S G Encon Limited

This section provides an industry overview derived from a CRISIL Report, detailing macroeconomic conditions and trade protection measures. It discusses global economic forecasts, including projections for GDP growth and inflation, and outlines various trade policies such as anti-dumping duties and countervailing duties imposed by key markets like India.

This section details various regulatory measures implemented by the Indian government to protect domestic industries from import competition, including safeguard duties, import quotas, product standards, and import licensing. It also discusses government support schemes designed to help domestic industries compete against imports. Furthermore, the text outlines macroeconomic factors, including India's GDP growth, the impact of geopolitical risks, and dependencies on imports for critical inputs. It also covers the impact of inflation, consumption trends, and the structure of India's trade balance.

The provided text discusses various macroeconomic and demographic trends in India, including population projections, per capita income growth, and urbanization. It highlights the rapid growth of India's digital economy, which is expected to become a key driver of economic expansion. Furthermore, the text details significant shifts in the Indian telecom landscape, such as the increasing adoption of broadband and 5G technologies, the rise in smartphone penetration, and the growing demand for data-intensive applications. Government policies are noted as having accelerated infrastructure development in these areas.

The analysis highlights the significant push for digital infrastructure in India, driven by national missions like the National Broadband Mission (NBM) 2.0 and government incentives. These initiatives aim to scale digital services to support a growing digital economy, focusing on fiberization, 5G rollout, and data consumption. The telecom industry is evolving from a simple connectivity provider to a strategic enabler of India's digital and AI-driven economy. The market structure involves various layers, including service providers, tower companies, fibre infrastructure providers, and various service providers.

The text provides an overview of the dynamics within India's telecom sector, focusing on subscriber mix, market share, data consumption trends, and network infrastructure investment. It details the stable urban-rural mix in the telecom subscriber base, the growth drivers for wireless and wireline segments, the increasing shift towards data services, and the impact of 5G adoption on connectivity. Furthermore, the text covers the competitive landscape among key service providers and the projected growth in internet penetration and network capex.

The Indian telecom sector is currently undergoing significant evolution, shifting from a simple connectivity provider to a critical enabler of digital transformation across various domains like AI, IoT, and Industry 4.0. Key drivers include the rapid deployment of 5G, increasing fiberization of infrastructure, and the expansion of data centers to support cloud computing and AI workloads. This evolution is creating substantial demand for services related to tower deployment, network engineering, commissioning, integration, and RF optimization. Furthermore, the industry is focusing on network densification to handle growing data traffic and is seeing a gradual shift towards next-generation technologies like network virtualization and AI-enabled management.

This section details various key reforms and regulatory actions within the Indian telecom industry, including spectrum caps, tariff adjustments, and liability issues like AGR dues. It also covers developments related to digital infrastructure funding, the structure of the telecom sector, and challenges such as right-of-way implementation gaps and infrastructure constraints. The text further discusses the evolution of the telecom tower industry, including the diversification of tower types and the growth drivers for tower infrastructure demand.

The analysis of the telecom tower industry shows trends in tenancy ratio moderation, with expected improvements driven by network expansion efforts. Key aspects include the dominance of Ground Based Towers (GBTs) in the industry, despite projected decreases in their share due to high capital expenditure. The market for passive infrastructure is projected to grow, while the active infrastructure market is expected to see significant expansion. Furthermore, the maintenance segment of the telecom tower industry is set for growth, supported by increased network densification and the need for skilled manpower.

The section details various risks and regulatory aspects concerning the telecom tower industry in India, including climate and disaster risks, theft, pricing pressure, and rising compliance obligations related to network rules. It discusses the impact of government policies like the National Digital Communications Policy (NDCP) 2018, which aims to facilitate fiberisation and promote green energy for telecom towers. Furthermore, it highlights implementation challenges related to Right of Way (RoW) rules, such as delays due to state-level variations and lack of clarity, and issues with tower deployment approvals. The text also covers restrictions on tower construction due to health concerns, the monitoring of radiation levels, and the impact of consolidation in the industry on tenancy and rent revenue.

The text describes various aspects related to Horizontal Directional Drilling (HDD) operations, including the impact on the environment, asset protection, and the structure of the industry's value chain. The value chain is segmented into Upstream (equipment OEMs and suppliers), Midstream (planning, design, and execution), and Downstream (asset owners and operations/maintenance). The industry faces risks related to government policies and infrastructure programmes, which drive demand, and the working capital cycle is influenced by project-based contracts and the timing of cash flows.

The text discusses the drivers for demand in the optical fibre and HDD industries, noting that various initiatives like 5G rollout, fibre-to-the-home rollouts, and government broadband programs are key drivers. Demand is also influenced by the need for trenchless construction in congested areas and the expansion of city gas distribution networks. Furthermore, the data centre industry is experiencing significant growth, with projected capacity increases and corresponding capital expenditure, which is expected to positively impact allied drilling activities like HDD. The industry faces several challenges, including cyclicality in end-use demand, technological substitution risks, regulatory hurdles related to approvals, and structural issues such as fragmentation and dependence on skilled labor.

This section discusses the dynamics of Gross Fixed Capital Formation (GFCF) in India, noting its recovery after pandemic-related dips, and the factors driving this investment. The rise in GFCF was attributed to economic growth, government infrastructure focus, and increased FDI, which boosted private sector investment. The construction industry is expected to see steady growth, particularly in infrastructure projects, driven by government initiatives like the National Infrastructure Pipeline (NIP). Furthermore, the share of infrastructure projects is anticipated to stabilize in the 68-70% range over the next five years.

The provided text covers various aspects related to infrastructure spending, the oil refining and marketing industry, and the solar power sector in India. It details budget allocations for various infrastructure ministries, the dynamics of the downstream oil and gas value chain, and the growth drivers and investment trends within the renewable energy sector. Specific details include projections for refining capacity expansion, the impact of various fuels on consumption, and the installed capacity base of solar projects across different Indian states.

The text discusses several aspects related to the solar power industry, including tariff changes, expected capacity additions, and the regulatory environment. It highlights that solar power capacity additions are forecasted to be substantial over the next several fiscal years, driven by various government schemes and technological advancements. Furthermore, the text covers the broader wastewater treatment landscape in India, noting challenges in sanitation and the increasing generation of sewage, alongside projections for future infrastructure investments.

The Indian water treatment market is experiencing remarkable growth, driven by government initiatives like the Jal Jeevan Mission and AMRUT programs, which focus on enhancing water supply and sanitation infrastructure. This growth is fueled by significant investments in water infrastructure, including the augmentation of treatment plant capacity and the integration of modern technologies like SCADA for leakage detection. The government framework includes various policies and guidelines, such as the National Water Mission, to guide water conservation and ensure long-term sustainability. Key government schemes involve providing household tap connections, universal piped water supply, and promoting the circular economy of water through recycling and rejuvenation of water bodies.

The text details various government initiatives and infrastructure developments across India, including projects related to river basin management, urban water supply, and broadband connectivity. It highlights the progress made in completing projects under various national programs and outlines future plans for river restoration and infrastructure improvement. Furthermore, it discusses the growing demand for water and wastewater treatment infrastructure driven by urbanization and industrialization, alongside the adoption of recycling and Zero Liquid Discharge technologies.

This section details various government infrastructure programs and schemes, including the National Rural Drinking Water Programme, the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the Smart Cities Mission. It also discusses challenges within the construction industry, such as execution risk, competitive intensity, technical gaps, corporate mismanagement, land acquisition delays, macroeconomic influences, and multi-layered compliance obligations. The text further outlines the role of consultancy services in mitigating these execution challenges, such as providing planning, cost, quality assurance, and regulatory advisory.

The industry landscape is characterized by significant opportunities driven by ongoing infrastructure development, including network modernization, expansion of city gas distribution, and large-scale government capital expenditure programs. These developments create sustained demand for services related to network deployment, commissioning, and integration. However, the sector faces numerous risks such as cyclicality in capital expenditure, intense competition, and challenges related to land access, regulatory compliance, and skilled manpower shortages. Despite these hurdles, there are opportunities in 5G densification, closing the tower fiberization gap, and capitalizing on long-term government fiber O&M mandates.

The section details the projects undertaken by several related entities, including Pratap Technocrats Pvt. Ltd., Narula Infrastructure Pvt. Ltd., Pace Digitek Limited, Annu Projects Ltd., and SG Encon Limited. Pratap Technocrats has worked on key telecom infrastructure projects for BSNL and delivered managed services across numerous telecom circles. Narula Infrastructure has undertaken optical fibre cable laying and tower infrastructure projects for Bharti Airtel, while Pace Digitek has handled various telecom and ICT infrastructure projects for entities like BSNL and Railway. Annu Projects has delivered significant optical fibre cable projects under BharatNet programs. SG Encon has secured awards for civil work projects and has entered into MOUs for joint bidding in the telecom infrastructure sector, having also completed a 5G network rollout project. Various financial metrics, such as revenue segmentation, operating EBITDA margins, and net profit margins, are provided for these companies.

The company provides integrated end-to-end telecommunication infrastructure services, alongside undertaking construction services and underground utility infrastructure projects for sectors like oil & gas, water, and sewerage. Revenue is primarily derived from the telecommunication segment, mainly through operation and maintenance (O&M) services, and executing projects based on work orders from customers. While telecommunication services are concentrated in North India, construction and oil & gas sewerage projects are executed across various regions of the country.

The company possesses capabilities in specialized telecommunication projects, including the installation, integration, and commissioning of critical network infrastructure like Media Convergence Node (MCN) facilities. The company undertakes various construction services, which include civil construction, interior fit-out works, electrical works, and project management consultancy for commercial, industrial, and infrastructure projects. Their construction services have expanded to include engineering design and project management consultancy for retail outlets and fuel stations, and they have awarded contracts for cell plant construction. Furthermore, the company engages in underground utility infrastructure projects for the oil & gas, water, and sewerage sectors, utilizing horizontal directional drilling (HDD) techniques. The company has executed projects across ten states in India, with operations primarily concentrated in North India.

The company has a strong business foundation built on long-standing relationships with various customers and a diversified business mix. The company secures repeat business and participates in government tenders, which contribute to business growth. The company maintains strong relationships with telecom service providers, evidenced by its presence in Delhi telecom circles, and has established relationships with prominent players in the telecommunications and infrastructure industry. The company has a geographically distributed workforce supporting its operations and possesses diversified service offerings spanning telecommunication, construction, and oil & gas/sewerage sectors. The company has expanded its presence across various infrastructure verticals and plans for future expansion into new regions and service areas.

The company operates through three main business verticals: telecommunication services, construction services, and oil & gas and sewerage services, providing a diversified range of infrastructure services to various customers. The company has experience executing projects across these sectors over the last two decades, developing technical expertise and operational processes to meet customer requirements across diverse geographical locations. The business structure shows a heavy reliance on telecommunication services, which contributes the largest percentage to the company's revenue.

The company's operational process involves several key steps for project execution, starting from obtaining BOQ approvals and work orders, through route surveys, design, engineering, and the selection of appropriate installation methodologies like HDD or open trenching. The execution includes pipeline laying, testing, and subsequent restoration of affected surfaces. Customer acquisition is achieved through formal tendering processes or direct engagements with various entities. The company adheres to strict health and safety standards for its employees and maintains a robust QA/QC framework to ensure quality across its operations. The company procures necessary electrical equipment and materials, as well as engages third-party service providers for various operational requirements.

The provided section details various aspects of the company's operations, including employee statistics, insurance coverage, property details, and regulatory frameworks relevant to the Indian business environment. It outlines the types of risks the company faces, the insurance policies in place to mitigate these risks, and the legal regulations governing various sectors such as telecommunications, petroleum and natural gas, and information technology in India.

This section details the various legal frameworks and regulations applicable to the company's operations in India, covering infrastructure, labor, taxation, environmental protection, intellectual property, and general compliance. It outlines specific laws such as the Infrastructure Provider Category-I framework, various labour codes, tax laws like GST and Income Tax, environmental regulations, and intellectual property laws like Trademarks and Patents. Furthermore, it states that the company must comply with numerous other central and state laws, including the Companies Act, Contract Act, and various other statutes.

The company's history began with its incorporation as "HemOnc Infusion Resources Private Limited" on February 12, 2008. The company underwent several name and conversion changes, including a change to "S. G. Encon Private Limited" in 2011, followed by a conversion to a public limited company and a subsequent name change to "S. G. Encon Limited" in 2025. The company has a history of significant operational milestones, including securing various contracts in the telecom and infrastructure sectors, and has seen amendments to its Memorandum of Association over the years.

The company confirms that as of the Draft Red Herring Prospectus date, it does not have significant financial or strategic partnerships, nor have there been any time or cost over-runs in business operations. Furthermore, there have been no defaults or restructuring of borrowings with financial institutions. The company also states that no guarantee has been issued by the Promoter Selling Shareholders to third parties. Regarding corporate structure, the company does not have a holding company or any subsidiaries. While there are no current associates or joint ventures, a Shareholders’ Agreement dated November 3, 2025, exists concerning the subscription of equity shares, and details regarding the valuation and subsequent amendments to this agreement are provided.

This section defines various terms and abbreviations used in the Draft Red Herring Prospectus. It specifies that certain terms have meanings as ascribed under various SEBI regulations, the SEBI Act, the Companies Act, and related rules. Key definitions include the company's name, registered office, and the individuals involved in the offering process. It also details terms related to the offer procedure, including different types of investors and the process for allotment.

The section details various procedural and eligibility aspects related to the offer, including the use of various bid types, designated entities, and timelines. It specifies that certain bidders, like RIBs, are entitled to bid at the cut-off price, while others are not. The text outlines various designated branches, locations, and the date for fund transfers related to the offer. It also defines different categories of intermediaries authorized to collect bid forms depending on the type of bidder and mechanism used.

This section primarily defines various terms related to the syndication, underwriting, and bidding mechanisms for public issues. It outlines agreements between the company, the promoter, the BRLM, syndicate members, and the registrar for bid collection. It details the use of the UPI mechanism for individual investors and specifies the required documentation and entities involved in the bidding process. Furthermore, it lists various regulatory circulars and documents issued by SEBI and Stock Exchanges that govern these activities.

This section details various definitions, financial Key Performance Indicators (KPIs), and conventions used within the Draft Red Herring Prospectus. It defines terms such as Systemically Important NBFC and various financial metrics like Total Income, Current Ratio, and various profitability and leverage ratios. The text also specifies conventions regarding the scope of references to India and the US, the reliance on restated financial information, the nature of Non-GAAP financial measures, currency conversion rates, and the sourcing of industry data.

This section details various risk factors associated with the investment in the company's Equity Shares, highlighting significant dependencies on various aspects of the business. Risks include potential slowdowns in the telecommunication sector, concentration of revenue in North India, reliance on third-party suppliers, and dependence on a limited number of customers. The text emphasizes that adverse developments in these areas could materially affect the company's business, financial condition, and cash flows. Furthermore, the section discusses risks related to the execution of projects, such as delays in supply or issues with service providers, and the potential impact of losing key customers.

The text discusses various risks related to the company's operations, including customer dependency, project execution, and financial health. It details dependencies on securing projects through tendering processes and direct contracts, noting potential pricing pressures. Furthermore, it covers risks associated with project execution, such as delays, and the potential for negative cash flows. The company also operates in a working capital-intensive business, requiring careful management of working capital to fund project execution, and faces risks related to workplace accidents and related party transactions.

This section discusses various risks and liabilities faced by the company, including safety incidents, contingent liabilities, intellectual property infringement claims, and potential disruptions from labor issues. It details outstanding legal proceedings and the potential for these issues to negatively impact the company's business, financial condition, and operations. Furthermore, the section covers the dependency on technical and non-technical personnel, the potential for labor unrest, and the risks associated with the realization of unbilled revenue and retention money from customers.

The company faces various risks related to its contracts, competition, insurance, regulatory compliance, and operational equipment. Risks include potential contract cancellations, competition from established players, inadequate insurance coverage, issues with statutory and regulatory permits, and potential breakdowns or damage to essential drilling machinery. Furthermore, there are concerns regarding delays in paying statutory dues and potential non-compliances with corporate filings, which could negatively impact the company's business, financial condition, and operations.

The company has been predominantly engaged in implementing projects within the telecommunication services sector, although operations in the oil & gas and sewerage vertical have not scaled as expected. The company faces risks related to the lack of an established performance history in these verticals, potential regulatory compliance issues, and dependence on key personnel. Furthermore, the business is subject to various laws and regulations, and the company has entered into contracts with termination clauses that could lead to loss of business. The company also relies on third-party logistics providers for transportation, which introduces risks related to delays or disruptions in supply.

The section discusses various risks related to operations, funding, and regulatory compliance. It covers potential disruptions from third-party logistics providers, the uncertainty in utilizing net proceeds for working capital and machinery purchases, and the need for shareholder approval for any variation in the utilization of funds. Furthermore, it addresses risks associated with changes in industry requirements, the reliance on third-party reports, exposure to interest rate fluctuations, anti-bribery laws, and potential issues with internal controls. The text also notes that the company may face challenges in maintaining profitability due to market fluctuations and increasing wage pressures in India.

The section discusses various adverse factors that could impact the company's business, financial condition, and operations due to external economic and political influences. These factors include macroeconomic climate changes, exchange rate fluctuations, credit scarcity, political instability, natural disasters, and public health concerns like pandemics. Furthermore, changing laws and regulations, including new labour codes, may increase compliance burdens and costs. The text also highlights risks associated with changes in laws, foreign investment restrictions, and the potential for adverse effects on financing and business growth.

This section details the structure of the equity share offering, outlining various portions of the offer including Fresh Issue and Offer for Sale. The offer is segmented into QIB, Non-Institutional, and Retail portions, with specific rules for allocation, including reservations for domestic Mutual Funds and Life Insurance Companies and Pension Funds. It also specifies the process for the Offer for Sale, including approvals from the Board and Shareholders, and the authorization of Promoter Selling Shareholders.

This section details the cash flow statement for S. G. Encon Limited for the years ended March 31, 2026, 2025, and 2024, showing various cash movements. It also provides a reconciliation of liabilities arising from financing activities across the same period. Furthermore, it outlines contingent liabilities, specifically concerning tax demands received from GST authorities in Haryana, Punjab, and Uttar Pradesh related to FY 2019-20.

This section details the authorized and issued share capital of the company as of the Draft Red Herring Prospectus date, including the structure of the offer. It outlines the authorized share capital, the issued and paid-up share capital before the offer, and the specifics of the offer, which includes a fresh issue and an offer for sale. Furthermore, it provides a detailed history of equity share allotments, including various transactions such as initial subscriptions, bonus issues, right issues, and private placements over several years.

The section details various share issuance events, including bonus issues and right issues, authorized by board and shareholder resolutions. It also lists specific allotments of equity shares to various individuals, detailing the number of shares, face value, and consideration. Furthermore, the section discusses the history of promoter shareholding build-up, noting the aggregate holding of key promoters and providing a timeline of share transfers and bonus issues.

This section details various transactions related to equity shares, including allotments, transfers, and acquisitions by promoters and other parties. It shows specific transactions involving various individuals and entities, some of which occurred around the date of the Draft Red Herring Prospectus. Furthermore, it lists the average cost of acquisition for equity shares held by promoters and promoter selling shareholders, with some entries showing negligible costs.

The section details various aspects of the company's capital structure, including the weighted average cost of acquisition for equity shares by Promoters and Promoter Selling Shareholders over one and three years. It also outlines lock-in requirements for the Promoters' Contribution, specifying thresholds for shareholding and restrictions on the disposal of these shares. Furthermore, the text presents the shareholding pattern of the company as of the Draft Red Herring Prospectus date, including details on shareholders holding 1% or more of the paid-up share capital.

This section details the shareholding structure of the company, including promoter holdings and other shareholders, as of the date of the Draft Red Herring Prospectus. It presents data on the pre-offer and post-offer shareholding for key shareholders, including the promoters. Furthermore, the text outlines various compliance and operational restrictions regarding equity share issuances, financing arrangements, and transactions by promoters during a specified period.

The Offer involves a combination of a Fresh Issue and an Offer for Sale by Promoter Selling Shareholders. The Offer for Sale component involves up to 13,71,300 Equity Shares, which will be distributed to the Promoter Selling Shareholders after deducting proportionate offer-related expenses and taxes. The Net Proceeds from the Fresh Issue are proposed to be utilized for various corporate purposes. The company intends to use these funds for working capital requirements, capital expenditure for machinery or equipment, and general corporate purposes. The utilization plan details how these funds will be deployed across different fiscal years.

This section details various financial movements across different fiscal years, focusing on trade receivables, financial assets, current assets, liabilities, and working capital. Trade receivables showed an increase from Fiscal 2025 to Fiscal 2026, primarily linked to business growth and the timing of invoicing and collections. Other current assets saw a significant expansion, driven mainly by increases in contract assets, retention amounts, and advances to suppliers. Net working capital increased substantially from Fiscal 2025 to Fiscal 2026, reflecting higher deployment of funds into the operating cycle.

The section discusses various financial liabilities, including trade payables and employee dues, noting that these have remained relatively consistent over several fiscal years. Other current liabilities are also noted as being broadly stable, reflecting the normal timing of recognition and settlement. The text then details the rationale for working capital requirements, explaining that operational expansion across multiple states and diversification into new sectors necessitate increased deployment of funds for various operating assets. Furthermore, it outlines the expected impact of expansion on trade receivables, contract assets, and advances to suppliers.

This section details various aspects related to the offer, including the estimation of expenses and the basis for determining the offer price. It outlines different categories of expenses that may be incurred in relation to the offer, such as fees for book running managers, commissions, and various other costs. Furthermore, it specifies the factors used to determine the price band for the equity shares, which involves assessing market demand and considering both qualitative and quantitative factors derived from the company's financial statements.

This section details various accounting ratios, key performance indicators (KPIs), and comparisons with industry peers. It includes information on Net Asset Value (NAV) calculations, comparisons of financial ratios like P/E, Return on Net Worth, and liquidity metrics, and operational KPIs such as Order Book and Book-to-Bill Ratio. The text also clarifies the definitions used for various financial terms and notes on the basis of the disclosed information.

The provided section primarily contains comparative financial data for the company against industry peers, detailing various Key Performance Indicators (KPIs) such as income, margins, and profitability ratios. It also includes detailed definitions for these financial terms, such as Current Ratio, EBITDA, and Net Profit Margin. Furthermore, the text discusses the process for determining the price band for the offer, referencing the weighted average cost of acquisition and market demand.

This section discusses various special tax benefits available to the Company and its shareholders under different tax laws. It details provisions related to the Income-tax Act, 2025, including a lower corporate tax rate option and deductions for new employee employment and inter-corporate dividends. Furthermore, it outlines tax implications for shareholders, covering dividend income, capital gains, and various provisions concerning non-resident shareholders and mutual funds. The statement clarifies that there are no special tax benefits available under the GST legislation.

This section outlines various special tax benefits available to the Company and its shareholders under different tax laws, including the Income-tax Act, the Central Goods and Services Tax Act, and others. It details provisions related to lower corporate tax rates, deductions for employee costs and inter-corporate dividends, and various tax treatments for capital gains and dividend income for shareholders. The text also clarifies the status of tax benefits under Indirect Tax Laws.

This section details the process of the Independent Auditor's examination on the Restated Financial Information of S. G. Encon Limited for inclusion in the Draft Red Herring Prospectus (DRHP). The report confirms that the financial information was examined in accordance with the terms of the agreement, including compliance with various regulations like the Companies Act, ICDR Regulations, and the Guidance Note. The examination relied on various audited financial statements and reports from the company and the auditors. The opinion states that the Restated Financial Information was prepared with adjustments for changes in accounting policies and material errors, and that it does not contain qualifications requiring financial adjustments.

This section provides restated financial statements for S. G. Encon Limited, including the Statement of Assets and Liabilities, Profit & Loss, Changes in Equity, and Cash Flow. The financial data is presented for the years ended March 31, 2026, 2025, and 2024. Key figures detail revenues, expenses, profits, and cash movements across these periods.

This section details the material accounting policies applied to the restated financial information, covering various aspects such as financial instruments, property, plant and equipment, and revenue recognition for contracts. It outlines the company's approach to fair value measurement, impairment testing, and the accounting treatment for different types of liabilities and assets. The policies specify how various financial instruments, including financial assets and liabilities, are recognized, measured, and derecognized according to Indian Accounting Standards (Ind AS).

This section details various accounting policies, judgments, and assumptions related to the financial statements, including tax recognition, borrowing costs, earnings per share calculation, segment reporting, and asset classification. It outlines specific rules for recognizing taxes, capitalizing borrowing costs, and how various items are treated in the profit and loss statement. Furthermore, it covers accounting policies for current versus non-current classification, foreign currency transactions, provisions, contingent liabilities, and the treatment of leases. The text also discusses significant accounting judgements, such as revenue recognition, fair value measurement, and impairment testing for assets and financial instruments.

This section details various financial line items for S. G. Encon Limited across different reporting periods, including investment property, intangible assets, financial assets, and current assets. It provides historical data for assets like investment property, software, right-of-use assets, and trade receivables, along with details on financial assets and other current assets. The data spans fiscal years ending March 31, 2024, 2025, and 2026.

This section details various aspects of the company's financial information, including changes in authorized and issued share capital, ownership structure, capital management policies, and the details of financial liabilities. The data covers comparisons across fiscal years ending March 31, 2024, March 31, 2025, and March 31, 2026. It also provides extensive information regarding borrowings from various lenders and the terms of these loans.

This section details various financial liabilities and provisions of S. G. Encon Limited across three fiscal years (ending March 31, 2024, 2025, and 2026). It includes information on lease liabilities, trade payables, other current liabilities, and current provisions. The data presented covers non-current and current components, along with movement and outstanding dues for different categories of payables.

This section details various components of the financial statements for S. G. Encon Limited across three fiscal years, including revenue, contract liabilities, income, costs, and expenses. The data provided covers figures in million rupees for the years ended March 31, 2026, 2025, and 2024. Key breakdowns include revenue from operations, changes in contract liabilities and assets, various income and expense items, and depreciation and amortization.

This section details various financial line items, including other expenses, tax components, deferred tax balances, contingent liabilities, and employee benefits. It provides historical data for the years ended March 31, 2026, 2025, and 2024, covering items such as electricity, rent, salaries, and tax expenses. Furthermore, it outlines the movement in deferred tax assets and liabilities, details regarding contingent liabilities, and various calculations related to the present value of obligations and employee benefits.

This section details various actuarial assumptions, liability calculations, financial instrument carrying values, and risk management policies for S. G. Encon Limited across different fiscal years. It includes information on salary growth rates, discount rates, mortality assumptions, and the structure of defined benefit obligations. Furthermore, it outlines the fair value measurement hierarchy for financial instruments and discusses various financial risks such as interest rate risk, credit risk, and liquidity risk.

This section details various financial and governance disclosures for S. G. Encon Limited, including contractual maturities of financial liabilities, capital structure information, earnings per share, related party transactions, and outstanding balances. It outlines the company's policy on commodity price risk management and the process for adjusting earnings per share following a bonus issue.

This section details various financial reporting aspects, including segment revenue breakdowns, corporate social responsibility (CSR) spending, and analytical ratios. It outlines the company's primary business activities, which involve execution of telecom and infrastructure projects, and the deployment and operation of fiber networks. Furthermore, it provides disclosures regarding major customers contributing significantly to the company's revenue over different fiscal years.

This section primarily details the reconciliation between audited and restated financial statements for the years ended March 31, 2026, 2025, and 2024, showing no material adjustments were required. It confirms that there were no emphasis of matter issues in the auditor's reports, no observations under the Companies (Audit and Auditors) Rules, 2014, and that appropriate regroupings were made in the restated financial information to align with accounting policies and regulations. Furthermore, the company confirmed that no transactions with struck-off companies occurred, no dividends were declared or paid, and various disclosures regarding borrowings, undisclosed income, and related party transactions were largely negative, indicating compliance with certain regulatory requirements.

The provided section primarily deals with the verification of share capital information and the reliance on various guidance notes and standards by the auditors. It details the consent given for the use and disclosure of these certificates in various Offer Documents and for regulatory purposes. Furthermore, the text discusses the financial indebtedness of the company, including details on borrowings and restrictive covenants, as well as the context for financial reporting and industry data sources.

The company operates across three main business verticals: telecommunication services, construction services, and oil & gas and sewerage. The core business is telecommunication services, which involves providing operation and maintenance (O&M) for telecom infrastructure, including network rollouts, deployment, and maintenance. The company maintains a significant network presence, having kept 79,445 telecom sites and deployed over 92,001 route kilometers of optical fibre cable (OFC). Construction services include civil works, fit-out, electrical works, and project management consultancy, with recent expansion into engineering design for retail outlets. The company also undertakes projects in the oil & gas and sewerage sector, primarily involving underground utility infrastructure using Horizontal Directional Drilling (HDD) techniques.

This section details the significant accounting policies adopted by the Company in preparation of the Restated Financial Information, which is intended for inclusion in various prospectuses. The financial information was prepared to comply with requirements from the Companies Act, SEBI regulations, and ICAI Guidance Notes, and to align with Indian Accounting Standards (Ind AS). The section outlines the basis for preparing financial statements, including the transition to Ind AS, and the treatment of financial instruments, property, plant, and equipment, and financial liabilities.

This section details various accounting policies related to asset valuation, revenue recognition, and tax treatment under Indian Accounting Standards. It covers depreciation methods, impairment testing for non-financial assets, revenue recognition for contracts (including EPC and services), handling of various income streams, treatment of interest income and insurance claims, employee benefits, and tax provisions. It also outlines rules for capitalizing borrowing costs and calculating earnings per share, along with segment reporting guidelines.

This section details various accounting policies, judgments, estimates, and assumptions required under Indian Accounting Standards (Ind AS). It covers aspects such as segment reporting, classification of assets and liabilities, foreign currency transactions, provisions and contingent liabilities, leases, and the treatment of various accounting estimates like revenue recognition, fair value measurement, impairment testing, useful life of assets, defined benefit plans, and taxes. Furthermore, it discusses recent amendments and notifications issued by the Ministry of Corporate Affairs (MCA) concerning various Ind AS standards, including changes related to foreign exchange rates, financial instrument disclosures, and international tax reform.

This section details various accounting treatments, definitions, and financial performance comparisons between fiscal years. It discusses amendments to Ind AS regarding the classification of liabilities, the use of Non-GAAP financial measures, and the components of the statement of profit and loss. Furthermore, it provides comparative analysis of revenues, expenses, and profits between Fiscal 2026 and Fiscal 2025, as well as Fiscal 2025 and Fiscal 2024.

The section details various financial performance metrics and cash flow information across fiscal years. It shows changes in various expenses, including cost of construction materials, operating expenses, employee benefits, finance costs, and other expenses, noting trends such as increases in certain categories due to higher costs or recoveries. Furthermore, it presents trends in assets, liabilities, and equity, including changes in non-current and current assets, liabilities, and total assets over the periods. The text also provides a breakdown of cash flows from operating, investing, and financing activities, detailing cash movements and related adjustments.

The provided section details various financial metrics, indebtedness, contingent liabilities, and risk factors for the company. It includes information on financial performance indicators like EBITDA margins, liquidity ratios, and debt levels across different fiscal years. Furthermore, it discloses contingent liabilities arising from GST demands and discusses various market risks such as credit risk, liquidity risk, market risk, and interest rate risk, along with dependencies on key customers.

The section confirms that, to the knowledge of the company, there are no significant developments after the last financial statements that would materially and adversely affect operations, profitability, or the ability to pay material liabilities within the next 12 months. The document outlines various exclusions for outstanding litigation, regulatory actions, tax claims, and disciplinary actions against the Company, its Promoters, Directors, Key Managerial Personnel (KMPs), and Senior Management. It also details a Materiality Policy concerning outstanding dues to creditors, where amounts exceeding 5% of standalone trade payables were considered material.

This section details various governmental and regulatory approvals, including tax and labour-related registrations, obtained by the Company. It lists several specific registrations, including those from the Income Tax Department, various state tax registrations, and labour identification numbers. Furthermore, it outlines material approvals that are either required but not yet received or have not been obtained.

This section details various regulatory and statutory disclosures, including authorizations for the offer, confirmations from promoter selling shareholders, in-principle listing approvals, and various compliance statements. It also outlines several disclaimers regarding liabilities, responsibility for information, and jurisdiction for the offer. Furthermore, it specifies eligibility criteria for the offer based on net tangible assets, operating profit, and net worth over the preceding three financial years, and lists several compliance confirmations related to SEBI ICDR Regulations.

This section primarily discusses the conditions under which Equity Shares are offered and sold, differentiating between transactions within the United States and those outside the United States. It outlines representations and warranties that purchasers must make, particularly concerning their status as U.S. QIBs or awareness of exemptions from U.S. securities registration requirements. Furthermore, the text details various consents obtained from company personnel and experts, and provides disclosures regarding recent public issues and capital activities of the company and its subsidiaries.

This section primarily details the price information of past issues handled by Marwadi Chandarana Intermediaries Brokers Private Limited and outlines the mechanism for investor grievance redressal. It provides various rules regarding the retention of records with the Registrar to the Offer and the process for addressing grievances related to bids, including compensation for delays in unblocking funds or resolving issues with non-allotted applications. It also specifies the process for payment of processing fees to the Sponsor Banks.

The section details various procedural and legal aspects related to the issuance and offer of equity shares, including compliance with various regulations and investor grievance redressal mechanisms. It outlines the process for obtaining SCORES authentication, the estimated timeframes for resolving investor complaints, and the agreements in place for the transfer of equity shares. Furthermore, it specifies the legal framework governing the offer, the ranking of equity shares, the rules for dividend payments, and the requirements for allotment in dematerialized form.

This section details various compensation and timeline provisions related to the blocking and unblocking of funds in the context of stock exchange bidding platforms, including different rates for delays and multiple amounts. It also outlines timelines for the completion of listing formalities and the reporting requirements for delays. Furthermore, it specifies different submission and revision timelines for various types of bidders and sets criteria for minimum subscription levels and the allocation order for bids.

This section details various rules and procedures related to the allotment of equity shares in an offer, distinguishing between different bidder categories like QIBs, Non-Institutional Bidders (NIBs), and Retail Individual Bidders (RIBs). It outlines rules for allocation, bid amounts, and the use of the UPI mechanism for certain applications. It also specifies conditions for anchor investors and the handling of under-subscription across different portions of the offer.

This section details various regulatory and procedural requirements related to the public offering process, including the implementation of different SEBI circulars and the UPI Mechanism. It outlines rules regarding the use of various payment methods for applications, the handling of investor grievances, and the procedures for share transfer. Furthermore, it specifies the allocation of equity shares across different investor categories and the requirements for bid forms, including the mandatory provision of UPI IDs for certain bidders.

This section details various procedural rules and restrictions concerning the participation of different investor categories in the Initial Public Offer (IPO). It outlines cut-off times for UPI mandate acceptance, rules for bid entry and modification, and specific restrictions on participation by Promoters, Promoter Group members, and certain investor types like Mutual Funds, Eligible NRIs, FPIs, and various investment funds. Furthermore, it specifies documentation requirements for bids made under power of attorney or by certain corporate bodies, and sets limits on investment by Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs).

This section details various rules and requirements concerning bids from different categories of investors, including those from various financial institutions and individual investors. It specifies investment limits for banking companies, requirements for bids from insurance companies, provident funds/pension funds, Systemically Important Non-Banking Financial Companies (NBFCs), and Anchor Investors. Furthermore, it outlines strict procedural requirements for submitting bids, such as ensuring correct details in the application forms, handling of electronic bids, and compliance with various statutory requirements regarding identity and fund blocking.

This section details numerous procedural requirements and prohibitions for investors and bidders concerning the submission and handling of bids. It covers rules for UPI bidders, the submission process through Designated Intermediaries, restrictions on payment methods, and various technical grounds for rejecting bids. Specific rules are laid out regarding the handling of funds, the submission of various identification details, and time-sensitive restrictions for different bidder categories like QIBs and RIBs.

This section primarily outlines undertakings by the Company regarding the allotment process, including ensuring proper collection of bid forms, timely completion of listing formalities, and provisions for refunds or interest payments if timelines are missed. It also details conditions related to promoter contributions and the handling of offer withdrawals. Furthermore, the section covers various legal and regulatory aspects concerning the offer, such as restrictions on foreign ownership of Indian securities, rules for participation by Non-Residents and Foreign Portfolio Investors (FPIs), and stipulations regarding the registration of equity shares outside India.

This section details various articles concerning the company's operational and corporate governance procedures, including provisions related to certificates, commissions, share rights, liens, calls on shares, transfer restrictions, and forfeiture procedures. It outlines the company's powers regarding share capital alteration, capitalization of profits, and the ability to buy back its own shares. Furthermore, it covers rules for convening general meetings and the Board's authority to call extraordinary general meetings.

This section primarily details the procedural rules for general meetings, including quorum requirements, the role of the Chairperson, and procedures for adjournment. It also outlines various voting rights, including those related to show of hands versus poll voting, and rules concerning joint holders and members of unsound mind. Furthermore, the text covers provisions related to the Board of Directors, including the determination of director numbers, remuneration, and the Board's power to appoint additional directors. It also specifies rules for the Board's meetings, including voting majority requirements, and the delegation of powers to committees. Finally, the section discusses the appointment of key officers, the custody of the company seal, dividend declarations, and provisions regarding the deduction of payable amounts from dividends.

This section primarily lists various material contracts and documents that have been entered into or are planned for entry into by the Company, which will be attached to the Draft Red Herring Prospectus. It details numerous agreements with promoters, lead managers, registrars, and various financial and advisory entities. It also lists several foundational corporate documents, such as certificates of incorporation, and resolutions passed by the Board and various committees approving the offer and the prospectus. Furthermore, the section includes various expert certifications, search reports, and consents from different professional bodies, along with regulatory approvals.

This section primarily consists of declarations from various directors and officers confirming compliance with relevant laws and regulations, including the Companies Act, 2013, and rules issued by the Government of India or the Securities and Exchange Board of India. The declarations affirm that no statement, disclosure, or undertaking in the Draft Red Herring Prospectus is contrary to these laws. Several individuals, including an Executive Director, Non-Executive Independent Directors, and the Chief Financial Officer, have signed these confirmations.

The provided text consists of declarations by the Company Secretary and Compliance Officer and the Chief Executive Officer, confirming compliance with various provisions of the Companies Act, 2013, and rules and regulations issued by the Government of India or the Securities and Exchange Board of India (SEBI). They further certify that all statements, disclosures, and undertakings in the Draft Red Herring Prospectus are true and correct.

This section details various related party transactions for the fiscal years ended March 31, 2026, 2025, and 2024, categorized by the type of transaction and the counterparty. The disclosed transactions include unsecured loans, remuneration, employee benefits, and contributions to pension/insurance plans. The data shows figures for three different years, with specific amounts listed in ₹ million.

This section primarily details the procedures and lists related to the subscription process for bids under the ASBA process, including lists for Syndicate Self Certified Syndicate Banks Branches, Registered Brokers, Registrar and Share Transfer Agents (RTAs), and Collecting Depository Participants (CDPs). It also outlines various requirements for obtaining expert opinions, such as written consents from Chartered Accountants, Independent Chartered Accountants, Independent Chartered Engineers, and a Practicing Company Secretary, to be included in the Draft Red Herring Prospectus. Furthermore, the text discusses the process for filing the Draft Red Herring Prospectus and the Book Building Process, which involves determining the Price Band in consultation with the BRLM and advertising the offer in various newspapers.

The company's Board consists of six Directors, including one woman director, comprising a Managing Director, a Whole-Time Director and Chairperson, an Executive Director, and three Non-Executive Independent Directors. Rajiv Gandhi is the Chairperson and Whole-Time Director, responsible for strategic implementation and corporate governance. Pankaj Setia is the Managing Director, tasked with implementing strategic plans, budgets, and day-to-day business operations. Ravinder Kumar is the Executive Director, responsible for planning and managing telecom operations and maintenance. The Independent Directors include Ashwani Kumar Gulati, Gautam Jindal, and Samridhi Batra, who have various professional backgrounds and directorships in other companies.

The management section details various aspects related to the Directors, including their shareholding, compensation, and potential conflicts of interest. It specifies that no Directors are party to bonus or profit-sharing plans for the company. Furthermore, it outlines rules regarding loans to Directors and service contracts with them. It also clarifies that Directors may have interests in equity shares held by them or associated entities. The text also addresses conflicts of interest concerning property transactions and the promotion or formation of the company. The section further details changes in the Board during the last three years and the structure of the Board, including the number of directors and the establishment of various Board committees.

The text outlines various governance and committee structures within the company, detailing criteria for appointing independent directors, policies for remuneration, and procedures related to employee stock option plans. It also describes the composition and scope of the Stakeholders’ Relationship Committee and the Corporate Social Responsibility Committee, which have been reconstituted by board resolutions. Finally, it mentions the constitution of an IPO Committee.

This section details the Key Managerial Personnel and Senior Management of the company as of the Draft Red Herring Prospectus date. It introduces the Chairperson and Managing Director, Rajiv Gandhi, and Pankaj Setia, and then lists several Key Managerial Personnel and Senior Management with their respective roles and responsibilities. Key personnel include Ravi Kumar as the Chief Executive Officer, Anuj Ohri as the Chief Financial Officer, and Shaveta Sharma as the Company Secretary. Senior Management also includes Mukesh Kumar as the General Manager, Commercial Operations, Harpal Grover as the Chief Operation Officer, and Sanjeev Kumar Jagota as the National - Network Compliance Head for the NHQ Team. The text further clarifies various aspects concerning their appointments, compensation, and potential conflicts of interest.

The company's promoters are Rajiv Gandhi and Pankaj Setia. Rajiv Gandhi holds 44.18% of the pre-Offer paid-up Equity Share capital, and Pankaj Setia also holds 44.18%. Rajiv Gandhi is a Promoter, Whole-Time Director, and Chairperson of the company, while Pankaj Setia is the Managing Director. The original promoters, Inderjit Kaur and Adarsh Jot, transferred 10,000 Equity Shares to Rajiv Gandhi and Pankaj Setia on May 31, 2011, establishing them as the promoters. The promoters have not been involved in certain transactions or payments to the company, and there has been no change in control within the preceding five years.