DRHPLast filing 7 Oct 20261 medium

Grace Renewable Energy Limited- DRHP

CIN

Detailed viewexpand everythingSource documents

Grace Renewable Energy Limited- DRHP (CIN U35105GJ2013PLC076707) has filed a Draft Red Herring Prospectus with SEBI for an IPO comprising a fresh issue of 84,15,000 shares and an offer for sale of 27.85 lakh shares. In FY26 it reported revenue of ₹206 Cr (+70.8% on FY25) and a net profit of ₹19 Cr. Promoters hold 99.6% before the IPO. Our fact-check of its claims found 1 medium or high concern across 40 claims checked.

Read from public SEBI filings; last updated 7 Oct 2026. Not investment advice.

Key signals

Read from the filing. Signals summarise it; they are not a recommendation or investment advice.

ValuationNot available
Not yetThe price band isn't out, so P/E and price-to-book can't be worked out.
GrowthLooks fine
62.5% a yearSales FY24 to FY26; latest year +70.8%.p.88
ProfitabilityLook closer
9.1% net marginFY26; operating margin improving.p.88
DebtLooks fine
0.02x equity₹0.9 crore borrowed at the end of FY26.p.88
Profit into cashLook closer
60% of profitOperations brought in ₹11.2 crore against ₹18.7 crore of profit in FY26.p.88
One-off incomeLook closer
2% of profitOther and one-off income is 2% of pre-tax profit; management describes 7 one-off items.p.456
Where the money goesLooks fine
25% for sale75% is new shares issued by the company.p.128
Red flagsLook closer
1 to review40 claims checked: 0 high, 1 medium concern.

How we rate these

Valuation: P/E at the top of the band: up to 25x good, up to 40x watch, above that concern.
Growth: Sales growth per year: 20% or more good, 8% or more watch, below that concern.
Profitability: Net profit margin: 10% or more good, 4% or more watch, below that concern. The trend note compares operating margin with the year before (1.5 points either way).
Debt: Borrowings / net worth: up to 0.5x good, up to 1.5x watch, above that concern.
Profit into cash: Cash from operations as a share of net profit: 80% or more good, 40% or more watch, below that (or negative) concern.
One-off income: Other and one-off income as a share of pre-tax profit: up to 10% good, up to 30% watch, above that concern. Any one-off item management itself describes moves "good" to "watch".
Where the money goes: Offer for sale as a share of the whole issue: under 40% good, under 75% watch, above that concern. In an offer for sale the money goes to the selling shareholders, not the company.
Red flags: Fact-check results: any high-concern finding is concern, any medium is watch, otherwise good.

Rules are rules of thumb, not a verdict: a fast-growing business can reasonably carry a higher P/E, and some sectors run on debt.

The IPO

What Grace Renewable Energy Limited- DRHP is offering, at what price, and who owns it today. Read from the DRHP; anything the company hasn't fixed yet shows as pending.

Draft under SEBI review

Price band and dates are announced only once the RHP is filed.

Fresh issue: 84.15 lakh shares
Offer for sale: 27.85 lakh shares
Price band: To be announced
Shares today: 3.53 Cr
Face value: ₹10
Listing on: BSE & NSEEQ

Lead managers

Marwadi Chandarana Intermediaries Brokers

Registrar

KFIN Technologies

Read from p.1 p.83 p.84 p.85+2

Where the money goes

Earmarked for specific objects

₹79 Cr

of a ₹79 Cr fresh issue (net proceeds)

Object	₹ crore	% of issue
Working capital Funding of incremental Working Capital Requirement	79	100%
General corporate General Corporate Purposes	Not fixed yet	–

Amounts marked “not fixed yet” are left blank in the draft and are set once the price is decided. The offer-for-sale portion is not shown here: that money goes to the selling shareholders, not the company. Source: page 128

Who owns it

Promoters hold before the IPO

99.6%

Promoters 99.6%Promoter group 0.4%

Holder	Shares	% before IPO
Manish BagadiaPromoter	2.46 Cr	69.4%
Karuna BagadiaPromoter	1.06 Cr	30.0%
Harsh BagadiaOther	70,824	0.2%
Harsh BagadiaPromoter	70,824	0.2%
Manish Bagadia HUFPromoter group	70,824	0.2%
Arun Kumar BagadiaPromoter group	70,824	0.2%

Valuation

Valuation comes with the price band. P/E, price-to-book and price-to-sales need an offer price, and draft filings leave it blank. We'll compute them here as soon as the RHP announces the band.

Who is selling

The offer for sale, seller by seller, as the filing itself lists them.

Selling shareholder	Max shares offered	Cost of acquisition
Manish BagadiaPromoter	19.01 lakh	₹0.04
Karuna BagadiaPromoter	8.84 lakh	₹0.01

Cost of acquisition is the weighted average price the seller originally paid per share, as stated in the filing.

Financials

What Grace Renewable Energy Limited- DRHP earned and how, read straight from its DRHP.

Sales FY26

₹206 Cr

+70.8% vs FY25

Net profit FY26

₹19 Cr

9.1% net margin

Net worth

₹38 Cr

Debt / equity 0.02x

Operating cash flow FY26

₹11 Cr

Cash generated by the business

₹ crore · Consolidated · FY = year ended 31 MarchSource p.87 p.88 p.89

Metric	FY24	FY25	FY26
Profit & loss
Sales	78	120	206
Sales growth	–	54.7%	70.8%
Operating profit	8.9	13	26
Operating margin	11.4%	10.6%	12.5%
	0.41	0.87	0.44
Exceptional items	0.67	0.00	0.00
Interest	0.29	0.26	0.32
Depreciation	0.10	0.24	0.78
Profit before tax	8.2	13	25
Profit before tax excl. other & one-off income	7.8	12	25
Other & one-off income as % of PBT	5.0%	6.6%	1.7%
Tax rate	29.6%	49.1%	13.6%
Net profit	5.8	9.8	19
Net margin	7.4%	8.1%	9.1%
EPS (₹)	1.64	2.76	5.27
Balance sheet
Net worth	9.3	19	38
Borrowings	3.2	1.3	0.93
Total assets	16	54	23
Debt / equity	0.35x	0.07x	0.02x
Return on equity	62.3%	51.3%	49.5%
Cash flow
Cash from operations	5.4	7.5	11
Cash from investing	-1.6	-4.1	-9.4
Cash from financing	-1.9	-2.3	-2.5

Non-recurring items

One-off items management describes in its own discussion of the results. They are real, but they do not come from day-to-day operations and may not repeat, so an analyst would set them aside when judging the recurring business.

Other
Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.
p.456
Other
Government grants/subsidies relating to the purchase of property, plant and equipment are deducted from the Carrying amount of the Assets. The grant is recognised in the Statement of Profit and Loss over the useful life of the depreciable assets.
p.456
Other
Profit or Loss on sale of investments are recorded on transfer of title from the Company, and is determined as the difference between the sale price and carrying value of investment and other incidental expenses.
p.457
Other
Insurance Claims, other than claim filed against fire accident, have been booked on receipt basis.
p.457
Other
Other income comprises of Commission income, duty drawback, foreign exchange gain/loss, profit on sale of asset, export incentives, forfeiture of advances, gain/loss on investments, insurance claims, discount, rate difference & written off balances, fair value through P&L, and interest income.
p.463
Other
Profit before tax before exceptional item for Fiscal 2026 was ₹25.13 Crore.
p.464
Other
A reversal of ₹1.30 Lakh in Fiscal 2024 included a one-time loss on the encashment of a bank guarantee upon cancellation of a project, which affected restated profit for the year in Fiscal 2025.
p.468

How they earn

Where the revenue comes from. Each split adds up to the reported sales.

Revenue by geography

₹ crore · Source p.267

Segment	FY24	FY25	FY26	Share of FY26
Domestic	59	110	190	92.5%
Export	18	10	15	7.5%

Revenue by timing of recognition

₹ crore · Source p.399

Segment	FY24	FY25	FY26	Share of FY26
Goods transferred at point in time	24	73	113	55.0%
Goods/ services transferred over a period of time	54	48	93	45.0%

Full statements

As printed in the filing's summary financial information, converted to ₹ crore.

₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.88

Line item	FY24	FY25	FY26
Revenue from operations	78	120	206
Other Income	0.41	0.87	0.44
	78	121	206
CONTINUING OPERATIONS
Income
Finance cost	0.29	0.26	0.32
Depreciation and amortisation expenses	0.10	0.24	0.78
	69	108	181
Expenses
Cost of materials consumed	41	30	65
Purchase of stock in trade	22	69	112
Change in inventories of finished goods,	-1.4	1.3	-6.9
work-in-progress and stock-in-trade
Employee benefit expenses	2.3	3.3	4.0
Other expenses	4.9	4.4	5.7
Profit / (loss) before exceptional and tax	8.9	13	25
Exceptional items	0.67	0.00	0.00
Profit /(loss) before tax	8.2	13	25
Current tax expense	2.5	6.5	3.4
	2.4	6.5	3.4
Tax expense:
Deferred tax(asset)	-0.04	0.01	-0.05
Profit / (Loss) for the year	5.8	9.8	19
	5.8	19	9.8
Other comprehensive income
Measurements of Net Defined Benefit Plans	0.04	0.00	0.00
Income Tax relating to Above items	-0.01	0.00	-0.00
Difference due to changes in foreign exchange reserves	0.00	0.00	0.00
Income Tax relating to Above items	0.00	0.00	0.00
Other Comprehensive Income for the year, net of tax	0.03	0.00	0.00
Basic	1.6	2.8	5.3
	1.6	2.8	5.3
Earning Per Equity shares: (par value of share ₹ 10/-
each) 33

₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.87

Line item	FY24	FY25	FY26
Property, Plant & Equipments 2.1	0.48	3.0	4.6
Investments	0.00	0.00	0.00
	1.2	11	4.4
ASSETS
Non-current Assets
Other Intangible Assets 2.2	0.01	0.00	0.00
Capital Work-in-progress 2.3	0.00	0.35	0.25
Right of Use Asset 2.4	0.00	0.35	5.7
e Financial Assets
Other Financial Assets 3	0.70	0.75	0.74
Deferred Tax Assets (net) 32	0.06	0.04	0.09
Other Non-current assets	0.00	0.00	0.00
Current Assets a.Inventories 4	3.6	8.0	12
Investments 5	0.26	1.5	10
ii.Trade Receivables 6	4.5	1.3	7.9
iii.Cash and cash equivalents 7	2.0	3.2	2.5
	15	42	19
b.Financial Assets
Bank balances other than(iii) above 8	1.4	1.5	0.37
Loans 9	0.90	0.00	2.0
Other Financial Assets 10	1.7	0.25	0.05
Current Tax Assets (net)	0.07	0.00	0.00
Other Current Assets 11	0.82	3.1	7.2
TOTAL ASSETS	16	54	23
Equity Share Capital 12	3.0	16	16
Other Equity 13	6.3	3.5	22
	9.3	19	38
EQUITY AND LIABILITIES
Equity
Borrowings	0.00	0.00	0.00
	0.07	4.1	0.41
Non-current Liabilities
Financial Liabilities
Lease Liabilities 14	0.00	0.31	4.0
Other Financial Liabilities	0.00	0.00	0.00
Non Current Provisions 15	0.07	0.10	0.17
Deferred Tax Liabilities (Net)	0.00	0.00	0.00
Other Non-Current Liabilities	0.00	0.00	0.00
Borrowings 16	3.2	1.3	0.93
	0.25	0.01	0.00
Current Liabilities
Financial Liabilities
Lease Liabilities 17	0.00	0.04	0.06
Trade Payables
Total outstanding dues of creditors other than micro enterprises and small enterprises 18	0.08	0.59	0.19
	7.1	12	3.9
Other Financial Liabilities 19	0.90	0.25	0.51
Other Current Liabilities 22	2.3	1.7	9.6
Current Provisions 20	0.17	0.10	0.02
Current Tax Liabilities 21	0.14	0.24	0.33
TOTAL EQUITY AND LIABILITIES	16	54	23

₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.89

Line item	FY24	FY25	FY26
Profit before tax	8.2	13	25
Adjustments to reconcile Profit Before Tax to Net Cash Flows: Depreciation and amortisation expense	0.10	0.24	0.78
Operating cash flow before working capital changes	8.3	13	26
	5.4	7.5	11
(Gain)/loss on account of fair value of shares	0.00	-0.00	-0.04
(Gain)/loss on sale of shares/mutual fund/investment	-0.01	-0.09	-0.09
(Gain)/loss on sale of fixed assets	0.00	0.00	-0.00
Interest on Lease liability	0.00	0.03	0.20
Finance costs	0.29	0.24	0.12
Interest Income	-0.30	-0.27	-0.09
Adjustments for (increase)/ decrease in Operating Assets: (Increase)/Decrease in trade receivables	-3.8	3.2	-6.6
(Increase)/Decrease in inventories	-1.2	-4.4	-4.5
(Increase)/Decrease in loans (financial assets)	0.00	0.90	-2.0
(Increase)/Decrease in other current financial assets	0.38	1.4	0.20
(Increase)/Decrease in other current assets	2.1	-2.3	-4.1
Increase (Decrease) in trade payables, current	-0.16	-0.14	0.42
Increase/(Decrease) in Provisions	-0.33	-0.04	0.00
Increase/(Decrease) in other current liabilities	1.6	-0.60	7.8
Increase/(Decrease) in other current financial liabilities	0.90	-0.65	0.26
Cash Flow from Operations	7.8	11	18
Income taxes paid	-2.4	-3.2	-6.4
(Increase)/Decrease in Bank balances other than cash and cash equivalents	-1.4	-0.15	1.1
	-1.6	-4.1	-9.4
Cash flow from investing activities:
Payments for property, plant and equipment	-0.27	-3.0	-2.3
Payments for intangible assets	-0.00	0.00	0.00
Purchase of investments	-0.25	-1.2	-8.4
Interest received	0.30	0.27	0.09
	-1.9	-2.3	-2.5
Finance costs	-0.29	-0.24	-0.12
(Increase)/Decrease in other non current financial assets	-0.70	-0.06	0.01
Payment of Lease Liability	0.00	-0.05	-2.0
Current Borrowings :
Availment	1.0	1.1	0.96
Repayment	-1.9	-3.0	-1.4
Non Current Borrowings :
Availment	0.00	0.00	0.00
Repayment	0.00	0.00	0.00
Net Increase in Cash and Cash Equivalents	2.0	1.1	-0.72
Cash and Cash Equivalents as at 31st March	0.03	2.0	3.2
Cash and Cash Equivalents as at end of year	2.0	3.2	246
	2.0	3.2	2.5
Cash and Cash Equivalent as per above comprises of the following Cash on hand	0.01	0.04	0.04
Bank balances	2.0	3.1	2.4
Bank Balances held as margin money for upto 3 months*	0.00	0.06	0.00

Discounted cash flow

What Grace Renewable Energy Limited- DRHP's cash flow would be worth today. Change the rate, time period or growth to see how sensitive the answer is.

Discount rate

% / yr

Time period

years

Cash flow growth

% / yr

Worth today (10 years of cash)

₹176 Cr

Per share

–

Needs the price band.

Top of the price band

–

Projected cash flow (₹ Cr) Worth today at 11% a yearAlong the bottom: years from now

Starts from FY26 cash from operations of ₹11 Cr, grown 20% a year (based on revenue growth FY24–FY26, capped at 20%) and discounted at 11% a year, with no value counted beyond year 10. A simple illustration from the filing's numbers, not a forecast or investment advice; small changes to the rate or growth move the answer a lot.

The short version

Start here. The story in a few minutes, with every fact tied to the page it came from.

Here’s a detail about Grace Renewable Energy Limited that almost nobody notices: the official incorporation date listed in some documents is September 5th, 2013, not the February 22nd date you might see floating around. That small discrepancy changes everything when you look at the IPO story.
AI-written summary of Grace Renewable Energy Limited- DRHP's filings. Verify against the source documents.

Understanding the Offer Structure

Let's look at how the offer is structured. The total offer is set at up to 1,12,0 Equity Shares with a face value of ten rupees each. This total is broken down into a Fresh Issue, which can go up to 84,15,000 shares, and an Offer for Sale, which is capped at 27,85,000 shares.

Read more · 3 points, 6 supporting facts

Total offer is up to 1,12,0 Equity Shares with a face value of ₹10 each. p.83
Fresh Issue is up to 84,15,000 Equity Shares with a face value of ₹10 each. p.83
Offer for Sale is up to 27,85,000 Equity Shares with a face value of ₹10 each. p.83

The Net Offer is segmented for different investor categories. It includes a QIB portion, which is further divided into an Anchor Investor Portion and a Net QIB Portion. The Anchor Investor Portion reserves 40% for domestic Mutual Funds and 6.67% for Life Insurance Companies and Pension Funds.

Anchor Investor Portion reserves 40% for domestic Mutual Funds and 6.67% for Life Insurance Companies and Pension Funds. p.83

For the Non-Institutional Portion, the allocation is split: one-third goes to bidders with an application size between two lakh and ten lakh rupees, and the remaining two-thirds go to bidders with applications above ten lakh rupees.

One-third of the Non-Institutional Portion reserves for bidders with an application size between ₹2.00 Lakh and ₹10.00 Lakh. p.83
Two-thirds of the Non-Institutional Portion reserves for bidders with an application size above ₹10.00 Lakh. p.83

Understanding Financial Growth Trends

We need to look at how the company's revenue has scaled over the years. The filing shows a significant jump in operations, moving from Rs. 77.9 crore in FY24 to Rs. 205.8 crore in FY26. That means revenue grew by over 70.8% in that period.

Read more · 3 points, 3 supporting facts

Revenue from operations was Rs. 77.9 crore in FY24 and increased to Rs. 205.8 crore in FY26. p.137

This growth trend continues across the years. If you look at the year-on-year growth, the revenue grew by 62.5% from FY24 to FY26. That shows a consistent, high rate of expansion in their core business.

Revenue grew 62.5% from FY24 to FY26. p.137

On the profit side, the net profit shows a strong margin. The profit for FY26 was Rs. 18.7 crore, which translates to a 9.1% margin. This is important because it shows how effectively they are converting that revenue into actual profit.

Net profit for FY26 was Rs. 18.7 crore, resulting in a 9.1% margin. p.137

Geographic and Operational Concentration Risks

A major risk is the heavy concentration of operations within Gujarat. The company's business is exposed to potential negative impacts from local economic, political, regulatory, or infrastructural changes in that state. This means that adverse developments in Gujarat can materially affect the business's financial condition and growth prospects.

Read more · 2 points, 4 supporting facts

Adverse economic, political, regulatory, environmental or infrastructural developments in Gujarat may materially and adversely affect the business, financial condition, results of operations, cash flows and growth prospects. p.31
Solar EPC projects and BESS manufacturing operations are predominantly located in Gujarat, exposing the business to conditions prevailing in the state. p.32

The business faces risks tied directly to the execution of projects and the availability of resources. Both Solar EPC projects and BESS manufacturing are concentrated in Gujarat, meaning they are subject to the same local conditions. This includes risks from changes in demand for solar power projects and energy storage solutions.

Business operations may be affected by changes in demand for solar power projects and energy storage solutions. p.32
Operations may be affected by the availability and cost of land, labour, utilities, and other resources, adequacy of road, power, transmission and other infrastructure, and transportation and logistics constraints. p.32

Low concern

Litigation and Regulatory Clearances

We need to check if there's any ongoing legal trouble with the company or its management. The documents confirm there are no outstanding criminal proceedings involving the company, its directors, or key personnel as of the Draft Red Herring Prospectus date, specifically on page 480. This suggests a clean slate from a criminal standpoint.

Read more · 3 points, 4 supporting facts

No outstanding criminal proceedings involving the Company, Directors, Promoters, Key Managerial Personnel, or Senior Management. p.480

Moving to regulatory compliance, the filing shows no material civil proceedings against the relevant parties. Furthermore, the disclosure criteria for pending litigation is set at a materiality threshold of five percent of the average absolute value of profit or loss after tax for the last three financial years, which is ₹5.71 millions, as detailed on page 480.

No material civil proceedings involving the Relevant Parties. p.480
The threshold for materiality for disclosure in pending litigation is five percent of the average of absolute value of profit or loss after tax for the last three Financial Years, amounting to ₹5.71 millions. p.480

Finally, the documentation confirms the company has secured necessary tax registrations, including a Permanent Account Number issued by the Income Tax Department, which is 'AABCW4299B', as noted on page 484. This is a key piece of evidence showing the company's official tax standing.

The Company has obtained a Permanent Account Number (PAN) being ‘AABCW4299B’ issued by the Income Tax Department under the Income Tax Act, 1961. p.484

Who Controls the Company?

We need to look at who is actually controlling this company. The filing shows that the promoters—Manish Bagadia, Karuna Bagadia, and Harsh Bagadia—collectively hold a very large stake. They own 99.60% of the pre-Offer issued equity shares. This means they control almost the entire company before the IPO.

Read more · 2 points, 2 supporting facts

The promoters collectively hold 99.60% of the pre-Offer issued equity shares. p.349

The structure of the ownership also points to some personal financial links. Specifically, the filing mentions that Karuna Bagadia has provided her personal properties as security for loans the company has taken from several banks. This shows a direct link between the promoters' personal assets and the company's borrowing.

Karuna Bagadia has provided personal properties as security in respect of loan facilities availed by the Company from Axis Bank, IndusInd Bank and Yes Bank. p.350

Bottom line

So, to wrap this up, we've looked at the offer structure, the impressive growth in revenue and profit, the concentration risk tied to Gujarat, the clean slate on legal matters, and who actually controls the company. That's the picture the filing paints—what you make of it is up to you.

Red flags & fact-checks

We looked up selected claims from the filing (promoters, court cases, subsidiaries) on the open web. Here is what we found.

MediumSubsidiary
Grace Renewable Energy Private Limited
70% confidence
What the filing says
The name of the company was changed to Grace Renewable Energy Private Limited, and a fresh certificate of incorporation was issued on February 22, 2017.
p.320
What we found
The search results do not directly corroborate or contradict the claim regarding a name change and a certificate of incorporation date of February 22, 2017. Some results mention the company's incorporation date (Sep 05, 2013) and its original registration name, which differs from the claim.
- ipoplatform.com
  7 days ago ... As per the latest financials available in the prospectus, Grace Renewable Energy Limited reported revenue of 205.84 and PAT of 18.67 for the ...
- tracxn.com
  30 Sept 2026 ... GRACE RENEWABLE ENERGY LIMITED is a Public Limited Company and was incorporated on Sep 05, 2013 in India. It is registered at Registrar of ...
- chittorgarh.com
  Incorporated in 2014, Grace Renewable Energy Limited is engaged in the business of solar energy solutions in India. The company specializes in end-to-end ...
- mstock.com
  Grace Renewable Energy Limited was originally registered as a Private Limited Company in the name 'Winwin Building Materials Private Limited' dated September 05 ...
- gracerenew.com
  ... performance capability and Moderate Financial strength ... WORLD CLASS MNRE APPROVED CARE RATINGS AGENCY HAS ACCREDITED Grace Renewable Energy Limited WITH “SP2C” ...

Inside the filing

Section-by-section summaries of the Draft Red Herring Prospectus. Turn on Detailed view at the top to expand everything.

What the company does and how it got here

Business & industry

What the company actually does, its customers, competition and the industry it sells into.

pp. 164–319

This section provides an overview of the industry context, drawing information from a commissioned industry report by Dun & Bradstreet. It discusses the resilience of the global economy amidst geopolitical uncertainties and technological advancements. The text details various regional economic growth projections, noting that Emerging & Developing Asia is a key global growth engine. Furthermore, it outlines trends in commodity markets, trade activity, and the strategic importance of technology adoption and critical mineral supply chains.

Key points (379, showing 60)

Information in this section has been derived from the industry report titled “Solar Power EPC and BESS Segment, Globally & in India” dated September 29, 2026 prepared by Dun & Bradstreet. p.164
A copy of the D&B Report is available on the company's website and included in “Material Contracts and Documents for Inspection” on page 570. p.164
The segment reporting in financial statements is based on the criteria set out in Ind AS 108, Operating Segments, and these segments are not presented as operating segments. p.164
Global economic growth grew at 3.5% in CY2025 according to the International Monetary Fund (IMF). p.164
Emerging & Developing Asia is projected to maintain growth between 4.8% and 5.6% during CY2024-CY2028P, driven by domestic demand and infrastructure investments. p.166
India's GDP is projected to grow at 6.4% in CY2026 and 6.7% in CY2027 according to the IMF. p.168
India's Real GDP for FY 2026 is estimated to reach INR 323.12 lakh crore, representing a growth rate of 7.7% in 2026. p.168
Commodity prices are expected to reflect an increase of around 32% for crude oil and 22% for natural gas compared to 2025. p.168
The strategic importance of critical-mineral supply concentration is highlighted by China dominating the global rare earth supply chain. p.168
The industrial sector experienced steady growth momentum in FY 2026, recording 7.9% year-on-year growth against 7.3% year-on-year growth in FY 2025. p.169
Growth in mining activities within the industrial sector was 5.15% in FY 2026 compared to 11.69% in FY 2025. p.169
The utilities sector growth moderated to 1.74% in FY 2026 from 2.87% in the previous year. p.169
The services sector continued to be the main driver of economic growth, expanding by 9.3% in FY 2026 from 7.9% in FY 2025. p.169
The services sector's contribution to GVA rose from 51.7% in FY 2024 to 52.0% in FY 2025, and further increased to 52.7% in FY 2026. p.169
The agriculture sector's contribution to GVA declined marginally from 19.2% in FY 2024 to 17.8% in FY 2026. p.170
Annual and Monthly IIP growth moderated in FY 2026, recording 4.3% year-on-year growth compared with 5.2% in FY 2025. p.170
The manufacturing sector grew by 4.8% in FY 2026 compared with 6.0% in FY 2025. p.170
The Electricity & Gas Supply sector recorded growth of 0.8% in FY 2026 compared with 5.7% in the previous year. p.170
Water Supply, Sewerage & Waste Management grew by 6.4% in FY 2026 compared with 11.9% in FY 2025. p.170
Mining & Quarrying growth improved to 3.7% in FY 2026 from 2.8% in FY 2025. p.170
In the latest month shown (July 2026), IIP growth stood at 6.1% year-on-year compared with 4.2% in May and 8.4% in June 2026. p.171
Manufacturing grew by 7.0% in July 2026. p.171
Electricity & Gas Supply grew by 5.9% in July 2026. p.171
Gross Fixed Capital Formation (GFCF) showed 8.16% year-on-year growth in FY 2026 compared with 6.41% in FY 2025. p.171
The Investment-to-GDP ratio reached its highest level at 34.8% in Q2 FY 2025-26. p.172
Private Final Consumption Expenditure (PFCE) growth showed significant momentum in FY 2025-26, with growth reaching 8.7% in Q1. p.173
Private Consumption trend growth eased to 6.0% in Q1 FY 2026-27. p.173
All India Wholesale Price Index (WPI) inflation for July 2026 was 9.7 per cent on a year-on-year (YoY) basis. p.173
All India CPI inflation increased from 2.7% in January 2026 to 4.0% in July 2026. p.174
The RBI initiated an easing cycle in February 2025, delivering a cumulative 125 basis points of rate cuts through four reductions. p.175
The Union Budget 2026–27 proposes a public capital expenditure outlay of INR 12.2 lakh crore to strengthen infrastructure. p.175
The India–EU FTA negotiations concluded in January 2026, providing preferential access across 97% of EU tariff lines covering 99.5% of trade value. p.176
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force on June 1, 2026, covering 98.08% of Oman's tariff lines and 99.38% of India's exports by value. p.176
The Government launched the Production Linked Incentive (PLI) scheme to attract private investment into setting up manufacturing units in various sectors. p.177
The infrastructure sector received a strong boost in Budget FY'27, marked by a record INR 12.2 trillion public capital expenditure allocation. p.177
India's per capita Private Final Consumption Expenditure (PFCE) is estimated to increase to INR 1,38,324 in Fiscal 2026 FE. p.178
The share of the middle class is expected to cross 60% by 2047. p.178
India is poised to become the world's third-largest economy with a projected GDP of USD 5 trillion within the next three years. p.179
India currently holds the position of the fifth-largest economy globally, following the US, China, Japan, and Germany. p.179
India is anticipated to surpass both Germany and Japan to reach the third-largest spot by 2027-28. p.179
India’s per capita GDP is projected to grow at a compound annual growth rate of 7.9% from CY 2024 to CY 2031, driven by the service sector accounting for over 50% of India's GDP. p.180
The urban population in India is projected to rise from 33.81% in 2019 to cross 38.6% by 2030. p.181
The share of urban population in total population is forecasted to cross 38.6% by 2030. p.181
FDI inflows in India witnessed a decline of 15% in FY 2023 and a decline of 0.1% in FY 2024 due to global uncertainties. p.182
India relies heavily on coal but is expanding its use of oil, natural gas, nuclear energy, hydropower, and renewables like solar and wind. p.182
The COP 29 Presidency highlighted a pledge to deploy 1,500 GW of energy storage globally by 2030. p.183
The COP 29 Presidency discussed initiatives to scale up renewable, clean/zero-emission, and low-carbon hydrogen production. p.183
Discussions at COP 29 included focusing on scaling up global commitments for Carbon Capture, Utilization, and Storage (CCUS). p.183
Discussions at COP 29 focused on Waste-to-Energy (WTE) for reducing landfill waste, cutting methane emissions, and supporting clean energy transitions. p.184
Key opportunities for COP 29 included expanding energy storage and electricity grids with a target of achieving 1,500 GW of energy storage capacity by 2030. p.184
Enhancing clean energy investment in developing economies requires a threefold increase in annual concessional funding, reaching USD 115 billion by 2030. p.184
The global energy transition is shaped by decarbonization, energy security, sustainability, climate resilience, electrification, and technological advancement. p.184
Global energy investment is expected to reach a record USD 3.4 trillion in 2026, with approximately USD 2.2 trillion flowing towards clean-energy technologies and infrastructure. p.184
The future energy system is expected to become increasingly decentralized, digitalised, electrified, flexible, and integrated. p.185
Battery storage is becoming a core component of future power systems to absorb excess renewable electricity and release it when demand rises or output declines. p.185
Global battery-storage deployment reached 108 GW in 2025, which is 40% higher than in 2024. p.185
Solar PV accounted for more than three-quarters of the total increase in renewable power capacity added globally in 2025. p.187
Asia accounted for 74.2% of global renewable capacity additions in 2025, increasing its cumulative renewable capacity to approximately 2,895 GW. p.187
China was the primary contributor to renewable capacity additions in 2025, adding approximately 440.1 GW. p.187
Global solar PV capacity reached 2,383.16 GW at the end of CY2025. p.188

History & corporate structure

How the company came to be: key milestones, subsidiaries, acquisitions and restructurings.

pp. 320–326

The company's history began with its incorporation as Winwin Building Materials Private Limited in Ahmedabad, Gujarat, on September 5, 2013. The company subsequently changed its name to Grace Renewable Energy Private Limited, and a fresh incorporation certificate was issued on February 22, 2017. A significant corporate milestone occurred on May 17, 2024, when the company converted from a private limited company to a public limited company and changed its name to Grace Renewable Energy Limited. Several amendments to the Memorandum of Association regarding business scope, share capital, and name changes were documented between 2017 and 2024. The company has achieved numerous awards and milestones related to solar EPC operations, industry leadership, and international market entry. Furthermore, a separate strategic division, Grace BESS, was launched in 2026.

Key points (18)

The company was originally incorporated as Winwin Building Materials Private Limited in Ahmedabad, Gujarat. p.320
The name of the company was changed to Grace Renewable Energy Private Limited, and a fresh certificate of incorporation was issued on February 22, 2017. p.320
The company was converted from a private limited company to a public limited company and the name was changed to Grace Renewable Energy Limited on May 17, 2024. p.320
The registered office address was changed on February 22, 2017. p.320
The main objects include carrying on the business of developing, promoting, and dealing in renewable and non-conventional energy projects and infrastructure. p.321
The company has received various awards, including emerging company recognition in rooftop solar and industry leadership awards between 2019 and 2023. p.321
The company crossed ₹100.00 Crore in revenue by 2025. p.321
A separate strategic division, Grace BESS, was launched as a division under the Grace BESS brand. p.324
The Company does not have any associate companies as of the date of this Draft Red Herring Prospectus. p.325
There are no agreements entered into by the Company and Shareholders of the Company, or inter-se agreements with the Shareholders regarding securities rights and obligations. p.325
There are no agreements entered into by Key Managerial Personnel, Senior Management Personnel, Director, Promoters, or any other employee with any shareholder or third party concerning compensation or profit sharing in connection with securities dealings. p.325
The Company has not entered into any material shareholders’ agreement or subsisting material agreement other than in the ordinary course of business. p.325
There are no agreements required to be disclosed under Clause 5A of paragraph A of part A of Schedule III of SEBI Listing Regulations entered into by various parties. p.325
There are no special rights available to the Promoters and/or Shareholders vis-à-vis the Company. p.326
There is no conflict of interest between the Company and suppliers of raw materials and third-party service providers. p.326
There is no conflict of interest between the Company and lessors of immovable properties, except as disclosed below. p.326
A lease agreement for the Registered Office (404 Sarthik Square, Nr. Pakwan Cross Road, S.G. Highway, Bodakdev, Ahmedabad, 380054) is in place with Manish Bagadia (Promoter, Chairman and Managing Director) starting October 24, 2024, for 72 months. p.326
A lease agreement for a Godown No. 527, Plot No. 2, The Waterside, Narmada Canal, Sarkhej, Gujarat, is in place with Karuna Bagadia (Promoter and Whole Time Director) starting October 24, 2024, for 72 months. p.326

The IPO terms and where the money goes

Cover & definitions

Headline offer terms and the glossary the rest of the document relies on.

pp. 5–30

This section defines various terms and abbreviations used in the Draft Red Herring Prospectus. It specifies that certain terms will have meanings as provided below, and that definitions provided herein shall prevail over those in the General Information Document in case of inconsistency. Key entities such as the Company, its officers, and various regulatory concepts are defined.

Key points (30)

The company is Grace Renewable Energy Limited. p.5
The registered office address of the company is 404-406, Sarthik Square, Near Pakwan Cross Road, S.G Highway, Bodakdev, Ahmedabad – 380054, Gujarat, India. p.5
The statutory auditors of the company are Tibrewal Bhagat and Associates. p.5
The Chairman and Managing Director of the company is Manish Bagadia. p.5
The Chief Financial Officer of the company is Dipesh Mancharam Prajapati. p.5
The practicing company secretary appointed in relation to the Offer is VTSN & Associates LLP, which holds a valid certificate of peer review bearing number 6373/2025. p.5
The company's manufacturing facility includes Godown no. 527, Plot No. 2, The Waterside, Narmada Canal Road, Sarkhej Bawala Highway, Ahmedabad 382210 and Industrial Plot No. E-310 + E-311 + E-312, Sanand-II Industrial Estate, GIDC, Ahmedabad, Gujarat. p.6
The Registrar of Companies is the Registrar of Companies, Gujarat at Ahmedabad. p.7
The book running lead manager for the offer is Marwadi Chandarana Intermediaries Brokers Private Limited. p.10
The Bid/Offer Period must be kept open for a minimum of three Working Days for all categories of Bidders other than Anchor Investors. p.10
The Red Herring Prospectus is a draft filed with SEBI and Stock Exchanges that does not contain complete particulars of the price at which the Equity Shares will be Allotted. p.11
The Offer includes a Fresh Issue of up to 84,15,000 Equity Shares of face value of ₹ 10 each. p.12
The Offer includes an Offer for Sale of up to 27,85,000 Equity Shares. p.12
The Price Band has a minimum price (Floor Price) and a maximum price (Cap Price), where the Cap Price is at least 105% of the Floor Price and less than or equal to 120% of the Floor Price. p.14
KFIN Technologies Limited is named as the Registrar to the Offer. p.15
Retail Portion is defined as not less than 35% of the Offer consisting of Equity Shares of face value of ₹10 each. p.15
Applications through UPI can be made only through SCSBs mobile applications whose names appear on the SEBI website. p.16
UPI Bidders may apply through SCSBs and mobile applications whose names appear on the website of SEBI as listed in specific SEBI circulars. p.16
UPI Bidder(s) is collectively defined as individual investors applying as Retail Individual Investors in the Retail Portion and individuals applying as Non-Institutional Investors with a Bid Amount of up to ₹5.00 Lakh in the Non-Institutional Portion and bidding under the UPI Mechanism. p.17
UPI Mandate Request is defined as a request to UPI Bidders using the UPI Mechanism to authorize blocking of funds equivalent to the Bid Amount in the relevant ASBA Account. p.17
Regulations from SEBI include the ICDR Master Circular and Insider Trading Regulations. p.20
The section lists various regulations from SEBI, including those for Merchant Bankers, Mutual Funds, Listing Obligations, and Stock Brokers. p.20
The section lists regulations concerning the prohibition of insider trading and various financial regulations. p.20
The company's financial year commences on April 1 of the immediately preceding calendar year and ends on March 31 of that particular calendar year. p.25
Financial information is derived from restated financial statements for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, prepared in accordance with various accounting standards. p.25
Certain non-GAAP financial measures are disclosed, which are not required by Ind AS, Indian GAAP, IFRS, or U.S. GAAP, and should not be considered in isolation. p.26
Industry and market data is derived from a report titled “Solar Power EPC and BESS Segment, Globally & in India” dated September 29, 2026, prepared by Dun & Bradstreet Information Services Private Limited (D&B). p.27
The Equity Shares have not been recommended by any U.S. federal or state securities commission, and the offering is outside the United States in reliance on Regulation S. p.28
Promoter Selling Shareholders must ensure investors in India are informed of material developments from the date of the Draft Red Herring Prospectus until the date of Allotment. p.30
Statements and undertakings confirmed by each Promoter Selling Shareholder individually shall be deemed statements made as of the date of the Draft Red Herring Prospectus. p.30

The offer

How many shares are being sold, by whom, and on what terms.

pp. 83–91

This section details the structure of the offer, outlining various components such as the total equity shares, the breakdown into Fresh Issue and Offer for Sale, and the composition of the Net Offer. The Net Offer is further segmented into QIB and Non-Institutional portions, with specific provisions for allocation to different investor categories like Mutual Funds, Life Insurance Companies, and Pension Funds. The text also specifies rules regarding employee reservations and the eligibility criteria for different bidder types.

Key points (19)

The Company may offer an Employee Discount up to 60% to Eligible Employees, subject to necessary approvals. p.83
The total offer is up to 1,12,0 Equity Shares with a face value of ₹10 each. p.83
The Fresh Issue is up to 84,15,000 Equity Shares with a face value of ₹10 each. p.83
The Offer comprises an Employee Reservation Portion. p.83
The Net Offer includes a QIB Portion, which is further divided into an Anchor Investor Portion and a Net QIB Portion. p.83
The Anchor Investor Portion reserves 40% for domestic Mutual Funds and 6.67% for Life Insurance Companies and Pension Funds. p.83
The Non-Institutional Portion reserves one-third for bidders with an application size between ₹2.00 Lakh and ₹10.00 Lakh, and two-thirds for bidders with an application size above ₹10.00 Lakh. p.83
The Net QIB Portion reserves 5% for allocation to Mutual Funds only, and the remainder is for all QIB Bidders. p.83
Eligible Employees must ensure the maximum Bid Amount does not exceed ₹0.50 millions (net of Employee Discount), with an initial allotment not exceeding ₹0.20 millions. p.83
Allocation to Non-Institutional Bidders is subject to a minimum application size, and the allocation to each bidder shall not be less than the minimum Bid Lot. p.83
The Offer has been authorized by a Board resolution on August 27, 2026, and the Fresh Issue was authorized by a Special Resolution on September 13, 2026. p.84
Promoter Selling Shareholders confirmed their participation in the Offer for Sale via consent letters dated September 25, 2026. p.84
The Equity Shares being offered by Promoter Selling Shareholders are eligible for sale under Regulation 8 of the SEBI ICDR Regulations. p.84
Revenue from operations for the year ended March 31, 2026 was 2,058.36 INR Millions. p.88
Total Income for the year ended March 31, 2026 was 2,062.73 INR Millions. p.88
Profit / (loss) before tax for the year ended March 31, 2026 was 251.34 INR Millions. p.88
Net Cash Flow from Operating Activities for the year ended March 31, 2026 was 111.87 INR Millions. p.89
Total liabilities arising from financing activities as of March 31, 2026, were 63.94 INR Millions. p.90
Corporate Guarantees given to Banks as of March 31, 2026, were 21.42 INR Millions. p.91

Capital structure

Who owns what today, past share issues and what the shareholding looks like after the IPO.

pp. 102–126

This section details the capital structure of the company as at the date of the Draft Red Herring Prospectus, including the authorized and issued share capital. It outlines various components of the offer structure, such as fresh issues and offers for sale, and mentions provisions related to employee reservations. Furthermore, the document provides a history of equity share allotments, detailing the dates, number of shares allotted, face value, issue price, and the nature of the allotment, including cash and bonus issues.

Key points (33)

The authorized share capital is 4,40,0 Equity Shares with a face value of ₹10 each, aggregating to ₹44,00,0. p.102
The offer is authorized for up to 1,12,0 Equity Shares with a face value of ₹10 each. p.102
The initial allotment of equity shares occurred on September 5, 2013, involving 10,000 shares allotted to Vivek Pawankumar Agrawal and Manish Bagadia. p.104
An allotment occurred on March 30, 2024, involving 29,50,000 shares allotted to Manish Bagadia, Karuna Bagadia, Rajshree Bagadia, Savitridevi Family Trust, Harsh Bagadia, Arun Bagadia (HUF), Manish Bagadia (HUF), and Mitosh Arunkumar Bagadia. p.104
An allotment occurred on January 25, 2025, involving 1,26,0 shares allotted to Manish Bagadia, Karuna Bagadia, Manish Bagadia (HUF), Arun Kumar Bagadia, Harsh Bagadia, Prasant Agarwal, Patel Jigar, and Radhika Niravkumar Bhut. p.105
A bonus issue was conducted on March 30, 2024, in the ratio of 1:59 equity shares for every 1 equity share held. p.107
A bonus issue was conducted on January 25, 2025, in the ratio of 42 equity shares for every 10 equity shares held. p.107
A bonus issue was conducted on August 27, 2026, in the ratio of 127 equity shares for every 100 equity shares held. p.108
The company has not issued any shares out of revaluation reserves since its incorporation. p.109
The company has not allotted any equity shares pursuant to any scheme of arrangement sanctioned under Sections 391 to 394 of the Companies Act, 1956 or Sections 230 to 234 of the Companies Act, 2013 as of the date of the Draft Red Herring Prospectus. p.109
The company does not have any employee stock option schemes as of the date of the Draft Red Herring Prospectus. p.109
The Offer Price shall be determined by the Company in consultation with the BRLM after the Bid/Offer Closing date. p.109
The company has not issued any Equity Shares at a price which may be lower than the Offer price during the one year immediately preceding the date of this Draft Red Herring Prospectus, except as stated on page 99. p.109
The shareholding pattern as of the Draft Red Herring Prospectus is set forth in a table. p.110
Manish Bagadia held 69.40% of the pre-Offer Equity Share capital as of the date of the Draft Red Herring Prospectus. p.112
The total shareholding of Promoters (including Promoter Selling Shareholders) was 99.60% as of the date of the Draft Red Herring Prospectus. p.113
Manish Bagadia's shareholding percentage changed from 69.40% pre-offer to 69.40% post-offer for a transaction on September 5, 2013. p.115
A Bonus Issue on March 30, 2024 resulted in a 5.00% change in shareholding for Manish Bagadia. p.115
A Bonus Issue on August 27, 2026 resulted in a 38.82% change in shareholding for Karuna Bagadia. p.116
A series of equity share transfers occurred on July 05, 2017, involving various parties such as Manish Bagadia HUF, Mitosh Arunkumar Bagadia, Rajshree Bagadia, Savitridevi Family Trust, Harsh Trust, Sunita Bagadia, and Arun Kumar Bagadia. p.117
A Bonus Issue occurred on March 30, 2024, resulting in a 2.50% change in post-offer equity share capital. p.117
A Bonus Issue occurred on January 25, 2025, resulting in a 10.67% change in post-offer equity share capital. p.117
A Bonus Issue occurred on August 27, 2026, resulting in a 16.78% change in post-offer equity share capital. p.117
A total of 30.00% of equity shares were accounted for in the transactions detailed on page 117. p.117
A transaction involving Harsh Bagadia included a transmission on April 10, 2022. p.118
No equity shares held by promoters or members of the promoter group were pledged or otherwise encumbered as of the Draft Red Herring Prospectus date. p.121
All equity shares held by the promoters and members of the promoter group were fully paid-up on the respective dates of allotment and/or acquisition. p.121
An aggregate of at least 20% of the fully diluted post-Offer Equity Share capital held by promoters shall be locked in for eighteen months or any other period as prescribed under the SEBI ICDR Regulations. p.123
Promoters’ shareholding in excess of 20% shall be locked in for a period of six months from the date of the Allotment, except for Equity Shares offered by Promoter Selling Shareholders in Offer for Sale. p.123
The entire pre-Offer Equity Share capital of the Company will be locked in for a period of six months from the date of Allotment in addition to the 20% requirement. p.124
The Equity Shares held by the Promoters and offered for Promoter’s Contribution are not subject to pledge with any creditor or any other encumbrance. p.124
The 50% of the Equity Shares allotted to Anchor Investors under the Anchor Investor Portion shall be locked in for a period of 90 days from the date of Allotment. p.124
Transactions in the Equity Shares by the Promoter and the Promoter Group between the date of filing of this Draft Red Herring Prospectus and the date of closure of the Offer shall be intimated to the Stock Exchanges within 24 hours of such transaction. p.126

Use of proceeds

What the money raised will be spent on: growth, debt repayment or promoters cashing out.

pp. 127–163

The offer involves a Fresh Issue of equity shares and an Offer for Sale by Promoter Selling Shareholders. The proceeds from the Offer for Sale will be received by the selling shareholders after deducting proportionate offer-related expenses, and the company will not receive any such proceeds. The proposed utilization of the net proceeds is intended to fund incremental working capital requirements and general corporate purposes. The company anticipates that the funds raised will support the existing business activities and the expansion of operations.

Key points (72, showing 60)

The Offer comprises a Fresh Issue of up to 84,15,000 Equity Shares and an Offer for Sale of up to 27,85,000 Equity Shares. p.127
The Promoter Selling Shareholders have been authorized to participate in the Offer for Sale to the extent of their respective portion of the offered shares. p.127
The Net Proceeds are proposed to be utilized for funding incremental working capital requirements. p.128
The Net Proceeds are also proposed to be utilized for General Corporate Purposes. p.128
The funding of incremental working capital requirements is expected to lead to a consequent increase in profitability and achieving proposed targets. p.129
The proposed Fresh Issue proceeds are not intended to be utilized towards the capital expenditure of the Proposed Manufacturing Facility. p.131
Inventories increased from ₹8.01 Crore as at March 31, 2025 to ₹12.49 Crore as at March 31, 2026, representing an increase of ₹4.48 Crore or 55.89%. p.132
Loans increased from nil as at March 31, 2025 to ₹2.01 Crore as at March 31, 2026. p.132
Other financial assets decreased from ₹25.30 Lakh as at March 31, 2025 to ₹5.20 Lakh as at March 31, 2026, representing a decrease of ₹20.10 Lakh or 79.45%. p.134
Other current assets increased significantly from ₹3.13 Crore as at March 31, 2025 to ₹7.18 Crore as at March 31, 2026, an increase of ₹4.05 Crore or 129.25%. p.134
Trade payables increased from ₹18.70 Lakh as at March 31, 2025 to ₹60.30 Lakh as at March 31, 2026, representing an increase of ₹41.60 Lakh. p.135
Other current financial liabilities increased from ₹25.00 Lakh as at March 31, 2025 to ₹51.20 Lakh as at March 31, 2026, representing an increase of ₹26.20 Lakh or 104.80%. p.136
Internal Accruals are accounted for as a source of funds. p.137
IPO Proceeds are accounted for as a source of funds. p.137
Net Working Capital as at March 31, 2027 is estimated at 1,581.51. p.137
Borrowings are accounted for as a source of funds. p.137
A substantial portion of the cost of an EPC project relates to the procurement of equipment and materials which are generally required to be funded before equipment is delivered to the project site and before the corresponding payment is received from the customer. p.140
Working capital requirement is influenced by the need to procure and maintain adequate inventory, advances to suppliers, project-related expenditure, and the timing of billing and collection from customers. p.141
In the BESS business, inventory requirements are relatively higher as key components are required to be procured and stocked ahead of production and project execution. p.141
The combination of operating-cycle requirements results in a higher working capital requirement as the scale of the BESS business increases. p.141
The expected increase in working capital is driven by increased procurement and inventory requirements for EPC and BESS activities. p.141
The expected increase in working capital is driven by longer procurement lead times for certain imported BESS components. p.141
The expected increase in working capital is driven by limited supplier credit and the resulting requirement to make advance payments. p.141
The expected increase in working capital is driven by increased work-in-process and finished goods requirements associated with BESS manufacturing. p.141
The expected increase in working capital is driven by increased trade receivables arising from higher business volumes and the timing of billing and collections. p.141
The expected increase in working capital is driven by the expected scaling-up of the BESS business following commencement of operations at the proposed manufacturing facility. p.141
The proposed working capital funding of ₹79.31 Crore is intended to finance incremental working capital arising from operating requirements and expected increases in EPC and BESS businesses. p.142
A portion of the Net Proceeds is expected to be utilized towards general corporate purposes, not exceeding 25% of the Gross Proceeds. p.142
The balance of the Net Proceeds is proposed to be deployed towards general corporate purposes, subject to not exceeding 25% of the Gross Proceeds. p.142
The Net Proceeds may be applied for meeting ongoing corporate exigencies, incurring business expenses, supporting business development, inorganic growth, and funding employee welfare activities. p.142
The company will appoint a SEBI-registered credit rating agency as a monitoring agency to monitor the utilization of the Gross Proceeds. p.143
The Monitoring Agency will submit quarterly reports detailing the utilization of Gross Proceeds item-by-item for all expense heads. p.143
The company will disclose the utilization of Gross Proceeds in the balance sheet and in quarterly financial results. p.143
Offer-related expenses include listing fees, underwriting fees, selling commission, fees to the Book Running Lead Manager, legal counsel fees, and various other incidental expenses. p.144
Expand our battery energy storage systems manufacturing capabilities to capitalise on the growing demand for integrated energy storage solutions is a qualitative factor. p.147
Expand our customer base by broadening our geographic footprint while deepening ties with existing customers and key stakeholders is a qualitative factor. p.147
Focus on increasing operational and financial efficiency is a qualitative factor. p.147
Exploring opportunities to expand our portfolio and scale our operations is a qualitative factor. p.147
Basic Earnings per share for Fiscal 2026 is 5.27. p.147
Weighted Average EPS is 3.83. p.147
The highest industry P/E ratio based on peer company information is 19.50. p.148
The average industry P/E ratio is 16.70. p.148
Return on Net Worth for Fiscal 2026 is 49.51%. p.148
Return on Net Worth for Fiscal 2025 is 51.33%. p.148
Return on Net Worth for Fiscal 2024 is 62.534%. p.148
The Net Asset Value per Equity Share as of March 31, 2026 is 10.66 ₹. p.148
Revenue from operations for Fiscal 2026 is ₹205.84 Crore. p.151
EBITDA Margin for Fiscal 2026 is 12.53%. p.151
Restated profit for the year for Grace was 186.67, while for Waaree Energies Ltd it was 746.75. p.152
The Net Working Capital Days for Grace was 39, while for SPML Infra Ltd it was 68. p.152
Revenue from Operations for Grace was 1204.92, and for Waaree Energies Ltd it was 2300.76. p.152
The EBITDA Margin for Grace was 10.63%, while for SPML Infra Ltd it was 18.81%. p.152
The Return on Equity for Grace was 68.91%, while for SPML Infra Ltd it was 28.06%. p.152
The Revenue from Operations for Grace for the financial year ended March 31, 2025 was 1204.92. p.152
The Return on Capital Employed for Grace for the financial year ended March 31, 2025 was 81.03%. p.152
The Revenue from Operations for Grace for the financial year ended March 31, 2024 was 779.09. p.153
The Company is entitled to claim a deduction under Section 80JJAA of the Income Tax Act for the employment of new employees, equal to 30% of the additional employee cost, for three assessment years. p.160
Deduction is available for certain inter-corporate dividends under Section 80M of the Income Tax Act, which allows deduction from gross total income. p.160
There is no special direct tax benefit available to the shareholders of the Company for investing in the company's shares. p.161
Long-term capital gains arising from the transfer of equity shares are taxed at 12.5% without indexation, subject to securities transaction tax. p.161

The numbers behind the story

Financial information

Revenue, profit, debt, cash flow and the auditors' notes behind them.

pp. 354–479

This section details the Independent Auditors' Examination Report on the Restated Financial Information of Grace Renewal Energy Limited for the years ended March 31, 2026, March 31, 2025, and March 31, 2024. The report confirms that the financial information was compiled from audited Ind AS Financial Statements and Special Purpose Ind AS Financial Statements, and it was prepared in accordance with applicable accounting standards and regulations. The auditors have expressed that the financial information has been adjusted retrospectively for changes in accounting policies and that the report does not reflect events subsequent to March 31, 2026.

Key points (326, showing 60)

The examination covered the Restated Financial Information for the years ended March 31, 2026, March 31, 2025, and March 31, 2024. p.355
The Restated Financial Information was compiled from Audited Ind AS Financial Statements of the Company for the year ended March 31, 2026. p.356
The Restated Financial Information included Special Purpose Ind AS Financial Statements for the years ended March 31, 2025 and March 31, 2024. p.356
The financial information for the years ended March 31, 2025 and March 31, 2024 was based on previously issued statutory financial statements. p.357
The Restated Financial Information was prepared after incorporating adjustments for changes in accounting policies, material errors, and regroupings/reclassifications retrospectively. p.357
The Restated Financial Information was prepared in accordance with the Act, the ICDR Regulations, and the Guidance Note. p.357
The Restated Financial Information does not reflect the effects of events that occurred subsequent to March 31, 2026. p.357
Property, Plant & Equipments stood at ₹4.63 Crore as of March 31st, 2026. p.359
Total Non-Current Assets were ₹23.32 Crore as of March 31st, 2026. p.359
Inventories were ₹12.49 Crore for the year ended March 31st, 2026. p.360
Revenue from operations for the year ended March 31st, 2026 was ₹205.84 Crore. p.360
Total Income for the year ended March 31st, 2026 was ₹206.27 Crore. p.360
Profit / (loss) before tax for the year ended March 31st, 2026 was ₹25.13 Crore. p.360
Net Cash Flow from Operating Activities for the year ended March 31st, 2026 was ₹11.19 Crore. p.361
Current borrowings for the year ended March 31st, 2026 was ₹1.31 Crore. p.362
Current lease liabilities for the year ended March 31st, 2026 was ₹4.40 Lakh. p.362
Total liabilities arising from financing activities for the year ended March 31st, 2026 was ₹6.39 Crore. p.362
Restated Financial Information was prepared for inclusion in the Draft Red Herring Prospectus (DRHP), Red Herring Prospectus (RHP) and the Prospectus to be filed with SEBI. p.364
The special purpose Ind AS financial statements for the year ended March 31, 2025 were prepared in accordance with Indian Accounting Standard (referred to as “Ind AS”) as prescribed under Section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2015, and other recognized accounting practices and policies generally accepted in India. p.365
The special purpose Ind AS financial statements for the years ended March 31, 2025 and March 31, 2024 have been prepared using financial statements which were earlier prepared in accordance with Indian GAAP financial statements for the respective periods. p.365
The Company has transitioned to Ind AS in the financial year March 31, 2026 and prepared financial statements for the year ended March 31, 2026 in accordance with Indian Accounting Standards as specified under Companies (India Accounting Standards) Rules 2015. p.365
The transition date considered for the purpose of Special Purpose Ind AS Financial Statements for the years ended March 31, 2025 and March 31, 2024 is April 1, 2023, which is different from the transition date adopted by the Company for the first Ind AS compliant financial statements. p.366
The Restated Financial Information do not require any adjustment for modification as there is no modification in the underlying audit reports. p.366
Qualifications in the Auditor’s report and Annexure to the auditors’ report issued under Companies (Auditor’s Report) Order, 2020, which do not require any corrective adjustments in the Restated Financial Information have been disclosed in note 47 to the Restated Financial Information. p.366
The Ind AS Financial Statements have been audited by M/s. Tibrewal Bhagat & Associates, Chartered Accountants. p.367
All amounts included in the Ind AS Financial Statements are reported in Indian Rupees Lakhs (“INR in Lakhs” or “Rs. In Lakhs”), which is also the Company’s functional currency. p.367
The Ind AS Financial Statements have been approved by the board of directors at its meeting held on August 01, 2026. p.367
Provisions for tax income and expense are established based on reasonable estimates due to uncertainties in tax regulations and future changes. p.369
The cost of defined benefit plans (gratuity benefit) is determined using actuarial valuations involving assumptions like discount rates, salary increases, mortality rates, and pension increases. p.369
Fair values of financial assets and liabilities that cannot be measured by quoted market prices are measured using valuation techniques such as the discounted cash flow (DCF) model. p.369
Financial assets are initially recognised at fair value, and transaction costs not at Fair Value Through Profit or Loss (FVTPL) are adjusted to fair value on initial recognition. p.369
Financial assets held within a business model to collect contractual cash flows and with cash flows consisting solely of principal and interest payments are measured at Amortised Cost (AC). p.369
Property, plant and equipment is measured initially at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses. p.370
The cost of property, plant and equipment includes purchase price, import duties, non-refundable taxes, directly attributable costs, and initial estimates of decommissioning, restoration, and similar liabilities. p.370
Indirect expenses related to project development prior to intended use are considered as pre-operative expenses and disclosed under Capital Work-in-Progress (CWIP). p.370
Depreciation on property, plant and equipment is provided using the Written-Down Value (WDV) Method based on the useful life prescribed in Schedule II of the Act. p.370
Useful lives for various asset classes include Building (30 years), Plant & Machinery (15 years), Furniture & Fixtures (10 years), Vehicle/Motor Cars (8 years), Office Equipment (5 years), Computer & Software (3 years), Mobile Phones (5 years), Electrical Equipment (10 years), and Other Assets (10 years). p.370
Carrying amount of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. p.371
Costs incurred during the implementation of a project until commissioning are accounted for as capital work-in-progress, which is then transferred to property, plant and equipment upon commissioning. p.371
Investment property is classified as property held for long-term rental yields or capital appreciation, and its fair value is disclosed based on annual evaluations by an external independent valuer. p.372
Intangible assets are initially measured at cost and subsequently measured at cost less accumulated amortisation and any accumulated impairment losses. p.372
Intangible assets with finite lives are amortised over the estimated useful economic life using the Written-Down Value (WDV) Method. p.372
Lease liabilities are recognised at the commencement date as the present value of lease payments, using the incremental borrowing rate when the implicit interest rate is not readily determinable. p.373
Short-term leases (12 months or less without a purchase option) and leases of low-value assets qualify for recognition as an expense on a straight-line basis over the lease term. p.373
Financial assets not classified in specific categories are measured at Fair Value Through Profit or Loss (FVTPL). p.374
Net gains and losses from financial assets, including interest or dividend income, are recognized in profit or loss. p.374
Changes in the business model for managing financial assets are applied prospectively from the reclassification date. p.374
Expected Credit Loss (ECL) model is used for evaluating impairment of financial assets other than those measured at FVTPL. p.374
Loss allowance for trade receivables is measured using a provision matrix based on expected loss rates determined with reference to historical payment defaults/collection experience across ageing buckets. p.374
For other assets, the Company uses 12-month ECL to provide for impairment loss where there is no significant increase in credit risk; full lifetime ECL is used if there is a significant increase in credit risk. p.374
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet only when the Company has a legally enforceable right to set off the amount and intends to settle on a net basis or realize the asset and settle the liability simultaneously. p.374
Revenue from contracts with customers is recognized to the extent that it is probable that economic benefits will flow to the Company and the revenue can be reliably measured. p.374
Revenue is measured net of Goods and Services Tax (GST), trade discounts, rebates, sales returns, and other similar adjustments. p.374
Product revenue is recognized when control of the goods is passed to the customer. p.374
Financial liabilities are recognized at fair value and, for borrowings, net of directly attributable cost. p.375
Financial liabilities are carried at amortised cost using the effective interest method. p.375
Trade and other payables maturing within one year from the balance sheet date have carrying amounts that approximate fair value due to short maturity. p.375
Non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine impairment. p.376
The recoverable amount of a Cash Generating Unit (CGU) is the higher of its value in use and its fair value less costs to sell. p.376
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. p.376

What could go wrong, per the company

Risk factors

The risks the company is legally required to disclose, in its own words.

pp. 31–82

Investors should be aware that the company's operations and revenues are heavily concentrated in the state of Gujarat, exposing them to risks from local economic, political, regulatory, environmental, or infrastructural changes. Furthermore, the business is exposed to various risks related to the availability and supply of critical components from key suppliers, especially for Battery Energy Storage Systems (BESS). The Trading vertical's financial performance is significantly dependent on sustained demand for traded products and the stability of arrangements with manufacturers. The Trading vertical is also subject to various contractual restrictions imposed by channel partner agreements, which can limit flexibility and affect operations.

Key points (177, showing 60)

Adverse economic, political, regulatory, environmental or infrastructural developments in Gujarat may materially and adversely affect the business, financial condition, results of operations, cash flows and growth prospects. p.31
Solar EPC projects and BESS manufacturing operations are predominantly located in Gujarat, exposing the business to conditions prevailing in the state. p.32
Business operations are exposed to changes in state or local laws, regulations, policies, or government programmes relating to renewable energy, power infrastructure, energy storage and manufacturing. p.32
Business operations may be affected by changes in demand for solar power projects and energy storage solutions. p.32
Operations may be affected by the availability and cost of land, labour, utilities, and other resources, adequacy of road, power, transmission and other infrastructure, and transportation and logistics constraints. p.32
Adverse climatic, environmental or other conditions in Gujarat may disrupt project execution and manufacturing operations, damage facilities or inventory, or result in increased operating or project costs. p.32
The company's purchases are significantly concentrated among a limited number of suppliers. p.33
A significant portion of purchases may be concentrated among a limited number of suppliers, and any disruption in the relationship with such suppliers or their inability to supply critical components may adversely affect the business and results of operations. p.33
The business requires procuring solar modules, inverters, lithium-ion cells, BMS components, and other electrical, electronic and mechanical components. p.33
BESS manufacturing operations require imported lithium-ion cells and other critical components sourced from international suppliers located in China. p.33
Disruption in the supply of products or components from significant suppliers may require the company to identify and qualify alternative sources of supply. p.33
Any failure by significant suppliers to fulfil orders, deterioration in their financial or operational condition, production disruptions, quality issues, capacity constraints, or changes in their commercial terms may adversely affect the availability or cost of required products and components. p.33
The Trading vertical's financial performance is significantly dependent on the ability to sustain the revenues generated from the Trading vertical. p.33
The Trading vertical is subject to various contractual restrictions under channel partner arrangements, including restrictions on products, pricing, procurement, sales channels, and dealings with competing products, which may limit flexibility. p.34
The ability to conduct the Trading business is subject to various contractual terms and restrictions under Channel Partner Agreements. p.35
The ability to procure and sell products is subject to prescribed pricing requirements under Channel Partner Agreements. p.35
The Trading vertical's ability to procure and sell products is subject to restrictions on the ability to directly or indirectly deal in or enter into arrangements for identical or similar products of other companies. p.35
The Trading vertical's ability to procure and sell products is subject to restrictions on pricing, such as minimum selling price and/or minimum operating price requirements. p.35
The Trading vertical must achieve specified quarterly and annual sales targets and permit counterparties to evaluate performance and prescribe remedial measures for shortfalls. p.35
Breach or non-compliance by the company under Channel Partner Agreements could result in restrictions on supplies, appointment of another channel partner, or termination of the relevant arrangement. p.35
Actual production is measured against production records and stock registers, which were largely devoted to trial runs during the first year of operation. p.36
Output volume decreases when the product mix includes smaller residential packs because they take about the same tester time as the largest packs. p.36
There is no assurance that manufacturing capacity will be utilized at optimal levels. p.36
Demand for BESS products is subject to various factors including the pace of adoption of energy storage solutions, customer requirements, technology changes, pricing, competition, regulatory developments, and the timing of customer orders. p.36
Expansion of manufacturing capacity is not guaranteed to result in increased actual demand or utilization at the envisaged levels. p.36
Inability to accurately forecast demand may cause a mismatch between manufacturing capacity and actual requirements, leading to costs for establishing or maintaining under-utilized capacity if demand is overestimated. p.36
The Solar EPC Order Book may not translate into future revenues or profitability, and delays or non-execution of orders could adversely affect the business. p.36
Delays, cancellations, or modifications of orders in the Order Book could adversely affect the business, financial condition, and results of operations. p.36
The timely execution of Solar EPC projects is subject to factors beyond the company's control, such as availability of land, customer readiness, design approvals, procurement, logistics, and regulatory approvals. p.37
Delays or deficiencies in project execution may result in additional costs, reduced margins, delays in revenue recognition, contractual claims, loss of customer relationships, and reputational damage. p.37
BESS manufacturing operations depend on critical components sourced from overseas suppliers in China, exposing the company to supply chain, geopolitical, logistics, and regulatory risks. p.38
Imported BESS components include lithium-ion cells and BMS integrated circuits sourced from suppliers located in China. p.38
Disruptions in the international supply chain can lead to increased manufacturing costs, reduced margins, delayed customer deliveries, and adverse effects on business performance. p.38
Contractors and subcontractors may fail to perform obligations such as completing projects on time, delivering components on time, or complying with quality standards. p.39
Failure by contractors or subcontractors to perform may result in disruptions to operations, the need to enter new contracts at higher costs, or inability to fulfil obligations. p.39
Promoters have limited prior experience in the BESS manufacturing sector, which may affect the ability to successfully establish and expand the business. p.39
The existing manufacturing capacity for BESS is limited to 48 MWh. p.40
The ability to expand BESS manufacturing capacity depends on the ability to commission facilities, procure machinery, establish processes, and recruit skilled personnel. p.40
The BESS industry is characterized by evolving technologies, and government initiatives like the ACC Battery Production Linked Incentive (PLI) scheme aim to promote domestic battery manufacturing. p.40
Limited operating history in BESS manufacturing makes it difficult to accurately assess future demand and plan manufacturing capacity. p.40
Failure to generate sufficient demand for BESS products could result in under-utilization of manufacturing capacity, increased operating costs, and delays in anticipated growth. p.40
Failure or delay in successfully establishing, scaling up or expanding BESS manufacturing operations, or inability to achieve expected scale, capacity utilisation or commercial performance, could adversely affect the business, financial condition, cash flows and results of operations. p.41
Export sales expose the company to risks arising from changes in laws and regulations applicable to products, import restrictions, tariffs and customs duties, trade restrictions, changes in political and economic conditions, geopolitical developments, transportation and logistics disruptions, and changes in customer demand in international markets. p.41
Adverse developments in international markets could reduce demand for products, affect the ability to execute export orders, or result in delays or difficulties in realizing amounts due from overseas customers. p.41
Delay or default in payment by overseas customers could result in an increase in trade receivables and working capital requirements and adversely affect cash flows. p.41
Disruptions in international transportation or logistics could delay delivery of products, increase freight and other costs, or affect the ability to fulfil customer requirements within agreed timelines. p.41
Ability to increase or maintain export sales depends on the ability to establish and maintain relationships with customers in overseas markets, compete effectively, and comply with applicable regulatory, technical, product and other requirements. p.41
Continued engagement with third-party contract manufacturers exposes the company to risks relating to their manufacturing capacity, production schedules, quality-control processes, availability of raw materials, labour, financial condition, and compliance with applicable laws and specifications. p.42
Any failure by a contract manufacturer to manufacture or deliver products in accordance with specifications or within required timelines could affect the ability to fulfil customer orders. p.42
Defects, performance issues, safety incidents, or customer complaints relating to products manufactured by third-party manufacturers may be attributed to the company's products and could adversely affect its brand, customer relationships and reputation. p.42
Ability to fund working capital requirements may be affected by delays in collection of receivables, project execution, or billing milestones, potentially requiring reliance on internal accruals, additional borrowings, or other financing. p.45
Delays in payment of statutory dues may attract financial penalties from government authorities. p.46
The company relies on third-party logistics providers and does not own a dedicated logistics fleet. p.46
Reliance on third-party logistics providers exposes the company to operational, financial, and other risks such as delays or disruptions from transportation constraints, labor shortages, adverse weather, and infrastructure issues. p.46
Increased transportation costs may adversely affect project and operating margins. p.46
Delays in transportation of equipment or materials could delay project execution, lead to additional costs, customer claims, or payment deferments. p.46
Delays in transportation of raw materials could disrupt manufacturing activities and affect the ability to fulfill customer orders. p.46
Negative cash flows from investing and financing activities have been experienced in the past and may continue in the future, affecting liquidity and the ability to execute growth plans. p.46
Negative net cash flows from investing and financing activities over the past three financial years may continue due to capital expenditure requirements and financing obligations. p.46
Negative cash flows may adversely affect cash flow requirements, liquidity position, and financial flexibility, impacting the ability to operate efficiently. p.46

Litigation and regulatory matters

Litigation

Court cases, tax disputes and regulatory proceedings involving the company, promoters and directors.

pp. 480–487

The section confirms the absence of outstanding criminal proceedings, regulatory actions, or material civil litigation involving the Company, its directors, promoters, or key personnel as of the Draft Red Herring Prospectus date. It also details criteria for what constitutes 'material' litigation based on monetary thresholds related to turnover, net worth, or profit/loss. Furthermore, it lists various material approvals, including certificates of incorporation and tax-related registrations obtained by the Company.

Key points (22)

There are no outstanding criminal proceedings involving the Company, Directors, Promoters, Key Managerial Personnel, or Senior Management. p.480
There are no outstanding actions by regulatory and statutory authorities against the Relevant Parties, Key Managerial Personnel, or Senior Management. p.480
There are no material civil proceedings involving the Relevant Parties. p.480
The threshold for materiality for disclosure in pending litigation is five percent of the average of absolute value of profit or loss after tax for the last three Financial Years, amounting to ₹5.71 millions ("Materiality Threshold"). p.480
Creditors owed amounts exceeding ₹3.00 Lakh as of March 31, 2026, are considered as Material Creditors for disclosure purposes. p.483
The total outstanding dues to micro, small and medium enterprises and other creditors amount to ₹60.30 Lakh. p.483
The Company has obtained a Permanent Account Number (PAN) being ‘AABCW4299B’ issued by the Income Tax Department under the Income Tax Act, 1961. p.484
The Company has obtained a Tax Deduction and Collection Account Number being ‘AHMW00392A’ issued by the Income Tax Department, Government of India, under the IT Act. p.484
The Company has obtained a Legal Entity Identifier number ‘98450070L374DB1H8668’ which is valid until December 26, 2026. p.484
The Company has obtained a Good and Services Tax registration bearing no. ‘24AABCW4299B1ZE’ issued by the Government of India under the Gujarat Goods and Services Tax Act, 2017. p.484
Good and Services Tax registration bearing no. ‘27AABCW4299B1Z8’ was issued by the Government of India under the Maharashtra Goods and Services Tax Act, 2017. p.485
Professional Tax Registration Certificate bearing no. ‘PRC010674001148’ was issued under the provision of Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976. p.485
A Certificate of Registration bearing no. PII/JUDG/20016459/0279833 was issued under the Gujarat Shop and Establishments (Regulation of Employment and Conditions of Service) Act, 2019. p.485
A Udyam Registration Certificate bearing no. UDYAM-GJ-01-0025504 was issued to the Company by the Ministry of Micro, Small and Medium Enterprises. p.485
A License as Electrical Contractor from Energy and Petrochemicals Department, Government of Gujarat for Electrical installation works in Gujarat State was obtained. p.485
A Certificate of Importer-Exporter code bearing no. 0813017360 was obtained from the Ministry of Commerce and Industry, Government of India. p.485
A Licence to work a factory was obtained under the Factories Act, 1948, issued by the Joint Director Industrial Safety and Health, Ahmedabad Region, valid until December 31, 2027. p.485
A Registration Certificate for Producer bearing no. 74936062 was issued by the Central Pollution Control Board under the Battery Waste Management Rules, 2022. p.485
An Employee Provident Fund code bearing no. ‘GJAHD2220126000’ was issued under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. p.485
An Employee State Insurance Code bearing no. ‘37001462350000602’ was issued by the Employees’ State Insurance Corporation under Employee State Insurance Act, 1948. p.485
A Registration for Establishment (Contract Labor) was obtained under Rule 3, Rule 4(1) and Rule 6 of OSHWC Code and Working Conditions (Central) Rules, 2026. p.485
A Certificate of Registration issued by the Assurance Quality Certification LLC certifying compliance with the requirements of the standard ISO 9001:2015 was issued, valid till August 6, 2027. p.485

Regulatory disclosures

Approvals, licences, and any regulatory actions or compliance matters.

pp. 488–586

The section details various corporate and shareholder authorizations related to the offer, including resolutions from the Board and Shareholders. It confirms that Promoter Selling Shareholders have held their shares for at least one year and are eligible for the Offer for Sale under SEBI ICDR Regulations. Furthermore, it mentions in-principle listing approvals from BSE and NSE and includes disclaimers regarding prohibitions by SEBI, RBI, or governmental authorities. The text also covers compliance with Companies (Significant Beneficial Owners) Rules, 2018, and eligibility criteria for the Offer based on net tangible assets, operating profit, and net worth.

Key points (202, showing 60)

The Board authorized the Offer pursuant to a resolution dated August 27, 2026. p.488
Shareholders authorized the Offer pursuant to a special resolution passed at their Annual General Meeting held on September 13, 2026. p.488
The Draft Red Herring Prospectus and the Draft Abridged Prospectus were approved by the Board on September 30, 2026. p.488
Promoter Selling Shareholders confirmed their respective portion of Offered Shares have been held for at least one year prior to the filing of the Draft Red Herring Prospectus and are eligible for the Offer for Sale under Regulations 8 of the SEBI ICDR Regulations. p.488
In-principle listing approvals were received from BSE and NSE for the listing of Equity Shares. p.488
Promoters, Directors, and members of the Promoter Group are not prohibited from accessing the capital market or debarred from buying, selling or dealing in securities under any order or direction passed by SEBI or any securities market regulator in any other jurisdiction or any other authority or court. p.488
Promoters, Promoter Selling Shareholders, and Directors have not been declared as wilful defaulters. p.488
Promoters, Promoter Selling Shareholders, and Directors have not been declared as fraudulent borrowers. p.488
Promoters or Directors have not been declared as fugitive economic offenders under the Fugitive Economic Offenders Act, 2018. p.489
There are no outstanding convertible securities or any other right which would entitle any person with any option to receive Equity Shares of the Company as on the date of the Draft Red Herring Prospectus. p.489
Each Company, Promoters, and members of the Promoter Group confirm compliance with the Companies (Significant Beneficial Owners) Rules, 2018, to the extent applicable. p.489
Each Promoter Selling Shareholder confirms compliance with the Companies (Significant Beneficial Owners) Rules, 2018, as amended, in relation to their holding in the Company. p.489
None of the Directors are associated with the securities market in any manner as of the date of the Draft Red Herring Prospectus. p.489
No outstanding action has been initiated by SEBI against any of the Directors in the five (5) years preceding the date of the Draft Red Herring Prospectus. p.489
The Company shall ensure that the number of Allottees under the Offer shall be not less than 1,000. p.490
The Company is eligible for the Offer in accordance with Regulation 6(1) of the SEBI ICDR Regulations. p.490
The Company has net tangible assets of at least ₹3.00 Crore, calculated on a restated basis, in each of the preceding three full financial years (of 12 months each), with not more than 50% held in monetary assets. p.490
The Company has an average operating profit of at least ₹15.00 Crore, calculated on a restated basis, during the preceding three financial years (of 12 months each). p.490
The Company confirms compliance with the conditions specified in Regulation 7(1) of the SEBI ICDR Regulations and will ensure compliance with Regulation 7(2) of the SEBI ICDR Regulations. p.490
The Company is eligible to undertake the Offer as per Rule 19(2)(b) of the SCRR read with Regulations 6(1) of the SEBI ICDR Regulations. p.490
The Company is required to allocate a certain percentage of the Offer to QIBs, Mutual Funds, Non-Institutional Bidders, and RIBs according to Regulation 32 of the SEBI ICDR Regulations. p.490
The Company shall repay without interest all monies received from bidders if Equity Shares are not allotted within three Working Days from the Bid/Offer Closing Date. p.490
The Company confirms eligibility to make the Offer in terms of Regulations 5 and 7(1) of the SEBI ICDR Regulations. p.490
The Company confirms that neither the Company, Promoters, members of the Promoter Group, or Directors are debarred from accessing the capital market under any order or direction passed by SEBI or any other authorities. p.490
None of the Promoters and Directors are declared as a Wilful Defaulter or a Fraudulent Borrower by any bank or financial institution or consortium thereof in accordance with the guidelines issued by the RBI. p.490
None of the Promoters and Directors are declared as a fugitive economic offender under Section 12 of the Fugitive Economic Offenders Act, 2018. p.490
The Equity Shares held by the Promoters and Directors are in the dematerialised form. p.491
The Company and the Registrar to the Offer have entered into tripartite agreements with NSDL and CDSL for the dematerialisation of Equity Shares. p.491
Any dispute arising out of the Offer will be subject to the jurisdiction of appropriate court(s) in Ahmedabad, Gujarat. p.493
The Draft Red Herring Prospectus has been filed with SEBI for its observations. p.493
Equity Shares are not to be offered or sold within the United States and are offered in 'offshore transactions' in reliance on Regulation S under the U.S. Securities Act. p.493
Equity Shares have not been registered, listed, or otherwise qualified in any other jurisdiction outside India. p.493
If permission to deal in and for an official quotation of Equity Shares is not granted by the Stock Exchanges, the Company shall forthwith repay monies received without interest, and interest may be due for the delayed period. p.494
The Company must ensure all steps for the completion of necessary formalities for listing and commencement of trading of Equity Shares are taken within three Working Days of the Bid/Offer Closing Date. p.494
If the Company fails to allot Equity Shares within three Working Days from the Bid/Offer Closing Date, interest shall be due to be paid to Bidders at the rate of 15% per annum for the delayed period or as prescribed by SEBI. p.494
Consents in writing from various parties, including Directors, Statutory Auditors, and Company Secretaries, have been obtained and filed with the RoC. p.494
Written consent has been received from Statutory Auditors to include their name as required under Section 26(5) of the Companies Act, 2013 and as an 'expert'. p.494
Written consent has been received from practicing Company Secretaries to include their name as an independent practicing company secretary under Section 26 of the Companies Act in the Draft Red Herring Prospectus. p.494
The Registrar Agreement provides for the retention of records with the Registrar to the Offer for a period of at least eight years from the date of listing and commencement of trading of the Equity Shares or any such period as prescribed under the applicable laws. p.499
The Registrar to the Offer shall obtain the required information from the Self Certified Syndicate Banks (“SCSBs”) for addressing any clarifications or grievances of ASBA Bidders. p.499
Investors can contact the Company Secretary and Compliance Officer and/or the Registrar to the Offer in case of pre-Offer or post-Offer related problems such as non-receipt of letters of Allotment, non-credit of Allotted Equity Shares in the respective beneficiary account, non-receipt of refund orders or non-receipt of funds by electronic mode. p.499
In case of any delay in unblocking of amounts in the ASBA Accounts exceeding two Working Days from the Bid/Offer Closing Date, the Bidder shall be compensated at a uniform rate of ₹100 per day for the entire duration of delay exceeding two Working Days from the Bid / Offer Closing Date by the intermediary responsible for causing such delay in unblocking. p.500
Any ASBA Bidder whose Bid has not been considered for Allotment due to failure on the part of any SCSB shall have the option to seek redressal of the same by the concerned SCSB within three months of the date of listing of the Equity Shares. p.500
Companies intending to get listed must submit a declaration that a draft red herring prospectus has been submitted to SEBI in order to obtain SCORES authentication. p.501
The Company has obtained authentication on the SCORES to comply with the relevant SEBI circular regarding investor grievances through SCORES. p.501
The Company estimates that the average time required by the Company or the Registrar to the Offer or the SCSBs in case of ASBA bidders for the redressal of routine investor grievances shall be 10 Working Days from the date of receipt of the complaint. p.501
The Company has not received any investor grievances during the three years preceding the date of this Draft Red Herring Prospectus, nor is any investor complaint pending as on the date of this Draft Red Herring Prospectus. p.501
The Company has not applied for or received any exemption from complying with any provisions of securities laws from SEBI. p.501
Any person connected with the Offer shall not offer any incentive, whether direct or indirect, in any manner, whether in cash or kind or services or otherwise, to any person for making a Bid in the Offer, except for fees or commission for services rendered in relation to the Offer. p.502
The company shall comply with all disclosure and accounting norms as specified by SEBI from time to time. p.503
Equity Shares shall be allotted only in dematerialized form pursuant to Section 29 of the Companies Act and the SEBI ICDR Regulations. p.503
The trading of Equity Shares shall only be in dematerialized form on the Stock Exchanges as per the SEBI ICDR Regulations. p.503
The company has entered into a Tripartite Agreement dated January 23, 2025, among CDSL, the Company, and the Registrar to the Offer. p.503
The company has entered into a Tripartite Agreement dated December 12, 2024, among NSDL, the Company, and the Registrar to the Offer. p.503
The courts of Ahmedabad, Gujarat will have exclusive jurisdiction in relation to this Offer. p.503
The Bid/Offer Programme specifies that the Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date in accordance with the SEBI ICDR Regulations. p.504
The Registrar to the Offer shall submit details of cancelled/withdrawn/deleted applications to the SCSBs on a daily basis within 60 minutes of the Bid closure time from the Bid/Offer Opening Date until the Bid/Offer Closing Date. p.507
SEBI vide circular SEBI/HO/CFD/TPD1/CIR/P/2023/140 dated August 9, 2023, had reduced the post issue timeline for initial public offerings, making the T+3 days listing basis mandatory on or after December 1, 2023. p.507
The BRLM will be required to submit reports of compliance with listing timelines and activities, identifying nonadherence to timelines and processes and an analysis of entities responsible for the delay and the reasons associated with it. p.507
The company must ensure that the number of prospective allottees does not fall below 1,000 to comply with Regulation 49(1) of the SEBI ICDR Regulations, or the entire application money will be unblocked in the respective ASBA Accounts. p.508

Who runs and controls the company

Related-party transactions

Business done between the company and people or firms connected to its owners.

pp. 92–101

This section summarizes related party transactions for fiscal years 2024, 2025, and 2026, detailing various financial dealings with individuals and entities. The disclosed transactions include remuneration, rent paid, interest paid, reimbursement of expenses, and unsecured loans taken or repaid by several parties. Specific transactions are itemized for individuals such as Manish Bagadia, Karuna Bagadia, Patel Jigar, Harsh Bagadia, and others, with corresponding percentages of total revenue provided for comparison across the years.

Key points (30)

Manish Bagadia received remuneration for Sales - EPC Project transactions. p.92
Manish Bagadia was involved in transactions related to Rent Paid, Interest Paid, Reimbursement of Expenses, and Unsecured Loans (Taken and Repaid) across the years. p.92
Karuna Bagadia had transactions involving Remuneration, Rent Paid, Interest Paid, Reimbursement of Expenses, and Unsecured Loans (Taken and Repaid). p.92
Patel Jigar received remuneration, and Radhika Bhut received remuneration. p.92
Shruti Sohane recorded Sitting Fees and Sales - EPC Project transactions. p.92
Nagaraj Giridhar recorded Sitting Fees and Sales - EPC Project transactions. p.92
Vivek Gupta had transactions involving Sitting Fees. p.93
Transactions with Cinza Concrete Products Private Limited showed no balances across the years. p.93
Manish Bagadia had Payable entries for Remuneration, Rent, Reimbursement of Expenses, and Loan Payable with Cinza Concrete Products Private Limited. p.93
Patel Jigar had Payable entries for Remuneration with Cinza Concrete Products Private Limited. p.93
Harsh Bagadia had a Loan Payable entry with Cinza Concrete Products Private Limited. p.93
Nagaraj Giridhar had Sitting fees Payable with Cinza Concrete Products Private Limited. p.93
Vivek Gupta had Sitting fees Payable with Cinza Concrete Products Private Limited. p.93
Marwadi Chandarana Intermediaries Brokers Private Limited will be responsible for all coordination and activities related to the Offer as the sole Book Running Lead Manager. p.97
Crawford Bayley & Co. is listed as the Legal Counsel to the Company. p.97
KFIN Technologies Limited is listed as a party involved in the process. p.97
Axis Bank Limited is listed as a Banker to the Offer. p.98
The process for UPI Bidders is governed by the SEBI ICDR Master Circular and applicable UPI Circulars. p.99
The list of Self-Certified Syndicate Banks is available on the SEBI website for ASBA services. p.99
The list of Registered Brokers eligible to accept ASBA Forms is provided on the websites of the Stock Exchanges. p.99
The list of RTAs eligible to accept ASBA Forms is provided on the websites of the Stock Exchanges and SEBI. p.99
No credit agency has been appointed for grading for the Offer. p.100
The Company will appoint a monitoring agency to monitor gross proceeds from the Fresh Issue prior to filing the Red Herring Prospectus. p.100
Written consent was received from Tibrewal Bhagat and Associates (Statutory Auditors) to be included as an expert. p.100
Written consent was received from VTSN & Associates LLP (Practicing Company Secretaries) to be included as an independent practicing company secretary and expert. p.100
Written consent was received from Hitesh Parekh (Chartered and Consulting Civil Engineer) to be included as an expert regarding capacity utilization. p.100
The Book Building Process is subject to change and is governed by SEBI guidelines. p.101
Investors should acknowledge the restrictions and terms of the Offer by submitting a Bid. p.101
The Offer is subject to obtaining final approval of the RoC after the Prospectus is filed with the RoC. p.101
The Underwriting Agreement is to be entered into after the determination of the Offer Price but prior to filing the Prospectus with the RoC. p.101

Management & board

Directors and senior management: who they are, their background and pay.

pp. 327–348

The Board of Directors comprises eight members as of the date of this Draft Red Herring Prospectus, including one Chairman & Managing Director and three Whole-Time Directors, along with four Non-Executive & Independent Directors. The document details the particulars of each director, including their designation, tenure, and other directorships. Key managerial personnel profiles highlight their professional experience, qualifications, and responsibilities within the company's operations and strategy. Furthermore, the document confirms that none of the directors are debarred from accessing the capital market and have not had any adverse relationships or contractual arrangements with major shareholders or other parties.

Key points (42)

Manish Bagadia is the Chairman & Managing Director. p.327
Karuna Bagadia is a Whole-Time Director. p.327
Harsh Bagadia is a Whole-Time Director. p.328
Patel Jigar is a Whole-Time Director. p.328
Shah Hiral Ankitkumar is a Non-Executive & Independent Director. p.328
Bhavsar Utsav Sumantkumar is a Non-Executive & Independent Director. p.329
Vivek Gupta is a Non-Executive Independent Director. p.331
Nagaraj Giridhar is a Non-Executive Independent Director. p.331
None of the Directors are debarred from accessing the capital market by SEBI. p.331
None of the Directors is a wilful defaulter or fraudulent borrower, as defined under the SEBI ICDR Regulations. p.331
None of the Directors is a Fugitive Economic Offender under section 12 of the Fugitive Economic Offenders Act, 2018. p.331
None of the Directors is or was a director in any listed company / companies whose shares have been or were suspended from being traded on any stock exchange during the term of their directorship in such company/ companies during the five (5) years, immediately preceding the date of filing of this Draft Red Herring Prospectus. p.331
None of the Directors is, or was a director in any listed company/ companies which has been or was delisted from any stock exchange, during the term of his/ her directorship in such company/ companies. p.331
None of the Directors are persons appearing in the list of directors of struck-off companies by the Registrar of Companies or the MCA under Section 248 of the Companies Act, 2013. p.331
None of our Directors have been appointed on our Board or as member of Senior Management Personnel pursuant to any arrangement or understanding with our major Shareholders, customers, suppliers or others. p.331
Our Company has not entered into any service contracts with our Directors, which provide for benefits upon the termination of their employment. p.331
Manish Bagadia was appointed as Chairman & Managing Director for a period of three years starting November 08, 2024. p.332
Independent Directors are entitled to receive sitting fees of ₹8,000 per meeting for Board meetings and ₹4,000 per meeting for committee meetings. p.333
No contingent or deferred compensation is payable to directors that does not form part of their remuneration as of the Draft Red Herring Prospectus date. p.333
Manish Bagadia holds 69.40% of the equity shares of the company. p.334
The Board has constituted Audit Committee, Nomination and Remuneration Committee, and Stakeholders’ Relationship Committee. p.336
The Audit Committee comprises Nagaraj Giridhar as Chairman and an Independent Director. p.337
The Audit Committee comprises Vivek Gupta as a Member and an Independent Director. p.337
The Audit Committee is in compliance with Section 177 and other applicable provisions of the Companies Act and Regulation 18 of the SEBI Listing Regulations. p.337
The Nomination and Remuneration Committee comprises Nagaraj Giridhar as Chairperson and an Independent Director. p.340
The Nomination and Remuneration Committee comprises Shah Hiral Ankitkumar as a Member and an Independent Director. p.340
The Stakeholders’ Relationship Committee comprises Vivek Gupta as Chairperson and an Independent Director. p.341
The Stakeholders’ Relationship Committee comprises Bhavsar Utsav Sumantkumar as a Member and an Independent Director. p.341
The Company is responsible for reviewing measures taken for the effective exercise of voting rights by shareholders. p.342
The Corporate Social Responsibility Committee was constituted pursuant to a Board resolution on August 01, 2026, and its terms were adopted on the same day. p.342 p.343
Manish Bagadia holds the position of Chairperson & Managing Director in the CSR Committee. p.342
Dipesh Mancharam Prajapati is the Chief Financial Officer and oversees project finance, IPO/DRHP preparation, and statutory compliance. p.345
Vivekkumar Barlota is the Company Secretary and Compliance Officer, responsible for secretarial and legal compliances. p.345
Mohammadfurkan Mohammadsadik Dhobi is the Finance Controller – Finance & Accounts, managing finance operations and reporting frameworks. p.345
Mukeshkumar Manubhai Mewada is the General Manager - Marketing, handling sales and marketing for solar rooftop power plants. p.345
Udayraj Yadav is the Engineer – Testing & Validation, overseeing prototype development and testing for battery packs. p.345
Chetan Sonwani is the Project Manager, overseeing design and development of electrical systems and managing projects. p.346
Chintan V Shah is the Manager (Technical), overseeing solar open access projects, site management, and vendor development. p.346
Mukund Gautam Joshi is the Production Head, leading technical, production & automation operations. p.346
None of the Key Managerial Personnel and Senior Management Personnel are party to any bonus or profit-sharing plan of the Company. p.347
No amount or benefit (non-salary related) was paid or given to Key Managerial Personnel and Senior Management Personnel within the preceding two years, other than in the ordinary course of employment. p.348
There is no conflict of interest between suppliers of raw materials or third-party service providers and any of the Directors or Key Managerial Personnel. p.348

Promoters

The people or entities controlling the company, and what else they own.

pp. 349–353

The company's promoters are Manish Bagadia, Karuna Bagadia, and Harsh Bagadia, collectively holding 99.60% of the pre-Offer issued equity shares. The document details their individual identities, including ages and PANs, and confirms that their permanent account numbers have been submitted to Stock Exchanges. The document also addresses changes in company control, the experience of the promoters in the industry, and various restrictions regarding their business activities and financial dealings. Furthermore, it discloses that Karuna Bagadia has provided personal properties as security for loans availed by the company from several banks.

Key points (13)

Manish Bagadia is one of the Promoters and the Chairman and Managing Director of the Company. p.349
Manish Bagadia is an Indian National, born on 13/10/1967, and his PAN is AAYPB4783F. p.349
Karuna Bagadia is one of the Promoters and the Whole-time Director of the Company. p.349
Karuna Bagadia is an Indian National, born on 23/09/1974, and her PAN is ACGPB4863Q. p.349
Harsh Bagadia is an Indian National, born on 10/04/2003, and his PAN is FTVPB5354P. p.349
The Promoters collectively hold 3,52,68,581 Equity Shares of face value of ₹10 each, representing 99.60% of the pre-Offer issued, subscribed and paid-up equity share capital. p.349
Karuna Bagadia has provided her personal properties as security in respect of loan facilities availed by the Company from Axis Bank, IndusInd Bank and Yes Bank. p.350
The Promoters have not been declared Willful Defaulters or Fraudulent Borrowers by any bank or financial institution. p.351
The Promoters have not been declared as fugitive economic offenders under section 12 of the Fugitive Economic Offenders Act, 2018. p.351
The Promoters and members of the Promoter Group have not been prohibited or debarred from accessing the capital markets by any order passed by SEBI or other authorities. p.351
The Promoters are not and have not been a promoter or director of any other company which is debarred from accessing or operating in capital markets. p.351
The Promoters are not involved in any other ventures other than those disclosed in specific sections. p.351
The following entities form part of the Promoter Group: Manish Bagadia HUF, Arun Bagadia HUF, Mangal Girdhargopal HUF, Savitridevi Family Trust, Yellowcap Infra Private Limited, Impressive Intex Private Limited, Easyway Trading Limited, Tanmay Metal, Nishant Impex, B L Industries, and Cinza Concrete Products Private Limited. p.352

Updates since the first filing

Addenda, corrigenda and the abridged prospectus, newest first.

No amendments or updates have been filed yet. They will appear here as SEBI publishes them, on this same page.

Grace Renewable Energy Limited- DRHP IPO: common questions

Short answers drawn from the filings above.

How big is the Grace Renewable Energy Limited- DRHP IPO?

Grace Renewable Energy Limited- DRHP's IPO comprises a fresh issue of 84,15,000 shares and an offer for sale of 27.85 lakh shares, according to its Draft Red Herring Prospectus. The price band has not been announced yet: draft filings leave it blank and it is set in the Red Herring Prospectus.

What are Grace Renewable Energy Limited- DRHP's revenue and profit?

Grace Renewable Energy Limited- DRHP reported revenue from operations of ₹206 Cr in FY26, +70.8% versus FY25. Net profit was ₹19 Cr (FY25: ₹9.8 Cr). Revenue grew at a compound rate of 62.5% a year from FY24 to FY26. Figures are read from the DRHP, as printed there.

How much do promoters own in Grace Renewable Energy Limited- DRHP?

Promoters hold 99.6% of Grace Renewable Energy Limited- DRHP before the IPO. Largest holders listed: Manish Bagadia (69.4%); Karuna Bagadia (30.0%); Harsh Bagadia (0.2%).

How will Grace Renewable Energy Limited- DRHP use the IPO money?

The fresh-issue proceeds are earmarked for: Funding of incremental Working Capital Requirement (₹79 Cr); General Corporate Purposes (amount not fixed yet). The offer-for-sale portion goes to the selling shareholders, not the company.

What are the red flags in Grace Renewable Energy Limited- DRHP's DRHP?

We fact-checked 40 claims from the filing against the open web: 0 raised a high concern, 1 medium and 5 low. The most notable: The search results do not directly corroborate or contradict the claim regarding a name change and a certificate of incorporation date of February 22, 2017.… This is an automated screen, not a verdict; each finding links to its sources.

What does Grace Renewable Energy Limited- DRHP do?

Here’s a detail about Grace Renewable Energy Limited that almost nobody notices: the official incorporation date listed in some documents is September 5th, 2013, not the February 22nd date you might see floating around. That small discrepancy changes everything when you look at the IPO story.

Who manages the Grace Renewable Energy Limited- DRHP IPO?

Book running lead managers: Marwadi Chandarana Intermediaries Brokers Private Limited. Registrar to the offer: KFIN Technologies Limited. Shares are proposed to list on BSE and NSE.

Where can I read the original Grace Renewable Energy Limited- DRHP IPO documents?

All 1 filing for Grace Renewable Energy Limited- DRHP (DRHP) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document.

Source documents

Every page reference on this site links to the original SEBI PDF.

Document	Filed	Pages	On this page	Source
DRHPDraft Red Herring Prospectus Grace Renewable Energy Limited- DRHP · 7 Oct 2026	7 Oct 2026	586	Full analysis	PDF

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