapore, and the USA. Going forward, it aims to enhance its global footprint by transitioning towards direct exports instead of relying solely on intermediaries. This strategy is expected to improve profitability, enhance brand visibility, and build stronger customer relationships. Further, it intends to strengthen its portfolio by launching new and innovative formulations; and aligning new product development with global nutraceutical trends and regulatory frameworks. This continuous product expansion ensures that it can cater to diverse customer requirements while capturing new market opportunities.