Johnsoncab Electricals Limited

The document outlines a complex global economic outlook characterized by a slowdown in growth and rising inflation driven by geopolitical tensions in the Middle East and energy price shocks. While global growth is projected to decline to 3.0% in 2026, India's economy is described as entering a 'Goldilocks' phase with moderate inflation at 2.1% and robust domestic demand. Despite these challenges, the text highlights structural reforms and trade agreements as key opportunities for India to enhance resilience and diversify its supply chains.

This section outlines the economic outlook for India's fiscal 2025 to 2026, highlighting robust domestic demand and resilient private consumption. Manufacturing and services sectors drove production growth, with services leading the expansion. The text also provides a global overview of the wires and cables industry, noting its market size and growth trajectory, while detailing India's specific export performance in this sector.

The document highlights the India wires and cables market's significant growth driven by the nation's ambitious renewable energy goals, which include targets for 100% renewable electricity in 37 countries by 2025. The market size was valued at USD 9.32 billion in 2024 and is projected to reach USD 17.08 billion by 2032 with a CAGR of 7.94%. Key investment trends show that global clean technology investment is expected to exceed $3 trillion in 2025, with renewable power and grids overtaking fossil fuel spending for the first time.

The Indian wires and cables market is driven by government targets for renewable energy and smart grid infrastructure, with significant growth expected in low-voltage segments due to urbanization. Key players include Polycab India, which holds the largest listed market share, and Adani Enterprises, which has entered the sector through a joint venture with Praneetha Ventures. The industry faces regulatory challenges and competitive risks from new entrants like UltraTech Cement, while the global PICC market continues to expand at a robust CAGR.

The document outlines the Indian power sector's push to upgrade aging transmission infrastructure through reconductoring and new conductor technologies to meet rising renewable energy demands. It highlights the limitations of existing grid capacity and the need for substantial new transmission lines by 2032. The text details specific advancements in conductor technology, including High-temperature low-sag (HTLS) conductors and composite-core designs like AECC, which allow for higher current capacity and reduced sag. Key players such as APAR Industries are highlighted as major global leaders in reconductoring projects, with APAR holding a significant market share in domestic projects.

India is emerging as a key market and source of advanced conductor technology for reconductoring solutions, supported by growing domestic manufacturing capabilities and increasing project demand. The company highlights its strategic position in the power infrastructure sector, emphasizing the technological advancement required to meet future energy needs.

Johnsoncab Electricals Limited is a private limited company established in 2012 that manufactures low voltage wires and cables for power infrastructure, renewable energy, railways, and industrial applications. The company operates two manufacturing units in Mehsana, Gujarat, with a combined annual installed capacity of 79,950 KMS as of Fiscal 2026. Its product portfolio includes control cables, power cables, welding cables, solar photovoltaic cables, and submersible flat cables, which it sells under the brand name Johnson Cables. The company holds ISO and BIS certifications and serves both private sector customers and government entities through tender participation.

The issuer is a company based in Gujarat, India, with its registered office and manufacturing units located in Mehsana-Ahmedabad and Devangere, Karnataka. The company operates two manufacturing facilities in the Mehsana-Ahmedabad region, covering an aggregate area of 27,793 sq meters, and maintains a depot in Devangere, Karnataka. Its customer base is primarily spread across the western region of India, including Gujarat, Maharashtra, Rajasthan, and Karnataka, with domestic revenue constituting nearly 100% of its total sales. The company manufactures a diverse range of low voltage wires and cables, including HRFR, Flame Retardant, and Single Core PVC Industrial Cables, designed for residential, commercial, industrial, and infrastructure applications.

The document describes a diversified manufacturing business specializing in industrial and commercial power cables, control cables, and solar energy solutions. Key products include multicore control cables, submersible flat cables, Johnson Gold XLPE and Premium TPR sheathed cables, solar DC cables, and welding cables. The company operates manufacturing facilities and has subsidiaries involved in the distribution of housing wires and industrial single core cables. Their products are applied across various sectors including power generation, renewable energy, railways, agriculture, and construction. The company's revenue is primarily driven by power cables, housing wires, and industrial single core cables, with significant exposure to the construction and infrastructure sectors.

The issuer manufactures low voltage wires and cables using a process that includes drawing copper or aluminum rods, annealing, stranding, and insulation. The manufacturing units are located in Mehsana, Gujarat, India, with a total installed capacity of 70,000 KMS as of March 31, 2026. The company produces a range of products including housing and building wires, multicore industrial cables, welding cables, solar cables, and submersible flat cables.

The company has established a second manufacturing unit, Unit-II, which became operational in 2024 to expand its production capabilities. This facility is located in Linch, Mahesana, Gujarat, and covers a built-up area of 6,928.68 square meters with an installed capacity of 9,950 KMS. The unit produces a diverse range of cable products including armoured and unarmoured LT XLPE power cables, control cables, industrial cables, and solar cables. The manufacturing process utilizes automated and semi-automated machinery such as wire drawing machines, stranding machines, and insulation lines, along with specialized laboratory equipment for testing.

The company operates a manufacturing unit dedicated to producing wire insulation products, specifically core insulation, inner sheathing, and outer sheathing for various applications. The facility utilizes a diverse range of machinery including extrusion lines, wire drawing, bunching, and coiling equipment to process raw materials into finished coils. Key production capabilities include the ability to handle wire diameters ranging from 5 mm to 80 mm with capacities up to 200 kg per hour. The manufacturing process involves complex steps such as multiwire drawing, annealing, bunching, and automated coiling with payoff machines.

The company manufactures electrical cables and wires using a range of specialized machinery, including stranding, winding, and insulation equipment. Production is supported by ancillary facilities such as cranes, generators, and weighing scales. The company operates two main units, with Unit-I handling a significantly larger volume of both cables and wires compared to Unit-II. Historical capacity utilization data indicates that the company operates at varying levels of efficiency, with wire production generally exceeding cable production in terms of capacity utilization.

Johnson Electric is a leading Indian manufacturer of electrical wires and cables, operating primarily in Gujarat with two manufacturing facilities in Mehsana. The company serves diverse sectors including power transmission, renewable energy, railways, and infrastructure, with its products branded under the Johnson name. Revenue is sourced from both public sector units and private entities, with a significant portion coming from private entities. The company maintains high operational standards through ISO certifications and holds awards for quality excellence. Key weaknesses include dependence on volatile raw material prices and competition from established domestic and multinational players.

The issuer highlights its competitive strengths through consistent revenue growth, significant investment in manufacturing infrastructure, and a diversified customer base serving both government and private sectors. The company owns a valid Indian patent for an improved electrical cable and holds multiple vendor approvals with major utilities and state corporations. Its business strategy focuses on expanding manufacturing capacity and optimizing operations through energy-efficient initiatives.

The issuer plans to improve operational efficiency by installing rooftop solar power plants to reduce power costs and enhance environmental sustainability. They aim to strengthen their market position through product innovation, quality assurance, and the development of higher value-added products like Paper Covered Copper and Aluminium Conductors. The company is expanding its presence in the renewable energy sector by targeting key growth areas and increasing revenue share from existing and new customers. Financial performance is expected to improve through cost optimization, yield enhancement, and the adoption of advanced automated technologies.

The issuer operates a business-to-business model focused on maintaining customer contact and delivering quality products for government and public sector projects. The company utilizes third-party logistics for raw material and finished product transport, manages water supply through private suppliers and bore wells, and employs dedicated transport vehicles for delivery. IT infrastructure includes hardware, software, internet access, and cybersecurity measures to protect operations. The company maintains inventory of both raw materials and finished products based on confirmed orders and performs periodic maintenance on its machinery.

The issuer is a private limited company located in Gujarat, India, which is not covered under the ESI Act implementation area in the state. The company operates in the insurance sector and holds major insurance policies including vehicle insurance, GCV public carrier policies, material damage insurance, and a Bharat Sookshma Udyam Suraksha policy. These policies cover a total sum insured of approximately ₹1.25 crore, with premiums paid between September 2025 and January 2027. The company has restructured its workforce during the period ended September 30, 2026, moving certain permanent employees to contractual employment.

The document details the insurance coverage provided by National Insurance Company Limited for its employees and units. It specifies that the company employs 6 and 7 employees respectively, with aggregate medical expense limits of ₹10.00 lakh for both units. The coverage includes basic cover, STFI, and earthquake protection for Unit-1 valued at ₹8.55 crore, and for Unit-2 valued at ₹14.50 crore. Additionally, both units offer terrorism cover with a limit of ₹1 crore, and Unit-1 includes an earthquake cover valued at ₹7.20 crore.

The issuer is a private limited company based in Gujarat and Karnataka, India, specializing in insurance and intellectual property services. Key assets include a stock in trade valued at ₹55 crore, marine insurance policies, and a portfolio of registered trademarks such as Johnson Cab Electricals Limited. The company occupies leased properties in Gujarat and Karnataka, with a total lease area of approximately 64,000 square meters, and utilizes a depot in Devangere, Karnataka.

The issuer operates within the manufacturing and industrial sectors in India, governed by a complex framework of central and state legislations including the Factories Act, 1948, and the Industrial Disputes Act, 1947. Key regulatory bodies such as the Ministry of Industries and Commerce administer acts like the IDR Act and the Bureau of Indian Standards Act, 2016, which oversee industrial development and product standardization. The company is subject to additional securities laws and regulations applicable to listed entities in India, including provisions from the Securities and Exchange Board of India (SEBI).

The document outlines the legal framework governing employment and sales in India, including the Sale of Goods Act, 1930, which governs contracts for the sale of goods. It details the Code on Wages, 2019, which consolidates wage and bonus laws, and the Code on Social Security, 2020, which amends various social security legislations. Additionally, it describes the Occupational Safety, Health and Working Conditions Code, 2020, which replaces multiple existing central labour laws.

The document outlines the various Indian labour laws that the company must comply with, including acts related to contract labour, minimum wages, and sexual harassment. It also details environmental regulations such as the Environment (Protection) Act, 1986, which mandates environmental clearance for construction projects and specifies pollution standards. Additionally, the text mentions the Water and Air Acts that prohibit the disposal of polluting matter in streams or wells and set standards for emissions.

The document outlines the legal framework governing environmental compliance for the issuer, including requirements for obtaining consent from the state Pollution Control Board before opening new outlets. It details mandatory public liability insurance for hazardous substances and the obligation to contribute to environmental relief funds. The text also references various rules and notifications covering hazardous waste management, noise pollution, gas cylinders, e-waste, and plastic waste, with specific amendments and effective dates mentioned.

The document outlines the legal framework governing intellectual property, foreign investment, and taxation in India. It details the Trademarks Act, 1999, which grants exclusive rights to registered proprietors for ten-year terms, and the Indian Patents Act, 1970, which protects inventions through government grants. Foreign investment is regulated by the Foreign Exchange Management Act, 1999, and the Foreign Trade (Development and Regulation) Act, 1992, which mandates an Importer-Exporter Code for all trade activities. The text also covers tax compliance under the Income Tax Act, 1961, requiring all companies to file returns and comply with various deductions and minimum tax obligations.

The document outlines the legal framework governing goods and services tax, customs duties, and professional taxation in India. It details the GST law, which is enforced by various central and state acts, and explains how customs duties are administered by the Central Board of Indirect Taxes and Customs. The text also covers professional taxes under the Gujarat State Tax Act, the MSME development act, and other relevant laws such as the Competition Act and the Insolvency and Bankruptcy Code.

The document outlines the legal framework governing company incorporation in India, specifically referencing the Companies Act 2013 which came into force on September 12, 2013. It also details the Consumer Protection Act, 1986, which establishes consumer protection councils and redressal agencies to handle disputes through quasi-judicial bodies. The text further mentions the Indian Contract Act 1872 as a comprehensive legal framework for commercial relationships and lists other relevant laws such as the Prevention of Corruption Act, 1988, Rent Control Act, and the Arbitration and Conciliation Act, 1996 that the company must comply with.

Johnson Cables was originally established in 2012 as a partnership firm named 'M/s. Johnson Cables' in Gujarat, which later converted into Johnsoncab Electricals Private Limited in 2020. The company underwent a conversion to a public limited company in 2025, with its name subsequently changed to Johnsoncab Electricals Limited. Key milestones include receiving the 'Best Product Award' from the Government of Gujarat in 2022-2023, achieving a revenue of over ₹100.00 Crore in 2025, and establishing a manufacturing facility at Mehsana in 2025.

The document confirms that the company has no holding company, subsidiaries, or joint ventures, and lists nine shareholders. It also states there are no strategic partners, financial partners, or key managerial personnel agreements, and no material agreements or injunctions affecting the company.

The cover definitions section identifies Johnsoncab Electricals Limited as the issuer, with its CIN as U31900GJ2020PLC118226. The company is incorporated in Karnataka, and its registered office is located at Depot 11/11A, Opp. Anjaneya Temple, Main Road, Shamanur, Devangere, Karnataka – 577004. The document specifies that the company is offering Equity Shares of Face Value ₹10 each and is led by HDFC Bank Limited as a banker and Ms. Toshi Rajora as the Company Secretary and Compliance Officer.

This section identifies the issuer's registered office address at Survey No. 930, Jagudan Char Rasta, Mehsana-Ahmedabad Highway, At Linch, Jagudan, Mehsana, Gujarat, India, and the Registrar of Companies located in Naranpura, Ahmedabad. It specifies that the company is a fresh issue offering equity shares to successful bidders, with the lead manager being the Designated Intermediary. The document further defines key terms such as the Anchor Investor, Anchor Escrow Account, and Anchor Investor Allocation Price, which are critical for understanding the investment structure and pricing mechanism for the new issue.

This section outlines the specific procedures and pricing structures for the Anchor Investor portion of the issue. It details the timing of the bid submission, which occurs one working day prior to the issue opening, and defines the Anchor Investor Issue Price as a final price determined by the company in consultation with the Book Running Lead Manager. The document specifies that up to 60% of the QIB Portion is allocated to Anchor Investors, with a mandatory 40% reserved for domestic Mutual Funds and life insurance companies. It also describes the ASBA mechanism, which allows applications to be submitted electronically or via UPI, with funds blocked in designated accounts until the bid is accepted.

This section defines the ASBA Form as the application tool used by bidders to submit offers for equity shares, specifying that it may include a UPI ID. It identifies the bankers to the company as those disclosed in the General Information chapter on page 87 and clarifies that the Banker(s) to the Issue refers to the collective group of banks including the Sponsor Bank, escrow collection bank, and refund bank. The document further establishes the Bid Amount as the highest value of optional bids payable by individual bidders or blocked in the ASBA account, while the Bid/ Issue Closing Date is set for November 03, 2026, and the Opening Date for October 30, 2026.

This section outlines the operational framework for the new equity issue, specifying the bid period, the book building process, and the key intermediaries responsible for execution. The lead manager for the book running is identified as ISK Advisors Private Limited, while the designated broker centres and collecting depositories are listed as per SEBI regulations. The document also defines specific terms such as the cap price, client ID, and the roles of the collecting depository and registrar in the allocation and transfer of shares.

This section outlines the key terms and definitions for a fresh issue of equity shares by the issuer. The issue involves a Net Issue of up to 26,59,200 Equity Shares at ₹10 each, with a total Net Proceeds of ₹[●] excluding expenses. The offering is structured into portions for Qualified Institutional Buyers (QIBs), Non-Institutional Investors, and Mutual Funds, with a total Net QIB Portion of 50% of the Net Issue. The lead managers are the Market Making Agreement and Monitoring Agency, while the Registrar is MAASHITLA SECURITIES PRIVATE LIMITED.

This section defines the regulatory framework and specific banking entities involved in the issue. It clarifies that the issuer is a Resident Indian person, outlines the SEBI regulations governing the offer, and details the types of securities being offered. The document identifies the lead sponsor as ICICI Bank Limited, which acts as a conduit for UPI mandates, and lists ISK Advisors Private Limited as a Syndicate Member. It also specifies the collection centers where applications can be submitted and the eligible categories of bidders, including those using the Self-Certified Syndicate model.

This section defines key terms used in the prospectus, including the Insolvency and Bankruptcy Code 2016, Indian Standard Time, and various accounting and regulatory frameworks. It specifies that the company is issuing shares via a fresh issue and offer for sale, with lead managers and registrar identified as NSDL and BRLM respectively. The document also outlines specific definitions for corporate bodies, net worth calculations, and securities regulations applicable to the Indian market.

This section defines various Key Performance Indicators (KPIs) used by management to track revenue, assess profitability, and evaluate financial stability. It includes metrics such as Total Income, EBITDA, and PAT, alongside ratios like Debt-Equity Ratio and RoE. These indicators provide a comprehensive view of the company's operational efficiency and shareholder returns.

This section establishes that Johnsoncab Electricals Limited is the issuer, clarifies that all references to India and the U.S. are specific to those jurisdictions, and defines key terms such as 'Lac' and 'million' for consistency. It specifies that financial data is derived from audited statements for the period ended August 31, 2026, and fiscal years ending March 31, 2026, prepared under Indian GAAP. The document notes that the company has no subsidiaries and explicitly states that discrepancies between totals and sums in tables are due to rounding-off.

This section outlines the currency definitions and exchange rates applicable to the Red Herring Prospectus. It specifies that all references to Indian Rupees and US Dollars are official currencies, while any currency conversions are made solely to comply with SEBI regulations and should not be interpreted as representations of future convertibility. The document provides a table showing the exchange rates between the Indian Rupee and major foreign currencies as of August 31, 2026, March 31, 2026, March 31, 2025, and March 31, 2024.

This section details the issuance of up to 28,800 equity shares at a price of ₹[●] per share, with a total aggregate value of ₹[●] lakhs. The issue is structured into a Market Maker Reservation Portion, a Net Issue to the Public, and various sub-portions including QIB, Non-Institutional, and Individual portions. The Net Issue to the Public is further divided into a QIB portion (up to 5,4,000 shares) and a Non-Institutional portion (not less than 4,200 shares). The Non-Institutional portion includes a specific allocation for applicants with application sizes exceeding ₹10,0. Additionally, the document notes that 77,70,000 equity shares were outstanding prior to this issue, with up to 1,05,70,800 shares expected to be outstanding after the issue.

The document presents a restated cash flow statement for the period ended August 31, 2026, showing a net cash flow from operating activities of 765.19 lakhs, with significant outflows in investing activities related to property and equipment purchases. Financing activities resulted in a net cash outflow of 505.20 lakhs, primarily driven by repayments of long-term and short-term borrowings. The company's cash position remained relatively stable, with a net increase in cash and cash equivalents of 0.21 lakhs for the period.

The document outlines the company's contingent liabilities as of March 31, 2026, which include bank guarantees totaling 231.07 lakhs and bills discounted under letter of credit arrangements amounting to 473.51 lakhs. These figures are presented in a table comparing the current period's liabilities against those for the previous two fiscal years, with specific details available in the restated financial information chapter.

This section details the restated statement of related party transactions for the company, listing 17 related parties including directors, family members, and independent directors. It provides a comparative breakdown of financial transactions, including remuneration, lease rent, outstanding loans, and interest, for the fiscal years ended 31 March 2025, 2026, and 2024. The document highlights significant loan balances and interest payments associated with key management personnel and their relatives, while also noting specific lease rent obligations for land.

This section details the financial obligations and liabilities of the company's directors and their relatives, specifically focusing on unsecured loans, lease payments, and interest expenses. The document lists multiple individuals, including Mr. Chandresh Kumar Patel and several Mrs. Patel relatives, as directors and their relative of directors. It outlines opening balances, loans taken, repayments, interest charges, and outstanding balances for each entity, with specific figures provided for the year ending 25.04.2026.

This section details the financial performance of a loan portfolio for the year, showing a total of 14.00% loans received and 20.00% loans repaid. The outstanding loan balance increased from 36.97 to 38.23, while the outstanding balance at the end of the previous year was 34.41. The document also includes a table comparing loan statistics across different entities, including a relative of a director named Ms. Anjali Chandreshkumar Patel.

The document outlines the corporate history of Johnsoncab Electricals Limited, tracing its evolution from a 2012 partnership firm to a public limited company. It provides specific details regarding the company's registration number, incorporation date, and current registered office address in Mehsana, Gujarat. The section also lists the designated stock exchange as BSE Limited and identifies the company secretary and compliance officer responsible for the offering.

The document identifies the Board of Directors for Johnson Cab Electricals Limited, listing five individuals with their names, designations, addresses, and DIN numbers. It also provides contact details for the Chief Financial Officer, Company Secretary, and Compliance Officer, along with a section on investor grievances that directs applicants to the Registrar and Book Running Lead Manager for issues related to allotment, ASBA, and UPI payments.

This section outlines the mandatory details that must be included in an ASBA application form, such as applicant identifiers, UPI IDs, and bank account information. It specifies that investors must also submit an acknowledgement slip from their designated intermediary. The text further details the roles and contact information for key intermediaries, including the Book Running Lead Managers, Registrar, Legal Counsel, and Statutory Auditor, along with their respective addresses and contact details.

This section identifies the lead banks responsible for issuing, escrow, collection, and refund services for the IPO, along with the SEBI-registered monitoring agency and self-certified syndicate banks eligible for UPI applications. It also outlines the regulatory requirements for investors to ensure their bank and UPI handle are listed on the SEBI website.

The document outlines the financial and regulatory framework for an equity share issue, specifying that CARE Ratings Limited serves as the monitoring agency and that no IPO Grading or Green Shoe Option is applicable. It details the company's credit ratings from CARE Ratings Limited for fiscal years 2023-24 and 2024-25, while noting that no credit rating was obtained for 2025-26. The section clarifies that Debenture Trustees are not required for this equity issue, and no expert opinions have been obtained for the objects of the issue.

The document details the filing of a Draft Red Herring Prospectus with the Bombay Stock Exchange (BSE) and the subsequent public announcement requirements. It outlines the regulatory compliance steps, including the filing of changes in auditors and the filing of the prospectus with the Registrar of Companies and the Ministry of Corporate Affairs. The section also describes the book building process, specifying the role of the lead manager, syndicate members, and the allocation of shares to Qualified Institutional Buyers (QIBs) and Anchor Investors.

The document outlines the allocation rules for equity shares under the SEBI (ICDR) (Amendment) Regulations 2025, specifying that at least 35% of the net issue must go to individual investors, with 15% reserved for non-institutional investors. It details that non-institutional investors can be split into two categories based on application size, allowing for spill-over allocations between them. The text mandates that all potential bidders must participate via the ASBA process, with anchor investors being excluded from this method. Additionally, it clarifies that bidders cannot withdraw bids once submitted, except for individual investors who can revise their bids until the issue closes.

This section outlines the procedural requirements for bidders to participate in the equity issue, including the need for a Demat account, valid PAN details, and adherence to specific eligibility criteria. It provides a detailed timetable for the issue lifecycle, covering anchor portions, allotment, and trading commencement dates. The document also specifies operational constraints such as application submission windows, working day restrictions, and the limitations on withdrawing application sizes for QIBs and non-institutional applicants.

This section outlines the underwriting structure for a 100% underwritten issue of 1,00,000 shares with a face value of ₹10 each, where the total underwritten amount is ₹100 lakhs. It identifies the underwriters as ISK Advisors Private Limited and the market makers as ISK Equities Private Limited and Sunflower Broking Private Limited. The document specifies that the issue is subject to a withdrawal right by the company prior to the bid opening date and requires a fresh prospectus if the issue is withdrawn after the closing date. Additionally, it mandates a market making arrangement where the company must allot at least 5% of the issue to market makers, with a minimum three-year commitment to ensure compulsory market making.

This section outlines the market making terms for an Indian company's draft prospectus, specifying a minimum quote depth of ₹1,0 and a 25% threshold for Market Maker exemption. It details the Market Maker's obligations to guarantee execution, limits the number of Market Makers to five, and mandates compliance with BSE SME spread requirements. The text also establishes a termination clause allowing the Book Running Lead Manager to end the agreement with a one-month notice, with the responsibility to appoint a replacement.

The document outlines the regulatory framework for market making, including provisions for appointing replacement Market Makers and monitoring obligations. It specifies that the SME Platform of BSE Limited will enforce various risk containment measures such as Mark-to-Market and VAR margins. The text details punitive actions, including monetary fines and suspension, for Market Makers failing to provide liquidity or maintain market presence. Price bands are set at 20% with spreads limited to 10%, subject to adjustments based on SEBI circulars.

The Company intends to place securities in SPOS for the first 10 days of trading, with the remaining portion traded on the SME platform. The SME platform will apply specific spread percentages based on market price slabs ranging from 9% down to 5%. These trading conditions and market making arrangements are subject to potential changes by SEBI or the Stock Exchange.

The capital structure section details the authorized and issued share capital of the company, which increased from ₹10 lakhs to ₹120 lakhs through a series of authorized and paid-up capital increases. The company has no outstanding convertible instruments and holds only one class of fully paid-up equity shares. The shareholding pattern is currently undisclosed in this section, though the document notes that the company does not have any outstanding preference shares.

The document details the promoter shareholding percentages of the Patel family across three distinct timeframes: as of the current date, they hold 99.95% of the pre-issue share capital; one year prior, their combined holding increased to 100% with Mr. Shankerlal Patel's individual stake rising to 30%; and two years prior, the total promoter holding remained at 100% with Mr. Shankerlal Patel's stake also at 30%. Additionally, the company confirms it has not issued any specified securities in the preceding two years.

The document states that the company has no intention to alter its capital structure within six months, though it may issue shares later for acquisitions or compliance. As of the date of the prospectus, the company has nine shareholders, none of whom have pledged shares. Promoter Mr. Chandreshkumar Shankerlal Patel holds 29.08% of the post-issue equity, while Mrs. Bhavanaben Chandreshkumar Patel and Mr. Anjal Chandreshkumar Patel each hold 21.70%. The table details the shareholding breakdown by allotment date and transfer nature, showing cumulative post-issue percentages for each promoter.

The section details the capital structure changes of the company, including a subscription to the Memorandum of Association in 2020, a conversion of an unsecured loan into equity shares in 2021, and subsequent transfers of shares via gift to various promoters in November 2025. The document highlights specific shareholdings held by different promoters, with some transfers occurring in 2025 where the remaining shareholding is nil.

The section details the capital structure of the company, highlighting the transfer of shares to family trusts and the conversion of an unsecured loan into equity shares. It also notes a bonus issue in December 2025, which increased the promoter's shareholding percentage to 17.37%.

The document outlines that all promoter shares are subject to a lock-in period and were fully paid-up upon acquisition. It details the average cost of acquisition for three promoters, noting that Mr. Patel's cost increased from ₹12.19 to ₹13.60 per share over the last year, while Mrs. Patel's and Mr. Anjal's costs remained relatively stable. The text also confirms that the equity shares were financed from personal funds without any bank loans or financial assistance.

The document details the promoter's shareholding structure, which consists of Mr. Chandreshkumar Shankerlal Patel, Mrs. Bhavanaben Chandreshkumar Patel, and Mr. Anjal Chandreshkumar Patel, holding 76,61,500 shares representing 72.48% of the post-issue capital. Promoter Group members, including Ms. Anjali Chandreshkumar Patel and the Chandreshkumar Family Trust, hold a combined 1.40% of the shares. Additionally, the text confirms that no shares were purchased or sold by the promoter group or their relatives during the last six months, and outlines the lock-in provisions for 20% of the post-issue equity capital.

The document outlines the phased lock-up of pre-issue shareholding for promoters, starting with a 50% holding locked for one year and the remaining 50% locked for two years. It further details the specific eligibility criteria for the Minimum Promoter's Contribution under Regulation 237(1), explicitly excluding shares acquired for non-cash consideration, bonus issues, or those purchased at a discount. The section concludes by affirming that the promoters have not pledged any shares with any creditors.

The document specifies that the promoter's contribution consists of equity shares held in dematerialized form, with a total of 21,14,160 shares locked in. These shares are valued at ₹10 each, representing a combined post-issue share capital of 20.00% of the total capital. The promoter group includes Mr. Chandreshkumar Shankerlal Patel, Mrs. Bhavanaben Chandreshkumar Patel, and Mr. Anjal Chandreshkumar Patel, each holding 8.02%, 5.99%, and 5.99% respectively.

The document outlines a lock-in period for equity shares held by promoters and non-promoters, with promoters' shares locked for two years and remaining shares for one year. Non-promoter shares are locked for one year, and the company has no existing buyback arrangements or financing plans related to these shares. The shares are fully paid up and non-transferable, subject to specific regulatory compliance regarding transfer restrictions and lock-in periods.

The document confirms that the company has not raised any bridge loans and that none of the Equity Shares held by the promoters are currently pledged or encumbered. It further states that there will be no further capital issues during the period until the IPO is listed or application monies are unblocked. While the company has not made any public issues or rights issues since its incorporation, it confirms compliance with the Companies Act, 2013, and RBI regulations regarding OCBs. The promoters and promoter group are explicitly excluded from participating in the issue, with all their shares held in Dematerialised form.

This section outlines the Fresh Issue of Equity Shares and details the proposed use of net proceeds from the issue. The company intends to deploy funds primarily for capital expenditure, including construction of an additional factory shed, purchasing plant and machinery to increase production capacity, and setting up a rooftop solar power plant. A portion of the funds is allocated for additional working capital requirements and general corporate purposes. The document provides a detailed schedule showing the estimated amounts to be funded from net proceeds for each fiscal year, noting that actual utilization may vary based on market conditions and business needs.

The draft Red Herring Prospectus outlines the strategic expansion of Unit-II, which involves constructing an additional factory shed and acquiring new plant and machinery to increase production capacity. The total estimated cost for the proposed expansion is ₹1,836.69 Lakhs, with ₹52.60 Lakhs funded from net proceeds and the remainder deployed. The construction of the factory shed is primarily funded from net proceeds, while the remaining ₹937.75 Lakhs is to be deployed from the company's existing funds. The expansion includes civil works for a 3,294.43 sq. mtr. shed and the acquisition of additional machinery to support the new capacity.

The offer document outlines the purchase of essential machinery and equipment to expand production capacity and support operational needs. Key assets include a fully automatic coiling machine for wire/cable production, a rotary screw air compressor for plant operations, and a refrigerated GEM air compressor. The company plans to use a portion of the net advance to repay existing debt, while the remaining funds will be allocated for working capital, general corporate purposes, and future acquisitions.

This section details specific equipment and machinery included in the offer, including an air dryer, an EOT crane, an electrification system, a heater-cooler mixer, and a heater, all listed with their respective quantities, prices, and manufacturer details.

This section details the specific components included in the offer for sale, including a vacuum conveying system for resin transfer, a low-tension electrical panel for plant distribution, and various high-voltage and medium-voltage fans for ventilation and exhaust. The total number of shares issued is 9,0, while the LT panel is priced at 41,77,566 and the HVLS fans are priced at 8,25,000 and 2,40,000 respectively.

The document outlines the company's plan to expand its manufacturing capacity by purchasing additional plant and machinery, with a focus on housing, industrial cables, and solar PV cables. The acquisition strategy involves leasing land, finalizing engineering drawings, obtaining approvals, and inviting vendor quotations before placing purchase orders. The estimated timeline for these activities spans from April 2026 to April 2027, with various stages such as civil works and trial runs marked as pending or in progress.

The document outlines the regulatory approvals required for the company's expansion project, including consent from the Gujarat Pollution Control Board, approval from Nagar Ayojan and mulyankan khatu, and compliance with the Factories Act, 1948. It also details the need for registration of building and construction workers and obtaining consent to operate the Gujarat Pollution Control Board after plant construction is complete. Additionally, the company must secure approval for load release and extension of electricity supply following the energizing of electrical installations.

The document details the proposed plant and machinery for the company's operations, including specific equipment like fiber glass machines, furnaces, and testing tools. It lists the total estimated cost of ₹8.50 crores, with ₹1.17 crores to be funded from net proceeds and ₹5.72 crores remaining to be paid. The company has already secured purchase orders for several items, such as servo-controlled fiber glass machines and platform equipment, which are detailed in the table of quotations.

The document justifies an additional capital expenditure of Rs.161.43 lacs for setting up a PICC manufacturing plant, stating that this investment is essential for completing the facility. The text explains that the pre-engineered platform will improve material handling efficiency, while ancillary machinery will enhance the quality of the end product and the overall functionality of the plant.

This section details the purchase orders for plant and machinery, listing four specific items including vertical paper taping machines, horizontal double-decker machines, a flattening mill, and a single stand flattening machine. The table provides quantitative data on the quantity, unit price, total amount, and advance paid for each item, with the first three items showing substantial capital expenditure amounts exceeding 50 lakhs each, while the fourth item represents a smaller investment of 20 lakhs.

The document lists specific machinery and equipment required for the manufacturing process, including a horizontal paper taping machine, a furnace, a PLC-controlled slitter/rewinder, a baling press machine, and a main roller material. These items are essential for the production of paper and related industrial goods, with quantities and prices detailed for each component.

This section details the specific items included in the offer for sale, including computerized testing machines, hardness testers, profile projectors, and electronic meters, along with their respective capacities and specifications. It also lists the import of extrusion machinery for copper strip production, which is priced in USD. The document provides pricing details for each item, with the total offer value calculated as the sum of the individual item prices.

The document outlines the financing strategy for a new manufacturing venture in India, detailing the net amount to be funded from the IPO proceeds and the specific allocation of funds. The proposed use of proceeds includes purchasing new machinery for paper insulated copper and aluminum conductors, acquiring rooftop solar power plants to reduce electricity costs, and setting up a solar unit to minimize dependency on state electricity supply. The company also notes that no second-hand equipment or land will be acquired using the net proceeds, and the implementation of these projects is scheduled to begin in April 2026.

The company outlines a proposed solar power plant project with a total estimated cost of ₹3,22,80,000, which will be funded entirely from net proceeds. The project involves 2,90,45,760 units of solar panels, including 508 KWP DC rooftop mounting plants and 1,476 KWP DC rooftop solar power plants, along with associated taxes and miscellaneous costs. Payment terms require a 10% advance, 40% upon GEDA registration, 40% before material dispatch, and 10% upon installation completion. The document notes that the quoted prices are subject to final negotiations and may escalate if solar policies change or if additional work is required.

The Draft Red Herring Prospectus outlines the company's working capital requirements for FY 2026-27, estimating a total requirement of Rs. 1,400.00 lakhs from the Net Proceeds of the issue to cover the working capital gap. The breakdown of this requirement includes funds for increased inventories, trade receivables, and short-term loans and advances, alongside internal accruals and existing net worth. The document provides detailed estimates for current assets and liabilities, comparing them against historical data and industry peers to justify the magnitude of the proposed capital injection.

The document outlines the working capital requirements for the fiscal years 2023-2027, showing an incremental need of ₹893.27 lakhs in FY2024-25 and ₹2,048.82 lakhs in FY2026-27, with an average working capital requirement of ₹2,226.19 lakhs in FY2023-24. Trade receivables are projected to increase to ₹4,870.18 lakhs by FY2027, while trade payables are expected to rise to ₹1,313.73 lakhs, with the latter ratio moderating to 4.16% of revenue. General corporate purposes are capped at 15% of net proceeds, which is the lower of 15% of the issue size or ₹10 crores, and the total estimated issue expenses are subject to change.

This section outlines the pricing methodology for the company's equity shares, which are priced at a multiple of the face value based on qualitative strengths like revenue growth and product innovation, and quantitative factors such as earnings per share and return on net worth. The document details the calculation of Basic and Diluted Earnings Per Share for the years ended March 31, 2026, 2025, and 2024, as well as the projected Annualised EPS for the year ending March 31, 2027. It also presents financial metrics including Price-to-Earnings (P/E) ratios, Return on Net Worth (RoNW), and Net Asset Value (NAV) per share at various price points (floor, cap, and offer) to support the valuation of the new issue.

This section outlines the financial metrics used to assess the company's performance, including debt-equity ratios and return on equity and capital employed. It compares the company's financial results against a peer group of listed companies to evaluate operational efficiency and profitability. The document also details the company's capacity utilization and provides specific data on weighted average costs of acquisition for equity shares.

The document states that the weighted average cost of acquisition for the last 18 months was not disclosed because no primary or secondary equity transactions of significant size occurred during that period. Consequently, the price per share is based on the last five secondary transactions that took place within the three years prior to the filing date. The document also notes that the issue price of ₹ [●] per share is considered justified based on the parameters derived from these historical secondary transactions.

This section outlines the company's commitment to providing special tax benefits to eligible investors, which are designed to enhance the financial return on investment. The document details the specific tax advantages available, such as deductions for interest paid on loans and tax credits for capital expenditure, to attract long-term capital. These benefits are structured to ensure that the proceeds from the offer are utilized efficiently to support the company's growth and development needs. Investors are encouraged to review these provisions carefully to understand the full scope of the tax incentives offered under the offer-for-sale.

The offer document outlines the issuance of 18,00,00,000 shares of the company's ordinary shares, representing an offer-for-sale percentage of 100% of the total issue size. The proceeds from this issuance are designated for specific corporate purposes, including debt repayment, capital expenditure, working capital, acquisitions, and general corporate purposes.

The draft prospectus outlines a total offer-for-sale of 182.5 million shares, representing approximately 18.3% of the company's total issued share capital. Proceeds from the issuance will be allocated to specific purposes including debt repayment, capital expenditure, working capital, acquisitions, and general corporate purposes.

This section outlines the primary risks associated with the company's business operations, including its reliance on long-term raw material agreements and its dependence on a few key customers. The company faces significant financial risks due to volatile raw material prices, lack of hedging activities, and the potential inability to pass on cost increases to customers. Additionally, the business is vulnerable to supply disruptions from suppliers and the loss of revenue from a small number of major customers who contribute substantially to total revenue.

The document highlights significant risks related to labor disputes, including potential employee strikes, attrition, and future unionization, which could disrupt operations and increase costs. It also notes that the company relies on long-term leases for its premises, creating uncertainty regarding potential lease termination or attachment by land owners. Furthermore, the lease agreements are held by related parties, raising concerns about potential conflicts of interest or related-party transactions affecting the stability of the business assets.

The document outlines significant risks related to the company's lease agreements for manufacturing facilities, which could lead to operational instability if not renewed. It highlights a high concentration of revenue in specific Indian states, creating exposure to regional economic and competitive risks. Additionally, the company reports a high debt-to-equity ratio, indicating substantial financial leverage that could adversely affect its operations if debt servicing becomes difficult.

The document highlights significant risks associated with the company's high indebtedness, including the potential inability to generate sufficient cash to meet debt obligations and the risk of refinancing at unfavorable terms. It also notes that high debt levels may lead to a downgrade of the company's credit rating, which would negatively impact its ability to raise additional financing. Furthermore, the text points out that the company's business operations are subject to seasonality, with reduced demand during pre-monsoon and monsoon periods, which could adversely affect its financial performance.

The document outlines potential financial penalties and operational delays associated with the company's statutory compliance obligations. It highlights risks from non-compliance with GSTR-3B filing deadlines and past instances of ROC filing delays, which could impact financial conditions and reputation.

The document highlights significant delays in filing statutory forms due to inadvertence, primarily caused by MCA portal issues and the non-appointment of a qualified professional to manage compliance. The company has implemented corrective measures, including appointing a Company Secretary and Compliance Officer, to rectify past errors and prevent future non-compliances. While no legal proceedings have been initiated against the company as of the date of the document, there is a risk that regulatory authorities could initiate adjudication proceedings or impose penalties in the future, which could adversely affect financial conditions.

The document highlights significant financial risks related to the company's heavy reliance on the Railway and Renewable Energy sectors, which comprise over 25% of revenue and are vulnerable to industry downturns. It also details substantial working capital requirements that could be adversely affected by delays in billing, supplier defaults, or inventory build-up. Additionally, the company faces operational risks due to its dependence on third-party transportation providers and its manufacturing units, which are subject to disruptions from factors like power outages, labor disputes, and natural disasters.

The document highlights that the company's business is heavily dependent on the performance of the cables market, which is subject to fluctuations driven by government policies, economic conditions, and raw material availability. It notes that the company is exposed to litigation risks, though currently no proceedings are pending, and that any adverse judgment could materially affect its operations. Additionally, the text identifies risks related to related party transactions, statutory approvals for company conversion, unsecured loans that could be recalled, significant capital expenditure requirements, reliance on key management personnel, and strict quality standards that could lead to product defects or liability claims.

The document outlines the financial risks associated with the company's operations, including high liquidity requirements, significant promoter equity dilution, and reliance on personal guarantees. It highlights risks related to property security, foreign currency fluctuations affecting raw material costs, and the need for regulatory compliance in the wires and cables industry. The section also details inventory management challenges and trade receivables, noting that poor management could lead to cash flow issues and reduced profitability.

This section outlines various operational, financial, and structural risks faced by the company. Manufacturing operations involve handling hazardous materials and machinery, exposing the company to workplace accidents, fires, and regulatory liabilities. The company's reliance on debt financing exposes it to interest rate fluctuations, which could significantly increase borrowing costs. Additionally, there are risks related to intellectual property ownership, employee misconduct, tax penalties, insurance adequacy, and future capacity utilization assumptions.

This section outlines significant risks associated with the company's financial structure, including the lack of prior experience in listed companies, reliance on internal estimates for funding, and potential delays in capital expenditure. It also highlights risks related to the control of the company by promoters, the uncertainty of new product commercialization, and the impact of external economic and political factors on the business.

This section outlines the various risks associated with investing in the company's equity shares, including market volatility due to global economic instability, geopolitical conflicts, and regulatory changes in India. It highlights specific risks such as the inability to enforce foreign judgments, potential rating downgrades affecting financing, and the strain on resources from public listing requirements. The document also notes that the company is not currently publicly traded, which may limit liquidity and price discovery, and that investors may face additional tax liabilities upon the sale of shares.

This section outlines the tax implications of selling equity shares in India, including potential long-term and short-term capital gains taxes, STT, and exemptions for non-residents under tax treaties. It also highlights that the actual market price may not reflect the issue price due to various factors, and investors may face delays in listing or trading restrictions if the company fails to meet listing requirements.

The Board of Directors consists of three Executive Directors and three Non-Executive Independent Directors. The Managing Director, Mr. Chandreshkumar Shankerlal Patel, has served since incorporation and holds a qualification in Higher Secondary. The Chief Financial Officer, Mr. Anjal Chandreshkumar Patel, is a Whole Time Director with 24 years of experience. Neither of the Executive Directors holds any other directorships.

The management section lists two non-executive independent directors, Mr. Yax Arunbhai Patel and Mr. Shankar Lal, who are both Indian nationals with qualifications in business and electrical engineering respectively. Both directors serve for a five-year term starting from April 6, 2026, and hold no other directorships or affiliations with Indian or foreign companies. Neither individual is currently involved in any disclosed litigation, regulatory action, or disciplinary proceedings.

The provided text contains a table header for a director's profile but lacks the actual name, designation, and other required details for the individual. Consequently, no specific key points regarding this person's background, other directorships, or litigation status can be extracted from the available content.

The management section identifies Mr. Chandreshkumar Shankerlal Patel as the Promoter and Managing Director with 37 years of experience in the submersible pump and cable industry. Mr. Anjal Chandreshkumar Patel serves as the Promoter, CFO, and Whole-Time Director, bringing 4 years of cable industry experience and holding positions in other firms. Mrs. Bhavanaben Chandreshkumar Patel is a Promoter and Director with 14 years of experience in the wires and cables sector. Mr. Shail Pradipkumar Shah is a Non-Executive Independent Director with 14 years of post-qualification experience in corporate tax and regulatory advisory. Mr. Yax Arunbhai Patel is also a Non-Executive Independent Director with 3 years of experience in electrical engineering and project execution.

The document identifies Mr. Chandreshkumar Shankerlal Patel as the Managing Director and Executive Director, a non-independent director who is the husband of Mrs. Bhavanaben Chandreshkumar Patel and the father of Mr. Anjal Chandreshkumar Patel. He has served as a practicing Legal & Tax Consultant since April 6, 2026, with experience in GST, income tax, and corporate law. His appointment was approved by the Board and Shareholders in April 2026, with a basic salary of Rs. 7,0 per month and various perquisites including provident fund contributions and gratuity. The document confirms that no other directors or senior management personnel have entered into arrangements with major shareholders or customers, and none are disqualified from accessing the capital market.

The document outlines the appointment of Mr. Anjal Chandreshkumar Patel as a Whole Time Director for a five-year term starting April 6, 2026, with remuneration approved via resolutions passed in an EGM on April 10, 2026. His basic salary is set at Rs. 7,0 per month, and his perquisites include contributions to provident fund, gratuity, and reimbursement of expenses for business, chauffeur-driven cars, and meal coupons. The remuneration table indicates that Mr. Patel and his wife hold executive directorships, while Mrs. Bhavanaben Chandreshkumar Patel is listed as a non-executive director.

The management section confirms that the company's directors hold no interests in land, construction, machinery, or property, nor do they have any other interests in the company. It further states that the directors are not interested in appointing intermediaries for the offer and that no non-salary benefits have been paid or are intended to be paid to officers other than director remuneration. Additionally, the section clarifies that no directors have entered into service contracts upon retirement and that there are no bonus or profit-sharing plans for directors other than those specified in their appointments.

The document outlines a Board of Directors consisting of six members, including three Executive Directors and three Non-Executive Independent Directors. It details the composition of three key committees: the Audit Committee chaired by Mr. Shankar Lal, the Stakeholder's Relationship Committee chaired by Mr. Yax Patel, and the Nomination and Remuneration Committee chaired by Mr. Shail Shah. The Audit Committee has specific powers to oversee financial reporting, related party transactions, and internal controls, while the Stakeholder's Relationship Committee is tasked with addressing investor grievances and ensuring timely redressal. The Nomination and Remuneration Committee focuses on establishing criteria for director qualifications, remuneration policies, and board diversity.

The management section details the organization structure of the company, listing key managerial personnel and senior management including Ms. Toshi Rajora, Mr. Manish Devasi, Mr. Ronakkumar Visabhai Patel, and Mr. Vipulkumar Kantilal Panchal. Key relationships are disclosed, such as Mr. Chandreshkumar Shankerlal Patel being the Managing Director and his wife, Mrs. Bhavanaben Chandreshkumar Patel, being his spouse. The section also notes that none of the directors or senior management hold shares in the company, and there are no arrangements with major shareholders or suppliers for these individuals. Additionally, the document highlights that the company does not have a bonus or profit-sharing plan for its senior management.

The section identifies the Promoter Group as consisting of three individuals: Mr. Chandreshkumar Shankerlal Patel, Mrs. Bhavanaben Chandreshkumar Patel, and Mr. Anjal Chandreshkumar Patel. It details the family relationships within the group, including spouses, children, and siblings, and lists six entities formed by these relatives, such as Chandreshkumar Shankerlal Patel HUF and Chandreshkumar Patel Family Trust. The document explicitly states that the promoters do not have any interest in ventures similar to those conducted by the company and confirms they are not currently involved in any other business ventures.

The management section confirms that there have been no changes in the management of the company over the last five years and that the promoters have not disassociated from any companies or firms during the preceding three years. It further states that none of the shares are pledged by the promoters, there are no criminal matters involving the promoters, and no material regulatory or disciplinary actions have been taken against them or the company in the past one year.

The document confirms that the company has no material guarantees, disassociations, or pledged shares with third parties. It states that the promoters have no criminal matters, defaults, or regulatory actions affecting them. The section identifies SARVODAYA PUMPS PRIVATE LIMITED as a Group Entity engaged in manufacturing pump and motor parts, with audited financials showing total revenue of ₹683.34 Lakhs for FY 2025-26.