Shree TNB Polymers
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Pre-IPO 1:2 bonus issue of 5.115 million shares in February 2026 expanded insider equity at nil cost.
- Acquisition of related-party business unit Noble Polytec for Rs. 5.81 crore without a formal Business Transfer Agreement.
- Material commercial litigation of Rs. 3.08 crore regarding defective solar plant and promoter litigation of Rs. 14.68 crore.
- Ten pending direct/indirect tax proceedings against the company totaling Rs. 1.42 crore.
- Historical secretarial filing delays of up to 284 days for RoC statutory returns.
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
Shree TNB Polymers Limited is a polymer manufacturing company specializing in piping systems and plastic solutions, including HDPE, PP, PPH, DWC, sprinkler, drip irrigation pipes, fittings, and industrial sheets.
What this company actually does — full breakdown ▾
Incorporated in 2007 in Silvassa, Dadra & Nagar Haveli, Shree TNB Polymers Limited manufactures high-performance polymer piping systems and plastic solutions under brand names 'NOBLE' (piping division), 'TIRUPATI' (solid industrial sheets division), and 'WELLPACK' (corrugated/flute board sheets division). Its product portfolio includes HDPE pipes & fittings, PP/PPH pipes, Double Wall Corrugated (DWC) pipes, sprinkler/drip irrigation systems, solid industrial sheets, and PP flute boards. The company operates two manufacturing facilities in Silvassa (Facility I at Athal and Facility II at Masat) and is constructing a third facility at Survey No. 579, Athal (10,111 sq. meters leased land). In FY26, domestic sales within India contributed 99.81% (Rs. 197.7503 crore) and exports 0.19% (Rs. 0.3770 crore) of operational revenue. Brand-wise, Noble generated 75.61% (Rs. 149.7963 crore), Wellpack 12.32% (Rs. 24.4082 crore), and Tirupati 12.02% (Rs. 23.8050 crore) of FY26 revenue. The top 10 customers accounted for 29.97% of FY26 revenue (Rs. 59.3457 crore), while top 10 suppliers accounted for 61.28% of purchases. Products are distributed across 7 states via 325+ dealers/distributors and 39 rented warehouses, as well as B2B direct corporate sales to clients such as L&T, Tata, Reliance, and government water boards.
Established presence of over 25 years in polymer pipes and plastic solutions with recognized brands ('NOBLE', 'TIRUPATI', 'WELLPACK'), extensive distribution network of 325+ dealers and 39 rented warehouses across 7 states, dual manufacturing units with comprehensive BIS and ISO certifications (IS 4984, IS 14333, ISO 9001/14001), and approved vendor status with state water supply boards (e.g. GWSSB, MJP).
The Offer
Follow the Money — Use of Proceeds
- Capital Expenditure for purchase of machineries — ₹15.86 cr
- Capital Expenditure for the purchase and installation of Solar panel/ Roof top — ₹2.60 cr
- Part finances the capital expenditure for construction/ installation of Pre-Engineered Building (PEB) structure for new manufacturing facility — ₹1.32 cr
- Repayment of certain borrowings — ₹5.62 cr
- General Corporate Purpose
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 4 live components.
88% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured10%
The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 198.1273 | 175.6524 | 207.8556 |
| Net Profit (₹ Cr) | 7.1346 | 5.771 | 5.0305 |
| PAT Margin | 3.6% | 3.29% | 2.42% |
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Our read of the filing is solid, but demand is thin so far. Books fill late — most retail and institutional bids land in the final hours — so this may simply be the clock. Or the market may know something the filing does not say.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from Operations (FY26 vs FY25) | ↑ 12.8% | Revenue increased due to higher sales volume of HDPE, PP, DWC pipes and solid industrial sheets driven by expanding dealer distribution and corporate orders. | Structural |
| Cost of Materials Consumed (FY26 vs FY25) | ↑ 9.5% | Material costs increased in line with production expansion, offset by favorable polymer resin purchasing prices. | Structural |
| Employee Benefits Expense (FY26 vs FY25) | ↑ 15.3% | Employee expenses increased due to headcount addition across production and sales teams and annual salary increments. | Structural |
| Finance Costs (FY26 vs FY25) | ↑ 1.9% | Finance costs remained stable with higher working capital cash credit utilization offset by scheduled long-term loan repayments. | Structural |
| Other Expenses (FY26 vs FY25) | ↑ 26.0% | Other expenses increased due to higher power and fuel costs, freight and forwarding expenses, and godown lease rentals across 39 rented warehouses. | Structural |
| Profit After Tax (FY26 vs FY25) | ↑ 23.6% | Net profit expanded due to higher operating turnover, product mix optimization toward higher-margin DWC and specialized industrial sheets, and stable finance costs. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 21.8% | Trade receivables expanded due to revenue growth and credit terms extended to government water boards and corporate infrastructure EPC clients. | Structural |
| Inventories (FY26 vs FY25) | ↑ 5.1% | Inventories increased due to raw material polymer resin stocking and finished goods inventory held across 39 regional rented warehouses. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↑ 103.8% | Operating cash flow turned strongly positive at Rs. 8.8335 crore in FY26 (up from Rs. 4.3351 crore in FY25) due to higher operating profitability and improved inventory turnover. | Structural |
Headwinds
- Raw material price volatility of polymer resins (HDPE, PP, PPH) tied to global crude oil prices sector persistent
Polymer resin prices fluctuate with international petrochemical market cycles and crude oil prices, impacting gross margins if price increases cannot be immediately passed on to customers. - Competition from unorganized regional plastic pipe fabricators and major organized brands sector persistent
The plastic piping sector faces intense price competition from regional unorganized manufacturers as well as established national brands. - Pending commercial litigation and direct/indirect tax proceedings totaling Rs. 19.17 crore company temporary
Pending claims against solar installer Khanak System (Rs. 3.08 crore) and promoter litigation (Rs. 14.68 crore) represent contingent litigation risks.
Tailwinds
- Government capital outlay for Jal Jeevan Mission, AMRUT 2.0, and PM Krishi Sinchayee Yojana macro
Massive government funding for rural drinking water supply, urban sewage, and micro-irrigation creates sustained institutional demand for HDPE, DWC, and drip irrigation pipes. - Capacity expansion and cost savings from captive rooftop solar power installation company
Setting up a third facility at Athal and installing 812 kWp captive rooftop solar panels will increase manufacturing capacity and reduce annual energy costs by Rs. 80-95 lakhs.
| Facility | Period | Utilisation |
|---|---|---|
| Piping Division (Facility I & II, Silvassa) - Installed Capacity 11,147,000 Kgs | FY26 | 66.0% |
| Piping Division (Facility I & II, Silvassa) - Installed Capacity 11,147,000 Kgs | FY25 | 61.2% |
| Piping Division (Facility I & II, Silvassa) - Installed Capacity 11,147,000 Kgs | FY24 | 68.5% |
Movements the filing does not explain
- Acquisition of Related-Party Unit M/s Noble Polytec Without Formal BTA FY25 — In FY25, the company acquired the running business unit of related-party partnership firm M/s Noble Polytec for Rs. 5.8100 crore without executing a formal Business Transfer Agreement (BTA). MD&A does not reconcile why a formal BTA was omitted for a major capital acquisition.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-07
- Pre Application Start2026-09-24
- Bidding Start2026-09-28
- Bidding End2026-10-05
- Allotment Process Start2026-10-06
- Allotment Finalization2026-10-07
- Listing Day2026-10-08
- Mandate End2026-11-16
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 198.13 | 175.65 | 207.86 |
| Other Income | 0.19 | 0.05 | 0.11 |
| Total Income | 198.31 | 175.70 | 207.97 |
| Cost of Materials Consumed | 118.88 | 108.58 | 131.12 |
| Purchases of Stock-in-Trade | 16.12 | 25.29 | 17.46 |
| Changes in Inventories | -1.33 | -10.49 | 8.13 |
| Employee Benefit Expense | 13.77 | 11.94 | 11.11 |
| Finance Cost | 6.04 | 5.93 | 5.66 |
| Depreciation & Amortisation | 3.86 | 3.14 | 3.24 |
| Other Expenses | 30.81 | 24.46 | 24.75 |
| Total Expenses | 188.15 | 168.85 | 201.48 |
| Profit Before Exceptional Items and Tax | 10.16 | 6.86 | 6.49 |
| Exceptional Items | 0.00 | 0.35 | 0.15 |
| Profit Before Tax | 10.16 | 7.21 | 6.64 |
| Tax Expense | 3.03 | 1.44 | 1.61 |
| Profit After Tax | 7.13 | 5.77 | 5.03 |
| EPS - Basic | 4.65 | 4.29 | 3.75 |
| EPS - Diluted | 4.65 | 4.29 | 3.75 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 15.35 | 10.23 | 8.95 |
| Reserves & Surplus | 40.34 | 38.32 | 25.26 |
| Net Worth | 55.68 | 48.55 | 34.21 |
| Long-term Borrowings | 9.14 | 7.13 | 10.27 |
| Short-term Borrowings | 35.43 | 31.38 | 25.55 |
| Total Borrowings | 44.56 | 38.50 | 35.82 |
| Trade Payables | 35.28 | 32.40 | 26.82 |
| Current Liabilities | 75.68 | 67.80 | 56.72 |
| Total Liabilities | 145.26 | 127.38 | 105.03 |
| Property, Plant & Equipment | 49.71 | 46.81 | 39.52 |
| Capital Work in Progress | 1.57 | 0.12 | 0.00 |
| Intangible Assets | 1.13 | 1.14 | 0.05 |
| Investments | 0.10 | 0.00 | 0.17 |
| Inventories | 34.80 | 33.09 | 26.27 |
| Trade Receivables | 51.25 | 42.08 | 35.46 |
| Cash & Equivalents | 0.07 | 0.06 | 0.10 |
| Current Assets | 92.21 | 79.74 | 64.62 |
| Total Assets | 145.26 | 127.38 | 105.03 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 8.83 | 4.34 | 6.99 |
| Capital Expenditure | -8.21 | -10.55 | -1.72 |
| Net Cash from Investing Activities | -9.23 | -9.98 | -1.71 |
| Net Cash from Financing Activities | 0.40 | 5.60 | -5.39 |
| Net Change in Cash | 0.01 | -0.04 | -0.11 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 10.1 | 9.1 | 7.4 |
| EBIT Margin (%) | 8.2 | 7.3 | 5.8 |
| PAT Margin (%) | 3.6 | 3.3 | 2.4 |
| Return on Equity (%) | 12.8 | 11.9 | 14.7 |
| Return on Capital Employed (%) | 16.2 | 14.7 | 17.4 |
| Return on Assets (%) | 4.9 | 4.5 | 4.8 |
| Leverage | |||
| Debt / Equity (x) | 0.8 | 0.79 | 1.05 |
| Net Debt / EBITDA (x) | 2.22 | 2.41 | 2.32 |
| Interest Coverage (x) | 2.68 | 2.16 | 2.15 |
| Liquidity | |||
| Current Ratio (x) | 1.22 | 1.18 | 1.14 |
| Quick Ratio (x) | 0.76 | 0.69 | 0.68 |
| Efficiency | |||
| Asset Turnover (x) | 1.36 | 1.38 | 1.98 |
| Receivable Days | 94 | 87 | 62 |
| Inventory Days | 64 | 69 | 46 |
| Payable Days | 65 | 67 | 47 |
| Cash Conversion Cycle (days) | 93 | 89 | 61 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 1.24 | 0.75 | 1.39 |
| Accruals Ratio (%) | -1.2 | 1.1 | -1.9 |
| Capex / Depreciation (x) | 2.13 | 3.36 | 0.53 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 3.6% | 3.3% | 2.4% |
| Asset Turnover (Revenue / Assets) | 1.36x | 1.38x | 1.98x |
| Equity Multiplier (Assets / Net Worth) | 2.61x | 2.62x | 3.07x |
| = Return on Equity | 12.8% | 11.9% | 14.7% |
| Tax Burden (PAT / PBT) | 0.7x | 0.8x | 0.76x |
| Interest Burden (PBT / EBIT) | 0.63x | 0.56x | 0.55x |
| Operating Margin (EBIT / Revenue) | 8.2% | 7.3% | 5.8% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Operating cash flow was 1.24x reported profit in FY26. Earnings are converting into cash, which is what you want to see and frequently is not the case.
- Receivable days rose from 62 in FY24 to 94 in FY26. The company is booking revenue faster than it is collecting it, which ties up cash and raises the question of who is not paying.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
7 of 8 inputsAn eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.08 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 0.955 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | — | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.128 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 0.874 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 1.086 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 0.993 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | -0.0117 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
The filing does not disclose every input the model needs, so we withhold the composite score rather than substitute a guess. The components we could compute are above.
Altman Z″-Score (emerging markets)
Z″ = 6.05 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.114 |
| X2 — Retained Earnings / Total Assets | 0.278 |
| X3 — EBIT / Total Assets | 0.112 |
| X4 — Net Worth / Total Liabilities | 0.383 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 6.05 |
Piotroski F-Score (adapted)
6 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✓Return on assets improving
- ✓Cash flow exceeds profit (quality of earnings)
- ✗Long-term leverage decreasing
- ✓Current ratio improving
- ✓Gross margin improving
- ✗Asset turnover improving
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0.2%
Contingent liabilities of 0.10 cr against a net worth of 55.68 cr — 0.2% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 0%
0% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0x
Short-term borrowings of 35.43 cr against cash of 0.07 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 6.5%
Managerial remuneration to the promoter group was 0.47 cr against a profit of 7.13 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth7.13 ÷ 55.68What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)16.20 ÷ (55.68 + 44.56) = 16.20 ÷ 100.24Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue20.06 ÷ 198.13Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth44.56 ÷ 55.68How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost16.20 ÷ 6.04How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(51.25 ÷ 198.13) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days64 + 94 − 65How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT8.83 ÷ 7.13Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(7.13 − 8.83) ÷ 145.26 = -1.70 ÷ 145.26The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹52.00 × 21,345,000 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash110.99 + 44.56 − 0.07What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA155.48 ÷ 20.06The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT110.99 ÷ 7.13The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ EPS, on pre- and post-issue share counts₹4.65 EPS pre → ₹3.34 EPS postThe fresh issue expands the share count by 28.11%, so the same profit is spread across more shares. The multiple quoted in the filing is struck on pre-issue earnings; the one on the right is what a buyer actually holds on listing day. The gap closes only if the new capital earns a return, which has not happened yet.
Offer price ÷ weighted average cost of acquisition₹52.00 ÷ ₹16.48Every offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Early capital takes real risk and a large multiple built over years is ordinary. A steep step-up inside a short window is the one that deserves a second look. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
P/E ÷ trailing PAT growth (%)15.56 ÷ 23.6%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Pre-IPO 1:2 Bonus Issue Expanded Insider Capital at Zero Cost
In February 2026, the company issued 5,114,991 bonus shares (1:2 ratio) at Rs. 0.00 per share by capitalizing security premium, expanding pre-issue equity and lowering promoter acquisition costs prior to the public issue.
Source: p.28, 56, 58, 94Related-Party Business Acquisition Executed Without Formal BTA
In FY25, the company acquired the running business unit of M/s Noble Polytec (promoter relative partnership firm) for Rs. 5.8100 crore without executing a formal Business Transfer Agreement, creating potential legal title and governance uncertainties.
Source: p.33, 269, 282, 353Substantial Commercial and Tax Litigation Claims Pending Against Issuer
The company carries Rs. 19.17 crore in aggregate pending litigation claims, including a Rs. 3.08 crore claim against solar installer Khanak System, Rs. 1.42 crore in direct/indirect tax cases, and a Rs. 14.68 crore commercial suit against promoter Rasikbhai Bhalodi.
Source: p.263, 360, 361, 362Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Rasikbhai Gokalbhai Bhalodi
Litigation: Six civil suits filed by Company totaling Rs. 4.0366 crore (including Rs. 3.0780 crore against Khanak System & Visaka Industries for defective solar installation). Ten tax proceedings against Company totaling Rs. 1.4162 crore. Commercial suit filed by Sachi Molding Solutions against Promoter Rasikbhai Bhalodi claiming Rs. 14.6800 crore.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Captain Pipes Limited | 40.37 | — | 7.15 | 3.79 |
| Malpani Pipes and Fittings Limited | 7.7 | — | 17.65 | 5.54 |
| Texmo Pipes and Products Limited | 15.69 | — | 5.13 | 3.19 |
At the ₹52 upper band, the issue is priced at 11.2x earnings — a 29% discount to the peer median of 15.7x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
Indian Polymer Piping & Plastic Solutions Industry Metrics
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Indian Plastic Industry Market Value (₹ crore) | 350000 | Estimated Indian plastic industry market size in FY25 |
| Indian Polymer Pipes Market Size (₹ crore) | 40000 | Estimated domestic plastic/polymer piping market in FY25 |
Source: p.128, 135
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
In February 2026 (7 months prior to RHP filing), the company issued 5,114,991 bonus shares in a 1:2 ratio at Rs. 0.00 per share by capitalizing Rs. 5.1150 crore of security premium. This followed Rights Issue allotments in March 2025 at Rs. 67 per share and earlier allotments at Rs. 22-42 per share, establishing low promoter weighted average acquisition costs ranging between Rs. 6.13 and Rs. 25.16 per share.
p.28, 56, 58, 94In FY25, the company acquired the running business unit of partnership firm M/s Noble Polytec (partnered by promoter's son) for Rs. 5.8100 crore without entering into a formal comprehensive Business Transfer Agreement (BTA). Earlier 2007 business takeovers of 4 founding partnership firms were similarly executed without formal BTAs.
p.33, 269, 282, 353The company has filed a civil suit seeking Rs. 3.0780 crore in damages against solar installer Khanak System/Visaka Industries for a non-functional defective solar plant. Additionally, the company faces 10 direct/indirect tax proceedings totaling Rs. 1.4162 crore and promoter Rasikbhai Bhalodi faces a commercial suit claiming Rs. 14.6800 crore from Sachi Molding Solutions.
p.263, 360, 361, 362The company disclosed 17 instances of administrative delays in filing statutory returns and forms (Form 23, MGT-14, Form 32) with the RoC, with delays ranging up to 284 days for revision in managerial remuneration.
p.33, 265, 266, 267The peer comparison set includes mainboard-listed Texmo Pipes and Products Limited (P/E 15.69x) alongside SME-listed Captain Pipes Limited (P/E 40.37x) and Malpani Pipes and Fittings Limited (P/E 7.70x), yielding an average peer P/E of 24.04x.
p.123, 323, 325Six civil suits filed by Company totaling Rs. 4.0366 crore (including Rs. 3.0780 crore against Khanak System & Visaka Industries for defective solar installation). Ten tax proceedings against Company totaling Rs. 1.4162 crore. Commercial suit filed by Sachi Molding Solutions against Promoter Rasikbhai Bhalodi claiming Rs. 14.6800 crore.
p. 49, 59, 62, 244 and 6 moreShort-term borrowings of ₹35.43 cr against cash of ₹0.07 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Existing piping plant capacity utilization stood at 65.97% in FY26 (73,53,168 Kgs produced out of 1,11,47,000 Kgs capacity), indicating that existing facilities have unutilized headroom before new machinery installation.
p.27, 40, 102, 106, 270The company incurred Rs. 7.58 crore in electricity expenses in FY26 (Rs. 6.60 crore in FY25), confirming high power cost intensity where captive solar generation provides direct operational cost savings.
p.102, 107, 312, 313Total debt stood at Rs. 44.56 crore as of FY26 (Cash Credit from Bank of Baroda at 8.50% interest stood at Rs. 32.06 crore), so repaying Rs. 5.62 crore directly reduces interest expense (Rs. 6.04 crore in FY26).
p.103, 109, 202, 264, 318Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: MUFG Intime India
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (16 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
How are the fresh issue IPO proceeds allocated across machinery, solar power, PEB construction, debt repayment, and general corporate purposes?
Fresh issue proceeds are allocated as: up to Rs. 15.8600 crore for purchase of plant machinery, up to Rs. 2.5984 crore for solar panel installation, up to Rs. 1.3224 crore for PEB structure construction at the new Athal unit, up to Rs. 5.6200 crore for partial repayment of Bank of Baroda cash credit facility, and the balance for General Corporate Purpose (capped at 15% of gross proceeds or Rs. 10.00 crore, whichever is lower).
p.102, 103, 106, 107, 108, 109, 112What is the promoters' shareholding pre-issue and post-issue, and their acquisition cost history?
Promoters hold 30.99% pre-issue equity (4,755,514 shares) and 22.28% post-issue equity, while the overall Promoter & Promoter Group holds 45.56% pre-issue (6,991,827 shares) and 32.76% post-issue. Promoter average acquisition costs range between Rs. 6.13 and Rs. 25.16 per share, lowered by a 1:2 bonus issue (5,114,991 shares) in February 2026.
p.28, 56, 59, 62, 94, 295, 296What are the key related-party transactions, business acquisitions, and promoter remuneration details?
In FY25, the company acquired the business unit of related-party firm M/s Noble Polytec for Rs. 5.8100 crore without a formal Business Transfer Agreement. Material sales/purchases with related parties (Prime Industries, Noble Agrotech) totaled Rs. 0.0710 crore in sales and Rs. 1.1860 crore in purchases/expenses in FY26. Managerial remuneration to promoter directors (Vijay Thosani, Deepak Raura, Rasikbhai Bhalodi) totaled Rs. 0.4650 crore in FY26. Promoters provided personal guarantees for Bank of Baroda loan facilities.
p.187, 264, 269, 279, 280, 282, 358How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT stood at Rs. 5.0305 crore in FY24, Rs. 5.7710 crore in FY25, and Rs. 7.1346 crore in FY26. Operating Cash Flow (CFO) remained consistently positive across all three years (+Rs. 6.9897 crore in FY24, +Rs. 4.3351 crore in FY25, and +Rs. 8.8335 crore in FY26), though trade receivables expanded to Rs. 51.2502 crore in FY26.
p.43, 45, 123, 180, 203, 208What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The company disclosed 17 instances of administrative delays in filing RoC statutory forms (delays up to 284 days). Ten direct/indirect tax cases totaling Rs. 1.4162 crore and a civil claim of Rs. 3.0780 crore against solar installer Khanak System are pending. Outstanding MSME supplier dues stood at Rs. 1.4429 crore as of FY26. Statutory auditor M/s P. M. Bagrecha & Co. served continuously without auditor change.
p.26, 33, 42, 49, 263, 265, 266, 360, 361, 362What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on BSE SME with a minimum retail application requirement of 2 lots (4,000 equity shares, minimum application size above Rs. 2.00 lakhs). Trading occurs strictly in standardized market lots of 2,000 shares, and because lots are indivisible, partial exit or fractional lot trading is impossible. Asnani Stock Broker Private Limited is the Market Maker with 300,000 reserved shares (5.00%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.13, 19, 21, 39, 50, 52, 220, 230, 233What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Promoters & Initial Subscribers to MOA | ₹10.00 | 2007-03-23 | 5.2x |
| An early round from roughly 20 years ago, at roughly 5.2x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Promoters & Family Members | ₹10.00 | 2007-03-31 | 5.2x |
| An early round from roughly 20 years ago, at roughly 5.2x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Promoters & Investor Group | ₹22.00 | 2018-03-28 | 2.4x |
| An early round from roughly 9 years ago, at roughly 2.4x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | — | 2026-02-14 | — |
| Allotted below the band — 1 entries | |||
| Promoters & Rights Allottees | ₹67.00 | 2025-03-20 | as disclosed |
The 1 allotments listed under “allotted below the band” are shown at their as-disclosed per-share price. They are not adjusted for any later bonus issue or share split, so where a company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple.
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 05 Oct 2029promoter3 years3,100,000 shares (14.52% of total)
- 05 Oct 2027promoter group1 year3,891,827 shares (18.23% of total)
- 05 Oct 2027public1 year8,353,170 shares (39.13% of total)
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
