Sai Infinium Limited IPO

01At a glance

What the company does: manufactures TMT bars, structural steel products (angles, beams, channels, flats) and MS billets at one plant at Chamardi village near Bhavnagar, and also trades ferrous and non-ferrous scrap, holds a ship recycling yard at Alang and deals in real estate (AP p.3, DRHP p.293).

Who pays it: builders and fabricators through 222 dealers in Gujarat, 4 in Punjab and 5 distributors in Gujarat, Rajasthan and Punjab (DRHP p.293). Gujarat was 99.74% of FY26 revenue (DRHP p.40). The largest customer, Metarex Global Private Limited, was 18.59% of FY26 revenue and the promoter company Devansh Infinium Private Limited was 15.77% (DRHP p.43).

Why it is raising money: ₹2,100.00 million (₹210.0 crore) of the ₹2,800.00 million (₹280.0 crore) fresh issue is for a 50 tonne induction melting system to double billet capacity, with the rest for general corporate purposes (DRHP p.155). The offer for sale proceeds go to Ishu Bansal, not the company (DRHP p.155).

How fast it has grown: revenue from ₹4,682.07 million in FY24 to ₹6,891.62 million in FY26, a CAGR of 21.3%; profit after tax from ₹61.38 million to ₹823.79 million, a CAGR of 266.3% (our arithmetic, DRHP p.111).

The one thing to understand: the FY26 rise in revenue came from "other operating income", chiefly non-ferrous scrap sales of ₹1,519.78 million on 721.46 tonnes, against ₹65.12 million on 370.96 tonnes in FY25 (DRHP p.299). Without other operating income, revenue was ₹4,996.97 million in FY26 against ₹5,046.41 million in FY25, a fall of 1.0% (our arithmetic, DRHP p.41).

02The business, in plain words

The company melts sponge iron and steel scrap in induction furnaces to cast MS billets (semi-finished square steel lengths), then rolls those billets into TMT reinforcement bars in one mill and into structural sections in a second mill that began production in February 2026 (DRHP p.293, DRHP p.297). It also buys billets in the open market to roll (DRHP p.300).

A builder or dealer needs reinforcement bars → it orders "Bandhan" TMT bars → the company melts scrap and sponge iron into billets and rolls them → it is paid per tonne.

Next to steel, the company sells scrap and raw materials it does not use, trades metals, and holds 43 unsold commercial properties worth ₹56.99 million at March 2026 (DRHP p.298, DRHP p.299). Its ship recycling yard at Alang, with 30,000 LDT of annual capacity, broke no ships in FY24, FY25 or FY26; the last ship was bought in November 2023 by a company since merged in (DRHP p.298).

Earnings equation: Revenue from TMT bars = tonnes sold × realisation per tonne. In FY26 that was 85,093.17 tonnes × ₹44,981.64 = ₹3,827.63 million (DRHP p.296). Materials cost ₹4,698.87 million, 68.2% of revenue (our arithmetic, DRHP p.509).

03Where the money comes from

Source: DRHP p.41. Ship recycling was 1.83% of FY25 revenue and real estate under 1% in each year (DRHP p.41).

Source: DRHP p.40, DRHP p.42. In FY25 the largest customer was Devansh Infinium Private Limited, a promoter, at 54.27% (DRHP p.43).

Revenue depends on a few buyers, several of them tied to the promoters. In FY26 the top ten included Devansh Infinium Private Limited (15.77%), Falvi Infinium LLP (6.75%), Sai Endeavours Private Limited (4.40%) and Axat Impex LLP (3.48%) (DRHP p.43). Metarex Global Private Limited, the largest FY26 customer, was formerly Devansh Endeavours Private Limited; Shivnarayan Bansal resigned as its director on May 28, 2025 (DRHP p.397). The ten largest suppliers were 63.98% of FY26 purchases (DRHP p.33).

04The growth record

Source: DRHP p.111, DRHP p.112, AP p.7, DRHP p.184. Net worth as the company defines it was ₹1,939.38 million, ₹3,257.54 million and ₹4,593.98 million; return on equity 4.84%, 16.91% and 21.00%; return on capital employed 8.47%, 20.88% and 16.73% (DRHP p.184).

Revenue CAGR FY24 to FY26 was 21.3%, EBITDA CAGR 115.2% and PAT CAGR 266.3% (our arithmetic, DRHP p.111). EBITDA margin moved from 5.9% to 18.6%, up 1,269 basis points (DRHP p.184).

Two presentation points. Total equity on the balance sheet was ₹3,923.10 million at March 2026, ₹670.88 million below the "net worth" KPI in every year, because that KPI leaves out a reserve arising on the 2024 merger (our arithmetic, DRHP p.109, DRHP p.184). The summary profit and loss page prints FY26 EPS as ₹1.59 and FY25 as ₹2.80, the reverse of the ₹2.80 and ₹1.59 given elsewhere (DRHP p.111, DRHP p.182).

05What the growth is made of

FY24 to FY25: TMT bar volume rose from 57,944 to 86,651.76 tonnes while realisation fell from ₹49,598.06 to ₹46,829.40 a tonne, and billet sales fell from 29,860 to 7,558.19 tonnes (DRHP p.296). Revenue rose 12.91% (DRHP p.184).

FY25 to FY26: TMT bar volume fell 1.80% to 85,093.17 tonnes and realisation fell 3.95% to ₹44,981.64 a tonne; billets rose to 9,948.78 tonnes; structural products added 5,977.67 tonnes at ₹60,162.24 a tonne in two months (DRHP p.296, DRHP p.297, DRHP p.535). Manufactured goods revenue rose only ₹206.37 million; other operating income rose ₹1,654.31 million (DRHP p.534).

Read from the filing: the FY26 increase is almost entirely scrap and raw material sales. Non-ferrous scrap brought ₹1,519.78 million on 721.46 tonnes in FY26, about ₹2.1 million a tonne, against about ₹0.18 million a tonne on 370.96 tonnes in FY25 and ₹0.17 million a tonne on 956.84 tonnes in FY24 (our arithmetic, DRHP p.299). The document says the scrap includes aluminium, brass, moly and nickel, but does not explain the change in value per tonne or name the buyers of that scrap (DRHP p.298).

06Earnings quality

The line that needs explaining is FY26 operating cash flow of ₹825.25 million, which came with a ₹1,182.47 million fall in inventory and a ₹740.20 million fall in trade payables, while other current and non-current assets rose ₹1,309.66 million (DRHP p.112). Other non-current assets rose from ₹113.49 million to ₹1,303.25 million (DRHP p.109). In FY24 other income of ₹107.01 million exceeded profit before tax of ₹82.39 million; FY25 other income included ₹158.49 million profit on sale of investment property (DRHP p.111, DRHP p.537).

07The balance sheet

Source: DRHP p.109. Net debt to EBITDA was 2.58 and debt to equity 0.91 in FY26 (DRHP p.184).

All ₹3,575.72 million of borrowings at March 2026 carried variable rates; an IREDA term loan of ₹3,509.40 million was sanctioned, of which ₹1,437.30 million was drawn (DRHP p.92). Unsecured loans were ₹1,442.29 million, including ₹630.00 million from Nola Exim Private Limited and ₹300.00 million from Metarex Global Private Limited at 9%, and ₹162.01 million from Indresh Financial Services Private Limited at 25% (DRHP p.464). Nola Exim and Metarex are also top-ten customers (DRHP p.43).

Contingent liabilities were ₹889.69 million, mostly ₹782.30 million of corporate guarantees for bank loans of Devansh Infinium Private Limited (₹450.00 million) and Axat Impex LLP (₹332.30 million); capital commitments were ₹2,370.81 million (our arithmetic, DRHP p.114, DRHP p.395). The fresh issue is gross proceeds of ₹2,800.00 million; net proceeds are not yet stated, so a post-issue balance sheet cannot be drawn (DRHP p.155).

08What the money is for

Source: DRHP p.155, our arithmetic for the share. The melting shop costs ₹2,244.20 million in all, per a cost report by R. Singh & Associates Private Limited; ₹144.20 million comes from internal accruals, and the proceeds are to be spent ₹420.00 million in FY27 and ₹1,680.00 million in FY28 (DRHP p.156). It doubles billet capacity from 108,000 to 216,000 tonnes a year (DRHP p.158). The plan has not been appraised by a bank (DRHP p.156).

Into the business: up to ₹2,800.00 million (fresh issue). To the selling shareholder: up to 12,000,000 shares; the amount depends on a price not yet set (DRHP p.106).

09Who is selling

Source: DRHP p.106, DRHP p.141, our arithmetic for the share. The offered shares are 4.0% of the pre-issue capital of 298,327,183 shares (our arithmetic, DRHP p.106). The seller's average cost is given as "Negligible", under ₹0.01 a share (DRHP p.149).

10Promoters

The promoters are Shivnarayan Bansal, Chairman and Managing Director; Ishu Bansal; and Devansh Infinium Private Limited, a steel trading company 99.99% owned by Shivnarayan Bansal (DRHP p.392, DRHP p.393). The document states that Shivnarayan Bansal is the spouse of Ishu Bansal, and names Madan Lal as the father of Ishu Bansal (DRHP p.398, DRHP p.399). The promoters are not the original promoters; control changed in the last five years (DRHP p.394).

Pay: Shivnarayan Bansal received director's remuneration of ₹1.00 million in FY25 and ₹2.40 million in FY26, and Ishu Bansal a salary of ₹1.20 million in FY26; neither was paid in FY24 (DRHP p.115). Together that is ₹3.60 million in FY26, about ₹0.4 crore (our arithmetic, DRHP p.115).

Promoter economics: Ishu Bansal received 25,859,433 shares in June 2023 and 26,802,320 in September 2024 as gifts from Madan Lal Bansal (DRHP p.143). In June 2024 Ishu Bansal transferred 2,780,000 shares to Sandeep Kothari and 1,112,000 to Dimple Kothari at ₹20, and 3,892,000 to Devansh Infinium Private Limited at ₹20.56 (DRHP p.143). After the split, Sandeep Kothari and Dimple Kothari gifted 13,900,000 and 5,560,000 shares back to Ishu Bansal on March 6, 2026 (DRHP p.143).

Devansh Infinium Private Limited bought 2,934,000 shares at ₹150 in December 2024 and further shares in late 2025 at ₹150 (pre-split) and ₹14.99 to ₹30 (post-split); its average cost is ₹17.46 (DRHP p.143, DRHP p.144, DRHP p.149).

Guarantees: the promoters guarantee the company's ₹3,509.40 million IREDA loan; the company has not yet created the pledge over promoter shares that IREDA required, paid ₹5.11 million in penalties up to July 31, 2026, and received an extension on August 12, 2026 (DRHP p.140, DRHP p.397). The summary litigation table shows one tax matter against the promoters involving ₹59.85 million, while the detailed chapter lists nil against the promoters (DRHP p.66, DRHP p.552).

11Who already owns it

Source: DRHP p.141, DRHP p.146, our arithmetic for the last row. Promoters hold 92.01% and promoter group 1.67% (DRHP p.142). There are no venture capital or alternative investment fund shareholders (DRHP p.152).

Kirtan Maneklal Rupareliya, managing director of Neomile Capital Advisors Private Limited, one of the two lead managers, holds 2,780,000 shares, 0.93% (DRHP p.152). Sai Endeavours Private Limited bought its stake from Urja Ships Private Limited at ₹22 in March 2026 (DRHP p.145). The weighted average cost of all shares acquired in the last year is ₹22.39, in a range of nil to ₹90 (DRHP p.148).

12What changed just before the IPO

• Merger: Fidelis International Private Limited and Sai Infinium Private Limited were merged in by an NCLT order of August 7, 2024, effective March 30, 2024; the ship recycling and scrap businesses came with it (DRHP p.92, DRHP p.131).
• Public company: converted from a private company, fresh certificate dated October 15, 2024; renamed Sai Infinium Limited in November 2024 (DRHP p.3).
• Earlier DRHP withdrawn: a DRHP dated April 2, 2025 was withdrawn on June 3, 2025 (DRHP p.91).
• Split: ₹10 shares split into five ₹2 shares, approved by shareholders on November 29, 2025 (DRHP p.133).
• Private placements at ₹90: 1,517,660 shares on December 17, 2025, 2,911,223 on December 31, 2025, and 1,228,300 in March 2026, the last on March 23, 2026 (DRHP p.133 to DRHP p.135).
• Auditors: Parshva Shah & Co. and Deepak Goyal & Co. resigned in November 2025; Lahoti and Lahoti was appointed on November 24, 2025 and resigned on March 14, 2026; ANR & Associates was appointed on March 16, 2026 (DRHP p.122, DRHP p.123).
• Promoter disassociations: resignations from Metarex Global Private Limited and Falvi Infinium LLP on May 28, 2025 and from Sai Endeavours Private Limited on June 5, 2025 (DRHP p.396, DRHP p.397).
• New product: Rolling Mill 2 began structural steel production in February 2026, with ₹2,089.38 million capitalised in FY26 (DRHP p.157).
• Debt: borrowings rose from ₹686.34 million to ₹3,575.72 million in FY26; about ₹1,090.00 million of unsecured loans arrived in February and March 2026 (DRHP p.184, DRHP p.536).

13Capacity and expansion

Source: DRHP p.47, DRHP p.157, DRHP p.158. Capacity is counted as 300 tonnes a day on one eight-hour shift for 360 days (DRHP p.296). ₹1,719.51 million had been spent on Rolling Mill 3 by March 2026 (DRHP p.157). A 26.4 MW wind-solar captive power plant is also under way (DRHP p.294).

14Market size and industry structure

As claimed: the CareEdge "Industry Research Report on Steel Industry" dated August 11, 2026, commissioned and paid for by the company, puts India's finished steel consumption at 164 million tonnes in FY26 and projects 206 million tonnes by FY29 (AP p.5, DRHP p.292).

The part that is addressable: long products (TMT bars and sections) sold mainly in Gujarat; the document gives no Gujarat or long-products figure in the pages read.

What the company is today: 101,019.62 tonnes of manufactured products sold in FY26, about 0.06% of national finished steel consumption (our arithmetic, DRHP p.296, DRHP p.297, AP p.5).

15Competitive position

What the document claims, and what it rests on:

• One site, three products: billets, bars and sections made at one owned plot of about 3.00 lakh square metres, about 120 km from Pipavav port (DRHP p.299, DRHP p.300).
• Brand and network: the "Bandhan" brand, 226 dealers and 5 distributors (DRHP p.293, DRHP p.294).
• Certification: BIS standards and ISO 9001, 14001 and 45001 (DRHP p.294).

Against that: 99.74% of revenue from one state, related-party customers, and third-party raw material supply (DRHP p.40, DRHP p.43, DRHP p.33).

16Peers the company named

Peers named in the offer document: VMS Industries Limited, Vraj Iron and Steel Limited, Rudra Global Infra Products Limited, VMS TMT Limited, Gallant Ispat Limited and MSP Steel Power Limited (DRHP p.183). Beekay Steel Industries Limited also appears in the FY25 and FY24 KPI tables (DRHP p.189).

Source: DRHP p.183, DRHP p.188. VMS Industries had revenue of ₹1,574.31 million and a P/E of 30.15 (DRHP p.183). The peer P/E average is 25.65 and the median 21.06 (DRHP p.182, our arithmetic from DRHP p.183). Gallant Ispat and MSP Steel Power are four to six times the company's revenue. No peer PAT margin is above the company's 11.83% (DRHP p.188).

17Risks, in plain words

• Customers: the top ten were 63.83% of FY26 revenue and the largest 18.59%; the FY25 largest, a promoter company, was 54.27% (DRHP p.42) → revenue rests on few buyers → five related or formerly related buyers were 48.99% of FY26 revenue (our arithmetic, DRHP p.43).
• Geography: Gujarat was 99.74% of FY26 revenue (DRHP p.40) → a local downturn has no offset elsewhere.
• Revenue mix: other operating income was 27.49% of FY26 revenue against 4.55% in FY25 (DRHP p.41) → the company itself says no revenue stream has shown a consistent trend (DRHP p.42).
• Cash flow: operating cash flow was negative in FY24 and FY25, at ₹(165.48) million and ₹(276.77) million (DRHP p.56).
• Debt and guarantees: all borrowings are at variable rates and the company guarantees ₹782.30 million of promoter entity loans (DRHP p.92, DRHP p.114).
• Land: a civil suit challenges the June 2024 sale deed for land at Survey No. 1027, part of the plant site (DRHP p.51, DRHP p.547).
• Suppliers: the ten largest were 63.98% of FY26 purchases (DRHP p.33).

18Litigation and regulatory matters

The NCLT merger order recorded an income tax observation that ₹844.10 million of FY2020-21 transactions of a merged company with M/s EP Tradelink were "unexplained"; the company says no reassessment has been started (DRHP p.548). The GST amount is our sum of ₹2.59 million and ₹12.03 million (DRHP p.551). There is also a GST summons under Section 70 with no amount (DRHP p.547).

19Related-party transactions

In FY26 the company sold ₹1,086.91 million to Devansh Infinium Private Limited, ₹239.65 million to Axat Impex LLP and ₹200.46 million to Falvi Infinium LLP, and bought ₹456.48 million, ₹373.32 million, ₹199.27 million and ₹172.94 million from Devansh Infinium, Axat Impex, Honey Ship Breaking and Pratyaksh Ship Breaking (DRHP p.115, DRHP p.116). It also bought fixed assets of ₹353.55 million from Devansh Infinium (DRHP p.115). FY25 sales to Devansh Infinium were ₹2,748.98 million, 52.00% of revenue (DRHP p.116).

Loans: Madan Lal Bansal lent ₹1,090.47 million in FY25 and ₹754.07 million in FY24; Shivnarayan Bansal lent ₹965.00 million and Ishu Bansal ₹471.07 million in FY25, all repaid (DRHP p.115). In March 2024 the company bought properties from Kusumlata Vijaykumar Bansal and Vijaykumar Kakaram Bansal for ₹60.00 million and ₹68.80 million (DRHP p.117). Several counterparties counted as related only for part of FY26: Metarex Global and Falvi Infinium from March 31 to May 28, 2025 (DRHP p.475).

20What the offer document does not say

• Who bought the non-ferrous scrap in FY26, and why value per tonne rose about twelve times, in the pages read.
• Why FY26 other non-current assets rose from ₹113.49 million to ₹1,303.25 million, in the pages read (DRHP p.109).
• Which reading of the promoter tax matter is right, given the summary table and the detailed chapter differ (DRHP p.66, DRHP p.552).
• The size, price or investors of the Pre-IPO Placement the document allows for (DRHP p.154).
• Market share in Gujarat or in long products.
• Net proceeds, price band, lot size and dates, which is normal at DRHP stage.

21Five questions for management

1. Who bought the ₹1,519.78 million of non-ferrous scrap in FY26, and what metals made up the 721.46 tonnes?
2. How much of FY26 EBITDA of ₹1,281.88 million came from scrap and raw material sales rather than steel products?
3. On what terms do Metarex Global and Nola Exim both lend to the company and purchase from it?
4. Why did four statutory audit firms serve between November 2025 and March 2026?
5. What utilisation does Rolling Mill 2 need to cover its depreciation and interest?

2Sources and cited facts

This study was read from 2 documents the company filed. The 105 figures it cites are listed under the document each came from, with the page and the sentence as printed.