J B Ecotex Limited

This section provides an overview of the industry context, drawing information from a report titled "Recycled resins market" prepared by Lattice Technologies Private Limited. It details various macroeconomic and demographic trends in India, including projected GDP growth, changes in the middle class, infrastructure investments, and technological advancements. The text also discusses the performance of India's industrial production, inflation projections, and urbanization trends, all of which impact the demand for packaging materials and plastic products.

The analysis of the plastic market indicates significant growth and segmentation across various polymer types. Polyethylene Terephthalate (PET) is highlighted as a key segment, showing strong growth projections, particularly in the context of beverage packaging and textiles. The market volume is expected to expand, with Asia & Pacific being the primary growth driver, while Europe is seeing a decline due to sustainability efforts. Furthermore, India is noted as a leading market in plastic recycling rates, especially for PET, and regulatory frameworks are increasing pressure on recycled content in various regions.

This section discusses the growing trend of plastic production, use, and waste, highlighting increasing focus on recycling infrastructure and circularity initiatives due to environmental concerns. It details various global and regional regulations concerning plastic, such as bans in the EU, international treaties, and US single-use plastic laws. Furthermore, it provides an overview of the Indian plastic market, including projected growth in market value and volume across different polymer segments, as well as trends in per capita consumption and waste generation. The text also touches upon the growth in plastic waste and the role of various regulations in supporting plastic waste collection and recycling.

The issuer's activities touch upon various environmental regulations and initiatives related to plastic waste management, including amendments and centralized reporting portals. These efforts are aligned with broader goals for an inclusive circular economy, which involves source segregation and establishing Material Recovery Facilities (MRFs). Furthermore, the text discusses the growth of the global PET market, noting its projected expansion and the role of various industries in adopting PET for packaging. Specific segments of the PET market, such as rigid and flexible packaging, are highlighted in relation to market share.

The analysis covers the PET packaging market, noting that rigid packaging dominated with 61.8% market share in CY25, while flexible packaging held the remaining 38.2%. The growth in the PET market is fueled by increased demand for packaged food, beverages, and personal care products, alongside the expanding segment of flexible packaging due to its cost-effectiveness and versatility. Regional market shares for PET packaging vary significantly across APAC, North America, and Europe, with APAC leading in market value. The PET industry is currently focused on sustainability, innovation, and adherence to global regulations concerning recycling and plastic waste management.

The Indian PET packaging market is experiencing substantial growth, with the beverage sector leading the demand, followed by the textile sector. The market size has shown significant expansion, with projections indicating substantial future growth. Rigid packaging dominates the market share, primarily driven by the beverage industry, and the growth is supported by government initiatives and product innovation. The market is also expanding in terms of volume, with growth fueled by increasing use of PET packaging across various industries.

The market for recycled PET (rPET) is experiencing significant growth, driven by sustainability mandates and increasing consumer demand for eco-friendly packaging across various industries. India's rPET market is projected for substantial expansion in both value and volume, supported by regulatory shifts and investments in recycling infrastructure. Furthermore, various government regulations, such as the Plastic Waste Management Rules, impose obligations on producers, importers, and brand owners regarding the use of recycled plastic content in packaging. These regulations aim to formalize the plastic waste management sector and encourage the adoption of recycled materials.

The text discusses the distinction between mechanical and chemical recycling processes for PET plastics, noting that mechanical recycling is cost-effective but limited to clean plastics, whereas chemical recycling can process complex, contaminated, or colored plastics by breaking them down into molecular building blocks. Chemical recycling is highlighted as a complementary solution that preserves polymer integrity and allows for upcycling into high-quality materials, supporting the circular economy. The text also covers the growth in the rPET industry in India, the global investment trends in the recycled plastic space, and the market dynamics of recycled polyester staple fibre (rPSF).

The analysis covers the global and Indian rPSF market dynamics, highlighting regional performance and segment trends. Globally, APAC leads the market, with projections for continued dominance by CY30. In terms of market segments, the traditional textile segment currently dominates, but the technical textile segment is expected to gain traction. The Indian market shows strong growth drivers related to sustainability and demand, with projections for significant volume increases by FY31. Regional breakdowns within India show varying leadership across different regions for rPSF market share.

The market analysis covers several aspects related to the recycled polyester (rPSF) market and the food-grade rPET resin market. In the rPSF market, the traditional textile segment currently dominates, with projections for future shifts in market share. The market growth is supported by increasing demand from various applications and investments in recycling infrastructure, although challenges like raw material availability persist. Regarding the food-grade rPET resin market, both global and Indian segments show significant growth driven by sustainability trends and regulatory mandates. This growth is fueled by demand for sustainable packaging, advancements in recycling technology, and efforts by manufacturers to expand recycling capabilities.

The Indian food-grade rPET resin market is experiencing rapid growth, driven by increasing demand from high-growth sectors and stringent government regulations. The market is fueled by the generation of plastic waste in India and mandates for recycled content in packaging. Key aspects include the development of various recycling technologies and the establishment of strict guidelines by regulatory bodies like FSSAI to ensure safety and quality. Furthermore, the global chemically recycled PET resin market is also expanding, with textiles currently leading the segment.

The text discusses the market for chemically recycled PET resin, noting that the flexible packaging segment currently holds the smallest market share at 8.0% in CY25 and is anticipated to see a gradual decline. The global market for chemically recycled PET resin is expected to experience substantial growth, fueled by increased investments, technological advancements, and strategic partnerships. Key drivers for this growth include investments by leading organizations, government incentives, and advancements in chemical recycling technologies. Furthermore, robust collaborations among stakeholders are enhancing the entire value chain and driving sector growth.

The Indian market for chemically recycled PET resin is experiencing rapid growth, driven by a shift towards chemical recycling, increased investments, technological advancements, and expanding plant capacities. This growth is fueled by heightened environmental awareness, stricter regulations aimed at curbing plastic waste, and a growing demand for sustainable packaging options. Leading companies are transitioning to chemical recycling solutions, and advancements in recycling technologies are improving the efficiency of material recycling.

The text discusses the growth prospects for the chemically recycled PET resin market in India, driven by practices and circular economy principles. Key challenges in this market include high production costs, limited infrastructure, and environmental concerns such as high energy consumption and toxic byproducts, along with inconsistent regulations. Chemically recycled PET resin is being adopted across various sectors, including textiles, packaging, automotive, construction, and consumer products. Specific examples detail its use in creating fibers, interior components, polymer concrete, and cosmetic containers. Furthermore, the text contrasts chemical recycling with mechanical recycling, noting that chemical recycling can depolymerize PET into monomers, offering superior quality and potential for repeated recycling compared to mechanical methods.

JB Ecotex is a manufacturer specializing in recycled PET-based products, converting post-consumer PET waste into raw materials for various industrial applications. The company operates across the PET recycling value chain, producing products such as recycled polyester staple fibre (RPSF), Food Grade rPET Resins, Chemically Recycled Resins, and rPET flakes. The company emphasizes sustainability and supports the circular economy through plastic material recovery and reuse. JB Ecotex serves customers both domestically and internationally, with exports reaching 25 other countries.

JB Ecotex has secured approvals from two of the largest global beverage manufacturers for the production of Food Grade rPET Resins. The company utilizes advanced technology, including EREMA VACUNITE or EREMA VACUREMA high-vacuum extrusion technology and Solid State Polycondensation (SSP) technology from Polymetrix, and was the first in India to install and commission the relevant equipment from EREMA. The manufacturing facilities hold various certifications, including IS 17263:2022, ISO 9001:2015, ISO 14001:2015, and ISO 15270:2008, and also has approvals from the U.S. Food and Drug Administration (“USFDA”) and the Food Safety and Standards Authority of India (“FSSAI”). Furthermore, the products are certified under globally recognized standards such as the Global Recycled Standard (“GRS”), OEKO-TEX Standard 100, and ISCC, alongside registration with Sedex and Ocean Bound Plastic Certification.

The analysis details the market share distribution of the global recycled filament yarn market across different regions and segments, along with projections for future years. Key findings include regional market leadership, the performance of specific yarn types, and the growth trajectory of India's recycled filament yarn market. The analysis highlights shifts in market share between different yarn segments and forecasts for future market expansion.

The market for recycled filament yarn in India is expected to expand significantly, growing from 117.3KT in FY26 to 236.0KT by FY31, driven by increased demand across various textile applications and consumer preference for sustainable products. The market share is geographically distributed, with the Western region leading in various metrics. Furthermore, the market is segmented by yarn type, with POY leading in value but expected to decline, while FDY is projected to expand, and other segments are anticipated to grow.

The company is the second largest PET recycling company in India by installed capacity as of August 31, 2026, with a capacity of 1,80,360 MTPA. The company recycles PET bottles and other PET waste into recycled PET products used in textiles, food-grade packaging, and other materials. They are unique in India for having both mechanical and chemical PET waste recycling capabilities, and they are one of only two companies in India with commercial-scale chemical recycling capabilities. The product portfolio includes recycled polyester staple fibre (RPSF), food-grade recycled PET resins, recycled PET flakes, and chemically recycled resins. Manufacturing facilities are located in Dhamdod, Surat, Gujarat, and the JB rPET manufacturing facility, which together have the largest PET recycling manufacturing capacity at a single location in India. The company has demonstrated significant recycling capabilities, having recycled a substantial volume of PET bottles between Fiscal 2016 and Fiscal 2026.

The company details its revenue breakdown across various product categories, including RPSF, Food Grade rPET Resins, rPET Flakes, and Chemically Recycled Resins, showing significant revenue contribution from different segments over the last three fiscal years. The company has established substantial infrastructure, including captive wind and solar power, and implemented a zero liquid discharge system at its manufacturing facilities. Furthermore, the company boasts a strong network for PET waste procurement and has achieved recognition as an export house. The business is supported by a diversified product portfolio and dual-technology platform encompassing both mechanical and chemical recycling methods.

The company utilizes proprietary chemical recycling technology, continuous innovation, and quality/sustainability certifications to target higher-value segments beyond traditional mechanical recycling. The company maintains a strong and diversified PET waste procurement network, sourcing materials from numerous domestic and overseas suppliers across various markets, with manufacturing facilities strategically located near ports in Gujarat for cost advantages. The company is part of the Jay Bharat Group, a conglomerate with a diversified portfolio spanning textiles, recycling, waste management, packaging, and renewable energy. The company has shown robust financial growth in revenue, EBITDA, and profit, and is strategically expanding capacity in various recycled PET segments to meet growing demand driven by regulatory mandates and sustainability commitments.

The company is primarily involved in the manufacturing and supply of various recycled PET-based products, including RPSF, Food Grade rPET Resins, and Chemically Recycled Resins. Their product portfolio includes eco-friendly synthetic staple fibres, food-grade resins for various packaging, and intermediate recycled PET flakes. The manufacturing processes involve detailed steps such as waste bottle feedstock collection, sorting, washing, crushing, and specialized polymer processing like extrusion and Solid State Polycondensation to achieve various quality standards.

The company manufactures products from post-consumer PET bottles through various processing steps, including sorting, crushing, washing, and drying to produce rPET flakes. A separate process involves chemically recycling PET flakes into Chemically Recycled Resins, which includes depolymerization and purification to regenerate the polymer. The company operates two manufacturing facilities, the JB Ecotex Manufacturing Facility and the JB rPET Manufacturing Facility, which hold various quality certifications. Raw material procurement is diversified, involving both domestic and international sources, and logistics are managed through road transport and, where necessary, sea transport. Inventory management is systematic, with controls in place to ensure accuracy and align stock levels with market demand.

The company's sales and marketing strategy focuses on leveraging its diverse recycled PET product portfolio to offer tailored solutions across the recycling value chain for the textile and packaging industries in India and internationally. The company maintains a strong market presence by actively participating in numerous industry conferences and exhibitions. Marketing efforts are further bolstered by digital content and various certifications, which validate the quality and sustainability of their products.

This section primarily details various legal and regulatory frameworks in India relevant to the company's operations, covering aspects such as industry-specific laws, environmental laws, and consumer protection statutes. It lists several key acts and rules, including those related to standards (like the BIS Act), boilers, legal metrology, electricity, and various environmental concerns such as pollution control and plastic waste management. The text also mentions regulations concerning the responsibility of producers for plastic packaging waste under the EPR regime.

This section details various legal and regulatory frameworks applicable to the company's operations in India, covering environmental compliance, intellectual property protection, labour laws, taxation, foreign investment rules, and data protection. It outlines specific requirements related to recycled plastic content targets, bio-medical waste handling, liability for hazardous substances, and various laws concerning trademarks, patents, copyrights, and competition. Furthermore, it mentions numerous labour codes, various laws governing shops and establishments, and regulations concerning digital personal data protection.

The company began as a Limited Liability Partnership (LLP) named ‘J B Ecotex LLP’ on October 31, 2012, and subsequently converted into a public limited company on June 2, 2021, changing its name to ‘J B Ecotex Limited’ with a new certificate of incorporation issued on September 21, 2021. The company has undergone several changes to its registered office addresses between July 17, 2025, and September 27, 2025. The Memorandum of Association details various business objects, including the manufacturing and trading of eco-friendly materials, cotton fibers, and energy-giving products. Significant amendments to the authorized share capital have occurred, including increases and subdivisions of equity shares between 2022 and 2026. Furthermore, the company acquired 100% of the equity share capital of JB rPET Industries Private Limited, making it a wholly-owned subsidiary.

This section details various financial guarantees issued by the promoter selling shareholders for the borrower's facilities, noting the amounts and types of facilities. It also clarifies that no such guarantees were issued to third parties as of the Draft Red Herring Prospectus date. Furthermore, it outlines the status of shareholder agreements, stating that the company is not a party to an inter-se agreement concerning the lock-in and transfer of equity shares. The section also describes the corporate structure, identifying one subsidiary, JB rPET Industries Private Limited, which was incorporated in 2020 and deals in textiles and energy-related processing. Finally, it details an associate, Dhamdod Industrial Association, which is a company limited by guarantee focused on charitable and social welfare activities.

The definitions section specifies various terms used in the Draft Red Herring Prospectus. It identifies the issuer as J B Ecotex Limited, a public limited company incorporated under the Companies Act, 2013. The registered and corporate office is located in Surat, Gujarat, India. The section details various terms related to the offer process, including different types of investors, bid amounts, and the roles of various intermediaries and committees.

This section details various terms related to the offer process, including eligibility criteria for different investor categories, types of issues, and relevant banking and regulatory entities. It defines various portions of the offer such as the Employee Reservation Portion, the Net Offer, and different investor categories like QIBs, Retail Individual Investors, and Non-Institutional Investors. It also outlines procedures for bid collection, including the use of various banks, escrow accounts, and the role of different syndicate members and registrars.

This section primarily defines various terms used within the document, covering aspects related to bidding mechanisms, financial reporting standards, and industry data sources. It details specific definitions for terms like UPI mandates, working days, various financial and legal acronyms, and different accounting standards. Furthermore, it specifies the source of industry and market data used in the prospectus, noting that it was commissioned and paid for by the company.

This section discusses currency presentation, exchange rates between USD and INR, and forward-looking statements within the Draft Red Herring Prospectus. It outlines that certain statements are not historical facts and that actual results may differ from projections due to various risks and uncertainties. The document cautions bidders against placing undue reliance on these forward-looking statements and clarifies the company's obligation to inform bidders about material developments.

This section provides general information regarding the company's registered and corporate office details, along with its company registration and corporate identity numbers. It also lists the Board of Directors, including their designations and DINs. Furthermore, it details the contact information for the Company Secretary and Compliance Officer. The text then outlines various responsibilities and coordination activities between the Book Running Lead Managers (BRLMs) and the Registrar to the Offer concerning the issuance process.

The section details various aspects related to the filing and book-building process for the offer, including changes in statutory auditors and the framework for monitoring the utilization of net proceeds. It outlines that no credit rating agency has been appointed for grading the offer, and clarifies that the appointment of a credit rating agency or debenture trustee is not required for this type of offering. Furthermore, it specifies the process for filing the Draft Red Herring Prospectus and the book-building process, including how the price band and minimum bid lot will be determined. The text also covers the participation rules for different types of bidders and the requirements for entering into an underwriting agreement.

This section details the capital structure of the company as of the Draft Red Herring Prospectus date, including the authorized and issued equity share capital. It outlines various components related to the offer, such as fresh issues, offers for sale, and employee reservation portions. Furthermore, it provides a history of equity share capital allotments, including details on various allotments and the resulting cumulative paid-up equity share capital over time. The text also mentions approvals for offers and the potential for pre-IPO placements.

The company currently has no outstanding preference shares and has not issued any equity shares for consideration other than cash or through a bonus issue as of the Draft Red Herring Prospectus date. The document details various allotments of equity shares, including preferential allotments and bonus issues, across different dates. Furthermore, the section outlines the history of shareholding for promoters and the promoter group, showing their stake in the company over time. The shareholding of the promoters and the promoter group amounts to 89.06% of the issued equity share capital.

This section details various transactions involving equity shares, including allotments, transfers, and bonus issues across different dates. It records transactions such as initial subscriptions, preferential allotments, transfers by gift, and cash transfers. Furthermore, it outlines provisions regarding promoter contributions, including minimum contributions and lock-in periods for certain equity shares. The section also presents a summary of the shareholding pattern as of the date of the Draft Red Herring Prospectus.

The section details the shareholding structure of the company as of the date of the Draft Red Herring Prospectus, including breakdowns for Directors, Key Managerial Personnel, and major shareholders. It presents various shareholding percentages for different groups and time periods, such as as of the date of the prospectus, 10 days prior, and one year prior. Furthermore, it outlines details regarding the acquisition of securities by promoters and the aggregate shareholding before and after an offer.

This section outlines various compliance and restrictions related to the issuance and offer of equity shares. It states that the company is in compliance with the Companies Act, 2013 regarding equity share issuance from its incorporation date until the filing of the Draft Red Herring Prospectus. Furthermore, it restricts certain parties from offering incentives to bidders, except for fees or commissions related to services rendered for the offer. There are limitations on further issues of securities, such as bonus shares or rights issues, during a specified period. The document also details rules regarding the reporting of Pre-IPO Placements and transactions by promoters to the Stock Exchanges.

The Offer involves a Fresh Issue and an Offer for Sale by the Promoter Selling Shareholders. The Net Proceeds from the Fresh Issue are proposed to be utilized for funding various objects, including the repayment or pre-payment of outstanding borrowings and general corporate purposes. The proposed deployment schedule details the intended use of these funds across different fiscal years. Furthermore, the company expects to benefit from the listing of equity shares on the Stock Exchanges, which is anticipated to enhance brand image and create a public market for the shares in India.

The company has certified that borrowings have been utilized for their intended purposes, and there have been no delays or restructuring in relation to the repayment of these borrowings. A portion of the proposed funds is designated for the repayment or prepayment of outstanding borrowings by the Material Subsidiary. The balance of the net proceeds is intended for general corporate purposes, with a limit of 25% of the gross proceeds allocated to these purposes. These general corporate purposes include funding business development, marketing, capital expenditure for facilities, meeting corporate contingencies, funding working capital, and other approved purposes. The utilization of funds is subject to board approval and compliance with applicable laws.

The section details various quantitative and qualitative factors used to determine the offer price for the equity shares. Qualitative factors highlight the company's position as the second-largest PET recycling company in India, its unique capabilities in mechanical and chemical recycling, and its manufacturing capacity advantages. Quantitative factors include basic and diluted earnings per share, P/E ratios relative to price bands, Return on Net Worth (RoNW), and Net Asset Value (NAV) per equity share. The document also presents a set of Key Performance Indicators (KPIs) used to analyze the company's operational and financial performance.

The provided text details a comparison of the company's Key Performance Indicators (KPIs) with those of its peer group companies in India across different fiscal years. It also outlines various justifications for the offer price, including criteria related to primary and secondary issuances of equity shares. The document specifies conditions for reporting on price per share based on transactions within the preceding 18 months and details the weighted average cost of acquisition (WACA) for such transactions.

This section discusses the statement of possible special tax benefits available to the Company, its material subsidiary, and its shareholders under various Indian tax laws. It details specific benefits related to the Income Tax Act, 2025, including a lower corporate tax rate for domestic companies. Furthermore, it outlines provisions concerning deductions under Section 146 of the Act, 2025, which allows for the claim of a deduction on additional employee costs incurred in the course of business.

This section details various special tax benefits available to the Company, its material subsidiary, and its shareholders under different provisions of the Income-tax Act, 2025, as amended by the Finance Act, 2026. It covers benefits related to tax rates for domestic companies, deductions for business expenses, tax treatment for dividends, and various provisions concerning capital gains and losses. The text also outlines specific rules regarding the treatment of dividends and capital gains for different types of shareholders.

This section details the scope and responsibilities of the auditors, Singhi & Co. Chartered Accountants, regarding the examination of the Restated Consolidated Financial Information of J B Ecotex Limited for inclusion in the Draft Red Herring Prospectus (DRHP). The audit covered financial statements for the years ended March 31, 2026, March 31, 2025, and March 31, 2024. The work was performed in connection with the proposed Initial Public Offering (IPO) and compliance with various regulations, including the Companies Act, ICDR Regulations, and the Guidance Note. The auditors confirmed that the financial information was prepared retrospectively and in accordance with applicable accounting standards.

This section presents the restated consolidated financial statements for J B Ecotex Limited, including the Statement of Assets and Liabilities, Profit and Loss, and Cash Flows. The Balance Sheet as of March 31, 2026, shows total assets of ₹694.83 Crore, compared to ₹707.96 Crore as of March 31, 2025, and ₹591.38 Crore as of March 31, 2024. The Profit and Loss statement details revenue from operations, expenses, and resulting profit for the respective years. The Cash Flow statement provides details on cash generated or used from operating, investing, and financing activities.

This section outlines the material accounting policies for J B Ecotex Limited's restated consolidated financial statements, which cover the years ended March 31, 2026, March 31, 2025, and March 31, 2024. The statements are prepared in accordance with Indian Accounting Standards (Ind AS) and historical cost convention, with certain financial instruments measured at fair value. The policies detail how subsidiaries, associates/joint ventures, and business combinations are accounted for, including consolidation, the equity method for associates, and the acquisition method for business combinations. Furthermore, the text specifies rules for current and non-current asset classification, the use of management estimates, and the treatment of foreign currency transactions.

This section details various accounting treatments and measurement principles for different financial statement line items, including Property, Plant & Equipment, Intangible Assets, Cash, Inventory, Borrowings, Employee Benefits, Trade Receivables, Contract Liabilities, Tax Expenses, Exceptional Items, Leases, and Provisions. It outlines specific rules for capitalization, depreciation, impairment testing, measurement of costs, recognition of liabilities, and treatment of various financial components according to accounting standards.

This section details various accounting treatments related to provisions, contingent liabilities, financial instruments, earnings per share, and asset impairment. It outlines the recognition, measurement, and subsequent measurement criteria for different types of financial assets and liabilities, including classifications like fair value through profit and loss, amortized cost, and fair value through other comprehensive income. Furthermore, it specifies the processes for calculating basic and diluted earnings per share, the impairment testing for non-financial assets, and the segment reporting methodology used by the Board.

This section details the consolidated statement of notes and explanatory information for J B Ecotex Limited, covering Property, Plant and Equipment, Capital Work-in-Progress, Intangible Assets under Development, Right of Use Assets, Investments, Loans, and other financial assets. The data is presented across various reporting dates, showing changes in carrying values, accumulated depreciation, and net carrying values for these assets. It also includes details on various financial instruments and tax provisions.

This section details the financial position of J B Ecotex Limited as of March 31, 2026, presenting various components of its balance sheet, including inventories, receivables, cash, loans, and other financial assets. The data shows trends across the years ending March 31, 2025, and March 31, 2024. It also provides information on the structure of equity share capital, the distribution of ownership among shareholders, and details regarding borrowings, including the nature and security of various loans.

This section details various financial covenants, security arrangements, and liabilities for J B Ecotex Limited, covering different reporting periods. It outlines secured facilities from banks, including equitable mortgages and hypothecations of assets, as well as personal guarantees provided by directors and promoters. Furthermore, it provides schedules for lease liabilities, provisions, borrowings, trade payables, other financial liabilities, and current tax liabilities across several years.

This section details various financial statement components, including changes in inventories, employee benefit expenses, finance costs, depreciation, other expenses, and tax expenses. It also provides information on related party transactions and loans taken and repaid during the period. The data is presented across three fiscal years: March 31, 2026, March 31, 2025, and March 31, 2024.

This section details various financial transactions and balances as of March 31, 2026, March 31, 2025, and March 31, 2024, covering loans, director remuneration, and trade receivables/payables. It also provides information on the elimination of certain transactions and the details related to gratuity plans, including changes in the present value of the defined benefit obligation and various assumptions used in determining gratuity.

This section provides various quantitative details related to the financial statements, including sensitivity analysis for assumptions, maturity profiles for defined benefit obligations, leave obligations, recognized expenses, asset pledging details, contingent liabilities, commitments, segment information, and financial risk management. It details the structure of the group's operations, the nature of its financial instruments, and various risk exposures like credit, liquidity, and market risks.

This section provides various notes related to the financial statements, including trade payables ageing schedules, details on common control business combinations, accounting for Section 8 Associate Companies, and various accounting judgements and statutory compliance information. It details the treatment of financial information for different periods and outlines the basis for restated consolidated financial statements.

This section details material adjustments and regroupings made to the consolidated financial statements for the years ended March 31, 2026, 2025, and 2024. It confirms that the accounting policies were materially consistent for the year ended March 31, 2026. The text also outlines various auditor qualifications, the impact of a bonus issue and share split subsequent to the reporting date, and various notes regarding financial statement presentation and non-GAAP measures.

Prospective investors should be aware of several significant risks associated with the business. Risks include potential declines in demand for key products, reliance on a diversified but volatile supply chain for raw materials, dependence on the domestic market, and concentration of manufacturing facilities. Furthermore, there are risks related to the nature of the products, the potential for disruptions in operations, and exposure to price volatility in raw materials. Customer relationships are also not secured by long-term contracts, and the use of food-grade resins involves compliance with strict food-contact standards.

The company faces risks related to product quality, including contamination or defects arising during sourcing, processing, storage, or transportation, which could lead to rejections, recalls, or reputational damage. There are concerns regarding the under-utilization of manufacturing facilities, which could negatively impact profitability due to fixed operating expenses. Furthermore, the company is subject to various regulatory and statutory risks concerning the timely obtaining, renewal, or compliance with licenses and approvals. Environmental, health, and safety laws pose risks due to the handling of materials that may generate hazardous waste, and there is a history of incidents like fires and accidents. Dependence on third-party logistics providers introduces supply chain continuity risks, and transactions with related parties present potential conflicts of interest. Finally, the adequacy of insurance coverage to cover all risks is questioned.

This section details various risks across the company's operations, insurance, export activities, inventory management, intellectual property, and receivables. Key risks include inadequate insurance coverage, potential losses from uninsured events, and supply chain disruptions. The export business faces exposure to foreign exchange volatility, trade policy changes, geopolitical conflicts, and logistical issues. Inventory planning is challenging due to uncertain customer demand, and intellectual property protection is not fully guaranteed. Furthermore, there are risks associated with trade receivables, including payment delays and disputes, and corporate guarantees that could obligate the company to make payments.

The company faces several risks, including outstanding litigation involving various parties, which could result in significant expenses, damage, or adverse impacts on business results. There is a dependency on a limited number of specialized technology partners for key equipment, and any inability to procure replacement parts or upgrades could disrupt production. Furthermore, the company relies on unsecured borrowings from promoters and directors, posing a risk to liquidity and cash flows. Risks also exist concerning the potential for conflicts of interest arising from promoter/director business activities, and the vulnerability of operations to labor issues, such as strikes or wage increases. Finally, the company is subject to stringent quality requirements, and failures to meet these standards could lead to product liability claims or reputational harm.

The company faces risks related to its workforce, including the potential inability to recruit, train, and retain qualified personnel, which could impact business results. Operations are also dependent on a consistent external supply of power and fuel, with disruptions potentially leading to operational interruptions and increased costs. Furthermore, the company is exposed to risks from unfair trade practices and unauthorized replication of its products, which could damage its brand and market share. The company also faces challenges in expanding into new geographic markets and potential competition, and it is subject to indebtedness and various financing covenants.

The document details several observations related to accounting records, including issues where the audit trail feature was not enabled at the database level, although the company is in the process of implementing this feature. Furthermore, the company relies on external reports for industry information, which carries inherent risks regarding the accuracy and relevance of the data, especially concerning emerging environmental regulations. Operational risks include the dependency on working capital, the potential for delays in customer payments, and exposure to various risks such as non-compliance with environmental regulations, litigation costs, and foreign exchange risks. There are also significant risks associated with the security and confidentiality of proprietary technical knowledge, as well as the dependency on key management personnel.

The company faces several risks related to employee attrition, lack of succession planning, and potential disruptions to operations. There are also significant risks concerning leased premises, including the inability to renew leases or disputes with landowners, and potential issues with the stamping or registration of lease deeds. Furthermore, the transition to a listed company introduces increased scrutiny from regulators and shareholders, demanding substantial time from management. Ownership concentration by Promoters may limit control changes and create conflicts of interest. Risks also exist regarding related party transactions and the potential for fraud or theft by employees or third-party service providers. Finally, the company operates in a competitive industry where increased competition could negatively impact revenues and market share.

The company faces various risks stemming from global economic and political shifts, including trade wars, financial instability, and geopolitical conflicts which can impact market liquidity and operations. Risks also include potential downgrades in India's sovereign credit ratings, which could affect access to debt capital and borrowing costs. Furthermore, there are significant compliance risks related to evolving environmental, social, and governance (ESG) standards, data protection laws, and labor regulations. The company is also exposed to competition laws, foreign investment restrictions, and the uncertainty of changes in laws and regulations across various jurisdictions.

The document outlines several risks related to regulatory approvals, foreign exchange fluctuations, and changes in Indian tax laws. Risks include uncertainty regarding approvals from regulatory bodies, potential adverse impacts from modifications to tax laws, and the difficulty in accurately ascertain tax liabilities in emerging markets. Furthermore, there are concerns about the impact of inflation on operating costs, constraints on raising foreign capital due to exchange controls, and potential volatility in market trading due to surveillance measures. Finally, the document details various tax implications for investors and the potential impact of future tax law changes on company profitability.

The document outlines several risks associated with the equity offer, primarily concerning marketability and price accuracy. Risks include the lack of a public market for the equity shares and the uncertainty of the offer price reflecting the actual market price upon trading commencement. Furthermore, various external factors, such as analyst coverage, competitor activities, and general economic conditions, can influence the market price. There are also risks related to currency fluctuations affecting the value of the equity shares and the potential strain on company resources due to compliance with numerous regulatory requirements.

The document outlines various procedures and allocation rules for the issuance of equity shares, detailing how under-subscription in different categories might be handled. It specifies different allocation methods for various investor categories, including retail, non-institutional, and anchor investors. Furthermore, it discusses provisions for pre-IPO placements and the reservation of shares for employee benefits. The text also provides historical financial statements, including the statement of assets and liabilities, and the statement of profit and loss, which show trends in revenue, expenses, and profit over several years.

The document details contingent liabilities, including various guarantees and obligations under different tax laws, which are quantified as net liabilities after considering pre-deposits. It also summarizes related party transactions, which involve various financial flows such as sales, purchases, loans, and interest payments across different financial years. The related party transactions are categorized based on the nature of the relationship with the related party and the type of transaction conducted.

This section details various related party transactions and remuneration paid to key managerial personnel. It lists several individuals categorized as relatives of directors or key managerial personnel, including loans, director remuneration, and salaries/wages. The data is presented across different financial years, showing the amount as a percentage of revenue from operations.

The section outlines the absence of certain outstanding legal and regulatory proceedings, such as criminal proceedings, actions by statutory or regulatory authorities, or disciplinary actions by SEBI or Stock Exchanges against the Relevant Parties. It also details specific litigation involving the Company, including proceedings under the Negotiable Instruments Act, 1881, and litigation initiated by a Promoter. Furthermore, the section details various tax claims and proceedings, including show cause notices and demands related to direct and indirect taxes, some of which are currently pending appeals. It also specifies criteria for determining material litigation based on monetary thresholds relative to the company's turnover and net worth, and discloses outstanding dues to creditors based on a percentage of consolidated trade payables.

This section details various governmental and regulatory approvals, licenses, registrations, and permissions obtained by the Company and its Material Subsidiary to conduct business activities. It lists numerous approvals related to incorporation, tax, trade, regulatory compliance, labour, and specific operational licenses such as factory licenses and pollution consents. Furthermore, it outlines pending intellectual property applications, including trademarks and a patent, for both the Company and its Subsidiary.

The document details the identification of 'group companies' based on resolutions and materiality policies, including a list of nine companies. It further clarifies that these group companies do not have any interest in the promotion or formation of the Company, nor are they involved in properties acquired by the Company or transactions related to land acquisition, construction, or machinery supply with the Company. Furthermore, there are no business interests between the group companies and the Company, and no conflicts of interest exist regarding suppliers or lessors of immovable properties. Finally, the group companies are not party to any litigation that could materially impact the Company, and no significant related business transactions exist between the group companies and the Company.

The section details the authorization for the offer, including resolutions passed by the Board and Shareholders for the Fresh Issue, and the approval of the Draft Red Herring Prospectus for filing with SEBI and Stock Exchanges. It confirms that Promoter Selling Shareholders are in compliance with SEBI ICDR Regulations and have held their respective shares for at least one year. Furthermore, the company has received in-principle listing approvals from BSE and NSE, and various confirmations regarding the non-prohibition of directors and promoters from accessing capital markets or being debarred by regulators. The section also outlines eligibility criteria for the offer based on net tangible assets, operating profit, and net worth over the preceding three financial years.

The section details various procedural requirements related to the offering, including stipulations regarding equity share sales by dealers and the inclusion of disclaimer clauses from BSE and NSE. It outlines the process for listing the equity shares on BSE and NSE, including applications for trading permission. Furthermore, it specifies consequences for failing to obtain listing or trading approval within prescribed timelines, such as the obligation to repay funds or pay interest. The text also covers consents required from various parties and expert opinions, and provides information on past capital issuances and public issues by the company and its subsidiaries.

This section details various aspects related to employee discounts, the track record of Book Running Lead Managers (BRLMs), and the procedures for resolving investor grievances. It outlines specific timelines and compensation structures for delays in fund unblocking and for various types of investor complaints. Furthermore, it specifies the acceptance of no responsibility by various parties for errors or defaults under SEBI ICDR Regulations. The company confirms that it has not received investor complaints in the preceding three years and that there are no pending investor grievances as of the Draft Red Herring Prospectus date.

This section outlines the various legal frameworks and regulations governing the issuance and offer of equity shares, stipulating that the offer is subject to numerous laws, including the Companies Act, SCRA, SCRR, and various SEBI regulations. It details the ranking of equity shares and the rules for dividend payments. Furthermore, it specifies procedures for determining the offer price, the process for bid submission, and the timelines for various activities related to the listing and trading of the securities.

This section details various procedural aspects related to the offer structure, including how revisions to the price band and bid/offer period must be disseminated to stock exchanges. It outlines conditions under which the company must refund subscription amounts if minimum subscription levels are not met or if listing/trading permissions are not obtained. Furthermore, it specifies the order in which equity shares will be allotted based on different portions of the issue, including the treatment of promoter selling shareholders and the requirement to ensure a minimum number of prospective allottees. The text also covers restrictions on the transfer and transmission of shares and details the various categories of investors eligible for allotment.

This section details various rules and procedures related to the offer, including allocation proportions for different investor categories, requirements for bid submission, and various regulatory frameworks. It outlines rules concerning the allocation of shares to Qualified Institutional Buyers (QIBs), Non-Institutional Investors, and Retail Individual Investors (RIIs), including specific reservations for domestic mutual funds and other entities. Furthermore, it discusses procedures for joint bids, payment terms for Anchor Investors, and various timelines and mechanisms related to the Unified Payments Interface (UPI) for applications.

This section details various procedural requirements and restrictions concerning the bidding process for the offer, including rules related to compensation, the use of UPI for bids, and the handling of different investor categories. It outlines specific rules for electronic registration of bids, the timing for bid modification, and requirements for providing necessary documentation like UPI IDs and bank account details. Furthermore, it specifies rules regarding the participation of various investor groups such as Anchor Investors, Promoters, and Foreign Portfolio Investors (FPIs), including limits on their holdings in the company's equity.

This section details various regulatory requirements and restrictions concerning different categories of bidders participating in the offer, including FPIs, AIFs, insurance companies, NBFC-SI, and various funds. It outlines specific documentation required for bids from certain entities, such as certified copies of registrations or financial statements. Furthermore, it specifies investment limits and rules related to various regulatory frameworks like SEBI FPI Regulations, FEMA rules, and insurance regulations, which dictate how much investors can invest in the company's equity.

This section details various rules and restrictions concerning the bidding process, particularly differentiating between different investor categories like Anchor Investors, QIBs, and Retail Individual Investors. It outlines requirements for bid submission, including the handling of bid withdrawals, the necessity of using specific payment methods, and the verification of bidder details and funds. Furthermore, it specifies rules for pre-offer advertisements, the signing of underwriting agreements, and the filing of the Prospectus with the Registrar of Companies (RoC).

This section outlines various rules and instructions for submitting bids and applications, detailing restrictions related to UPI usage, bank accounts, and the number of shares that can be bid for. It also lists numerous technical grounds upon which bids may be rejected, including issues with bid amounts, required details, signatures, and the use of third-party accounts. Furthermore, the text specifies procedures for handling bid delays, the roles of Book Running Lead Managers (BRLMs), and the process for finalizing allotment and listing approvals.

This section outlines various regulations concerning foreign investment in Indian securities, primarily governed by the Industrial Policy, 1991, and FEMA. It details that foreign investment may be permitted either through the automatic or approval route depending on the sector. It references various rules and notifications issued by different government bodies, including the DPIIT and the Ministry of Finance, which have superseded previous clarifications. Furthermore, it specifies requirements for prior government approval for certain investments, particularly concerning entities or investors from countries sharing a land border with India. The text also discusses restrictions on participation by certain entities and limits on the holding of shares by Non-Resident Indians (NRIs) and Other Citizens (OCIs).

The company's Board comprises eight Directors, including one Executive Director, three Non-Executive Directors, and four Non-Executive Independent Directors. The document details the particulars of the Board members, including their designations, terms, and other directorships. Specific terms of appointment and remuneration for the various directors, including the Managing Director and Non-Executive Directors, are outlined. The company has not entered into service contracts with any Director, and there is no performance-linked bonus or profit-sharing plan for the Directors.

The document details provisions regarding contingent or deferred compensation, noting that no such payments have accrued for Financial Year 2026 and are payable to the Directors. It also clarifies that no Directors have received remuneration from the Subsidiary. The text outlines various interest disclosures concerning the Directors, including those who may be deemed interested in contracts or transactions with companies promoted by them. Furthermore, it specifies that no Directors have availed loans from the Company and details the borrowing powers authorized by the Board. The document also covers changes to the Board within the last three years and establishes the applicability of corporate governance regulations. Finally, it describes the constitution and scope of various Board-level committees, such as the Audit Committee and the Nomination and Remuneration Committee.

This section details various functions related to human resources, compensation, employee stock option schemes (ESOP), and the establishment of several key committees within the company. It outlines the Board's responsibilities concerning director appointments, remuneration policies, and the administration of various employee benefit schemes. Furthermore, it specifies the mandates for the Corporate Social Responsibility (CSR) Committee, the Stakeholders’ Relationship Committee (SRC), and the Risk Management Committee (RMC), including their respective scopes and functions.

This section details the key managerial personnel and senior management of the company. It introduces Naman Rajnikant Shah as the Chief Financial Officer and Nidhi Manoj Sharma as the Company Secretary and Compliance Officer. It then provides brief profiles for several senior management personnel, including Amit Mahavirprasad Jain, Punit Kumar Singhal, and Manishkumar Narsinghprasad Singhal, outlining their roles, experience, and remuneration received from the company. The document also covers various aspects related to the relationship, service contracts, shareholding, and payment practices concerning these personnel.

The company's promoters include several individuals and a private trust, holding a significant stake in the company. The promoters collectively hold 15,30,00,000 Equity Shares, which represents 88.96% of the issued capital on a fully diluted basis. The document details the shareholding percentages for ten individuals and the Gupta Family Private Trust. Specific details regarding the roles, PANs, and other business activities of various promoters are provided, with references to further documentation for complete profiles.

The document outlines the objects and purpose of the Gupta Family Trust, which includes provisions for succession planning, financial support for beneficiaries' needs such as maintenance, education, marriage, medical, first residence, and emergencies, and ensuring the trust fund is managed according to the Trust Deed. Regarding the company's promoters, it states that except for Rajesh Ramniwas Gupta, Vishal Kejriwal, Samarth Arya, and Gupta Family Private Trust, these individuals have been identified as promoters based on a board resolution. Furthermore, it confirms that there has been no change in control of the company since its incorporation. The document details various aspects concerning the interest of the promoters, including their shareholdings, dividends, and intellectual property rights in the company, as well as their potential interest in remuneration and expenses paid by the company. It also clarifies that no such payments have been made to promoters or members of the Promoter Group during the preceding two years, and there are no conflicts of interest with suppliers or lessors of crucial company properties.

This section primarily discusses the company's dividend distribution policy, which was approved by the Board of Directors on September 8, 2026. It outlines that the declaration and payment of dividends will be recommended by the Board to shareholders for approval, subject to various legal compliance requirements. The Board retains the absolute power to declare interim dividends as per the Act. Furthermore, the determination of future dividend payments will depend on a number of internal and external factors, including profits, reserves, working capital, debt levels, and various economic and regulatory conditions. The company has not declared or paid any dividends in the current financial year up to the date of this Draft Red Herring Prospectus.

The provided text introduces disclosures regarding related party transactions, directing readers to a separate note for details. It also discusses management's perspective on financial conditions and operations, clarifying the financial years and the use of various performance indicators. The text highlights the company's position as a major PET recycling company in India, detailing its installed capacity, product portfolio, manufacturing facilities, and growth strategy. Furthermore, it outlines the regulatory landscape concerning recycled plastic content requirements and the company's efforts in technological innovation and sustainability.

This section primarily details the financial performance metrics for the company across Fiscal 2026, Fiscal 2025, and Fiscal 2024, including various operational and financial indicators. Key observations include significant growth in revenue from operations, particularly from Food Grade rPET Resins, rPET Flakes, and the commencement of commercial production for Food Grade rPET Resins. However, the performance was impacted by changes in the product mix and realization levels, as well as operational disruptions such as a fire incident. Export revenue showed a notable increase, while other income saw a decrease.

The section details various revenue changes across different product lines, showing growth in several areas, such as Food Grade rPET Resins and Chemically Recycled Resins, driven by the commencement of commercial production. Revenue from the sale of rPET Flakes saw a significant increase due to higher sales volumes. Furthermore, revenue from services and other operating revenues also showed substantial growth. The section also covers changes in costs, expenses, and financing activities, noting increases in cost of materials consumed, finance costs, and depreciation, which were linked to increased production and capital expenditure. Cash flow statements provide details on operating, investing, and financing activities for fiscal years 2024, 2025, and 2026.

The provided section details various financial figures and disclosures related to the company's financial position, including borrowings, capital expenditure, and contingent liabilities. It outlines that borrowings consist of secured term loans, unsecured loans from directors, promoters, and relatives, and working capital facilities from banks. The text also mentions various contingent liabilities such as bank guarantees, corporate guarantees, and disputed tax liabilities. Furthermore, it states that the company does not have contractual obligations or off-balance sheet arrangements that are reasonably likely to materially affect its financial condition, except those disclosed in the contingent liabilities section.

The provided section details various financial risks, including foreign currency, credit, liquidity, and market risks, which are managed through various controls and analyses. It specifies that credit risk is managed through customer assessment and credit limits, and liquidity risk is managed through cash flows and financing arrangements. The text also outlines sensitivities to interest rate changes on profit before tax. Furthermore, it discloses an unusual event involving a fire loss and details the capitalization structure as of March 31, 2026, including various borrowings and equity details.

This section details the principal terms of the various borrowing arrangements the company has availed, which involve different interest rates, tenor periods, and security provisions. Interest rates for term loans and working capital facilities vary, with vehicle loans having fixed rates between 7.90% and 8.85% per annum. Penal interest can be charged for defaults, ranging from 1.00% to 18.00% over the applicable interest rate. Working capital facilities have repayment terms that are either on demand or subject to annual review and renewal by the lender, while term loans typically range between 36 months to 108 months. Borrowings are secured by various means, including equitable mortgages, hypothecation of assets, personal guarantees from directors and promoters, and corporate guarantees. Furthermore, there are pre-payment provisions that may involve prepayment charges up to 4% of the principal amount being prepaid or the sanction amount.

This section details the main provisions of the Articles of Association of the Company, which are governed by the Companies Act 2013. It outlines compliance with various regulations and establishes that the Articles will govern the management and observance of members' rights. The definitions section provides various terms such as 'Act', 'Board', 'Member', and 'Equity Shares'. Furthermore, it specifies rules regarding the issuance and variation of share capital, including provisions for the Board to dispose of shares and the requirement for shareholder sanction in certain matters.

The Articles grant the Company power to issue preference or convertible redeemable preference shares, and allow Directors to exercise powers regarding such shares, including redemption or conversion. The Company is also empowered to pay interest out of its capital for financing construction work and can enter into various arrangements with creditors, such as hive-off or amalgamation. Provisions exist for varying rights attached to different classes of shares with the consent of a majority of holders or via a Special Resolution. Furthermore, there are specific rules governing the increase of subscribed capital through further share issuance, including notice periods and rights for existing shareholders. The Articles also detail various restrictions and procedures concerning the transfer of shares, including the Company's lien rights, and the process for handling the death or insolvency of a Member.

This section details various provisions concerning the transfer, registration, and rights related to the Company's shares, including provisions concerning the death or insolvency of a member. It outlines procedures for handling transfers, the Board's power to intervene in such transfers, and the application of certain limitations to transfers. Furthermore, the text covers provisions related to the lock-in of equity shares during an Initial Public Offering (IPO) and the consequences of pledge or release of such shares. It also addresses forfeiture procedures for non-payment of calls, the rights of the Board in dealing with forfeited shares, and the implications for the rights of the former member.

This section outlines various provisions related to the capitalization of profits and reserves into fully paid shares, the Board's authority in such matters, and the power to buy back the company's own shares. It also details procedures for convening general meetings, including the distinction between regular and extraordinary meetings, and the notice periods required for such meetings. Furthermore, the text covers rules regarding the conduct of business at general meetings, the handling of votes, and various provisions concerning shareholder voting rights, including the distinction between show of hands and poll voting.

The Articles of Association detail various provisions concerning the composition and removal of the Board of Directors, including rules for directors retiring by rotation, exceptions for certain directors, and the power to remove directors with due process. The provisions also cover the Board's meeting procedures, including quorum requirements and voting procedures. Furthermore, the document outlines the Board's power to delegate powers to committees and the process for resolving disputes or decisions. There are also stipulations regarding the Board's power to borrow money and the conditions under which such borrowing can be sanctioned by a General Meeting.

This section details various provisions related to company accounts, winding up procedures, indemnity for directors and officers, insurance provisions, secrecy clauses, and general authority of the company. It also outlines rules regarding the inspection of company accounts by members, the process for handling unpaid dividends, and stipulations concerning the modification of material contracts. Furthermore, it lists numerous material contracts and documents that are attached to the prospectus, including various agreements, resolutions, and expert reports.

The provided section primarily consists of declarations from various directors confirming compliance with relevant laws and regulations. These declarations attest that the statements and disclosures made in the Draft Red Herring Prospectus adhere to the provisions of the Companies Act, 2013, and various rules and guidelines issued by the Government of India and SEBI. The text includes signatures from several directors, including the Chairman and Non-Executive Director, Managing Director, and Non-Executive Directors, affirming the truth and correctness of the disclosures.

This section primarily contains declarations from various directors and a promoter selling shareholder confirming compliance with various laws and regulations. The declarations attest that the statements, disclosures, and undertakings made in the Draft Red Herring Prospectus are true and correct and comply with the provisions of the Companies Act, 2013, SEBI regulations, and others. Specifically, a promoter selling shareholder has confirmed the accuracy of statements related to themselves and the offered shares, while assuming no responsibility for statements made by others.

This section primarily contains declarations from various promoters, each confirming the accuracy of statements made in the Draft Red Herring Prospectus concerning themselves and their portion of the offered shares. These declarations serve to limit the responsibility of the signatories for other statements made by other promoters or relating to the company. The declarations are signed by individuals such as Ayodhyaprasad Jugalkishore Singhal, Rajesh Ramniwas Gupta, Vishal Kejriwal, Ramdas Laxminarayan Jindal, and Himanshu Surendra Jariwala.

This section primarily contains declarations from various Promoters Selling Shareholders confirming the accuracy of statements made in the Draft Red Herring Prospectus regarding themselves and their portion of the offered shares. The declarations are signed by Hemant Vimalkumar Dhandharia, Monika Rajesh Gupta, and Sajjan Kumar Kejriwal, each assuming no responsibility for statements made by others or relating to the company.