Rkb Global Limited IPO

01At a glance

What the company does: trades iron and steel products, makes mild-steel wires, bright bars, welding electrodes and pre-engineered building components at plants in Wada (Palghar) and Taloja (Navi Mumbai), and processes, trades and exports iron ore (DRHP p.208, DRHP p.209, DRHP p.210).

Who pays it: construction, automobile and engineering customers, mostly in Maharashtra, and overseas buyers of iron ore; the largest customer was 35.04% of revenue in the six months to September 2025 and the top ten 74.57% (AP p.8, DRHP p.29).

Why it is raising money: ₹143.04 million for machinery at Wada, ₹29.00 million for solar panels there, ₹142.08 million for mining machinery, ₹500.00 million to repay borrowings, ₹500.00 million for working capital, and the rest for general purposes (AP p.4).

How fast it has grown: revenue was ₹3,600 million in FY23, ₹4,328 million in FY24 and ₹4,111 million in FY25, and ₹2,901 million in the six months to September 2025 (AP p.6).

The one thing to understand: a family steel business in transition, with governance questions in its recent accounts. Manufacturing rose from 17.40% of revenue in FY23 to 60.33% in the six months (DRHP p.209). The FY25 audit report's remarks, which the company says did not require restatement, covered revenue booked on export invoices before the goods moved, receivables more than three years old, and properties bought from directors (DRHP p.32, DRHP p.33).

02The business, in plain words

A steel products company buys wire rod and bars, draws and finishes them into wires, bright bars and electrodes to customers' thickness, and also trades steel it does not make. Separately, it processes iron ore under contract and sells it at home and abroad.

A fabricator in Maharashtra needs mild-steel wire of a given gauge → it orders from RKB → the company draws the wire at Wada or Taloja, or supplies traded stock → it delivers and is paid on credit.

The business traces to a proprietorship started in 1933, became a partnership in 2000, took the RKB Global name in 2013 and later became a company (DRHP p.208). Raw materials were 95.59% of total expenses in the six months to September 2025 (AP p.8).

Earnings equation: Profit ≈ tonnes sold × (selling price − steel input cost − processing cost) − interest. EBITDA margin was 6.45% in the six months (AP p.7).

03Where the money comes from

Source: DRHP p.209, DRHP p.32. H1 FY26 is six months. The abridged prospectus gives trading as 24.50% of six-month revenue (AP p.8).

Source: DRHP p.29.

The state-wise table shows negative revenue for "other states" in FY25 and the six months (DRHP p.32).

04The growth record

Source: AP p.6, AP p.7. H1 FY26 is six months.

Revenue grew at a compound 6.9% a year from FY23 to FY25 and profit after tax at 43.7% a year (our arithmetic, AP p.6). Trade receivable days were 41 in FY23, 45 in FY24, 94 in FY25 and 184 in the six months to September 2025 (DRHP p.52).

05What the growth is made of

A shift from trading to manufacturing rather than overall growth: revenue fell 5% in FY25 while manufacturing's share doubled (our arithmetic, AP p.6, DRHP p.209). Six-month revenue to September 2025 was 71% of FY25's, with one customer providing ₹1,016.50 million of it (our arithmetic, AP p.6, DRHP p.29).

06Earnings quality

The statutory auditors' FY25 report included these remarks (DRHP p.32, DRHP p.33):

• Export revenue: ₹614.99 million recognised on invoices to Prisha International PTE, Goldstone Overseas PTE and Samaira International, where the auditors observed the goods had not been transferred to the customers at the date of their report. Management's response is that control passed at invoicing under the contract terms.
• Old receivables: ₹61.83 million due for more than three years at March 2025; the auditors were unable to comment on the consequences. Management expects to recover them.
• Directors' properties: ₹117.42 million paid to directors for their personal properties, which had earlier been mortgaged to the bank for the company's facilities. Management says the price was at arm's length.

Operating cash flow was negative in FY24 and FY25 (AP p.6). The company says none of the past remarks required restatement and the six-month report has no qualifications (DRHP p.32). Other income was ₹24.70 million in FY25 against profit before tax of ₹154.44 million, or 16.0% of it (our arithmetic, DRHP p.74).

07The balance sheet

Source: AP p.6, AP p.7.

In FY24 the company issued 9.209 million equity shares and 0.148 million convertible preference shares to private investors at ₹65 to ₹100 each (DRHP p.34). Return on equity was 5.48% in FY25 (AP p.7).

08What the money is for

Source: AP p.4. The first row combines two objects (our arithmetic). The fresh issue is of up to 12,600,000 shares (DRHP p.67).

09Who is selling

Source: AP p.9. The full list of selling shareholders, who offer 2,020,000 shares in all, is in an annexure to the DRHP (AP p.9). The promoters' average costs are ₹7.91 and ₹8.57 (AP p.8).

10Promoters

The promoters are Alok Virat Shah and Virat Sevantilal Shah (DRHP p.1). Alok Virat Shah, managing director, has been on the board since December 2013 and holds commerce and MBA degrees (AP p.4). Virat Sevantilal Shah is chairman and a non-executive director (AP p.9).

11Who already owns it

Source: AP p.5.

Promoters hold 52.40% and the promoter group 15.84%; other shareholders hold the remaining 31.76% (our arithmetic, AP p.5). Ginni Finance Pvt. Ltd. holds 500,000 shares, 1.14% before the issue (DRHP p.129).

12What changed just before the IPO

• Manufacturing: now the larger part of revenue (DRHP p.209).
• Concentration: the largest customer rose to 35% of revenue (DRHP p.29).
• Investors: private placements at ₹65 to ₹100 in FY24 (DRHP p.34).
• Properties: ₹149.20 million in FY24 and ₹117.42 million in FY25 of property bought from promoters and their group, 54.18% and 41.05% of capital spending (DRHP p.37).

The last allotment of shares was a private placement of 4,500,000 shares at ₹110 each in September 2024 (DRHP p.102). There has been no change of statutory auditor in the three years before the DRHP (DRHP p.83). The company became a public company with a fresh certificate of incorporation dated August 30, 2018 (DRHP p.79).

13Capacity and expansion

The Wada and Taloja plants have installed capacity of 53,430 tonnes a year, to rise to 76,430 after the Wada expansion funded by the offer (DRHP p.209). The mining machinery is for the iron-ore vertical, which began in 2007 with equipment leasing and now includes processing and exports to China, the UAE and Saudi Arabia (DRHP p.210).

14Market size and industry structure

The CareEdge report cited in the offer document says India's steel capacity was about 196.6 MT in FY25 and crude steel output grew from 109 MT to 152 MT between FY20 and FY25 (AP p.4). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• A long trading history dating to 1933 (DRHP p.208).
• Manufacturing plus trading plus mining, several revenue streams (AP p.3).

Against that: thin margins, dependence on Maharashtra, a sudden rise in customer concentration, and audit remarks in FY25 (DRHP p.29, DRHP p.32, DRHP p.33).

16Peers the company named

Source: DRHP p.150. Peer P/E uses prices on 9 March 2026.

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

17Risks, in plain words

• Audit remarks. Revenue timing, old receivables and related-party property deals (DRHP p.32, DRHP p.33).
• Customers. Ten customers were 75% of recent revenue (AP p.8).
• Raw materials. 96% of expenses; steel prices are cyclical (AP p.8).
• Maharashtra. 78% of recent revenue (AP p.8).
• Related parties. Most recent capital spending went on promoter-group property (AP p.8, DRHP p.37).
• Cash. Operating cash flow negative in FY24 and FY25 (AP p.6).

18Litigation and regulatory matters

Source: AP p.9, AP p.10.

Contingent liabilities at September 2025 were ₹117.15 million: bank guarantees of ₹57.67 million, letters of credit of ₹43.27 million, income tax matters of ₹9.64 million and sales tax matters of ₹6.57 million (our arithmetic, DRHP p.77). There are no proceedings by or against the promoters (DRHP p.36).

19Related-party transactions

The company bought properties from its promoters and their group for ₹149.20 million in FY24 and ₹117.42 million in FY25 (DRHP p.37). The directors bought preference shares of ₹28.65 million up to March 2024, according to the auditors' remark (DRHP p.34). Other related-party transactions were not read for this study. Virat Sevantilal Shah and Alok Virat Shah were each paid ₹3.00 million in FY25 and nothing in FY23 (DRHP p.78).

20What the offer document does not say

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

• Whether the ₹615 million of export goods were later delivered and paid for, in the pages read.
• Who the largest customer is, at 35% of recent revenue.
• Why revenue from "other states" is negative.
• Which figure for trading's share is right: 39.58% or 24.50% of six-month revenue.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Were the goods on the three export invoices delivered, and when was the cash received?
2. Why did the company acquire directors' personal properties, and who valued them?
3. Who is the customer that provided 35% of six-month revenue?
4. How much of the ₹62 million of receivables older than three years has been collected?
5. What does the mining vertical earn, and why does it need ₹142 million of machinery?

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.