Anjali Labtech Limited

This section primarily focuses on macroeconomic outlooks, global inflation trends, private final consumption expenditure (PFCE), demographic shifts, and the evolving geopolitical landscape affecting trade. It details projections for GDP growth across various economies, expected inflation moderation, and the impact of trade tensions on Indian exports, particularly in the gem and jewellery sector. Furthermore, it discusses the impact of trade agreements and military operations on shipping routes and tariffs.

This section provides various macroeconomic and demographic data for India, including its economic growth projections, inflation trends, central bank interest rates, and consumer spending patterns. It details India's position as a fast-growing major economy, the impact of various economic factors on GDP, and trends in inflation and interest rates over time. Furthermore, it discusses the consumer economy, noting the growing demand for high-end products and the demographic advantage of a young working population.

The text provides various demographic and economic trends in India, including projections for urban population growth and the consistent increase in per capita Gross National Disposable Income (GNDI). It also discusses shifts in the workforce, noting increased female participation and its impact on consumer spending. Furthermore, the section covers changes in household structures, such as declining average household size, and the growth of affluent income groups. Finally, it details the market dynamics of lab-grown diamonds, including production growth, India's emerging role in production, and fluctuations in retail pricing and global trade volumes.

The global trade of lab-grown diamonds has shown a decline, with rough exports witnessing a decrease due to oversupply and pricing corrections, although the share of polished diamonds increased. In India, the market for rough lab-grown diamonds is experiencing significant growth, with production projected to increase substantially by 2030. India's exports of lab-grown diamonds have shown steady volume increases, with polished diamonds leading the export mix, and key hubs like Surat, Mumbai, and Jaipur are driving the industry's development. Furthermore, various regions are emerging as important hubs, such as Odisha, due to government approvals for manufacturing projects.

The text details the evolving policy landscape surrounding lab-grown diamonds (LGDs) in India, including government initiatives, customs duty rationalization, and consumer protection measures. It also discusses the competitive advantages of India in the LGD sector, such as established infrastructure, skilled workforce, and cost-efficient manufacturing. Furthermore, the text covers the development of lab-grown diamond substrates for semiconductors, highlighting their superior properties for high-power and high-frequency applications in various industries.

The text discusses various advancements in diamond technology, including the development of single-crystal diamond devices, collaborations in quantum networking, and the landscape of the lab-grown diamond market. It details challenges in the lab-grown diamond substrate market, such as high production costs, scalability constraints, and quality control issues compared to traditional semiconductors. Furthermore, it outlines India's significant position in the global diamond industry, particularly in cutting and polishing, and its potential role in the lab-grown diamond segment.

The text details the evolution of diamond synthesis technologies, starting with the development of Microwave Plasma Chemical Vapor Deposition (MPCVD) in Japan by NIRIM for polycrystalline diamond films. It outlines various technological refinements, including the use of High Pressure High Temperature (HPHT) for post-treatment to enhance color and clarity, and subsequent improvements in plasma stabilization leading to better single-crystal diamonds. The market saw an entry into the commercial jewellery market with high-quality CVD diamonds, though early production faced challenges with nitrogen contamination. India emerged as a hub for developing modular, scalable MPCVD machines, and research efforts diversified into applications beyond jewellery into electronics and semiconductors. The market landscape shows China leading in HPHT machine production, while India is noted as a leading hub for LGD production.

The Indian MPCVD machine manufacturing industry is experiencing rapid growth, with the number of operational machines projected to increase significantly. This growth is fueled by rising global acceptance of lab-grown diamonds and their increasing use in various industrial applications. The market is currently dominated by 6kW machines, which account for about 90% of the installed base, although 10kW machines offer higher productivity. Manufacturing these machines requires specialized expertise in plasma physics and precision engineering, which presents technical and financial barriers to market entry. India is emerging as a leading hub for lab-grown diamond production, and key players are playing a vital role in meeting global demand.

The text discusses India's strategic advantage in the gem-focused MPCVD machinery market by innovating for gem-grade diamond production, which offers a niche opportunity. It highlights the growing demand for Lab-Grown Diamonds (LGDs) in India due to rising purchasing power and the shift towards value-driven alternatives to natural diamonds. Furthermore, established natural diamond players are diversifying into the LGD segment, which is expected to boost investment in LGD manufacturing in India. India's position in the lab-grown diamond value chain is emphasized as a unique advantage, allowing companies to cover the entire process from production to finishing.

The lab-grown diamond jewellery industry features several operating models, including End to End Jewellery Manufacturers/Solution Providers, Retail-Only Brands, and Vertically Integrated Players, which differ in how they manage the value chain. Growth drivers for lab-grown diamonds include their pricing advantage over mined diamonds, which expands access to higher-quality stones, and rising demand in emerging markets like India and China. Furthermore, there is a growing preference for ethical and sustainable diamonds, and increasing acceptance in the wedding segment. The market is also being shaped by social media endorsements and the acceptance of lab-grown diamonds in bridal wear.

The Indian diamond jewellery market is projected to expand significantly, with lab-grown diamonds expected to capture a growing share. The market is anticipated to grow at a CAGR of 16% under normal conditions, with potential acceleration to 19% or 24% depending on market factors. Key trends include a shift in consumer preferences towards affordable, value-driven, and ethically sourced alternatives, alongside increased consumer awareness of lab-grown diamonds. Several key players and various regulatory frameworks are shaping the industry, including specific labelling requirements and favourable tax structures.

The provided text details various entities involved in the lab-grown diamond sector, including SP3 Technologies, Maitri Diamonds, and Asian Lab Grown Diamonds. It outlines different product offerings, such as CVD machines and various forms of LGDs and jewellery, and notes the lack of retail presence for several players. The text also provides comparative data on product portfolios, value chain presence, revenue breakdowns, certifications, and profitability metrics across these companies.

This section provides various financial metrics for several Indian companies, including Profit Before Tax (PBT) margins, Profit After Tax (PAT) margins, Return on Equity (ROE), Return on Capital Employed (ROCE), Debt to Equity ratios, and Net Working Capital days. The data is presented in tables comparing these metrics across different companies, with specific notes regarding data sources and the definition of financial terms. The analysis includes comparisons against competitors and highlights performance indicators such as profitability, leverage, and operational efficiency.

The company is the first and leading vertically integrated player in the lab-grown diamond (LGD) industry, covering the entire value chain. Its operations include designing, manufacturing, and supplying microwave plasma chemical vapour deposition (MPCVD) machines for third parties, in-house growing of rough LGDs, processing into polished LGDs, and manufacturing/selling LGD studded jewellery. The company holds significant market position, being one of the leading global manufacturers of MPCVD machines and the largest manufacturer in India for this machinery. The business model leverages vertical integration to control costs and ensure consistent quality across various market segments.

The company positions itself as the first and leading vertically integrated player in the LGD industry across the entire value chain in India. This integration covers the design, manufacturing, and sale of MPCVD Machines, the processing of Rough LGDs, the sale of Polished LGDs, and the crafting and sale of LGD Studded Jewellery. The LGD segment is expected to grow significantly, with its share expanding from about 22% to 34% in the Indian diamond jewellery market by Fiscal 2030. The company benefits from a vertically integrated model that ensures product precision, consistency, and cost efficiencies by managing production in-house and utilizing advanced robotics.

The company enhances its international visibility and export sales through engagement with five B2B platforms, demonstrating a balanced contribution from domestic and international operations. The business model involves fulfilling external orders for MPCVD Machines while strategically prioritizing their in-house use for growing Rough LGDs, which are then either sold or used internally for crafting jewellery collections. The company expanded into the retail market in Fiscal 2024, aiming to understand evolving end-customer preferences for ethical and sustainable jewellery. Furthermore, the company supplies LGD Studded Jewellery to several established jewellery businesses, broadening its customer reach across the LGD value chain. The company has robust R&D capabilities focused on innovations such as Diamond Wafer development, green hydrogen generation, and various techniques for seed re-use and in-house component manufacturing.

The company plans to expand its business by targeting new customer segments and product categories beyond traditional LGD applications. This expansion involves increasing industry exhibition presence, expanding the sales team to reach more retailers, and developing e-commerce channels. The company is also exploring new uses for its products, such as Diamond Wafers, which serve as base materials for growing single-crystal diamonds for various industrial and technological fields. Furthermore, they have started manufacturing and supplying MPCVD Machine parts to diversify their revenue beyond the LGD ecosystem. The company focuses on increasing brand visibility through industry exhibitions and digital marketing, and is also strengthening its brand in the B2C segment through brand ambassadors and social media influencers.

The provided text details various manufacturing processes for diamond and LGD (Lab-Grown Diamonds) products, including steps for diamond cutting and polishing, and methods for colour enhancement using the HPHT process. It also outlines the research and development efforts aimed at optimizing LGD materials for industrial applications. Furthermore, the text lists seven manufacturing facilities located in Surat, Gujarat, India, detailing the leased premises, purpose, products manufactured, lease periods, and rental terms.

This section details various aspects of the company's operations, including production capacity utilization across different product segments, sourcing strategies for raw materials, and export sales performance. The text outlines how different products are manufactured, sold, and how revenue is recognized. It also describes the sales channels used for different product lines, such as B2B platforms and direct sales, and the digital infrastructure supporting their operations.

The company details its operational framework, emphasizing robust back-end processes, including cloud-based order management, third-party software integration, and rigorous quality assurance checks across the entire production chain. Quality control involves multi-stage inspections and testing for LGDs and LGD Studded Jewellery, with products submitted to various independent certification agencies. The company utilizes advanced inventory management solutions, including proprietary and third-party software, to control assets, and employs specialized ERP platforms for tracking production and sales. Furthermore, the company focuses on security through restricted access and surveillance, and its ESG commitment includes investing in renewable energy projects to support sustainability goals.

The provided text primarily details aspects related to trademark formalities, competition landscape, insurance coverage, employee structure, and physical locations of the company. It mentions various trademark applications and status checks for different entities, including the company itself and others. Furthermore, it describes the competitive environment within the LGD industry, categorizing peers based on their integration level. The section also outlines the company's insurance policies, CSR commitments, employee workforce breakdown, and the location of its registered office, manufacturing units, sales offices, and investment land.

The issuer is engaged in the business of manufacturing lab-grown diamonds and selling polished diamonds, diamond jewellery, and machinery used for diamond growth. This business is subject to various central and state legislations, requiring regular licenses and registrations from concerned authorities. The text details several lease agreements for various types of land, including agricultural and non-agricultural land, for solar projects, and also mentions a residential lease agreement.

This section details a broad overview of various Indian laws and regulations that apply to the company's operations, including anti-money laundering and counter-terrorism financing guidelines. It outlines several key legislation across different domains such as environmental protection, water pollution control, air pollution control, hazardous waste management, intellectual property protection, and various tax laws. Furthermore, it covers regulations concerning employment, foreign trade, foreign investment, and general business operations.

This section details the extensive legal framework governing the company's operations, primarily focusing on compliance with various US federal and state laws. It covers corporate governance structures, regulations concerning the importation of goods, federal and state taxation rules, employment and labor standards, trade compliance against financial crime, consumer protection in marketing, and insurance requirements. Furthermore, it outlines rules for protecting intellectual property rights within the US.

The company's history began with its incorporation as 'Anjali Diamonds Private Limited' in Gujarat, followed by several name and conversion changes over time. Key corporate milestones include various resolutions and certificate issuances between 2021 and 2025, culminating in the company's conversion to a public limited company and subsequent name changes. The company's Memorandum of Association has undergone numerous amendments, including changes to business activities and share capital authorization. Significant operational milestones involve commencing production and sales of various diamond-related products, receiving industry accreditations, and developing technology, such as gemstone polishing robots. The company has also entered into perpetual patent licensing agreements for the use of gemstone polishing robots.

The company confirms that there are no material agreements or covenants with third parties that would impact investment decisions, and no such agreements exist pertaining to the primary or secondary transactions of the company's securities. Furthermore, there are no agreements entered into by various parties related to the management or control of the company, except as part of the normal course of business. The company currently has two subsidiaries, Anjali Diamond Inc. and Geer Jewellery Private Limited, and no associates or joint ventures. Details regarding these subsidiaries, including their incorporation and shareholding structures, are provided.

This section defines various terms and abbreviations used in the Updated Draft Red Herring Prospectus-I. It specifies that certain terms will have meanings ascribed under various laws and regulations, and that definitions in this prospectus prevail over those in the General Information Document in case of inconsistency. Key entities like the Issuer, 'Anjali Labtech Limited', are defined, along with various roles such as Directors, Key Managerial Personnel (KMP), and various committees. It also details terms related to the offer process, including different types of bidders, bid amounts, and the process for allotment.

This section defines various terms related to the public offering process, including different types of bidders, various accounts, and the structure of the issue. It specifies terms like Collecting Depository Participants, Designated Date, and Designated Intermediaries, detailing who is authorized to collect bid forms. It also outlines different portions of the offer, such as the Fresh Issue, the Offer for Sale by Promoter Group Selling Shareholders, and the conditions for allocation to different bidder categories like Retail Individual Bidders.

This section defines several key terms used in the prospectus, including concepts related to the offering process and regulatory bodies. It defines terms such as 'Specified Locations' for bidding centres, 'Sponsor Banks' who act as conduits for payment instructions, and various agreements like the 'Syndicate Agreement'. It also outlines definitions for various bidders, including 'UPI Bidders', and the mechanism for such bids, such as the 'UPI Mechanism'.

This section primarily defines various terms, conventions, and the sources of financial and industry data used in the Draft Red Herring Prospectus-I. It specifies that certain references pertain to the Republic of India and its territories, and the United States and its territories. Financial data is prepared according to various accounting standards, including Previous GAAP and Indian Accounting Standards (Ind AS), with a transition date specified. The document details the sources for industry and market data, including a commissioned report from Wazir Advisors Private Limited.

The company has a limited operating history, having been incorporated in Fiscal 2022, and its historical performance should not be used to predict future results. Revenue from operations is primarily derived from the sale of MPCVD machines, polished lab-grown diamonds, and LGD studded jewellery, with no significant non-recurring transactions contributing to revenue. The company's operational success relies on the expertise of its Promoters. There is a risk that reduced demand for MPCVD machines or loss of business from top customers could negatively impact the business and cash flows. Furthermore, the company is dependent on external sales of MPCVD machines and cannot guarantee future demand or the ability to secure spot orders.

This section details various aspects of the company's operations, including revenue breakdowns, market exposure, and risks associated with the industry. It presents tables showing revenue from repeat and new customers, the split between domestic and export sales, and the revenue generated from different geographic markets. Furthermore, it discusses risks related to trade measures, the dependence on consumer perception for lab-grown diamonds, and the potential impact of seasonal demand fluctuations on sales and inventory management. The section also covers the status of the company's credit ratings and the factors that may influence the market price of the equity shares.

The company operates in the LGD sector, where direct comparison with other listed players may be misleading due to differences in business models and integration levels. A significant portion of the company's revenue comes from the Polished LGDs segment, which faced challenges in Fiscal 2026, including a decline in sales volumes, a shift in product mix, and pressure on the average per-carat realization. The company is dependent on key customers for a substantial part of its revenue across various segments, and there is a risk associated with disruptions from its limited group of suppliers for raw materials. Furthermore, all operational manufacturing facilities are located in Surat, Gujarat, and are subject to various operational risks.

The text discusses various agreements, including Patent Agreements, which grant rights over critical technologies for licensing fees. It details plans for increasing manufacturing capacity for growing Rough LGDs, including the installation of additional MPCVD Machines at a facility in Surat, Gujarat, which involves funding from net proceeds. The text also outlines risks related to component procurement, such as cost escalation, supply chain disruptions, and dependency on international suppliers. Furthermore, it covers risks associated with counterparty credit and the potential for delays in receiving payments from customers.

The text details several aspects related to the company's operations, including land leases, working capital facilities, revenue from LGD Studded Jewellery, outstanding legal proceedings, and statutory dues payments. It mentions that land parcels are owned by Promoter Group members and leased to the company for a specified period. Furthermore, it discusses risks associated with lease renewals and potential regulatory scrutiny. The text also outlines various financial covenants related to working capital limits and the dependency of business prospects on brand strength and market factors.

The provided text details various financial and operational aspects, including statutory dues, cost structures, capital requirements, and dependencies. It highlights that power and fuel costs are a significant component of expenses, especially with the in-house growing of Rough LGDs. The company is expanding its solar power project but still relies on existing power arrangements. Furthermore, the business faces risks related to capital requirements, the inexperience in e-commerce operations, and potential issues with legal metrology compliance. The company also depends heavily on key managerial personnel and imports crucial raw materials and machinery from various foreign jurisdictions.

The text discusses various risks related to the company's operations, including supply chain dependencies, international business expansion, intellectual property protection, indebtedness, and regulatory approvals. It highlights that the cost of imported raw materials has reduced, but reliance on imports for certain machinery components remains. Furthermore, international operations face risks from political, currency, and trade tensions, and the company must navigate various regulatory hurdles for operating in different jurisdictions. The text also covers risks associated with intellectual property infringement and the potential for difficulties in securing necessary licenses and permits.

This section details various operational and financial risks faced by the company, including inventory management, exchange rate fluctuations, related party transactions, and insurance coverage. The company notes that inventory turnover ratios are monitored, and that exchange rate volatility can impact operations. Furthermore, the company expresses concerns regarding the effectiveness of hedging against currency risks and the potential for adverse effects from related party transactions. Risks also exist concerning the utilization of funds raised in the offer and potential issues with theft, production loss, and cybersecurity breaches.

This section discusses various risks related to the company's operations, including the reliance on third-party certifications, the potential impact of fraudulent certifications, and the risks associated with internet advertising and data privacy compliance. It details dependencies on third parties for certifying products and the potential for negative publicity to harm business prospects. Furthermore, the text covers risks related to internal control systems, technology failures, and the potential for non-compliance with laws concerning data protection and IT regulations. It also outlines industry-specific risks within the lab-grown diamond sector, such as adverse tariff policies, geopolitical volatility, and global oversupply.

The text discusses various aspects related to the company's manufacturing capacities, potential risks, and the nature of the offering. It details how installed capacity is calculated for different product lines, notes that actual production may deviate from estimates due to numerous operational and external factors. Furthermore, it covers issues concerning promoter shareholding, the potential for future dividend payments, and the impact of employee benefit expenses on profitability. The text also addresses the nature of the offer, including the treatment of proceeds from an Offer for Sale.

The section details the disparity between the price paid by Promoters and Promoter Group Selling Shareholders and the offer price to be paid by investors. It notes that the acquisition cost for these shareholders is nil, which results in significant returns for them if they sell their shares in the offer. Furthermore, investors in the offer may experience immediate dilution because the offer price will exceed the per-share book value and the notional price paid by the promoters. The text also warns that the trading price of the equity shares might decline post-listing, and the differential in acquisition cost could negatively affect market perception and demand for the shares.

The determination of the Price Band and Offer Price for the Equity Shares will be done by the Company in consultation with the BRLMs through a Book Building Process. There is no assurance that the market price will remain above the Offer Price after the issue, and investors may face losses upon resale. Various factors, including market trends and financial performance, can affect the market price, and there is no guarantee that key performance indicators will surpass industry peers. Furthermore, the trading of the Equity Shares will be subject to surveillance measures by Stock Exchanges, which could impose restrictions on trading, potentially affecting the market price and liquidity.

The provided text discusses various aspects related to the issuance of securities, including pre-emptive rights, takeover regulations, and the structure of the offer. It details conditions under which investors might be prevented from exercising pre-emptive rights, the implications of anti-takeover provisions on future takeovers, and the minimum subscription requirements for the fresh issue. Furthermore, the text outlines the structure of the offer, including different portions like QIB, Non-Institutional, and Retail, and the process for allocating shares to various bidders.

The provided text contains financial statements and related party transaction summaries for the company. The financial statements show trends in income, expenses, and profit over three fiscal years, along with cash flow details. Furthermore, a summary of related party transactions involving various entities and individuals is provided, detailing the nature and percentage of transactions relative to revenue from operations.

This section details various contact information for investor grievances, the parties involved in the offer process, and the entities providing expert opinions for the Draft Red Herring Prospectus. It outlines procedures for addressing grievances related to the offer, including distinctions between general investors and anchor investors. Furthermore, it specifies the roles and responsibilities allocated among the Book Running Lead Managers for different aspects of the filing and compliance.

This section details the various responsibilities for different aspects of the offer process, including the appointment of various intermediaries like Registrar, Banker(s) to the Offer, and Sponsor Bank, along with coordination requirements. It outlines different marketing strategies for the offer, covering international, domestic institutional, and retail/non-institutional segments. Furthermore, it specifies coordination with Stock Exchanges for book-building software and the process for post-offer activities, such as managing escrow accounts and handling various follow-up steps with involved agencies.

The section details the history of the company's equity share capital, including various allotments and transfers. The share structure underwent a subdivision from face value of ₹10 to ₹5 per share following board and shareholder resolutions. The text also covers details on the shareholding of promoters and the build-up of promoter group shareholding over time. Furthermore, it confirms that no equity shares held by promoters or the promoter group are currently pledged or encumbered.

The section details various equity share transfers and gifts between promoters and members of the promoter group, including transactions occurring around June 10, 2025, and June 30, 2025. Several transactions involved gifts of equity shares, with face values ranging from ₹ 10 to ₹ 5. The data includes details on the number of shares, face value per share, and the percentage of pre-Offer and post-Offer equity share capital. Furthermore, the document outlines provisions regarding secondary transactions and the shareholding of directors and key managerial personnel.

The section details various transactions involving the transfer of equity shares, including acquisitions by gift from Madhubhai Samajubhai Raddiya. It also outlines provisions regarding the lock-in of promoter contributions and the holding of equity shares. The text specifies that as of the Updated Draft Red Herring Prospectus-I, promoters hold 6,51,75,000 equity shares, which equates to 43.45% of the issued, subscribed, and paid-up equity share capital on a fully diluted basis. Furthermore, it details various lock-in periods and conditions related to the transfer and pledge of equity shares.

This section details the major shareholders of the company, providing breakdowns of equity shareholdings as of different points in time relative to the filing of the Updated Draft Red Herring Prospectus-I. It lists shareholders holding 1% or more of the paid-up Equity Share capital, categorized based on their holdings ten days prior, one year prior, and two years prior to the filing date. The section also outlines various restrictions regarding future equity share issuances and transactions by promoters and directors.

The company proposes to utilize the net proceeds from the fresh issue for various purposes, including funding capital expenditure for manufacturing and installing MPCVD Machines for in-house growing of Rough LGDs. The funds are also allocated for capital expenditure on constructing and developing Anjali Corporate House in Surat, Gujarat, and for the prepayment or repayment of some outstanding borrowings. Furthermore, the proposal discusses the possibility of a Pre-IPO Placement, which could involve raising securities prior to the final offer, up to 20% of the fresh issue size.

The section details various estimated costs for procuring components for different systems, including Exhaust, Gas Delivery, Heating, and Vacuum systems, with total estimated costs provided. It clarifies that the calculation excludes GST component for input tax credit claims and includes excise and customs duties. Furthermore, the text outlines the plan to utilize a portion of the net proceeds for capital expenditure related to the construction and development of the Anjali Corporate House. This includes funding for civil construction, finishing work, and various consultancy services for the project.

The company confirms that no portion of the gross proceeds will be used for lease rental payments to the Promoter Group members, with such payments to be covered by internal accruals. The company intends to use an estimated amount up to ₹75.00 Crore from the net proceeds for the prepayment or repayment of term loans. The selection of borrowings for prepayment is based on various commercial factors, including the cost of borrowing, terms attached, and prepayment penalties. The net proceeds will first be deployed for the specified objects, with any remaining balance potentially used for general corporate purposes up to 25% of the gross proceeds.

This section details the various expenses associated with the Offer, which are broken down into different categories. It outlines numerous fees payable to various parties, including book running lead managers, various selling commissions, processing fees, and other regulatory expenses. The text also discusses conditions related to the utilization of the offer proceeds, including provisions for bridge financing and monitoring of fund utilization by a credit rating agency.

The provided text details aspects of the company's operations, including its integrated manufacturing infrastructure and the expertise of its promoters and senior management team. It also presents various quantitative factors, such as earnings per share, P/E ratios, Return on Net Worth, and Net Asset Value, which are used to compute the Offer Price. Furthermore, the document includes a comparison of key performance indicators (KPIs) against an industry peer.

This section primarily contains financial performance indicators for Anjali LabTech Goldiam International across fiscal years 2026, 2025, and 2024, including metrics like profit margins, return on equity, and debt-to-equity ratios. It also includes detailed notes explaining the calculation methodologies for various financial metrics, such as revenue growth, EBITDA, and net working capital days. Furthermore, the text covers aspects related to the offer and sale of equity shares, including disclosures regarding primary and secondary transactions and the determination of price bands.

This section details the special tax benefits available to the Company and its shareholders under various Indian tax laws, including both direct and indirect taxes. It outlines specific provisions under the Income-tax Act, 2025, concerning corporate tax rates, deductions, and tax credits. Furthermore, it covers benefits under the Central Goods and Services Tax Act, 2017, such as zero-rated supplies and the Export Promotion Capital Goods (EPCG) scheme. The annexure clarifies that certain benefits depend on the fulfillment of prescribed conditions and that investors should consult their own tax advisors.

This section primarily deals with the statement of special tax benefits available to Anjali Diamond Inc. under the tax laws of the United States of America. It outlines various deductions, depreciation benefits, inventory accounting methods, sales and use tax implications, and considerations related to tariffs and import-related trade between India and the US. The document emphasizes that the availability of these benefits is subject to compliance with detailed rules from various tax authorities and that changes in tax laws may affect these benefits.

This section introduces the source of industry information, which is the "Indian Lab Grown Diamond Industry" report prepared by Wazir Advisors Private Limited. The company states that this report was commissioned and paid for by the company for an agreed fee in connection with the Offer. It clarifies that all financial, operational, industry, and other related information derived from this report refers to the relevant calendar year, and it advises prospective investors not to unduly rely on the report.

This section details the examination and reliance placed on the Restated Consolidated Financial Information by the independent auditor. The auditor examined financial statements for the years ended March 31, 2026, 2025, and 2024, and confirmed that the financial information was prepared in accordance with various legal and regulatory requirements. The auditor noted certain limitations regarding the maintenance of electronic records and the audit trail functionality in some accounting software used by the Group.

This section details the audit opinions and reliance placed on financial statements for the company, including both consolidated and component financials. The audit of the 2024 Special Purpose Consolidated Financial Statements was conducted by the Previous Auditor, and reliance was placed on their examination report. Furthermore, the audit of financial statements for a foreign subsidiary (Component) was conducted by the Component Auditor, and reliance was placed on their examination report. The reports confirm that the financial information was prepared with necessary adjustments and in accordance with applicable regulations.

This section details the Restated Consolidated Statement of Cash Flows for the years ended March 31, 2026, March 31, 2025, and March 31, 2024, covering operating, investing, and financing activities. Key cash flow figures include profit before tax, operating profit, net cash flows from operating activities, and cash generated from operations. The section also provides details on borrowings, including long-term, current, and lease liabilities, and information on the changes in equity, including reserves, retained earnings, and other comprehensive income.

This section details various accounting policies related to the restated consolidated financial information, covering aspects such as the useful lives for property, plant, and equipment, intangible assets, revenue recognition, taxes, and financial instruments. It outlines specific methods for depreciation, impairment testing, and the treatment of various financial instruments, including trade receivables and financial liabilities.

This section details various accounting policies, critical accounting judgments, and reconciliations related to the financial statements. It covers aspects such as fair value measurement, employee benefits like gratuity, segment reporting, and various accounting standard amendments. The text also includes reconciliations between Indian GAAP and Ind AS, detailing adjustments made for first-time adoption and the impact of various accounting changes on profit/loss and cash flow statements.

This section details various adjustments made to the consolidated financial information, primarily concerning the adoption of Ind AS standards and changes in accounting policies. Key adjustments include fair valuation of security deposits, lease accounting changes, impairment allowances for credit losses, and various reclassifications of assets and liabilities. The text also covers impacts from changes in depreciation methods, asset reclassifications, and the recognition of various income and expense items. Furthermore, it outlines adjustments related to government grants, provisions for doubtful debts, and the treatment of certain transactions and costs.

This section details various financial and investment line items for Anjali Labtech Limited, including investment properties, loans, financial assets, inventories, cash, and cash equivalents. It provides historical data for several periods, showing fluctuations in these balances. The text also includes details on share capital structure, including authorized, issued, and paid-up shares, along with information on various shareholders and promoter holdings.

This section provides detailed financial data for Anjali Labtech Limited across three fiscal years, covering non-current and current borrowings, trade payables, other financial liabilities, revenue, and income/expense items. The data spans from March 31, 2024, to March 31, 2026, detailing trends in liabilities, sales, inventory movements, and various financial costs and revenues.

This section details various financial line items, including expenses, taxes, and components of the balance sheet, across three fiscal years ending March 31, 2024, 2025, and 2026. It also provides information on earnings per share, employee benefits, deferred tax balances, lease liabilities, and related party transactions. The data covers operational costs, tax provisions, and the structure of assets and liabilities.

This section provides a summary of the financial information for Anjali Labtech Limited across three fiscal years ending March 31, 2024, 2025, and 2026, detailing revenue, expenses, segment profit, and assets/liabilities. It also includes reconciliations for profit, assets, and liabilities, as well as information on geographic sales, fair values of financial instruments, and corporate social responsibility spending.

This section details the financial structure of Anjali Labtech Limited, presenting various figures for borrowings, liabilities, equity, and resulting gearing ratios across different reporting periods. It also covers compliance checks regarding various corporate regulations, including restrictions on company layers and schemes of arrangement. Furthermore, the text discusses accounting for government grants, export obligations related to the EPCG scheme, and the maintenance of audit trails in the accounting software. It concludes with details on the reconciliation of quarterly returns and the status of statutory dues.

This section provides details regarding the statement of adjustments to audited financial information, statutory dues, and capitalization details for Anjali Labtech Limited. It includes information on the maintenance of records for various assets and liabilities, the incurrence of cash losses, and the calculation of several key financial ratios. Furthermore, it details the structure of borrowings, including various facilities and outstanding amounts as of June 30, 2026.

The section discusses various legal aspects related to borrowings, including penalties and restrictive covenants, which detail conditions for default such as non-payment of interest or breach of loan terms. It also outlines the consequences of such events, which may include cancellation of commitments or conversion of dues into equity. Furthermore, the text provides context on the financial statements, noting that all financial information is derived from the Restated Consolidated Financial Information, and clarifies that the company's financial year ends on March 31st. The company's business has expanded significantly, particularly in Fiscal Years 2026, 2025, and 2024, driven by strategic entry into new verticals and increased revenue streams.

The company showed material progress in export sales between Fiscal 2024 and Fiscal 2025, evidenced by an increase in the number of countries served and a higher percentage of revenue derived from operations. Export revenue as a share of revenue from operations moderated in Fiscal 2026. Financially, the company demonstrated strong growth in revenue and profit, with EBITDA and profit after tax increasing significantly between fiscal years. Various accounting policies regarding property, intangible assets, foreign currency transactions, and revenue recognition were detailed.

This section details various accounting treatments for different financial statement components, including leases, inventories, impairment of non-financial assets, provisions, contingent liabilities, cash, borrowing costs, and financial instruments. It outlines specific recognition criteria for lease assets and liabilities, inventory valuation methods, impairment testing procedures, and the recognition of provisions based on present obligations. Furthermore, it describes the classification and subsequent measurement of financial assets and liabilities according to various accounting standards, including amortized cost, fair value through other comprehensive income, and fair value through profit or loss.

This section details the accounting policies regarding financial liabilities, fair value measurement, employee benefits, and various non-GAAP measures. It outlines how financial liabilities are classified and measured, the process for derecognition, and the principles used for fair value assessment. Furthermore, it describes the treatment of employee benefits like short-term obligations, defined contribution plans, and defined benefit plans such as gratuity, including actuarial considerations. The text also provides reconciliation tables for various profitability and leverage ratios, such as Return on Equity and Debt to Equity, as well as calculations for Net Working Capital Days.

This section details the restated Profit and Loss statement for Fiscal Years 2026, 2025, and 2024, covering various line items and profit metrics. Revenue from operations showed a significant increase from FY25 to FY26, driven by higher sales and services. The analysis further breaks down revenue by geography and product segment, highlighting shifts in domestic versus international sales and growth in specific product lines. Total expenses also increased, though the company noted improved operating leverage, and profit before tax showed strong growth.

The financial statements show significant growth in revenue streams, particularly from Polished LGDs, which saw a substantial increase in both revenue and the volume of carats sold. Other operating revenue also grew, largely attributed to services related to a contract executed in Fiscal 2025. Other income showed growth, mainly driven by increased interest income from banks and diamond certification income, though some income streams were offset by the retirement of a partner. Total expenses increased significantly, with costs for materials consumed and employee benefits rising sharply. Cash flow analysis reveals fluctuations, with operating cash flows showing a large increase from Fiscal 2024 to Fiscal 2026, alongside changes in working capital components. The company's financial structure includes substantial borrowings as of March 31, 2026.

This section details various financial and operational disclosures, including capital expenditure, contingent liabilities, auditor observations, related party transactions, market risks, customer dependency, and business segments. It mentions commitments, various audit opinions, and dependencies on top customers for revenue generation. Furthermore, it highlights seasonality in demand and describes the four reportable segments of the business, noting that the Diamond Wafer segment is included within the Polished LGDs segment.

The section outlines the absence of certain types of outstanding legal proceedings, such as criminal litigation, regulatory actions, or disciplinary actions against the company, its subsidiaries, directors, or promoters. It details specific civil proceedings, including a commercial suit filed by a German company against the company concerning contract dealings. Furthermore, it discloses several tax-related matters, including an ongoing audit by the GST department and a pending adjudication before the Income Tax Appellate Tribunal regarding a tax demand against a promoter related to a partnership firm.

The section details various aspects of litigation, material disclosures, and regulatory approvals for the company and its subsidiaries. It states that there is no outstanding material tax litigation involving the Directors or Subsidiaries. It also provides a breakdown of outstanding dues to creditors, including material creditors, MSME creditors, and other creditors, totaling ₹44.57 Crore as of March 31, 2026. Furthermore, it confirms no pending litigation involving group companies and no material developments that could adversely affect the company's trading or profitability within the next 12 months. The section also lists numerous governmental, statutory, and regulatory approvals obtained by the company and its material subsidiary, covering various aspects from incorporation details to tax registrations and licenses for manufacturing units.

The section primarily addresses litigation, related party transactions, and regulatory approvals concerning the company's offer. It states that there is no outstanding litigation involving the group companies that would have a material impact. It details various authorizations and consents from the Board and Shareholders for the offer, including approvals for the Fresh Issue. Furthermore, it confirms that the company and its promoters comply with various regulations regarding market access, financial standing, and the process of the offer.

The section primarily outlines various disclaimers and compliance requirements related to the Offer, detailing responsibilities of the Company, Promoters, Directors, and Book Running Lead Managers. It specifies that the filing of the Draft Red Herring Prospectus does not absolve the Company from liabilities under the Companies Act, 2013, or the need to obtain necessary statutory clearances. Furthermore, it details representations made by Bidders regarding their eligibility to acquire Equity Shares and restrictions on selling them. The text also lists various consents obtained from directors, auditors, and other experts for inclusion in the Prospectus.

The section discusses various aspects related to the company's capital activities, past commission and brokerage payments, and performance concerning public or rights issues. It states that the company has not made any capital issues in the last three years and that the company, its subsidiaries, and group companies do not have securities listed on any stock exchange. Furthermore, it confirms that no commission or brokerage has been paid for equity shares in the last five years. The text also covers price information for past issues handled by Book Running Lead Managers, detailing various metrics for different listed companies and summarizing the performance of past Initial Public Offerings (IPOs) across different financial years.

This section details various aspects related to the process of the Initial Public Offering, including the track record of Book Running Lead Managers, mechanisms for investor grievance redressal, and various legal and regulatory considerations. It outlines procedures for addressing grievances related to the bidding process, including details required from bidders, and clarifies the responsibilities of various parties concerning the Offer. Furthermore, it discusses the framework under the SEBI ICDR Master Circular concerning investor issues arising from the UPI Mechanism, including timelines and compensation for various types of delays or issues.

This section details various aspects related to the allotment and trading of Equity Shares, including shareholder rights, the process for allotment in dematerialized form, and procedures for the Bid/Offer Programme. It outlines agreements with Depositories and Registrars for the offer, defines the tradable lot, and specifies rules regarding nominations, joint holders, and jurisdiction for the offer. Furthermore, it sets out strict timelines for bid submission, processing, and the company's obligations regarding the refund of subscription money if minimum subscription requirements are not met.

This section details various aspects of the offer structure, including conditions for liability, procedures for withdrawing the offer, restrictions on the transfer and transmission of equity shares, and the mechanics of the book-building process. It outlines how different bidder categories (QIBs, Non-Institutional Bidders, and Retail Individual Bidders) are allocated shares, including specific reservations for certain investors and rules for handling undersubscription across different portions of the offer. Furthermore, it specifies the mode of bidding (ASBA or UPI), the required documentation, and the process for allocating shares, including provisions for spill-over allocations and the handling of various bidder types.

This section details various procedural aspects related to the offer process, including handling revisions to the Price Band and Bid/Offer Period, and the process for Bidders to refer to the General Information Document. It outlines the various phases of the Unified Payments Interface (UPI) mechanism for bids, which has been phased in to reduce the time from public issue closure to listing. It also discusses compliance with SEBI circulars regarding payment mechanisms, investor grievance redressal, and the requirements for Bid cum Application Forms.

This section details various procedural requirements and restrictions for different categories of bidders in the Offer, including mandates for using the ASBA process and UPI mechanisms. It specifies rules regarding the submission of bid forms, the required documentation for various investor types such as Retail Individual Bidders, Eligible NRIs, Mutual Funds, Hindu Undivided Families (HUFs), and Foreign Portfolio Investors (FPIs). Furthermore, it outlines rules concerning the blocking of funds, the acceptance of bids, and the handling of various investor identities and holdings under FEMA and SEBI regulations.

This section details various restrictions and requirements concerning bids and participation in the Offer, primarily focusing on compliance with regulations set by SEBI and other bodies. It outlines rules regarding multiple bids, investment limits for different investor categories (like FPIs, VCFs, AIFs, etc.), documentation required for various bidders (such as power of attorney or registration certificates), and rules for Anchor Investors. Furthermore, it specifies conditions for dealing with offshore derivative instruments and the process for bid finalization and allocation.

This section primarily outlines various instructions and prohibitions for bidders participating in the bid process, covering aspects related to bid withdrawal, documentation, fund blocking, and the use of UPI mechanisms. It details requirements for linking PAN with Aadhaar, ensuring proper submission of bids through ASBA processes, and stipulations regarding the use of various bank accounts and digital IDs. Furthermore, it specifies rules for different bidder categories, such as Anchor Investors and QIBs, and sets limits on bid amounts and the submission of documents to designated intermediaries.

This section primarily outlines various procedural requirements and undertakings related to the bidding and allotment process, including rules for different types of investors, handling of bid forms, timelines for unblocking funds, and liabilities for delays. It details conditions concerning the use of various payment instruments, the responsibility of different parties in finalizing the allotment basis, and the consequences for delays in processing or unblocking funds. Furthermore, it specifies provisions related to fraud and impersonation concerning the acquisition of securities.

This section primarily discusses foreign investment regulations in Indian securities, detailing the roles of the Industrial Policy, 1991, and FEMA in regulating foreign investment. It outlines that the Department for Promotion of Industry and Internal Trade (DPIIT) issued a Consolidated FDI Policy Circular, which supersedes previous clarifications. The text specifies conditions under which the transfer of shares between an Indian resident and a non-resident does not require RBI approval, provided certain criteria regarding automatic route activities and sectoral limits are met. Furthermore, it details restrictions on foreign investment involving entities from countries sharing a land border with India, requiring prior government approval under amendments to the Consolidated FDI Policy.

This section primarily outlines the Company's powers and restrictions concerning the issuance, allotment, and alteration of its share capital and securities. It details various provisions related to the control of directors over share capital, the Board's authority to issue shares for consideration such as property, services, or payments, and procedures for dealing with different classes of shares. Furthermore, the text covers provisions for varying shareholder rights, altering the share capital, and the process for further issuing shares, including various methods of offer and the handling of debentures and loans.

This section primarily details the provisions related to commissions, certificates, calls, and forfeiture concerning the company's shares and debentures. It outlines rules for paying commissions, the issuance and handling of share certificates, procedures for making and enforcing calls on unpaid amounts, and the consequences of failing to pay these amounts, including the forfeiture of shares.

This section primarily details the Company's powers regarding the consideration for the sale, re-allotment, or disposal of shares, and the subsequent transfer of such shares. It outlines the Company's right to annul forfeiture of shares sold, establishes a first and paramount lien on shares and debentures, and specifies conditions under which this lien can be waived or restricted. Furthermore, the text covers various provisions related to the execution, registration, and restrictions on the transfer of shares, including rules for dealing with transfers involving various classes of shares and provisions concerning the handling of deceased or insolvent members' shares.

This section details various procedural aspects related to General Meetings, including the calling of Extraordinary General Meetings upon requisition, notice periods for meetings, participation modes, quorum requirements, and the roles of the Chairman and Directors. It also outlines voting procedures, including the casting of votes, the use of postal ballots, and provisions concerning the voting rights of different classes of shareholders, such as preference shareholders. Furthermore, the text covers provisions related to the appointment of Directors, the composition of the Board, and the power of certain financial institutions to appoint Nominee Directors.

This section primarily outlines various procedural and governance aspects related to the Board of Directors, including the appointment and removal of directors, quorum requirements for meetings, and the validity of various actions taken by the Board or its committees. It details rules concerning alternate directors, the power to appoint additional directors to fill casual vacancies, director remuneration, the ability of directors to contract with the company, and the procedures for conducting board meetings, including notice requirements, quorum calculation, and the validity of resolutions.

This section details various powers granted to the Directors of the Company, primarily concerning financial borrowing, property acquisition, contract execution, and legal defense. It outlines restrictions on borrowing money, the issuance of securities, the maintenance of registers of charges, the ability to secure contracts through mortgages, and the power to handle bankruptcy matters. Furthermore, the section grants powers to appoint trustees, manage funds, make contracts, insure assets, acquire intellectual property, construct facilities, and expand the business.

This section primarily outlines various powers and duties related to the Company's assets, the appointment and remuneration of key managerial personnel, and the procedures for handling dividends and share transfers. It details the Board's authority over property management, the delegation of powers, and the appointment, removal, and remuneration of the Managing Director/Whole-Time Director. Furthermore, it specifies the duties of the Managing Director concerning company affairs, the appointment of officers like the CEO and CFO, and the maintenance of statutory registers. Finally, it covers rules regarding the declaration and payment of dividends, including provisions for unclaimed dividends and the lock-in of equity shares related to an IPO.

This section primarily details the procedures related to the distribution of sums, the maintenance of books of accounts, the inspection rights, and the duties and liabilities of the company's officers and directors. It outlines how resolutions regarding capitalization and allotments are to be implemented, the requirements for keeping accurate financial records, and the rights of members and directors concerning access to company information and the indemnification of personnel.

This section outlines various legal and procedural requirements concerning the company's offering, including provisions on liability for losses, the scope of the company's powers, and the required documentation for the prospectus filing. It details numerous material contracts, board resolutions, and consents from various parties, including promoters and auditors. Furthermore, it lists documents related to due diligence, listing approvals, and observations from SEBI.

The provided section primarily consists of multiple declarations certifying compliance with various laws and regulations, including the Companies Act and SEBI guidelines. These declarations are signed by different directors and officers of the company, affirming the truthfulness and accuracy of the disclosures made in the Draft Red Herring Prospectus.

This section primarily consists of declarations and certifications from various directors and promoters regarding the accuracy and compliance of the Draft Red Herring Prospectus with relevant laws and regulations. Several individuals, including a Director, a Chief Financial Officer, and several Promoter Group Selling Shareholders, have certified that the statements made in the document are true and correct, while disclaiming responsibility for statements made by others.

This section details various related party transactions involving directors and promoters, including loans, remuneration payments, and salaries. The disclosures cover transactions with directors, relatives of the promoters, and independent directors. Several transactions involve payments for remuneration to Key Managerial Personnel (KMPs) and various individuals, including the Radadiya family, and some transactions are noted as being at arm's length and compliant with relevant regulations.

The company's Board of Directors consists of six members, comprising three Executive Directors and three Independent Directors, in compliance with corporate governance norms. The Board structure includes a Chairman and Whole-time Director, a Managing Director, and several Independent Directors. The document details the particulars of these directors, including their designations, terms of directorship, and other directorships they hold. Furthermore, it outlines the terms of appointment and remuneration for the Executive and Managing Directors.

The section details various aspects of director remuneration, sitting fees, and related party transactions for the company. It outlines standard perquisites and benefits provided to directors, including allowances, insurance, and company-maintained facilities. It specifies sitting fees for Independent Directors for attending various Board and committee meetings. Furthermore, it lists the remuneration for Executive Directors and Independent Directors for a specific fiscal year, along with details on contingent compensation and the lack of remuneration from subsidiaries or associates. The text also covers shareholding details of the directors and various disclosures regarding director interests in transactions.

The management section details various functions and review processes mandated for the Audit Committee, including reviewing internal audit functions, discussions with statutory auditors, and investigating internal investigations related to fraud or control failures. It also covers the review of financial statements, deviations from regulatory filings, and the functioning of the whistle-blower mechanism. Furthermore, the text outlines the composition and scope of several specialized committees, such as the Nomination and Remuneration Committee, the Stakeholders’ Relationship Committee, and the Corporate Social Responsibility Committee.

The document outlines various measures for risk mitigation, including systems and processes for internal control, and a business continuity plan. It details the structure of the management organization chart, noting that the role of Head of Human Resources/Administration has been absorbed by the Managing Director, leaving that position vacant. Key managerial personnel and senior management details, including their appointments, qualifications, and prior experience, are provided. Furthermore, it discusses arrangements with major shareholders, customers, suppliers, or others, and confirms that no contingent or deferred compensation exists for the fiscal year 2026.

The company states that Key Managerial Personnel and Senior Management are not interested in any current or proposed transactions with the company or its subsidiaries, nor have any payments been made or proposed to be made for such arrangements. Furthermore, no non-salary related amounts or benefits have been paid or are intended to be paid to any officer, including Directors, Key Managerial Personnel, or Senior Management, within the preceding two years. The company also confirms there is no conflict of interest between the lessors of immovable properties crucial for operations and the Directors or Key Managerial Personnel, nor between suppliers of raw materials or third-party service providers and the Directors or Key Managerial Personnel. Finally, the company has not given any loans to the Directors or Key Managerial Personnel as of the date of the Updated Draft Red Herring Prospectus-I.

The company's promoters are Rajnikant M Radadiya and Sandipbhai Madhubhai Radadiya, with their respective shareholding percentages detailed. Rajnikant M Radadiya is identified as the Chairman and Whole-time Director, while Sandipbhai Madhubhai Radadiya is the Managing Director. The document details the transfer of equity shares from Shilpaben Rajanibhai Radadiya and Nehalben Sandipkumar Radadiya to the promoters on April 5, 2024. Furthermore, the document outlines various aspects concerning the interests of the promoters, including related party transactions and the entities they are involved with. The company has not declared or paid any dividends in the last three fiscal years.