Rudra Green Ship Recycling Limited IPO

01At a glance

What the company does: purchases end-of-life ships from overseas sellers, beaches and dismantles them at Plot No. 132/133M in the Alang-Sosiya Ship Recycling Yard, and sells the recovered steel and other materials; it also trades billets, sponge iron, TMT bars and scrap. Ship recycling was 53.37% of FY26 revenue and trading 46.63% (DRHP p.201, DRHP p.202).

Who pays it: steel re-rolling mills, fabricators and traders, almost all in Gujarat (97.87% of FY26 revenue). The largest customer is Rudra Global Infra Products Limited, a listed group company in which the promoters hold a majority stake, at 52.46% of FY26 revenue (DRHP p.51, DRHP p.30, DRHP p.46).

Why it is raising money: ₹9,000.00 lakh of the proceeds goes to working capital in FY27 and FY28, and the rest, an amount not yet set, to acquisitions not yet identified and general corporate purposes, together capped at 35% of the gross proceeds (DRHP p.105, DRHP p.106).

How fast it has grown: revenue from ₹17,950.69 lakh in FY24 to ₹20,451.53 lakh in FY26, about 6.7% a year, and profit after tax from ₹537.27 lakh to ₹1,264.51 lakh, about 53.4% a year (our arithmetic, DRHP p.76).

The one thing to understand: the whole recycling business runs from one plot whose permission from the Gujarat Maritime Board expired on January 18, 2026 and has been extended only to October 18, 2026, with renewal applied for and not yet granted (DRHP p.32). A separate authorisation to conduct ship recycling on that plot was issued on September 5, 2026 and runs to September 4, 2031 (DRHP p.345).

02The business, in plain words

Ships that are too old to run are sold for their steel. This company purchases such ships, usually priced in US dollars per light displacement tonne (LDT, the weight of the empty ship), runs them onto the intertidal beach at its Alang-Sosiya plot, cuts them apart and sells the steel plates, scrap, non-ferrous metals and machinery recovered (DRHP p.37, DRHP p.202, DRHP p.215).

A ship owner or cash buyer offers an end-of-life vessel → the company pays for it in dollars through letters of credit and buyer's credit → the ship is beached, stripped of hazardous material and cut up on the plot → the company is paid in rupees for steel and scrap sold mostly to mills in Gujarat.

Since incorporation in 2018 the company has recycled 25 vessels totalling 188,054.82 MT of LDT, 12 of them (57,268.49 MT) in the last three years, and two more beached in July 2026 are under recycling (DRHP p.33, DRHP p.202). The vessels have included tankers, bulk carriers, reefers, car carriers and offshore drilling rigs (DRHP p.203, DRHP p.204).

Alongside, it trades ferrous materials and steel products bought from domestic suppliers, which was ₹9,536.20 lakh of FY26 revenue (DRHP p.41, DRHP p.324). The business came from Harikrishna Steel Corporation, a partnership firm formed in 1994 and converted into this company in June 2018 (DRHP p.2). As of August 31, 2026 it had 94 permanent employees, 79 of them labour, and no regular contract labour (DRHP p.224).

Earnings equation: Revenue ≈ LDT of ships cut and sold × realisation per tonne recovered + traded steel volume × trading price. Ships purchased were 5, 5 and 2 in FY24 to FY26, totalling 16,501.50, 25,501.64 and 15,265.35 MT of LDT (DRHP p.316). The document does not give tonnes sold or realisation per tonne for either business.

03Where the money comes from

Source: DRHP p.41, DRHP p.51. Within recovered materials, old and used plates were 38.37% of FY26 recycling revenue, iron and steel scrap 24.17%, stainless steel 5.10%, aluminium, bronze and propellers 2.48%, and others 29.89% (DRHP p.41, DRHP p.42). All sales are in India and in rupees (DRHP p.316).

Source: DRHP p.334. Revenue depends on one customer: the largest, named as Rudra Global Infra Products Limited (RGIPL), took ₹10,728.59 lakh in FY26, and the next nine together took 13.83% (our arithmetic, DRHP p.31). Sales to RGIPL are on purchase orders with no long-term agreement (DRHP p.30). RGIPL owed ₹2,767.82 lakh at March 31, 2026, 60.21% of trade receivables (DRHP p.319). On the supply side, the top ten suppliers were 80.90% of FY26 purchases and the largest 22.83%; RGIPL was also a supplier, at ₹1,411.66 lakh in FY26 (DRHP p.334, DRHP p.46).

04The growth record

Source: DRHP p.76, DRHP p.77, DRHP p.122, DRHP p.332.

Our arithmetic over FY24 to FY26: revenue grew about 6.7% a year (our arithmetic, DRHP p.76), EBITDA about 60.8% a year (our arithmetic, DRHP p.122) and profit after tax about 53.4% a year (our arithmetic, DRHP p.76). EBITDA margin moved from 4.7% to 10.7%, up 596 basis points, and PAT margin from 2.97% to 6.17%, up 320 basis points (DRHP p.122). In rupees, revenue went from ₹179.5 crore to ₹204.5 crore and profit after tax from ₹5.4 crore to ₹12.6 crore (DRHP p.76).

Operating cash flow was negative in all three years, an outflow of ₹380.81 lakh in FY26, about −₹3.8 crore (DRHP p.77). Other income of ₹48.67 lakh was 2.9% of FY26 profit before tax of ₹1,688.60 lakh (our arithmetic, DRHP p.76). Net debt, borrowings less ₹745.00 lakh of cash and short deposits, was about 2.5 times FY26 EBITDA (our arithmetic, DRHP p.74, DRHP p.77, DRHP p.122).

Debt to equity was 1.19 times in FY26, about 1.2× (DRHP p.122). Return on capital employed was 19.0% in FY26 (DRHP p.122). Net working capital was ₹9,672.59 lakh at March 2026, about 173 days of revenue (our arithmetic, DRHP p.38). Contingent liabilities were ₹79.35 lakh at March 2026, about ₹0.8 crore, all a disputed GST claim (DRHP p.78).

The year end is March 31 throughout. FY25 was the first year prepared under Ind AS, with April 1, 2023 as the transition date, and FY24 is restated on the same basis (DRHP p.321). Revenue was flat in FY25, down 0.17%, while profit after tax rose 82.68% that year (DRHP p.327, DRHP p.328).

05What the growth is made of

Revenue rose ₹2,500.84 lakh from FY24 to FY26 (our arithmetic, DRHP p.76). Trading added ₹1,869.27 lakh and recycling ₹631.58 lakh, so about three quarters of the increase came from traded steel rather than from ships (our arithmetic, DRHP p.41).

The company explains FY26 recycling revenue by three ships beached between January and March 2025, totalling 12,537.72 MT of LDT, whose materials were sold in FY26, plus two ships beached in FY26 (DRHP p.325, DRHP p.327). Fewer ships were purchased in FY26, 2 against 5, and no ship was beached from January to June 2026 (DRHP p.316, DRHP p.33). Trading revenue rose 24.63% in FY26, which the document attributes to higher sales of traded products without giving tonnes or prices (DRHP p.325).

Profit grew far faster than revenue because gross margin went from 7.21% in FY24 to 11.97% in FY25 and 12.90% in FY26 (DRHP p.122). The document attributes it to realisations against vessel and traded-goods cost and to the mix between the two businesses, without splitting gross profit by business (DRHP p.318). Directors' remuneration also fell from ₹76.00 lakh in FY25 to ₹9.00 lakh in FY26 (DRHP p.326). The offer document does not disclose tonnes sold or price per tonne, so the increase cannot be separated into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is cash. Three years of profit came with three years of operating cash outflow, funded by net short-term borrowing of ₹2,692.89 lakh, ₹1,730.16 lakh and ₹911.83 lakh (DRHP p.33). In FY26 inventories fell by ₹1,087.32 lakh, but receivables rose ₹1,479.02 lakh and payables fell ₹1,868.47 lakh (DRHP p.33). Inventories were 58.77% of total assets at March 2026 (DRHP p.38).

Inventory of ships under cutting is a management estimate: the weight of a ship cannot be measured at purchase, so the quantity left at year end is estimated from LDT less materials sold and estimated wastage (DRHP p.322). Receivables more than six months old were ₹138.57 lakh at March 2026, and the expected credit loss allowance rose from ₹18.97 lakh to ₹55.09 lakh in FY26 (DRHP p.289). Loans and advances of ₹21.54 lakh were written off in FY26 (DRHP p.326).

07The balance sheet

At March 31, 2026 total assets were ₹16,991.50 lakh: inventories ₹9,986.60 lakh, trade receivables ₹4,596.93 lakh, cash ₹48.19 lakh, bank deposits under three months ₹696.81 lakh, other current financial assets ₹671.61 lakh and property, plant and equipment ₹296.48 lakh (DRHP p.74). Against that: current borrowings ₹6,164.23 lakh, non-current borrowings ₹56.74 lakh, trade payables ₹5,013.67 lakh and net worth ₹5,247.45 lakh (DRHP p.74, DRHP p.75).

All borrowings were secured. Current borrowings were ₹6,155.49 lakh of working capital loans from banks plus ₹8.74 lakh of current maturities (DRHP p.312). Letters of credit of ₹4,246.25 lakh were 68.89% of current borrowings (DRHP p.38). By August 31, 2026 total borrowings were ₹12,136.87 lakh against ₹12,813.44 lakh sanctioned, about ₹121.4 crore, almost all from Union Bank of India, with renewal of the main facility under process (DRHP p.313). The facilities carry personal guarantees of the promoters (DRHP p.40). Import payables for ships were USD 4,181,760 at March 2026 and are not hedged (DRHP p.45, DRHP p.37).

There were no lease liabilities and no capital commitments at March 2026 (DRHP p.75, DRHP p.78). Insurance covered ₹87.66 lakh, 41.23% of plant and equipment excluding buildings, and the inventories are only partly insured (DRHP p.52, DRHP p.50).

After the issue, as far as the arithmetic goes: none of the fresh issue repays debt, and the post-issue capitalisation is left blank until the price is set (DRHP p.105, DRHP p.312). Net worth would rise by the fresh issue less expenses, but both amounts are blank at this stage, so the post-issue figure cannot be stated (DRHP p.105).

08What the money is for

Source: DRHP p.105, DRHP p.106. The last two objects together may not exceed 35% of the gross proceeds (DRHP p.106).

Working capital: ₹1,500.00 lakh in FY27 and ₹7,500.00 lakh in FY28 (DRHP p.106). The plan takes net working capital from ₹9,672.59 lakh at March 2026 to ₹12,753.66 lakh at March 2027 and ₹20,450.71 lakh at March 2028, assuming receivable days of 80, raw material holding of 90 days and payable days falling to 75 (DRHP p.108, DRHP p.109). The company says it intends to rely less on supplier credit and bill discounting and to pay vessel sellers faster (DRHP p.111).

Acquisitions: no acquisition has been identified and no agreement signed; the company has never made one, and undertakes that none will be made from promoters, the promoter group or group companies (DRHP p.61, DRHP p.112). None of the objects has been appraised by a bank (DRHP p.86).

The company may place up to ₹2,200.00 lakh of shares before the red herring prospectus, which would reduce the fresh issue (DRHP p.105).

Into the business up to 1,90,00,000 new shares of ₹5; the rupee amount is left blank until the price is set (DRHP p.1). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

Source: DRHP p.1, DRHP p.100. The issue is a fresh issue only, so there are no selling shareholders, and the promoters and promoter group will not take part in the issue (DRHP p.100, DRHP p.104).

10Promoters

The promoters are Ashokkumar Jagdishram Gupta, aged 68, and Shamarani Ashokkumar Gupta, aged 66, both non-executive directors; Sahil Ashok Gupta, aged 34, Managing Director; Shrishti Nikhilkumar Gupta, aged 43, HR Head; and Sonthalia Steel Rolling Mills Private Limited, a 1984 company in which Sahil Ashok Gupta holds 97.48% and Shrishti Nikhilkumar Gupta 2.52% (DRHP p.261, DRHP p.262, DRHP p.263). The document states that Ashokkumar Jagdishram Gupta and Shamarani Ashokkumar Gupta are spouses and the parents of Sahil Ashok Gupta, and that Shrishti Nikhilkumar Gupta is the sister-in-law of Sahil Ashok Gupta (DRHP p.250, DRHP p.259). Together the promoters hold 98.86%, and 100% with the promoter group (DRHP p.100).

Ashokkumar Jagdishram Gupta has no formal degree and over twenty-nine years in ship recycling and steel; Shamarani Ashokkumar Gupta has been a partner of the predecessor firm since 1997; Sahil Ashok Gupta holds a BBA and has over eight years in the industry (DRHP p.249).

Pay: Ashokkumar Jagdishram Gupta was paid ₹50.00 lakh in FY24 and nil in FY26, Shamarani Ashokkumar Gupta ₹25.00 lakh and nil, Sahil Ashok Gupta nil and ₹9.00 lakh, and Shrishti Nikhilkumar Gupta a salary of ₹30.00 lakh and ₹24.00 lakh (DRHP p.79). Together that is ₹105.00 lakh in FY24 and ₹33.00 lakh in FY26, about ₹1.1 crore and ₹0.3 crore (our arithmetic, DRHP p.79). Sahil Ashok Gupta has been Managing Director from August 7, 2025 at ₹2.00 lakh a month, which may be raised to ₹10.00 lakh a month (DRHP p.250).

Other businesses and deals with the company: the promoters are directors of RGIPL, the largest customer, and of Ekantra Global Retails Private Limited; Shrishti Nikhilkumar Gupta is a director of YSR Building Solutions Private Limited and NS Multimetal LLP, both suppliers in FY26 (DRHP p.247, DRHP p.262, DRHP p.80). The registered office, backyard premises and storage yard are leased from Shamarani Ashokkumar Gupta and Ashokkumar Jagdishram Gupta under agreements dated June 11, 2026 at ₹35,000, ₹50,000 and ₹30,000 a month (DRHP p.225). A non-compete agreement with RGIPL for five years was signed on September 29, 2026 (DRHP p.46).

Pledges and cases: no promoter share is pledged (DRHP p.103). The promoters face six direct tax proceedings involving ₹44.85 lakh and no criminal, regulatory or material civil case (DRHP p.340, DRHP p.339). They are not debarred by SEBI (DRHP p.266). Krishan Gupta, a member of the promoter group, did not provide the required confirmations; SEBI declined an exemption on September 23, 2026, and that person's group is disclosed only from public sources (DRHP p.44).

Promoter economics: every promoter share came from the initial subscription at ₹10 on incorporation in June 2018, except Shrishti Nikhilkumar Gupta's 21,00,000 received by transmission in November 2022 on the death of Nikhil Ashokkumar Gupta (DRHP p.91, DRHP p.95). Average cost is ₹5 per ₹5 share for four promoters and ₹0.33 for Shrishti Nikhilkumar Gupta (DRHP p.100). No promoter acquired shares in the last three years (DRHP p.101). The only transfer in that period was a gift of 21,000 ₹10 shares by Sahil Ashok Gupta to Sahil Ashok Gupta HUF on February 25, 2026 (DRHP p.94).

11Who already owns it

Source: DRHP p.100. The company has seven shareholders, all promoters or promoter group, and no public shareholder, fund, institution or employee holds shares (DRHP p.94, DRHP p.103). There is no employee stock option scheme (DRHP p.92).

If all 1,90,00,000 fresh shares are issued, the promoters and promoter group would hold 3,00,00,000 of 4,90,00,000 shares, about 61.2%, before any pre-IPO placement (our arithmetic, DRHP p.90, DRHP p.100). The document leaves the post-issue holding blank (DRHP p.100).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹179.5 crore in FY24 to ₹204.5 crore in FY26 and profit after tax from ₹5.4 crore to ₹12.6 crore (DRHP p.76).
• Margins widened: gross margin from 7.21% to 12.90% and EBITDA margin from 4.69% to 10.65% over FY24 to FY26 (DRHP p.122).
• Trading grew in the mix: from 42.71% of revenue in FY24 to 46.63% in FY26 (DRHP p.41).
• Fewer ships: 5 purchased in FY25, 2 in FY26, none beached from January to June 2026, then two beached in July 2026 (DRHP p.316, DRHP p.33, DRHP p.336).
• Receivables lengthened from 58 days in FY24 to 82 days in FY26 (DRHP p.109).
• Borrowing rose from ₹3,533.23 lakh at March 2024 to ₹6,220.97 lakh at March 2026 and ₹12,136.87 lakh at August 2026 (DRHP p.56, DRHP p.313).
• Promoter pay fell from about ₹1.1 crore in FY24 to about ₹0.3 crore in FY26 (our arithmetic, DRHP p.79). Two promoters moved from executive to non-executive director on August 7, 2025 (DRHP p.252).
• New related-party suppliers: in FY26 the company advanced ₹340.00 lakh to YSR Building Solutions Private Limited and purchased ₹403.78 lakh from it, and purchased ₹67.80 lakh from NS Multimetal LLP, none of which appear in FY24 or FY25 (DRHP p.79, DRHP p.80).
• Leases from promoters for the office, backyard and storage yard were signed on June 11, 2026 (DRHP p.225).
• Plot permission: the Gujarat Maritime Board permission expired on January 18, 2026 and was extended on July 24, 2026 to October 18, 2026 (DRHP p.32).
• Share split of each ₹10 share into two of ₹5, approved on September 23, 2026 (DRHP p.91). There has been no bonus issue (DRHP p.92).
• Became a public company: fresh certificate dated May 15, 2026 (DRHP p.2).
• New governance layer: independent directors from August 2025 and September 2026, board committees on September 16, 2026, and a company secretary and CFO from September 8, 2026, after periods without a whole-time company secretary for which an adjudication application was filed on September 22, 2026 (DRHP p.252, DRHP p.59, DRHP p.260, DRHP p.338).
• Non-compete with RGIPL signed on September 29, 2026 (DRHP p.46).
• The statutory auditor did not change: S D P M & Co. was reappointed on September 29, 2025 (DRHP p.84).
• Ind AS was adopted from FY25, with April 1, 2023 as the transition date (DRHP p.321).

13Capacity and expansion

Source: DRHP p.221, DRHP p.225. The document says capacity and capacity utilisation are not applicable to ship recycling (DRHP p.221). What it gives instead is ships handled: 5 vessels of 16,501.50 MT LDT in FY24, 5 of 25,501.64 MT in FY25 and 2 of 15,265.35 MT in FY26 (DRHP p.316).

The issue funds no capacity. Its acquisitions object mentions additional plots at Alang-Sosiya as one possibility, but nothing is identified (DRHP p.111, DRHP p.112). The plot is used under a GMB permission now running to October 18, 2026, at an annual lease of ₹19.32 lakh for FY26 (DRHP p.32). The document says no Indian yard is on the European Union's approved list, so EU-flagged ships cannot be cut there (DRHP p.43).

14Market size and industry structure

As claimed: the industry report is by ICRA Analytics Limited, "Indian Ship Recycling Industry", dated September 29, 2026, commissioned and paid for by the company for the issue (DRHP p.26). It puts Indian ship recycling at 2,998 thousand gross tonnes in CY2025, having shrunk about 1.6% a year since CY2019 (DRHP p.158). Imports of vessels for breaking up were USD 556.8 million in FY2025-26 (DRHP p.187).

The part that is addressable: end-of-life ships beached at Alang-Sosiya, and steel scrap and products sold mainly in Gujarat. The company-commissioned report does not size the Alang-Sosiya market alone in the pages read.

What the company is today: 15,265.35 MT of LDT purchased in FY26 (DRHP p.316). The report measures the market in gross tonnes and the company reports LDT, so no share can be computed from the document.

On structure, the commissioned report cites Bangladesh at 2,735, Turkey at 1,034 and Pakistan at 479 thousand gross tonnes in CY2025, the yards competing with India for ships (DRHP p.46). Ships are sold to the highest bidder across those destinations (DRHP p.46). Ship recycling is regulated under the Recycling of Ships Act, 2019 and regulations in force since January 2026 (DRHP p.43). Steel is around 75% to 85% of a vessel's recoverable weight, according to the commissioned report (DRHP p.187).

15Competitive position

Source: DRHP p.123, DRHP p.312. PAT margin is on total income, as the document computes it; VMS Industries' borrowings are not given, only a debt to equity ratio of 0.30 (DRHP p.124). VMS Industries' revenue fell from ₹28,855.88 lakh in FY25 to ₹15,743.05 lakh in FY26 (DRHP p.123).

What the company puts forward: three decades of history through the predecessor firm, 25 vessels recycled since 2018 across many ship types, an HKC-compliant yard with ISO and Nippon Kaiji Kyokai certifications, and a trading arm alongside recycling (DRHP p.117, DRHP p.118, DRHP p.197). Against that: one plot on a short permission, a group company as the customer for half of revenue, 97.87% of sales in one state, unhedged dollar purchases and no registered trademark (DRHP p.32, DRHP p.30, DRHP p.51, DRHP p.37, DRHP p.58). The document itself says HKC compliance is common at Alang and gives no advantage (DRHP p.43).

16Peers the company named

Peers named in the offer document: VMS Industries Limited, the only listed company in India the document finds in a similar business (DRHP p.118).

VMS Industries, incorporated in 1991, recycles ships at Alang and sells mainly to re-rolling mills, so the business overlaps closely (DRHP p.197). By FY26 revenue the company is about 1.3 times VMS Industries, while VMS Industries' net worth of ₹9,715.83 lakh is nearly twice the company's (our arithmetic, DRHP p.123). The document prints VMS Industries' P/E as 29.75 on its September 25, 2026 price (DRHP p.118, DRHP p.119). The company's FY26 basic EPS is ₹4.22 on the ₹5 share (DRHP p.118). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Customers: RGIPL, a group company, took 52.46% of FY26 revenue on purchase orders (DRHP p.30) → if RGIPL purchases less or pays late, half of revenue and most receivables are affected → RGIPL owed 60.21% of trade receivables at March 2026 (DRHP p.319).

One plot: all recycling revenue, 53.37% of FY26 revenue, comes from a single GMB plot (DRHP p.32) → the permission runs only to October 18, 2026 and renewal is pending (DRHP p.32) → without it, recycling stops.

Cash and working capital: operating cash flow was negative in FY24, FY25 and FY26 (DRHP p.33) → growth is funded by bank lines that one bank mostly provides → borrowings were ₹12,136.87 lakh at August 2026, almost twice March 2026 (DRHP p.313).

Currency: ships are paid for in dollars and materials sold in rupees, with no hedging (DRHP p.37) → a weaker rupee raises vessel cost, duties and buyer's credit interest → import payables were USD 4,181,760 at March 2026 (DRHP p.45).

Prices and supply: vessel prices, freight and LPG rose in April and May 2026 with the conflict affecting the Strait of Hormuz (DRHP p.34) → the company says it may not pass costs on → finance costs already rose from ₹196.68 lakh in FY24 to ₹493.42 lakh in FY26 (DRHP p.56).

People and safety: attrition was 64.10%, 27.66% and 49.59% in FY24 to FY26 (DRHP p.39) → ship cutting is hazardous work that needs trained workers → inventories of ₹9,986.60 lakh sit against ₹87.66 lakh of insurance on equipment (DRHP p.50, DRHP p.52).

Compliance record: no whole-time company secretary for most of 2018 to 2026, an unspent CSR amount of ₹9.25 lakh for FY25, and 31 late RoC filings, some years late (DRHP p.45, DRHP p.338, DRHP p.53, DRHP p.55) → adjudication applications are pending (DRHP p.338).

Issue-specific: the acquisition and general purpose amounts are blank and no acquisition is identified (DRHP p.105, DRHP p.61); the promoters' average cost is ₹5 and ₹0.33 a share (DRHP p.100); and a pre-IPO placement of up to ₹2,200.00 lakh may be made at a price that may be lower than the issue price (DRHP p.63).

18Litigation and regulatory matters

Criminal: none by or against the company, promoters, directors, key managerial personnel or senior management (DRHP p.338, DRHP p.339). Regulatory: no action by a regulator against the company or promoters; the two adjudication applications were filed by the company itself on September 22, 2026 (DRHP p.338). Civil: no material civil case (DRHP p.338). No litigation involving group companies is material to the company (DRHP p.49).

19Related-party transactions

Source: DRHP p.79, DRHP p.80; the last two rows are our arithmetic, adding the lines for the four individual promoters. RGIPL is a listed group company in which the promoters hold a majority stake (DRHP p.46). Sahil Ashok Gupta lent the company ₹75.21 lakh in FY24, of which ₹41.49 lakh was outstanding at March 2024 and nil later (DRHP p.80, DRHP p.81). A loan of ₹31.41 lakh was given to Ekantra Global Retails Private Limited in FY24, and ₹19.06 lakh was receivable from it at March 2026 (DRHP p.79, DRHP p.80).

What appeared or changed in the two years before filing: purchases from YSR Building Solutions and NS Multimetal LLP and the ₹340.00 lakh advance, all in FY26; vehicle hire from two promoters in FY26; new leases from promoters dated June 11, 2026, which add up to ₹13.8 lakh a year (our arithmetic, DRHP p.225); and the non-compete agreement with RGIPL of September 29, 2026 (DRHP p.79, DRHP p.80, DRHP p.46).

20What the offer document does not say

Tonnes of material recovered and sold, realisation per tonne and traded volumes are not disclosed, so revenue cannot be split into volume and price. Gross margin is not given separately for recycling and trading. The price paid per LDT for vessels is not disclosed. The terms on which RGIPL purchases, and how its prices compare with other customers, are not disclosed beyond the totals.

The amounts for acquisitions, general corporate purposes, issue expenses and the price band are blank. What happens to operations if the GMB permission is not renewed after October 18, 2026 is not addressed beyond the risk factor. The draft abridged prospectus was not among the files read.

Some inconsistencies are recorded as document matters, not business ones: the conversion to a public company is dated to a special resolution of April 18, 2026 in most places and to an EGM of September 30, 2025 in the restated notes (DRHP p.2, DRHP p.279); headcount at March 31, 2026 is 58 in the attrition table and 52 in the text beside it (DRHP p.39);

the restated notes say trade receivables are spread across a large number of customers while RGIPL alone was 60.21% of them (DRHP p.302, DRHP p.319); and the notes say forward contracts are used to manage currency risk while a risk factor says no forward contracts or other derivatives have been entered into (DRHP p.302, DRHP p.37).

21Five questions for management

1. What share of the ₹2,767.82 lakh owed by RGIPL at March 2026 had been collected by September 2026, and on what credit terms does RGIPL purchase?
2. What tonnes were sold and at what average realisation per tonne in recycling and in trading in each of FY24 to FY26?
3. How much of the rise in gross margin from 7.21% to 12.90% came from recycling and how much from trading?
4. What has the GMB said about renewing the plot permission beyond October 18, 2026, and on what conditions?
5. How many vessels and what LDT does the ₹20,450.71 lakh of planned FY28 working capital assume?

1Sources and cited facts

This study was read from 1 document the company filed. The 137 figures it cites are listed under the document each came from, with the page and the sentence as printed.