Monomark Engineering (India) Limited IPO

01At a glance

What the company does: provides industrial operations and maintenance (O&M) crews inside clients' plants, executes industrial projects, and does metal fabrication at its own workshop near Chittorgarh (AP p.2).

Who pays it: large metal, cement, port and engineering companies; named top-ten customers in the six months to September 2025 include Vedanta, Runaya Green Tech, Kutch Copper, Hindustan Copper and Adani Ports and SEZ (DRHP p.29). The largest customer was 33.92% of revenue in that period and the top ten 90.16% (DRHP p.29).

Why it is raising money: ₹1,110.00 million for working capital, and the rest for general purposes (AP p.4).

How fast it has grown: revenue from ₹3,153 million in FY23 to ₹4,750 million in FY25, and ₹2,579 million in the six months to September 2025 (AP p.5).

The one thing to understand: a labour business. Employee costs were 61.35% of total expenses in the six months to September 2025, the company had 7,210 employees, and attrition among project-specific staff was 90.93% in FY25 (AP p.6, AP p.7).

02The business, in plain words

An industrial O&M contractor supplies trained crews and supervisors to run and maintain equipment in a client's smelter, cement plant or port, under a contract priced per job or per period. The client owns the plant; the contractor provides the people, consumables and spares.

A copper smelter needs its maintenance shop run round the clock → it awards an O&M contract to Monomark → the company deploys technicians and supervisors on site, with consumables and spares → it bills monthly under the contract.

Metal and cement customers were 93.29% of revenue in the six months to September 2025 (AP p.7). The company works across seven states and has set up a subsidiary in the UAE, Monomark Engineering FZE (AP p.2).

Earnings equation: Profit ≈ contract billings − wages and site costs − consumables − interest. EBITDA margin was 9.19% in the six months (AP p.6).

03Where the money comes from

Source: DRHP p.167. Converted from ₹ lakh. H1 FY26 is six months; small "others" revenue is included in the total.

Source: DRHP p.29.

04The growth record

Source: AP p.5, AP p.6. Converted from ₹ lakh. FY23 is standalone; later periods are consolidated.

Trade receivables were held for 48 days in FY23, 51 days in FY24 and 38 days in FY25 (DRHP p.112).

05What the growth is made of

O&M contracts. O&M revenue rose from ₹2,065 million in FY23 to ₹3,129 million in FY25 and reached 77.39% of revenue in the six months to September 2025 (DRHP p.167). O&M had a gross margin of 15.92% in those six months against 6.65% for fabrication (AP p.7). Repeat clients were 90.51% of business (AP p.6). The order book was ₹10,953.50 million at 28 February 2026, 2.3 times FY25 revenue (our arithmetic, AP p.7).

06Earnings quality

Operating cash flow was negative in FY23 and in the six months to September 2025 (AP p.6). Net working capital days rose from 12 in FY25 to 37 in the six months (AP p.6). Contingent liabilities were ₹652.38 million at September 2025, 60.63% of net worth (AP p.7, AP p.8). There are no auditor qualifications that have not been given effect in the restated accounts (AP p.8).

07The balance sheet

Source: AP p.5, AP p.6. Converted from ₹ lakh.

On 2 July 2025 the company placed 5,953,000 shares at ₹38 each with 31 investors outside the promoter group, raising ₹226.2 million (DRHP p.88, DRHP p.89). Before that, the four promoters received bonus shares (DRHP p.88).

08What the money is for

Source: AP p.4. Converted from ₹ lakh.

09Who is selling

Nobody. The offer is a fresh issue only, of up to 27,000,000 shares of ₹10 face value (AP p.1). The promoters acquired no shares in the last three years other than through the bonus issue, at nil cost (AP p.8).

10Promoters

The promoters are Narendra Chordia, Meena Chordia, Nitesh Chordia and Gaurav Chordia (AP p.3). Narendra Chordia, chairman and managing director, started Monomark Engineering Works in 1987, founded the company in 2005 and moved it into O&M in 2013 (AP p.3, AP p.4). Meena Chordia has been a director since 2005 and became a whole-time director in 2025 (AP p.4). Nitesh Chordia, a commerce and law graduate, joined as an accounts executive in 2015 and is a whole-time director (AP p.4). Gaurav Chordia, a whole-time director, holds a BTech from IIT Delhi and an MBA from London Business School, and is a CFA charterholder (AP p.4).

Remuneration to the four promoters as directors was ₹17.46 million in FY23 and ₹24.60 million in FY25 (our arithmetic, DRHP p.77).

11Who already owns it

Source: AP p.5. The last row is our arithmetic.

The four promoters hold 91.37% (our arithmetic, AP p.5). The largest outside holders are Rashmi Jain at 0.79% and Umesh Kumar Jain at 0.77% (AP p.5).

12What changed just before the IPO

• Private placement: ₹226.2 million from 31 investors at ₹38 a share in July 2025 (DRHP p.89).
• Bonus issue: to the promoters (DRHP p.88).
• Concentration: the largest customer's share has fallen from 47.84% to 33.92% since FY23 (DRHP p.29).
• Mix: O&M up to 77% of revenue (DRHP p.167).
• Bonus ratio: the May 2025 bonus was six shares for every one held, allotted on 26 May 2025 (DRHP p.88).
• Auditor change: Dinesh Sisodia & Co. resigned as statutory auditor on 30 April 2025 and Keyur Shah & Associates was appointed on 24 May 2025 (DRHP p.81, DRHP p.82).
• Public company: the company converted from a private to a public limited company, with a fresh certificate of incorporation dated 15 September 2025 (DRHP p.78).

13Capacity and expansion

Capacity here is people and site teams, plus a fabrication workshop at Village Samrathpura, Kapasan, Chittorgarh (AP p.2). The company undertook 40 projects in the six months to September 2025 (AP p.7). The proceeds fund working capital, not plant (AP p.4).

14Market size and industry structure

The industry report cited in the offer document describes O&M, project execution and metal fabrication as services that support plant uptime and infrastructure in metals, cement, power and ports (AP p.3). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• Integrated services across O&M, project execution and fabrication (AP p.3).
• Repeat orders: about 90% of business from repeat clients (AP p.6).
• An order book of ₹10,954 million (AP p.7).

Against that: a few large clients in two industries, very high staff turnover and a history of workplace accidents (AP p.7, DRHP p.34).

16Peers the company named

Source: DRHP p.121. Converted from ₹ lakh. Peer P/E uses prices on 24 March 2026.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Customers. Ten customers were 90% of recent revenue (AP p.7).
• Industries. Metals and cement were 93% (AP p.7).
• People. Project-staff attrition of 90.93% in FY25 (AP p.7).
• Safety. Workplace accidents, including fatalities: 1 incident in FY23, 1 in FY24, 14 in FY25 and 3 in the six months to September 2025 (DRHP p.34).
• Inventory at client sites. Consumables and spares held where the company has limited control (AP p.7).
• Contingent liabilities. 61% of net worth (AP p.7, AP p.8).

18Litigation and regulatory matters

Source: AP p.9. Converted from ₹ lakh.

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• Who the largest customer is, at 34% of recent revenue.
• How many of the workplace incidents were fatal, in the pages read.
• What the criminal proceedings against the company and a promoter concern.
• What makes up ₹652 million of contingent liabilities, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What caused 14 workplace incidents in FY25, and what has changed since?
2. How does the company run sites with project-staff attrition near 90%?
3. Who is the largest customer, and when do its contracts come up for renewal?
4. What are the ₹652 million of contingent liabilities?
5. How was the ₹38 placement price in July 2025 set, and who are the placees?

2Sources and cited facts

This study was read from 2 documents the company filed. The 62 figures it cites are listed under the document each came from, with the page and the sentence as printed.