Avtar Steel Limited

This section provides an overview of the industry context, primarily referencing external industry reports and macroeconomic data. It discusses the global economic outlook, noting expected growth rates for various major economies, with India projected to have the fastest expansion. The text details various aspects of the Indian economy, including GDP growth forecasts, fiscal deficit trends, inflation expectations, and the performance of the industrial sector. Furthermore, it covers risks related to geopolitical conflicts, such as the West Asia conflict, and its potential impact on supply chains and input costs for the stainless steel industry. Finally, it summarizes the supportive macroeconomic factors for India's long-term growth.

The demand for specialty and high-performance steel grades is underpinned by growth in the manufacturing sector, rising disposable income, and public investment in infrastructure like railways and roads. The government's Production Linked Incentive (PLI) scheme is strategically aimed at developing domestic specialty steel manufacturing capabilities and reducing import dependence in high-value steel grades. The domestic specialty stainless steel sector possesses integrated capabilities across various processing stages, enabling it to serve diverse applications such as defence, oil and gas, automotive, and precision engineering. While global crude steel production faces structural headwinds, India is expected to be a primary growth driver due to infrastructure investment, and the end-use demand for steel is diversified across various sectors.

The section details various trade agreements and protective measures concerning steel and stainless steel imports from different countries, including South Korea, Vietnam, Germany, Australia, and China. It also discusses domestic steel price recovery and the nature of raw materials, specifically iron ore and coking coal. Furthermore, the text outlines several key government policies aimed at supporting the domestic steel ecosystem, such as the National Steel Policy, the AtmaNirbhar Bharat Policy, and the Production Linked Incentive (PLI) Scheme, which focus on increasing domestic production and reducing import dependence.

The stainless steel (SS) industry is undergoing a structural transition driven by rising demand for high-performance applications and a push towards sustainable, lower-carbon production methods. Key demand drivers include infrastructure investment, the replacement of food-processing equipment, the deployment of green hydrogen technologies, and growth in construction in emerging markets. However, the industry faces challenges such as raw material price volatility and trade defense measures, while regulatory developments like the EU's CBAM and various trade tariffs are significantly impacting global trade flows and supply chain strategies.

The stainless steel industry benefits from various regulatory frameworks promoting recycling and circular economy practices, which is crucial for the sector due to the material's high recyclability. The global stainless-steel market is projected for significant expansion, driven by strong demand in segments like Aerospace and Defence, Wire, Building and Construction, and Oil and Gas. Manufacturing of specialized stainless steel requires advanced technical capabilities, and opportunities exist in defence, renewable energy, and export markets. India's stainless steel market is expected to grow robustly through FY30, supported by infrastructure development and the transition towards sustainable development.

This section details the trade dynamics for various raw materials used in the stainless steel industry, including stainless steel scrap, ferro nickel, ferro molybdenum, ferro chrome, and other ferro chromium. It outlines trends in imports and exports over the period from FY21 to FY26, noting fluctuations in trade deficits and surpluses. The availability and quality of these inputs significantly impact the domestic stainless steel production sector, with trade flows being influenced by global prices, domestic consumption, and various logistical factors.

This section details the trade trends for ferro manganese and other ferro manganese products, highlighting significant growth in exports and improvements in net trade over the period from FY21 to FY26. It also discusses the various types of stainless steel products, including their classification based on form, manufacturing route, and end-use applications. Furthermore, the text categorizes stainless steel into different series (200, 300, 400, and Duplex) based on their composition, characteristics, and growth drivers, noting that the 300 series dominates demand, while Duplex grades are the fastest-growing segment.

The forward trajectory of the market is expected to be diversified and consumption-driven, influenced by advanced manufacturing, sustainability trends, and rising per capita income. Stainless Steel (SS) is a family of iron-based alloys that offers protection against corrosion through a passive oxide layer, with mechanical strength enhanced by elements like nickel, molybdenum, and carbon. The market is segmented into different types of SS based on metallurgical structure, which dictates properties like strength and ductility. Various grades exist, including Austenitic, Ferritic, Martensitic, and Duplex SS, each suited for specific applications such as food processing, automotive, and infrastructure. The manufacturing process involves procuring scrap and ferroalloys, refining the molten steel, and casting it into various semi-finished products like blocks and blooms.

The section describes SS Blooms, which are primary semi-finished feedstock cast from molten stainless steel and supplied to rolling mills. These blooms are trimmed, scalped, and sometimes subjected to secondary refining to control elements like sulphur and phosphorus before being hot rolled into final products such as bars, wire rods, or section stock. These final products are used in various downstream sectors including construction, infrastructure fabrications, and components for the heavy engineering, mining, and defence sectors. Domestic blooms offer Indian fabricators a traceable source of chemistry and metallurgy compared to imported blocks.

The text discusses the demand patterns for stainless steel products, noting that demand varies by region based on manufacturing intensity and infrastructure activity. India maintains a structural trade surplus in stainless steel black bars, positioning the country as a manufacturing and export hub for these products, with exports consistently exceeding imports. The moderation in exports is linked to softer downstream demand, while domestic production remains strong. Furthermore, various stainless steel products, such as round bars and bright bars, cater to different industrial needs, with demand sustained by industrial growth and infrastructure investments.

India maintains a position as a net exporter of stainless steel wire rods, supported by its established manufacturing base and strong downstream demand. Exports peaked in FY23, and while the trade surplus moderated, India continued to maintain a positive balance, suggesting a shift towards prioritizing the growing local market. The market structure is heavily concentrated in the organized sector due to the stringent requirements of the product, which favors integrated and capital-intensive mills. Domestic consumption is driven by various sectors including infrastructure, process industries, and manufacturing.

The market for stainless steel wire shows a balanced structure where the organized sector holds about 70% of the volume, benefiting from scale and technology, while the unorganized sector serves local and regional demands. Unorganized players focus on commodity-grade wire for various local applications, but high-precision needs in sectors like automotive and welding favor organized manufacturers. Production of stainless angles has expanded due to increased regional construction and industrial demand, with local mills improving efficiency. Consumption of stainless angles is sustained by ongoing urbanization, infrastructure investment, and the need for low-maintenance materials across various sectors. India maintains a strong export position for stainless steel angles, consistently generating a trade surplus.

The text discusses the consumption and production trends for various stainless steel bars in India, including hexagonal, square, and flat bars, across different fiscal years. It highlights that the consumption of hexagonal bars is linked to fastener production and machinery, with future demand expected to be sustained by increased domestic output. For square bars, domestic production expanded due to greater domestic demand in construction and equipment manufacturing, with local producers investing in process control to substitute imports. Flat bars saw production growth driven by increased demand from construction, industrial equipment, and architectural projects, with domestic mills expanding their capabilities to meet these needs.

The Indian Stainless Steel (SS) industry serves a diverse range of end-user sectors, with demand driven by various growth dynamics across different applications. Key end-use segments include Consumer Goods, Mechanical Engineering & Heavy Industries, Automobile & Transportation, Building & Construction, Aerospace & Defence, Power, Oil & Gas, Chemical, and Food Processing. Several demand drivers highlight the importance of stainless steel's corrosion resistance and strength in infrastructure, such as mandatory use in coastal projects and the expansion of LNG terminals. However, the industry faces significant challenges, including heavy import dependency for critical alloying elements like nickel and molybdenum, price sensitivity in the domestic market, limited domestic production of high-end duplex grades, and vulnerability to global trade measures impacting exports.

The section begins by discussing competitive issues for Indian exporters, such as cost advantages restricting market access and volatility in freight costs and currency movements impacting export competitiveness. It emphasizes that sustained export growth is crucial for Indian firms to achieve scale and profitability, suggesting that trade diplomacy and quality upgrades are needed to overcome barriers to global leadership. The text then details the market for aluminium wire rods, covering its production, consumption drivers, and key demand segments across various industries. It highlights that demand is driven by infrastructure expansion, the substitution of copper, and the growth in the automotive and transport sectors, with future growth expected to be robust. Furthermore, it covers the market for alloy steels, detailing their production methods and applications in high-stress sectors.

The text discusses the production capacity for specialty steel, which is expected to increase by approximately 23.8 million tonnes across all categories, with local production anticipated to rise due to various policy measures. The demand for alloy steel is driven by sectors such as auto, defence, and infrastructure, as alloy steel is crucial for components in engines, railway systems, and construction projects. Key demand drivers include government initiatives like the PM Gati-Shakti plan and Make in India efforts, which are expected to boost domestic alloy-steel output. However, the industry faces challenges related to the dependence on imported alloying elements, the high capital intensity of production processes, and risks from global competition and anti-dumping measures.

The section details the landscape of special steel in India, highlighting recent policy pushes like the Production Linked Incentive (PLI) Scheme, which aims to boost domestic production. Demand for special steel is driven by various sectors, including infrastructure development, the automobile industry, the defense sector, and the need for high-quality materials in various industrial applications. Key demand drivers include the need for precision tooling, requirements from the energy sector, export-oriented manufacturing, and strategic defense programs. However, the industry faces challenges such as stringent quality certification requirements, limited domestic availability of specialty inputs, fragmented demand, and high entry barriers for new players.

The section describes the business profile of Avtar Steel Limited (ASL), which is engaged in manufacturing stainless steel long products and wire products. The company has been involved in the stainless steel business for over three decades since 1996 and possesses integrated manufacturing capabilities covering various stages from melting to testing. Its product portfolio is extensive, including various stainless steel grades and the capability to manufacture large blocks. ASL's manufacturing infrastructure provides control over the entire production process, allowing for flexibility across different product specifications. The company focuses on higher-grade stainless steel products and has technical capabilities for specialized alloys.

ASL manufactures stainless steel products through a multi-stage process involving melting, refining, casting, hot rolling, and cold finishing. The company utilizes various metallic inputs, including steel scrap, ferroalloys, and controlled prime additions, to achieve prescribed product compositions. Products are supplied to diverse industries such as automotive, oil and gas, construction, and consumer appliances, serving both domestic and international markets. ASL has established manufacturing facilities in Sonipat and New Delhi, leveraging local industrial and logistics infrastructure for procurement and shipment.

The section details various aspects of the company's operations, including quality control procedures, the experience of its promoters and management team, and its relationships with customers across domestic and international markets. The company manufactures components for consumer-appliance and cookware applications, including raw materials for sensitive cookware. Furthermore, the text discusses the company's participation in the Production Linked Incentive (PLI) Scheme for Specialty Steel and provides historical growth in revenue and profitability metrics. It also outlines various weaknesses, such as profitability margins and working capital intensity, alongside potential opportunities in infrastructure, automotive sectors, and various export markets.

The company is a manufacturer specializing in stainless-steel long and wire products, offering customized solutions for various industries. They possess over three decades of experience in domestic production and have expanded into international markets since 2010. Their product portfolio serves diverse sectors such as automobile, defense, aerospace, and construction. The company has demonstrated strong financial performance, including significant growth in EBITDA and PAT margins, and high Return on Capital Employed.

The company offers a comprehensive portfolio of stainless-steel long and wire products with customized offerings for both domestic and global customers. Production is driven by confirmed customer purchase orders, allowing for a make-to-order approach that reduces inventory risk and enhances operational efficiency. The product range includes various forms such as blocks, bars, rods, profiles, and wires, with extensive variations in sizes and dimensions. The company possesses technical capabilities in manufacturing specialized stainless-steel and high alloy grades, including various corrosion-resistant grades. The company has established long-term customer relationships and maintains quality through advanced refining practices and in-house quality systems.

The company is a purchase order-based manufacturer specializing in customized stainless-steel long and wire products, capable of producing over 150 grades with controlled chemical compositions. They offer a wide range of sizes and dimensions for products such as blocks, blooms, various bars, and wires, catering to diverse industrial applications. The product portfolio includes items like stainless-steel blocks and blooms, black bars, bright bars, and various wire products. The company focuses on meeting varied application requirements by considering factors like corrosion temperature, pressure, and environmental conditions.

The company manufactures a diverse range of stainless-steel products through various processes, including hot rolling, cold drawing, and various finishing treatments. Key products include bright bars, wire rods, angle bars, hexagonal bars, square bars, flat bars, channel bars, and stainless-steel wires. These products are engineered for specific features such as strength, corrosion resistance, dimensional accuracy, and surface finish, and they are utilized across numerous industries.

The issuer details a comprehensive process for handling stainless-steel scrap, starting from procurement and chemical testing, through melting and refining stages. The process involves various steps including in-process quality control, refining in an AOD vessel, and subsequent casting into various shapes. Following casting, there are post-casting treatments like surface finishing, and a hot rolling and cold finishing facility which includes a Rolling Mill Division and a Bright Bar Division. These divisions handle the procurement, reheating, rolling, quality control, and final packaging and dispatch of various bar and wire products.

The company applies strict quality control measures, including visual inspection, dimensional checks, chemical verification, hardness testing, tensile strength testing, and bend testing, on all finished coils and bars, ensuring only high-quality products reach the market. Installed capacity details for various divisions, including the Steel Melt Shop, Hot Rolling and Cold Finishing Facility, and Wire Rod and Bar Division, are provided, along with capacity utilization data for recent fiscal years. The company serves a business-to-business customer base, primarily providing tailored stainless-steel solutions, and its products are exported to several international markets. Raw material procurement involves stainless-steel scrap and ferro alloys, with a strategy to reuse process-generated scrap to improve cost efficiency and supply security. Furthermore, the company adheres to stringent environmental, health, and safety standards and holds several international quality certifications.

The company maintains a secure work environment, and details regarding the attrition rate for Key Managerial Personnel and Senior Management are available in a separate section. The company has a breakdown of permanent employees across various divisions, totaling 1,087 employees as of July 31, 2026. The industry is highly competitive, characterized by numerous domestic and international players competing on various aspects of stainless-steel products. The company lists several listed and unlisted peers for comparison, and details on operational and financial benchmarking are provided elsewhere. The company utilizes various IT systems for financial accounting, payroll management, and employee attendance monitoring. Furthermore, the company maintains insurance policies covering various perils and cargo transit risks, and has registered some of its logos under trademarks.

This section primarily outlines various key laws, regulations, and policies in India and the UAE that apply to the company, its material subsidiary, and its business operations. It details industry-specific regulations such as the National Steel Policy, which aims to enhance domestic steel demand and capacity. Furthermore, it covers various laws concerning steel products, scrap recycling, standards, legal metrology, explosives, environmental protection, and taxation. The text also extensively discusses labour laws, including the four Labour Codes, which consolidate several older laws, and various other laws related to worker protection and employment conditions.

This section details the various legal frameworks that the issuer must comply with for its business operations and administration. It covers several key acts such as the Trademarks Act, the Companies Act, the Registration Act, and the Indian Stamp Act, which govern aspects like intellectual property, company formation, document recording, and stamp duty. Furthermore, it mentions various laws related to fire prevention, contract law, and foreign investment regulations, including provisions under FEMA and various RBI regulations. The company is also subject to compliance with laws concerning beneficial ownership, employment, and various state-specific regulations.

The company, initially incorporated as Avtar Steel Private Limited, underwent several significant changes, including a name conversion to a public limited company in 2008. The company's registered office has been relocated on multiple occasions since its incorporation. The Memorandum of Association has seen several amendments concerning the authorized share capital over several years. Key operational milestones include the commencement of various units, expansion of product portfolios, and the incorporation of a foreign subsidiary. Furthermore, the company has engaged in acquisitions of minority shareholdings and acquired shares in another entity.

This section details various financial guarantees and security arrangements provided by different parties for the company's facilities. It outlines specific terms related to loan amounts, time periods, and the nature of the security, including charges over plant and machinery, fixed deposits, and various types of guarantees. The text also lists numerous immovable fixed assets and lands owned by different entities, primarily related to the company's operations in the Sonipat region.

This section details various financial guarantees and loan facilities provided by Sumit Jindal Avtar Steel Limited to different lenders, outlining the terms, security, and potential financial implications in case of default. The data covers various amounts, time periods for guarantees, and the nature of the security, including charges on assets, mortgages on property, and personal guarantees. Several facilities involve different lenders like Yes Bank, Axis Bank, RBL Bank, and HDFC Bank, with various repayment obligations specified.

The company has two subsidiaries: Aluex Wires (an Indian subsidiary) and Shivayu Inox and Alloys (a foreign subsidiary). Aluex Wires was incorporated as Balaji Gases and Alloys Private Limited and later renamed to Aluex Wires Private Limited, becoming a subsidiary in August 2025. Shivayu Inox and Alloys was incorporated in Dubai, UAE, and deals in scrap and metal waste trading. The company also has one associate, EPJPD Private Limited, which deals in electricity and solar energy solutions, and it became the associate in March 2026. The company confirms no material conflicts of interest with suppliers, service providers, or lessors of immovable properties.

This section provides various definitions and abbreviations used within the Draft Red Herring Prospectus. It defines terms related to the company, such as the legal name, registered office, and various personnel. It also outlines terms related to the offer process, including different types of bidders, bid amounts, and the process for allotment. Key parties involved in the offering, such as Lead Managers, are also mentioned.

This section details various terms related to the process of an offer, including the designation of different parties and accounts involved in the bidding and allotment process. It specifies terms such as Designated CDP Locations, Designated Date, Designated Intermediaries, and various types of bidders like FPIs, NRIs, and RIBs. It also defines different accounts like Escrow Accounts and Public Offer Accounts, as well as various components of the offer such as Fresh Issue and Offer for Sale.

This section primarily defines various terms related to the offering process and financial metrics. It outlines the process for accepting bids and activities as an underwriter. It details the mechanism for UPI bidders, including the types of bidders and the required documentation. Furthermore, it specifies various definitions for working days and different financial and technical terms used in the prospectus.

This section primarily details various conventions, definitions, and limitations regarding the presentation of financial, industry, and market data within the Draft Red Herring Prospectus. It specifies conventions for references to India, the US, and time, and outlines the financial years and sources for the financial information. Furthermore, it discusses the limitations of financial data, including rounding practices, the differences between various accounting standards (Ind AS, US GAAP, IFRS), and the use of non-GAAP financial measures. The text also covers the sourcing of industry and market data, including reliance on a specific industry research report, and includes forward-looking statements with associated risks.

The text outlines several risks related to the company's operations, including negative cash flows, potential issues with expansion plans, product liability risks, and reliance on key customers without long-term contracts. It also cautions that corporate records may not be traceable and that regulatory actions cannot be guaranteed. Furthermore, it states that certain parties have no obligation to revise statements after the issuance date, although they will ensure investors are informed of material developments until allotment.

This section details the structure of the offer, outlining various portions of equity shares to be offered, including Fresh Issue and Offer for Sale. The offer is segmented into QIB, Non-Institutional, and Retail categories, with specific allocation rules for different investor types. The document also specifies the number of outstanding equity shares prior to the offer and the number of shares outstanding after the offer. Furthermore, it provides details on the authorization of the offer by the Board and Shareholders, as well as conditions related to pre-IPO placements and the consent of a Promoter Selling Shareholder.

This section details the restated statement of cash flows, showing various inflows and outflows across fiscal years, including operating, investing, and financing activities. It also summarizes contingent liabilities as of March 31, 2026, categorized into Income Tax, GST, Bank Guarantee, and Labour Dispute. Several income tax demands are mentioned, some of which are pending appeals or responses with the Income Tax Department. Various GST demands have been raised, some of which have been settled or are pending further action. Several bank guarantees have been issued by the company in favor of various government ministries and institutions.

This section details the capital structure of the company as of the Draft Red Herring Prospectus date, including the authorized and issued share capital. It also provides a history of equity share capital allotments, detailing various transactions, including initial subscriptions and subsequent further issues, along with the corresponding cumulative paid-up capital. The data includes specific details on the dates, nature of allotment, number of shares, face value, and issue price for each transaction.

This section details various allotments and rights issues of equity shares, including transactions involving different entities. It covers allotments made on March 10, 2010, and March 31, 2012, alongside subsequent rights issues and bonus issues in 2019 and 2025. Furthermore, the text lists numerous secondary transactions where equity shares were transferred to Bir Bhan Jindal from various entities, primarily involving Bir Bhan Jindal.

This section details various equity share transfers that occurred between different parties, involving numerous transactions with cash consideration. The transfers involved different numbers of equity shares, ranging from 2,000 to 1,83,714 shares, and the transactions were conducted on various dates. The transfers were made to individuals like Amit Jindal, Bir Bhan Jindal, and Nirmal Jindal, as well as to various companies. The transactions involved cash payments for the transferred shares.

This section details various equity share transfer transactions, including the number of shares transferred, the face value per share, the transfer price, and the nature of the consideration for each transaction. The transfers involve numerous parties, such as Ashok Kumar Sharma, Brij Mohan Goel, and Amit Jindal, transferring shares to different entities. The transactions span from 2018 to 2025 and involve different types of consideration, such as cash. The data provided outlines the flow of equity shares between various companies and individuals.

The section details various transactions involving the transfer of equity shares and the history of preference share capital. It outlines several share transfers, including cash and gift transactions, and also mentions a significant bonus issue. Furthermore, it provides a history of equity share capital held by promoters, noting that Sumit Jindal holds a substantial percentage of the issued capital. The document also clarifies that no equity shares were issued for consideration other than cash or through a bonus issue since incorporation, and confirms that no equity shares are currently subject to pledge.

This section details various aspects of the company's capital structure, including the cost of acquisition for equity shares and the shareholding pattern of promoters and the promoter group. It provides data on the number of equity shares held by different categories of shareholders, including promoters, members of the promoter group, and additional top 10 shareholders. Furthermore, it outlines provisions regarding minimum promoters' contribution and the lock-in periods for various equity shares.

The section details various aspects of the company's capital structure, including definitions for different categories of shareholders and various metrics related to equity shares. It clarifies that none of the Directors, Key Managerial Personnel, or Senior Management hold equity shares as of the Draft Red Herring Prospectus date. Furthermore, it states that there are no financing arrangements for securities purchases by others and no buy-back arrangements by the company. The text also confirms that equity shares are fully paid-up and there are no partly paid-up shares. It outlines restrictions on certain parties engaging in transactions and limits on future capital structure changes.

The Offer involves a Fresh Issue of equity shares and an Offer for Sale of equity shares by the Promoter Selling Shareholder. The Net Proceeds from the Fresh Issue are proposed to fund several key objectives, including part-financing capital expenditure for constructing a new Specialty Steel Melting Division, repayment of outstanding borrowings, and general corporate purposes. The utilization plan details the deployment of these funds across various fiscal years, with specific timelines for the implementation of these projects. The proposed capital projects are strategic expansions aimed at addressing melting capacity constraints and improving integration within the company's operations.

The company intends to utilize ₹200.00 Crore from the Net Proceeds for various capital projects. A detailed breakdown of the estimated costs for Capital Projects is provided, covering manufacturing facilities and plant & machinery. Specifically, the proposed funding from Net Proceeds for building and civil works is ₹40.00 Crore, while the amount proposed to be funded from internal accruals for these works is ₹35.80 Crore. Furthermore, the procurement of plant and machinery is estimated at ₹137.83 Crore, with a proposed utilization of ₹110.00 Crore from Net Proceeds and ₹27.83 Crore from internal accruals.

This section details various equipment and services, including items like ladles, gas storage tanks, and various systems, along with associated costs and timelines. It also outlines specific proposals for utilizing net proceeds towards expansion, including building and civil works and the procurement of plant and machinery for the Wire Rod and Bar Division. The proposed utilization amounts are specified as a percentage of the net proceeds.

This section details various machinery and equipment being offered for sale, including different types of wire drawing machines, spoolers, annealing furnaces, and various other accessories. The listed items include specifications such as model numbers, wire size ranges, and required accessories. The quotations are provided by different suppliers, with varying validity periods ranging from 6 months to 12 months. The section also includes details on the cost of plant and machinery and applicable taxes.

The company has provisions for covering any increased costs, such as additional costs, taxes, packaging charges, freight, and installation charges, using internal accruals or additional equity and/or debt arrangements. The validity of quotations received is limited to the date of the Draft Red Herring Prospectus, and there is no guarantee that the same vendors will be engaged or that the proposed technology will remain viable. Furthermore, the quantity of equipment to be purchased is based on management estimates, and management has the flexibility to deploy such equipment according to business requirements. Funding requirements and the deployment of net proceeds are based on management estimates and are not appraised by an independent agency.

The section details various borrowings, including term loans and cash credit facilities, along with their respective terms and purposes. It outlines procedures for pre-payment or repayment of these borrowings based on commercial considerations such as interest rates, penalty conditions, and lender consents. Furthermore, it specifies the utilization of net proceeds, allowing for deployment towards specified objects or general corporate purposes, with a cap on the latter at 25% of the gross proceeds. The text also discusses the estimation of offer expenses, which include various fees related to the listing and offering process.

This section details various aspects related to the offer process, including the calculation of the amount allotted, the various fees and commissions payable to different intermediaries, and the conditions surrounding the utilization of the net proceeds. It outlines specific rules for processing fees, selling commissions, and bidding charges depending on who procures the applications. Furthermore, it establishes strict guidelines regarding the interim use of funds and the monitoring of the utilization of gross proceeds.

This section primarily discusses the comparison of the company's financial metrics with those of listed industry peers. It details various financial and operational Key Performance Indicators (KPIs) that the company uses to analyze its business performance and growth across different verticals. The KPIs are presented as a combination of financial and operational metrics intended to help bidders assess the company's performance and make informed investment decisions. The section also clarifies that these KPIs are supplemental to the restated financial information and may have limitations in comparability across different companies.

This section primarily details various Key Performance Indicators (KPIs) for the company across different fiscal years (2026, 2025, and 2024) and compares them against industry peers. It defines several financial measures such as Revenue from Operations, Profit After Tax, Net Worth, EBITDA, Cash Profit, Net Debt, Debt to Equity ratio, and various operational metrics like Inventory Days and Sales Volume. The text also provides detailed calculations for these KPIs and includes comparisons of these metrics with listed industry peers for the same fiscal periods.

The section details various aspects related to the offer, including disclosures on past acquisitions and the calculation of various price metrics. It outlines specific transactions involving primary issuances and secondary sales, which are used to determine the Floor Price and Cap Price. Furthermore, the text includes a statement regarding the possible special tax benefits available to the company and its shareholders under various Indian tax laws.

This section primarily deals with the consent and reliance on a certificate issued for an Offer, allowing its use in various regulatory and statutory filings. The certificate can be used for submission to regulatory authorities, stock exchanges, and for litigation purposes. It also covers the inclusion of this certificate in 'Material Contracts and Documents for Inspection' made publicly available. Furthermore, the certificate is intended to be relied upon by various parties in relation to the Offer and in conducting due diligence investigations of the Company's affairs.

This section primarily deals with consents related to the offer documents and the submission of certificates to regulatory and statutory authorities. It outlines the agreement to be named as an 'expert' and the consent to submit a certificate to various authorities, including Stock Exchanges, for necessary purposes and record-keeping. Furthermore, it establishes an undertaking to promptly communicate any changes to this information to the relevant parties until the commencement of trading. The text also includes declarations regarding the company's tax status, confirming that it has obtained a Corporate Tax Registration Certificate and does not have exemptions under Direct taxes. Regarding indirect taxes, the company is not required to register for VAT as it does not exceed the taxable supply threshold.

This section details the process of the independent auditors examining the restated financial information of Avtar Steel Limited for the purpose of the Draft Red Herring Prospectus (DRHP). It outlines the scope of the examination, the standards relied upon, and the reliance placed on the reports of other auditors. The auditors confirmed that the financial statements were prepared in accordance with various accounting standards and that their opinions were not modified in certain aspects. The section also presents summarized data regarding the financial figures of a foreign subsidiary and an associate.

This section details the financial information of Avtar Steel Limited, including the restated Profit and Loss statement, as of March 31, 2026, 2025, and 2024. The data includes revenue from operations, total income, various expenses, and resulting profit/loss for the respective years. The report also outlines various accounting policies and notes on the treatment of certain items.

This section provides details regarding the financial statements of Avtar Steel Limited, including the presentation of various financial metrics and the methodology for consolidation. It includes a detailed statement of cash flows for several years, showing cash inflows and outflows from operating, investing, and financing activities. Furthermore, it outlines the accounting policies, the principal of consolidation, and the treatment of subsidiaries, associates, and foreign operations in accordance with Indian Accounting Standards (Ind AS).

This section outlines the accounting standards used for the financial statements, detailing the transition from Indian GAAP to Ind AS. It specifies the reporting periods covered, the application of accounting policies, and various accounting judgements and estimates. Key aspects covered include the fair value measurement principles, the treatment of assets and liabilities, the classification of items, and the recognition criteria for revenue, provisions, and contingent liabilities.

This section details various accounting pronouncements and standards adopted by the company, including changes related to leases, financial instruments, and income taxes. It discusses the application of various accounting standards, the treatment of foreign currency transactions, and amendments related to financial reporting. Furthermore, it provides schedules for Property, Plant and Equipment, Capital Work in Progress, and outlines the nature of ongoing construction projects.

This section details the movement in various financial statement line items, including Right of Use Assets, non-current investments, loans, inventories, trade receivables, cash and cash equivalents, and tax liabilities. The data is presented across fiscal years ending March 31, 2024, March 31, 2025, and March 31, 2026. Specific details are provided regarding asset carrying amounts, investment changes, loan balances, and current assets like inventories and receivables.

This section details various financial statement notes for Avtar Steel Limited, covering trade receivables, share capital structure, retained earnings, borrowings, lease liabilities, and deferred tax provisions. It provides historical and current balances for these items as of March 31, 2026, 2025, and 2024. The data includes breakdowns of trade receivable ageing, details on the issuance of equity shares, changes in promoter shareholding, and the composition of borrowings and provisions.

This section provides a detailed breakdown of Avtar Steel Limited's financial liabilities as of March 31, 2026, covering current borrowings, lease obligations, trade payables, and various other payables. The data shows year-on-year trends for these items, including specific details on the structure and terms of various secured and unsecured loans. Furthermore, the document lists the interest rates and tenure for numerous loans, which are categorized by the security provided, such as various assets and collateral.

This section details various financial notes for Avtar Steel Limited, including details on charges, assets, revenue, costs, and expenses for different fiscal years. It provides breakdowns of revenue from operations, other income, cost of material consumed, purchase of stock in trade, changes in inventories, employee benefit expenses, finance costs, depreciation, and other operating expenses. The notes also cover the calculation of earnings per share and the bifurcation of payments to auditors.

This section details the transition of Avtar Steel Limited's financial statements to Indian Accounting Standards (Ind AS), including the first-time adoption of Ind AS. It outlines the adjustments made to the Balance Sheet, Profit and Loss statement, and Cash Flow statement to comply with the new standards, referencing various exemptions and mandatory exceptions. Key adjustments involve the treatment of property, plant and equipment, financial assets, liabilities, and the recognition of lease contracts and employee benefit plans.

This section details various adjustments and reconciliation statements related to the financial statements, including changes in total equity and comprehensive income over three fiscal years. It also lists contingent liabilities, such as various tax demands, guarantees, and outstanding balances, categorized by the nature of the liability and the related party involved. Furthermore, the text outlines details regarding related party transactions, including director remuneration, loans, and various lease expenses across the reporting periods.

This section details various financial risk exposures and liabilities of Avtar Steel Limited across different reporting periods. It includes breakdowns of interest rate risk, foreign currency risk, credit risk, and liquidity risk. Furthermore, it presents information on capital management, financial instruments, and employee benefit plans, such as defined contribution and defined benefit plans.

This section provides actuarial assumptions and sensitivity analysis related to defined benefit plans, detailing changes in discount rates, salary escalation rates, and withdrawal rates across different reporting periods. It also outlines various risk exposures, including demographic, regulatory, interest rate, liquidity, and salary escalation risks. Furthermore, the text details lease liability information, including depreciation expense, interest expense, carrying amounts, and total cash outflows for leases. Finally, it presents various financial ratios as per Schedule III requirements, such as the current ratio, debt-equity ratio, debt service coverage ratio, return on equity, and various turnover and profit ratios.

This section primarily contains various compliance disclosures, representations, and disclaimers related to the company's dealings with various entities and adherence to legal and regulatory requirements. It details assurances regarding transactions, deposits, and the handling of funds between the company and other parties. Furthermore, it outlines risks associated with the company's manufacturing facilities, including the potential impact of capacity utilization, supply chain disruptions, and environmental regulatory scrutiny due to air pollution in the operational area.

The company highlighted substantial working capital requirements, noting that operations are capital intensive and involve a long working capital cycle due to procurement, manufacturing, and payment obligations. The text details the working capital requirements for the fiscal years 2026, 2025, and 2024, showing trends in current assets, current liabilities, and net working capital. Furthermore, the company discussed the cost and availability of key raw materials, such as stainless-steel scrap and ferro alloys, and the risks associated with commodity price volatility. Competition in the stainless-steel industry was also noted, alongside risks related to implementing expansion plans.

This section details various financial metrics, including asset balances, debt levels, and key components of the profit and loss statement across fiscal years. Key figures show growth in total income, driven by increased revenue from operations and significant growth in other income sources like interest income and fair valuation gains. Expenses also showed changes, with costs of material consumed increasing in line with revenue, and various other expenses fluctuating based on operational factors like sales volume and export activities.

The financial statements detail significant profit growth across fiscal years, with profit before tax increasing substantially. Revenue from operations showed modest growth, largely influenced by changes in product mix and service commencement. Operating cash flows demonstrated varied performance, with operating cash flow before working capital changes showing positive trends in some periods. Financing activities involved movements in borrowings and equity, and the company's total outstanding borrowings were reported at the end of each fiscal year.

This section details various contractual obligations, contingent liabilities, and accounting policies as of March 31, 2026. It lists financial liabilities such as trade payables, lease liabilities, and borrowings, along with contingent liabilities like income tax, GST, and bank guarantees. The text also outlines various accounting policies concerning property, plant and equipment, cash and cash equivalents, financial instruments, and the treatment of financial assets and liabilities.

This section details various accounting treatments and disclosures related to financial statements, including impairment testing for non-financial assets, methods for calculating earnings per share, recognition criteria for provisions and contingent liabilities, revenue recognition principles, inventory valuation, borrowing costs, tax treatments, cash flow reporting, employee benefits, foreign currency transactions, and lease accounting standards. It also covers recent and forthcoming accounting pronouncements from the Ministry of Corporate Affairs concerning liability classification, foreign exchange, and supplier finance arrangements.

This section details various aspects related to financial reporting, including amendments to Income Tax rules, impairment recognition for trade receivables, and a capitalization statement. It also outlines the company's credit facilities, including the breakdown of borrowings and the terms and conditions associated with these loans. The text discusses the process for recognizing and managing financial risks related to these borrowings.

Investors should be aware of several material risks associated with the company's operations and financial standing. Risks include potential disruptions to manufacturing facilities due to various factors such as shutdowns, supply chain issues, and labor disputes. The company's operations are concentrated geographically, exposing it to regional adverse changes. Furthermore, there are significant working capital requirements that could be strained by financing difficulties or delays in customer collections. The company is also exposed to volatility in the cost and availability of key raw materials, which can impact production schedules and profitability.

The company faces risks related to product quality, including the potential for contaminants in overseas suppliers to cause issues like higher rejection rates and reputational harm. Competition from other manufacturers is significant, as the stainless-steel industry is highly competitive across various factors. Furthermore, the company has experienced negative cash flows from operating activities, which could persist, impacting its financial condition. There are also risks associated with expansion plans, such as time and cost overruns, and the need to secure regulatory approvals for such plans. Product liability risks exist due to the reliance on product quality and the lack of product liability insurance coverage. Finally, there is a risk concerning the traceability of corporate records and potential future regulatory proceedings or penalties.

The company faces various risks related to customer relationships, including the potential loss of sales due to customer issues, changes in market trends, or competitors offering better terms. The company relies heavily on purchase orders without guarantees for future orders, and customers may alter terms or cancel orders unexpectedly, which can disrupt inventory planning. Furthermore, there is a risk concerning the dependence on specific product categories and the potential for shifts in demand or the availability of substitutes. Operational risks include the potential for shortages in essential utilities like power and fuel, which could disrupt manufacturing, and inherent safety hazards in the manufacturing processes. Finally, the company is subject to pending regulatory adjudication proceedings and uncertainties regarding the timely commissioning of new power solutions.

The company faces several risks related to production capacity, regulatory compliance, labor relations, inventory management, and supply chain dependencies. Production is constrained by the availability of raw materials, and there is a risk of disruptions due to supply interruptions or labor issues. Furthermore, the company is subject to various government regulations requiring permits and licenses, which may be delayed or revoked. Labor-intensive operations face risks from strikes, wage demands, and potential unionization. Inventory forecasting errors could lead to shortages or excess stock, impacting working capital. Finally, the business is exposed to fluctuations in transportation and logistics costs, and risks related to the protection of its intellectual property.

The company faces risks related to property leases, as losing rights or needing to renegotiate them could negatively impact its business and financial condition. There is a dependency on a concentrated group of suppliers for raw materials, which exposes the company to risks from supply disruptions or price volatility. Furthermore, the company's ability to maintain its brand reputation is critical, and issues with raw material procurement could affect production schedules and margins.

The company actively engages in market visibility through participation in trade fairs and factory tours, but there is a risk that the inability to maintain business reputation could negatively impact brand recall. There is also a risk that product failures or failure to maintain established standards could harm the brand. Furthermore, there is a concern regarding the failure to develop and maintain the brand, which could lead to decreased revenue and customer loss. The company engages in related party transactions, and there is a lack of assurance that these transactions will not adversely affect business operations. There are outstanding legal proceedings involving the company and its personnel, which pose a risk to the business and financial condition. Finally, a portion of the revenue comes from exports, making the business vulnerable to changes in demand, competition, pricing, geopolitical conflicts, and trade policy disruptions.

The risk factors identified in the DRHP cover several critical areas. These include regulatory risks concerning foreign laws and licenses, exposure to macroeconomic cycles and supply chain volatility within the stainless-steel sector. There are also concerns regarding potential conflicts of interest among promoters and directors, and inherent operational risks stemming from semi-automated manufacturing processes and reliance on manual labor. Furthermore, risks exist related to the sustainability of government incentives and the reliability of management's estimates for deploying net proceeds. Finally, there are concerns about credit risk from customers and potential delays in receiving statutory payments.

The company faces risks related to macroeconomic conditions that could impact customers' ability to pay, potentially increasing receivables and affecting working capital. There are also risks associated with the disruption or failure of technology systems, which could negatively affect operations. Furthermore, there are concerns regarding the security of confidential information due to potential unauthorized access or employee actions, which might necessitate significant expenditure for protection. The company is also exposed to risks from changes in technology, which might render current systems obsolete or less efficient compared to newer alternatives. Financing arrangements include restrictive covenants that limit the company's flexibility in planning, and there is a risk of needing additional capital due to increased interest rates or difficulty in obtaining financing. Finally, there are concerns about potential conflicts of interest arising from relationships with subsidiaries and the potential for disputes with creditors.

The risk factors discussed cover several areas, including potential issues with financing arrangements, internal controls, insurance coverage, and the reliance on key personnel and promoters. There are concerns regarding the adequacy of insurance to cover all risks, potential for losses due to theft or employee negligence, and the inability to guarantee the timely execution of business plans due to reliance on shareholder approvals. Furthermore, the company's reliance on its promoters for strategic direction and the potential for conflicts of interest between the promoters' and other shareholders' interests are highlighted.

This section outlines various risks facing the company, including compliance with environmental and labor laws, potential litigation from non-compliance, and the impact of changes in government labor codes. It also details risks related to fluctuating import duties on stainless-steel products, which can reduce market share. Furthermore, the text discusses the potential for adverse effects from broader political, economic, and global factors, such as pandemics, macroeconomic climate changes, and geopolitical conflicts. It also covers risks related to supply chain disruptions, international trade policies, and financial market volatility.

The prospectus highlights several risks stemming from the evolving legal and regulatory environment in India, including changes in laws, tax implications, and data protection requirements. There is uncertainty regarding the impact of various laws and regulations, and potential adverse effects on the company's business and financial performance. Furthermore, risks exist concerning foreign investment restrictions, the ability to raise foreign capital, and potential issues with the enforcement of judgments from foreign courts. The market for the equity shares is also subject to significant volatility and may not develop as expected after the listing.

This section outlines various risks related to market perception, taxation, regulatory changes, and the process of listing and trading equity shares. Risks include potential negative public reaction to company communications, various tax implications on capital gains and dividends, and uncertainty regarding the impact of new laws and regulations on business operations. Furthermore, there are risks associated with the timeline and execution of the equity share listing and trading commencement, as well as potential dilution from future equity issuances. Finally, the requirements of being a publicly listed company impose significant burdens on resources, reporting, and internal controls.

The section confirms that as of the date of the Draft Red Herring Prospectus, there are no outstanding criminal proceedings, regulatory actions, or material civil litigation involving the Company, its subsidiaries, promoters, or directors. However, several pending matters were disclosed, including complaints filed by third parties against the Company, various tax litigation involving the Company, and a criminal conviction against a director. Specific details include pending claims for compensation related to an accident, complaints under the Negotiable Instruments Act, and tax disputes concerning input tax credit and GST payments.

The section details the status of various legal and regulatory matters concerning the company, its key personnel, and its operations. There is no outstanding criminal litigation involving Key Managerial Personnel and Senior Management, nor are there any outstanding actions by regulatory or statutory authorities against such personnel. Regarding tax matters, specific details on outstanding direct and indirect tax proceedings involving the company, promoters, and directors are provided, including the number and amount of cases. Furthermore, the text outlines various requirements for governmental approvals, licenses, and registrations necessary for the company's business operations, and lists material approvals that have been applied for but not yet received.

The section details various aspects related to the company's group companies, including trademark applications, group company identification criteria, and related party transactions. It clarifies that the Material Subsidiary has no registered or applied for intellectual property. Furthermore, it lists five group companies, and specifies that certain financial information related to these companies is hosted on the company's website. The text also outlines that the group companies have no interest in the promotion or formation of the company, nor in certain properties acquired or proposed to be acquired by the company. Finally, it asserts that there is no pending litigation involving the group companies that would materially impact the company, and no material transactions related to the utilization of offer proceeds with the group companies.

The section details various approvals and confirmations related to the offer process and regulatory compliance. The Board and Shareholders have authorized the Offer and Fresh Issue pursuant to resolutions dated July 8, 2026, and July 9, 2026, respectively. The Promoter Selling Shareholder has consented to the inclusion of offered shares in the Offer for Sale under Regulation 8 of the SEBI ICDR Regulations. The company has received in-principle listing approvals from BSE and NSE. Furthermore, the company and its associated parties have confirmed compliance with various regulations, including those related to fraudulent borrowers and the Companies (Significant Beneficial Owners) Rules, 2018.

The section primarily details restrictions on the offering and sale of Equity Shares, stipulating that they will not be registered or sold outside of India, relying on Regulation S for 'offshore transactions'. It also outlines requirements for bidders regarding investment limits and agreements not to sell the shares or related economic interests. The text mentions the submission of the Draft Red Herring Prospectus to BSE and NSE, and the subsequent inclusion of disclaimer clauses. Furthermore, it discusses the process for obtaining necessary permissions for listing and trading of the Equity Shares on the proposed stock exchanges.

This section primarily outlines the framework and legal provisions governing the Offer, including the various laws and regulations under which the Equity Shares will be issued and traded. It details the scope of the Offer, the sharing of expenses between the company and the Promoter Selling Shareholder, and the ranking of the newly issued Equity Shares relative to existing ones. Furthermore, it specifies the rules for dividend payments and the determination of the Offer Price, Price Band, and Floor Price based on market demand.

The section outlines various compliance requirements and rights for equity shareholders, including adherence to disclosure and accounting norms as specified by SEBI. It details the process for allotting equity shares in dematerialized form, including agreements with Depositories and the Registrar to the Offer. Furthermore, it specifies jurisdiction for the offer process and details the procedures for bid/offer programs, including timelines, bid submission windows, and provisions for compensation in case of delays in fund unblocking. It also discusses the conditions under which the company may be required to refund subscription amounts if minimum subscription levels are not met.

The section details various procedural and structural aspects of the offer, including conditions for allotment, restrictions on share transfer, and withdrawal mechanisms for the offer. It specifies that equity shares will be allotted only in dematerialized form pursuant to Section 29 of the Companies Act and trading must occur in dematerialized form as per SEBI ICDR Regulations. The offer can be withdrawn if 90% of the fresh issue is not subscribed, and there are provisions for the company to reserve rights to withdraw the offer after the bid/offer opening date but before allotment, requiring public notices. Furthermore, the offer is subject to the filing of the Prospectus with the RoC and obtaining final listing and trading approvals from Stock Exchanges.

This section details various allocation rules under the SEBI ICDR Regulations concerning different investor categories, including QIBs, Mutual Funds, Non-Institutional Bidders, and RIBs. It specifies proportional allocations for various portions of the offer, including provisions for joint bids and the handling of undersubscription across different categories. Furthermore, the text outlines strict requirements for bid submission, such as the need for valid bids at or above the offer price, and mandates the use of the ASBA process for most bidders. It also discusses the phased implementation of the UPI mechanism for payments and the requirements for investor grievance redressal.

This section details various procedural requirements and restrictions concerning the submission of bids, particularly differentiating between different bidder categories such as ASBA bidders, UPI bidders, QIBs, and FPIs. It outlines rules regarding the use of designated intermediaries, the handling of bid revisions, and the necessary authorization for investors, especially NRIs, to block funds in various bank accounts. Furthermore, it specifies rules for the participation of different investor types, including restrictions on promoter participation and rules concerning the holding limits for various investor categories under FEMA regulations.

The section details various restrictions and requirements concerning bids from different categories of investors, including FPIs, SEBI registered funds, limited liability partnerships, banking companies, and insurance companies. It outlines specific documentation that must be attached to bid forms, such as registration certificates, and sets investment limits based on applicable laws and regulations. Furthermore, it specifies rules for Anchor Investors, including minimum bid sizes and allocation procedures, and clarifies the handling of bids from various entities to prevent them from being treated as multiple bids.

This section outlines numerous procedural requirements and restrictions for bidders, particularly concerning the use of various payment mechanisms, documentation, and identity verification during the bidding process. It details rules regarding the use of specific bank accounts, UPI IDs, required signatures, and the submission of documents to Designated Intermediaries. Furthermore, it specifies conditions for handling bids by different investor categories, such as QIBs, and lists various technical grounds upon which bids may be rejected.

This section outlines various procedural requirements and undertakings related to the bidding and allotment process under the DRHP. It details rules concerning different bidder categories, timelines for bid uploads, handling of delays in fund unblocking, and procedures for finalizing the basis of allotment. Furthermore, it specifies conditions for the publication of pre-offer advertisements, the timing for uploading allotment advertisements, and the agreements concerning the filing of the prospectus with the Registrar of Companies (RoC). It also covers provisions related to impersonation and undertakings given by the company and the promoter selling shareholder regarding the shares offered.

The section discusses the regulations governing foreign investment in Indian securities, which are governed by the Industrial Policy, 1991, and FEMA. It clarifies that foreign investment can be permitted either through the automatic or approval route depending on the sector. The DPIIT issued a consolidated FDI Policy circular dated October 15, 2020, which supersedes previous clarifications. FDI in manufacturing sectors is permitted up to 100% of the paid-up share capital under the automatic route. The transfer of shares between an Indian resident and a non-resident does not require RBI approval under certain conditions, provided specific criteria regarding the investment route and sectoral limits are met. Furthermore, certain investments require prior government approval under specific FEMA Rules, and subsequent changes in beneficial ownership of foreign direct investment may also require such approval.

This section primarily outlines the definitions related to the Board, the Company, various legal terms, and the structure of the share capital. It details the powers of the Board and Directors concerning the issuance, allotment, and disposal of shares, including provisions related to payments, liens, and the recognition of interests in shares. Furthermore, the text covers procedures for handling share certificates, such as replacement for damaged ones, and the general compliance requirements for the Board regarding the issuance and execution of such certificates.

This section details various provisions related to the call on shares, forfeiture, and the transfer/transmission of shares. It outlines procedures for payment of calls, interest on unpaid amounts, and the Board's discretion in extending or revoking calls. Furthermore, it establishes strict procedures for the forfeiture of shares due to non-payment, including notice requirements and the subsequent rights of the former member. The section also covers the process for selling forfeited shares, the rights of the person who forfeited shares to pay outstanding dues, and the subsequent disposition of the forfeited shares.

This section primarily details the provisions related to the transmission and nomination of shares, including provisions for the refusal to register such transmissions without verification or indemnity from the Directors. It outlines procedures for shareholders to nominate individuals to inherit their shares, including provisions for joint holders and nominations concerning minors. Furthermore, the text covers the process for the nominee to elect whether to be registered as the holder or to transfer the share, and the rights of the nominee concerning dividends and membership rights. The section also discusses the handling of share transfers, the prohibition on charging fees for such transfers, and the Company's liability concerning transfers made by apparent legal owners. Finally, it covers the dematerialization of securities and the option for investors to hold securities in a depository form.

This section outlines various provisions related to the increase, reduction, and alteration of the company's share capital, including procedures for increasing capital, consolidating shares, converting shares into stock, and sub-dividing existing shares. It details the requirements for increasing subscribed capital through the issue of new shares, including notice periods and rights of renunciation. Furthermore, the text covers the power to reduce share capital and various conditions under which the company may borrow money, including restrictions on the aggregate amount borrowed and the need for shareholder consent for certain securities.

This section details various procedural aspects related to the company's governance and general meetings, including the issuance of securities, the registration of charges, and the conduct of shareholder meetings. It outlines rules for issuing securities, requirements for complying with laws concerning the registration of charges, and procedures for calling and conducting general meetings, such as annual and extraordinary meetings. Furthermore, the text specifies rules regarding the notice period for meetings, the handling of special business, and provisions for member participation through electronic modes.

This section details various procedural and governance rules concerning meetings, voting, and the composition of the Board of Directors. It outlines procedures for chairmanships, resolutions, the taking of polls, the maintenance and inspection of meeting minutes, and the rules for proxy voting. Furthermore, it specifies requirements for the number of directors, the appointment of alternate directors, independent directors, and women directors, as well as rules regarding director qualifications and remuneration.

This section details various provisions concerning the remuneration, appointment, disqualifications, and contractual dealings of the company's directors. It outlines rules for dividing remuneration among directors, allowing compensation for directors attending meetings, and specifying conditions under which directors can be appointed or removed. Furthermore, it establishes restrictions on directors' eligibility, such as insolvency, conviction for certain offenses, or failure to file financial statements, and governs the disclosure of interests in contracts with the company.

This section primarily outlines the rules regarding the retirement and re-appointment of Directors, including provisions for directors retiring by rotation. It details the process for determining which directors are liable for rotation, the requirement for a certain majority of directors to be subject to rotation, and the procedures for filling vacancies created by such retirements. Furthermore, the text covers the procedures for proposing and obtaining consent for individuals to be appointed as Directors, including notice requirements and the need for written consent for certain individuals to act as Directors.

This section outlines various powers vested in the Board of Directors of the Company, detailing their authority to act on behalf of the company. It covers powers related to corporate actions such as selling undertakings, borrowing money, issuing securities, and acquiring other companies. Furthermore, the text specifies the Board's authority to manage financial aspects, including making calls on shareholders, investing funds, and handling legal proceedings. It also details powers concerning property acquisition, insurance, and dealing with various financial instruments and transactions.

This section details various powers and duties related to the company's operations, including the ability to deal with redeemable preference shares and debentures, appoint and remove personnel, and comply with local laws. It outlines the Board's authority to establish Local Boards, delegate powers, and enter into contracts. Furthermore, it covers provisions regarding key managerial personnel appointments, the maintenance of statutory registers, the use and custody of the company seal, and the procedures for declaring and paying dividends, including provisions for unclaimed dividends.

This section details various provisions related to the capitalization of profits, the distribution of funds among members, and the accounting and inspection rights of members. It outlines procedures for resolving to capitalize profits for reserve accounts or profit and loss accounts, specifying how such sums should be applied, including paying up unpaid shares or allotting new shares. Furthermore, it covers the requirements for maintaining books of account, the inspection rights of members, and the process for furnishing financial statements at general meetings. The text also addresses the examination of accounts by auditors and the provisions concerning the winding up of the company and the distribution of assets among members.

This section details various material contracts and documents that have been entered into or are planned for entry by the Company, which are attached to the Draft Red Herring Prospectus filed with the RoC. It lists numerous agreements, resolutions, and reports related to the offer process, financial information, and various aspects of the company's operations and structure. The documents cover agreements with promoters, underwriters, various auditors, and regulatory filings.

The provided section consists entirely of declarations from various directors certifying compliance with various laws and regulations. These declarations affirm that all relevant provisions of the Companies Act, 2013, and guidelines/regulations issued by the Government of India and SEBI have been complied with. Furthermore, they certify that no statement in the Draft Red Herring Prospectus contradicts the provisions of the Companies Act, SCRA, SCRR, or SEBI Act, as amended. The declarations are signed by different directors, including the Chairman and Managing Director, Whole-time Directors, and Non-Executive Independent Directors.

The provided section consists entirely of declarations certifying compliance with various laws and regulations. The declarations confirm that all relevant provisions of the Companies Act, 2013, and guidelines issued by the Government of India and SEBI have been complied with. Furthermore, the statements and disclosures made in the Draft Red Herring Prospectus are certified as true and correct. There are separate declarations from a Non-Executive Independent Director, a Chief Financial Officer, and a Promoter Selling Shareholder, confirming the accuracy of their respective statements regarding the offering.

This section summarizes related party transactions entered into by the Company with related parties over the preceding three fiscal years, as required by Ind AS 24 and SEBI ICDR Regulations. The disclosed transactions involve various forms of dealings, including director remuneration, loans, lease expenses, and payments related to investments and security. Key related parties include key management personnel, directors, and entities controlled by key management personnel. The data is presented across fiscal years 2026, 2025, and 2024, detailing the amounts in ₹ million and their corresponding percentage of revenue.

This section primarily details the corporate and board information of the company, including the registered and corporate office addresses, the details of the Board of Directors, and the contact information for the Company Secretary and Compliance Officer. It also outlines the filing procedures for the Draft Red Herring Prospectus and various investor grievance procedures. Furthermore, the section lists the Book Running Lead Managers, Syndicate Members, and various financial intermediaries such as the Registrar to the Offer, Banker(s) to the Offer, and Joint Statutory Auditors, along with details regarding changes in the statutory auditors.

This section details various professional and financial relationships disclosed in the Draft Red Herring Prospectus, including appointments for auditing, bankers, and various experts. It lists several entities, such as Chartered Accountants, banks, and company secretaries, who have been appointed or provided consent for their names to be included as 'experts' under relevant sections of the Companies Act. Furthermore, it outlines procedures related to the Book Building Process, including the role of various bidders, the use of different mechanisms like UPI, and the process for entering into an Underwriting Agreement.

The company's Board of Directors comprises six members: one Chairman and Managing Director, two Whole-time Directors, and three Non-Executive Independent Directors, including two women Independent Directors. The Board structure is detailed in a table listing the names, DINs, designations, and other relevant details for each director. Sumit Jindal is the Chairman and Managing Director, responsible for core functions like finance, operations, and strategic management. The company has established various terms and conditions for the appointment and remuneration of the various directors.

The management section details various aspects related to director remuneration, interest disclosures, and conflict of interest provisions. It specifies that certain directors have waived compensation rights under an employment agreement with a Material Subsidiary, and clarifies that no directors have received remuneration from Subsidiaries in Fiscal 2026. Furthermore, it outlines various deemed interests of directors concerning sitting fees, expenses, and equity shares, and details the scope of interest in transactions with related parties. The section also covers provisions regarding the Board's composition, the establishment of various Board-level committees, and the responsibilities of the Audit Committee.

The document outlines various committees established by the Board, including the Audit Committee, Nomination and Remuneration Committee, Stakeholders’ Relationship Committee, Corporate Social Responsibility Committee, and the IPO Committee. These committees have specific powers and terms of reference mandated by the Companies Act, 2013, and SEBI Listing Regulations. The Audit Committee has powers to investigate activities, seek information, and obtain professional advice. The Nomination and Remuneration Committee is tasked with formulating policies related to director qualifications, remuneration, and performance evaluation. The Stakeholders’ Relationship Committee focuses on resolving grievances related to shareholder interests and securities transactions. The Corporate Social Responsibility Committee is responsible for formulating and monitoring the company's CSR policy and annual action plans. The IPO Committee was constituted for a specific purpose related to an IPO.

This section details the organization chart and profiles of the Key Managerial Personnel (KMP) and Senior Management of the company. It lists specific roles, qualifications, tenure, responsibilities, and compensation details for various personnel. The section also covers aspects related to retirement benefits, relationships, arrangements with third parties, and changes in personnel over the preceding three years.

The company's promoters are Sumit Jindal and Ayushi Jindal, with their combined shareholding amounting to 78.03% of the pre-offer equity. Sumit Jindal is identified as the Chairman and Managing Director of the company. The document details various aspects concerning the promoters' interests, including guarantees, payments, and relationships with other entities. Furthermore, the document outlines a comprehensive list of individuals and entities that form part of the Promoter Group under SEBI ICDR Regulations.

The company's dividend distribution policy was approved by the Board on May 14, 2026, and any future dividend declaration will be recommended by the Board and approved by shareholders at their discretion, subject to various legal provisions. The decision to declare dividends will depend on a number of factors, including internal financial parameters like profits, retained earnings, and expansion plans, as well as external factors such as industry dividend pay-out ratios, macroeconomic changes, and changes in tax policies. Furthermore, the ability to pay dividends is contingent upon financial conditions, working capital requirements, capital expenditures, and restrictive covenants from financing agreements. The company has not declared or paid any dividends on equity shares in the three fiscal years preceding the DRHP date and the period from April 1, 2026, up to the DRHP date.