Shreejikrupa Project Limited IPO

01At a glance

What the company does: builds and executes construction contracts for academic and healthcare buildings, residential and office buildings, and infrastructure works such as railway stations and roads, with 101 ongoing projects across 11 states and 2 union territories at June 30, 2026 (DRHP p.264, DRHP p.266).

Who pays it: government customers, public sector undertakings and government-related bodies, which gave 89.62% of FY26 revenue (DRHP p.36). The top ten customers named over three years include Central Public Works Department, Rourkela, Chhattisgarh Housing Board, HSCC (India) Limited, National Projects Constructions Corporations Limited and Project Implementation Unit, Gandhinagar (DRHP p.36).

Why it is raising money: ₹2,500.00 million to part-fund working capital in FY28 and FY29 and ₹514.29 million for construction equipment and scaffolding in FY28, with the rest for general corporate purposes (DRHP p.162).

How fast it has grown: revenue from ₹5,426.72 million in FY24 to ₹13,856.79 million in FY26, about 59.8% a year, and profit from ₹394.20 million to ₹793.40 million, about 41.9% a year (our arithmetic, DRHP p.98).

The one thing to understand: growth has been funded with borrowing, not with cash from the work. Operating cash flow was −₹946.91 million (−₹94.7 crore) in FY26 against profit of ₹793.40 million, as trade receivables rose by ₹1,200.70 million (DRHP p.100). Borrowings went from ₹457.19 million at March 2024 to ₹2,596.99 million at March 2026 (AP p.9) and ₹4,506.47 million at July 31, 2026 (DRHP p.59).

02The business, in plain words

Shreejikrupa began as a partnership firm, M/s. Shreeji Krupa Project, formed in May 2000 by Vinodaray Gobarbhai Shingala and Karsan Bachu Varsani, and was converted into a public limited company on January 13, 2006 (DRHP p.109). It bids in government tenders for building works and then executes them, largely through sub-contractors.

A state public works department or a central agency floats a tender → Shreejikrupa bids and wins a share of them → it builds the hospital, college or housing block, largely through sub-contractors, on its own sites → it is paid in running bills as milestones are certified.

In FY26 the company made 182 bids and won 44, 24.18% by number (DRHP p.177). It holds a Class I (AAA) registration with the Central Public Works Department in the buildings and roads category (DRHP p.266). At June 30, 2026 its portfolio was 228 projects, 127 completed and 101 ongoing; the largest ongoing project is worth ₹4,070.15 million (DRHP p.264). It also had 8 ongoing projects through joint ventures (DRHP p.266). It owned 212 pieces of equipment and machinery at June 30, 2026 and rents more near sites when needed (DRHP p.164).

Sub-contractors do most of the work: sub-contracting cost ₹8,207.80 million in FY26, 63.49% of total expenses, against 43.37% in FY24 (DRHP p.46). The company had 611 employees at March 2026 (AP p.9).

Earnings equation: Revenue = order book × execution rate. The order book was ₹36,904.72 million at March 2026, 2.66 times FY26 revenue (DRHP p.265), and ₹37,007.96 million (₹3,700.8 crore) at June 30, 2026 (DRHP p.264).

03Where the money comes from

Source: DRHP p.265. FY24 excludes ₹0.31 million of revenue of Dr Herbmed Private Limited, a subsidiary until March 11, 2024 (DRHP p.265, DRHP p.65).

By state, Gujarat was 39.44% of FY26 revenue, Odisha 15.23% and Chhattisgarh 12.95%; the three together were 67.62% in FY26 against 95.98% in FY24 (DRHP p.37).

Source: DRHP p.36. Revenue does depend on a few customers, and almost entirely on government ones: ten customers gave ₹9,178.15 million of FY26 revenue (DRHP p.36). The document says the top customers change from year to year (DRHP p.36). The largest FY26 customer, at ₹2,044.45 million, matches in amount the revenue the management discussion attributes to Project Implementation Unit, Gandhinagar (DRHP p.36, DRHP p.462).

04The growth record

Source: DRHP p.181, AP p.8, AP p.9.

Our arithmetic: revenue grew about 59.8% a year from FY24 to FY26 (DRHP p.98), EBITDA about 50.3% and profit after tax about 41.9% (our arithmetic, DRHP p.98). In crore, revenue went from ₹542.7 crore to ₹1,385.7 crore and profit from ₹39.4 crore to ₹79.3 crore (DRHP p.98). EBITDA margin fell 116 basis points, from 10.07% to 8.91% (10.1% to 8.9%), and PAT margin 153 basis points (DRHP p.181).

The document's own growth figures are 59.79%, 50.32% and 41.87% (DRHP p.178). FY24 includes Dr Herbmed Private Limited, which ceased to be a subsidiary on March 11, 2024, and the document says FY24 may not be comparable with the later years (DRHP p.65).

05What the growth is made of

Revenue rose from ₹5,426.72 million in FY24 to ₹13,856.79 million in FY26 (DRHP p.98). The document attributes the FY26 rise to revenue from certain projects, naming ₹2,044.45 million from Project Implementation Unit, Gandhinagar and ₹1,323.02 million from Bridge and Roof Company (India) Limited (DRHP p.462). By segment, academic and healthcare work added ₹5,286.17 million of the ₹8,430.38 million increase, and residential and office buildings ₹2,364.24 million (our arithmetic, DRHP p.265). By state, revenue outside Gujarat, Odisha and Chhattisgarh went from ₹218.17 million to ₹4,486.43 million (DRHP p.37).

New orders were ₹13,914.32 million in FY24, ₹14,836.57 million in FY25 and ₹21,951.59 million in FY26 (DRHP p.265). A contractor's revenue is not a volume times a price, and the document gives no split of the increase between more projects, larger projects and escalation, so it cannot be separated further.

06Earnings quality

The cash shortfall is working capital. In FY26 trade receivables absorbed ₹1,200.70 million, other assets ₹831.51 million, other financial assets ₹498.47 million and other bank balances ₹358.58 million, partly offset by ₹561.08 million more in trade payables (DRHP p.100). Trade receivables were ₹2,396.15 million at March 2026, against ₹520.48 million two years earlier (DRHP p.61). The company says most billing happens in the last quarter and is paid in the next year (DRHP p.171).

Other income of ₹161.97 million in FY26 included ₹52.48 million of interest from remeasuring deposits and retention monies and ₹34.67 million of interest income (DRHP p.462). Other income was 14.9% of FY26 profit before tax (our arithmetic, DRHP p.98). The emphasis of matter notes that FY24 and FY25 were first audited by the previous auditor, S.C. Makhecha & Associates, and later adjusted for the offer (DRHP p.55).

07The balance sheet

At March 2026 borrowings were ₹2,596.99 million: ₹51.80 million long term and ₹2,545.19 million short term, with lease liabilities of ₹9.53 million (our arithmetic, DRHP p.96, DRHP p.97). Cash and cash equivalents were ₹593.94 million, almost all of it balances in cash credit accounts, and other bank balances ₹517.22 million (DRHP p.101, DRHP p.96). Net debt was 1.62 times FY26 EBITDA (DRHP p.181). By July 31, 2026 borrowings were ₹4,506.47 million, or ₹450.6 crore (DRHP p.59).

Bank guarantees furnished to customers were ₹1,704.97 million at March 2026 (DRHP p.44). Contingent liabilities were ₹43.65 million (₹4.4 crore), of which ₹23.65 million is disputed tax and ₹20.00 million guarantees; capital commitments were ₹0.07 million (DRHP p.102). Promoters, promoter group members and certain third parties have personally guaranteed loans with sanctioned limits of ₹23,953.48 million, with ₹13,057.01 million of guarantees outstanding at July 31, 2026 (DRHP p.59). Unsecured loans from promoters of ₹3.88 million were outstanding and repayable on demand at that date (DRHP p.51). CRISIL rated the company A-/Positive on September 29, 2026 (DRHP p.65).

Source: DRHP p.96, AP p.9. The second column is our arithmetic: the full ₹4,100.00 million fresh issue added before issue expenses and before any of it is spent (DRHP p.92). None of the proceeds is earmarked to repay debt (DRHP p.162).

08What the money is for

Source: DRHP p.162; percentages our arithmetic on the ₹4,100.00 million fresh issue.

Working capital: ₹1,200.00 million in FY28 and ₹1,300.00 million in FY29, against a board-approved requirement of ₹6,551.21 million at March 2028 (DRHP p.162, DRHP p.170). Equipment: 3 batching plants, 3 concrete pumps, 6 silos, 20 transit mixers, 5 backhoe loaders, 5 generator sets and 2 boom pumps, quoted by named vendors in August and September 2026 (DRHP p.165, DRHP p.166). Scaffolding: 30,000 square metres of aluminium shuttering at ₹12,500 a square metre from BSL Scaffolding Limited (DRHP p.167).

No orders have been placed (DRHP p.167). General corporate purposes are capped at 25% of gross proceeds (DRHP p.162). None of the objects has been appraised (DRHP p.175). The company may place up to ₹820.00 million (₹82.0 crore) of shares before the red herring prospectus, which would reduce the fresh issue; none has been made (DRHP p.136).

Into the business up to ₹4,100.00 million (₹410.0 crore) of new shares (DRHP p.92). To selling shareholders up to ₹900.00 million (₹90.0 crore) of existing shares (DRHP p.92). The share count is not set at DRHP stage.

09Who is selling

Source: DRHP p.93, DRHP p.160. The number of shares each will offer depends on the price, which is not set (DRHP p.160). The weighted average cost of acquisition of the sellers ranges from nil (shares received as bonus or gift) to ₹1.40 a share (AP p.1). The offer for sale is 18.0% of the ₹5,000.00 million total offer (our arithmetic, DRHP p.92).

10Promoters

The promoters are Karsan Bachu Varsani, Kevin Karsan Varsani, Sanjay Kumar Varsani, Smit Kumanbhai Varsani, Kumanlal Bachubhai Varsani and Girishbhai Bachubhai Varsani (DRHP p.327). Karsan Bachu Varsani, 64, chairman and managing director, has been on the board since incorporation, has around 26 years in construction and earlier spent over 12 years with Gujarat Communications and Electronics Limited (AP p.5, DRHP p.327).

Sanjay Kumar Varsani, 52, whole-time director, has around 22 years in construction (AP p.5, DRHP p.328). Kevin Karsan Varsani, 32, executive director, joined in 2019 (AP p.5). Kumanlal Bachubhai Varsani, 66, executive director, handles marketing and business development (AP p.6). Girishbhai Bachubhai Varsani, 70, and Smit Kumanbhai Varsani, 31, are not on the board (DRHP p.329, DRHP p.328).

The document states that Karsan Bachu Varsani is the father of Kevin Karsan Varsani and the brother of Kumanlal Bachubhai Varsani (DRHP p.308), that Girishbhai Bachubhai Varsani is also a brother of both, and that Smit Kumanbhai Varsani is the son of Kumanlal Bachubhai Varsani (DRHP p.332, DRHP p.333).

Pay: in FY26 Karsan Bachu Varsani received ₹10.00 million, Kevin Karsan Varsani ₹4.20 million and Sanjay Kumar Varsani ₹3.00 million as directors, and Kumanlal Bachubhai Varsani ₹4.20 million, Girishbhai Bachubhai Varsani ₹3.90 million and Smit Kumanbhai Varsani ₹1.98 million as office salary (DRHP p.103, DRHP p.105). Together the six drew ₹20.19 million in FY24 and ₹27.28 million in FY26, or ₹2.0 crore and ₹2.7 crore (our arithmetic, DRHP p.103, DRHP p.105).

Group entities include SKPL Foundation, Dr Herbmed Private Limited, Galaxy Synergy Private Limited, KEC Bearings Private Limited, Gomu Gomu and two family trusts (DRHP p.333). No shares are pledged (DRHP p.136). Two criminal matters are pending against promoters (AP p.14); see section 23.

Promoter economics: the weighted average cost of the promoters' shares is between nil and ₹1.40 a share, after the split and bonus (AP p.11, AP p.12). The last shares issued for cash were at ₹100 a share of face value ₹10 in March 2008 (DRHP p.125). Every share was then split into two in December 2025 and 150 bonus shares were issued for each one on December 11, 2025 (DRHP p.126). No promoter or promoter group member paid for shares in the last three years; changes came by gift (AP p.13, DRHP p.128).

11Who already owns it

The promoters and promoter group hold all 76,477,876 shares, through 13 shareholders; there is no public shareholder (DRHP p.137, DRHP p.139).

Source: DRHP p.140. Holdings after the issue are not stated at DRHP stage (DRHP p.140). A year before the filing Karsan Bachu Varsani held 44.19% (DRHP p.139); the rise to 60.60% came through gifts of shares from relatives in 2026 (DRHP p.128). Barsana Family Trust and Kunj Family Trust each received 2,294,336 shares on September 12, 2026 (DRHP p.134). No fund or company outside the promoter group holds shares.

12What changed just before the IPO

• Dr Herbmed Private Limited ceased to be a subsidiary on March 11, 2024 (DRHP p.65).
• S.C. Makhecha & Associates resigned as statutory auditor on September 30, 2025, citing other assignments, and Sarda & Sarda was appointed for five years the same day (DRHP p.114).
• Shares were split from ₹10 to ₹5 face value and a 150-for-1 bonus of 75,971,400 shares was allotted on December 11, 2025 (DRHP p.126).
• Between April and September 2026 family members moved shares among themselves by gift, including to two family trusts on September 12, 2026 (DRHP p.128, DRHP p.134).
• Two chief financial officers and two company secretaries resigned in the twelve months before filing; the current ones were appointed on September 25, 2026 (DRHP p.61, DRHP p.325). Varsani Sagarkumar Girishbhai resigned from the board on August 4, 2026 (DRHP p.312).
• Karsan Bachu Varsani and Kevin Karsan Varsani left the board of Galaxy Synergy Private Limited on August 18, 2025, and Kumanlal Bachubhai Varsani and Smit Kumanbhai Varsani left KEC Bearings Private Limited on August 20, 2026 (DRHP p.330).
• Borrowings rose from ₹762.24 million at March 2025 to ₹2,596.99 million at March 2026 (AP p.9) and ₹4,506.47 million at July 2026 (DRHP p.59).
• After March 2026 the company agreed to acquire a property from a related party for ₹13 million (DRHP p.429).
• The company has filed three applications to the Registrar of Companies to compound past non-compliances, and some corporate records are untraceable (DRHP p.41).

13Capacity and expansion

This is a contractor, not a manufacturer, so the document gives no installed capacity or utilisation. What it gives instead:

Source: DRHP p.177, AP p.9. The issue-funded capital expenditure adds 44 pieces of equipment to the 212 owned at June 30, 2026, and 30,000 square metres of scaffolding, all to be ordered and delivered in FY28 (DRHP p.164, DRHP p.167). The ability to bid is limited by a bid-capacity formula in which a larger order book reduces the capacity available (DRHP p.59).

14Market size and industry structure

As claimed: the industry chapter relies on the "Industry Research Report on Infrastructure sector" dated September 28, 2026 by CARE Analytics and Advisory Private Limited, commissioned and paid for by the company for this offer (DRHP p.263). That report puts FY26 construction capital expenditure at ₹1,702.00 billion in Maharashtra, ₹1,433.00 billion in Madhya Pradesh, ₹1,212.00 billion in Gujarat and ₹927.00 billion in Odisha (AP p.5).

The part that is addressable: government building work, mainly hospitals, colleges, housing and offices, in the states where the company is registered and pre-qualified. The document does not size that part.

What the company is today: ₹13,856.79 million of FY26 revenue (DRHP p.98). Because the market figures are state-wide capital expenditure on all construction, no share is worked out. The commissioned report describes the construction industry as highly fragmented, with many small and mid-tier contractors (DRHP p.234).

15Competitive position

What the document offers as evidence of position is its pre-qualification, the value of a single tender it is allowed to bid for:

Source: DRHP p.51. Registrations include CPWD Class I (AAA), PWD Class A and Roads and Buildings Special Category I and II, each renewed every three to five years (DRHP p.51). In FY26 the company won 23.40% of the value it bid for (DRHP p.177). Customers have no long-term contract to award it work (DRHP p.51). The document gives no market share.

16Peers the company named

Peers named in the offer document: NBCC (India) Limited, NCC Limited, Ahluwalia Contracts (India) Limited, PSP Projects Limited, Capacit'e Infraprojects Limited, CemIndia Projects Limited and Vascon Engineers Limited (DRHP p.180).

Source: DRHP p.180; PAT margins our arithmetic. NCC's revenue is about 15 times Shreejikrupa's and NBCC's about 9 times; Vascon is the only named peer smaller than the company (our arithmetic, DRHP p.180). NBCC is also a customer: the company has a pending writ petition against NBCC (India) Limited over ₹41.08 million withheld on an IIT Bhubaneswar project (DRHP p.479). The document prints the peers' earnings multiples at September 25, 2026 prices, averaging 25.25 (DRHP p.179); no multiple exists for the company until a price band is set.

17Risks, in plain words

Customers: government bodies and PSUs gave 89.62% of FY26 revenue and 84.44% of the June 2026 order book (DRHP p.36, AP p.10) → a change in public spending, or a delay in certifying bills, reaches the whole business → the top ten customers were 66.24% of FY26 revenue (DRHP p.36).

Geography: Gujarat, Odisha and Chhattisgarh gave 67.62% of FY26 revenue (DRHP p.37) → a change of state government or budget in any one of them matters → Gujarat alone was 39.44% (DRHP p.37).

Cash and working capital: operating cash flow was negative in FY25 and FY26 (DRHP p.55) → the gap is being filled by borrowing → borrowings reached ₹4,506.47 million at July 31, 2026 (DRHP p.59), and working-capital days rose from 48 to 100 (DRHP p.181).

Sub-contractors: sub-contracting was 63.49% of FY26 total expenses (DRHP p.46) → delays, defects or disputes with them fall on the company → one such dispute is in court (DRHP p.478).

Guarantees: bank guarantees furnished were ₹1,704.97 million at March 2026 (DRHP p.44) → an invoked guarantee takes cash at once → promoters and others have personally guaranteed ₹13,057.01 million (DRHP p.59).

Management and compliance: two CFOs and two company secretaries resigned in twelve months (DRHP p.61); 56 RoC challans and 5 forms are untraceable and past filings were missed (DRHP p.41) → penalties cannot be quantified, the company says (DRHP p.44).

Issue-specific: none of the equipment orders is placed and the objects are not appraised (DRHP p.167, DRHP p.175); ₹900.00 million of the offer goes to promoter family sellers, not the company (DRHP p.92).

18Litigation and regulatory matters

Against the company: Urban Sathi Constructions Private Limited, a sub-contractor terminated in February 2025 on a Puri project, has sued to have the termination declared illegal; it also sought a police complaint, and the High Court of Orissa directed the police to examine it, with no criminal complaint filed against the company so far (DRHP p.478).

Against promoters: a 2005 criminal case against Karsan Bachu Varsani and others, over statutory forms filed for Chandraprabha Builders Private Limited, is pending (DRHP p.480, DRHP p.481). A 2021 FIR alleging abetment of suicide names "Kumanbhai Bachubhai Varsani", described as one of the promoters; a petition to quash it is pending in the Gujarat High Court and a sessions case is pending at Visavadar (DRHP p.481).

By the company: its largest claims are ₹303.00 million against the Municipal Corporation, Bhopal, ₹226.89 million against Rajkot Urban Development Authority and ₹145.99 million against the State of Gujarat, each with interest claimed at 18% (DRHP p.479, DRHP p.480). These are claims, not amounts awarded.

Four material creditors were owed ₹639.46 million at March 2026 (DRHP p.483).

19Related-party transactions

Source: DRHP p.103, DRHP p.106. Relatives of directors and key managers also draw office salaries, for example Nila Karsan Varsani ₹1.80 million and Kamalkumar G. Varsani ₹1.91 million in FY26 (DRHP p.105). The company bought a flat and a house, and leased land, in the name of Sanjay Kumar Varsani in Chhattisgarh in 2015 and 2018 (DRHP p.312).

What appeared or disappeared: contract income from the P.R. Patel JV starts in FY25, and material sales to Galaxy Synergy fell from ₹18.06 million in FY25 to ₹1.38 million in FY26 (DRHP p.106). Karsan Bachu Varsani and Kevin Karsan Varsani left the Galaxy Synergy board on August 18, 2025 (DRHP p.330). After March 2026 the company committed ₹13 million to acquire a property from a related party (DRHP p.429).

20What the offer document does not say

The price band, lot size, share count of the offer and dates are not set, which is normal at DRHP stage (DRHP p.92). Holdings after the issue are not given (DRHP p.140). Revenue and margin by project, and cost overruns or liquidated damages paid, are not given in the pages read. The names of all top ten customers are not given, for confidentiality (DRHP p.36).

The document does not size the market the company actually bids in. It does not name the four material creditors in the document itself, only on the company website (DRHP p.483). It does not say which related party the ₹13 million property is being acquired from, in the pages read (DRHP p.429). It does not explain why EBITDA margin fell in FY26 beyond listing the cost increases (DRHP p.463).

21Five questions for management

1. Of the ₹2,396.15 million of receivables at March 2026, how much was over 180 days old, and from which customers?
2. What drove EBITDA margin from 10.54% to 8.91% in FY26: sub-contracting rates, project mix or pricing on newly won work?
3. How much bid capacity does the ₹37,007.96 million order book leave, and how much of it depends on joint ventures?
4. Why did borrowings rise by ₹1,909.48 million between March and July 2026, and what are they funding?
5. Which related party is the ₹13 million property being acquired from, and how was the price set?

2Sources and cited facts

This study was read from 2 documents the company filed. The 153 figures it cites are listed under the document each came from, with the page and the sentence as printed.