Vishal Nirmiti Limited IPO

01At a glance

Vishal Nirmiti IPO date, price band and lot size

What the company does: manufactures pre-stressed concrete (PSC) sleepers for Indian Railways and other track projects at plants in Maharashtra, Madhya Pradesh, Himachal Pradesh and Gujarat, and fabricates mild steel (MS) pipes, liners and penstock pipes for water and pumped-storage projects, mostly as a subcontractor (RHP p.247, RHP p.249).

Who pays it: railway zones and infrastructure contractors. The largest customer, Indian Railways, was 40.56% of FY26 revenue and the top ten 92.91% (RHP p.29). Samruddhi Industries, a promoter group firm, is among the top five customers in each of the last three years (RHP p.29).

Why it is raising money: ₹7,500.00 lakh for working capital in FY27 and ₹1,900.00 lakh to repay term loans, with the rest for general corporate purposes (RHP p.128).

How fast it has grown: revenue went from ₹24,288.20 lakh in FY24 to ₹33,867.73 lakh in FY26 and profit after tax from ₹344.56 lakh to ₹2,497.50 lakh (RHP p.73). Our arithmetic: about 18.1% a year for revenue and 169.2% a year for profit (RHP p.73).

The one thing to understand: the profit rise came with the services segment. Service revenue went from ₹2,851.64 lakh in FY24 to ₹8,291.09 lakh in FY26, and that segment moved from a loss of ₹255.38 lakh to a profit of ₹1,710.30 lakh before tax (RHP p.30). The prospectus says there is no assurance those margins will continue (RHP p.30). Sales and job work for Samruddhi Industries, a firm in which promoter Ajay Bhagwandas Tapadiya is a partner, were ₹3,947.63 lakh in FY26, 11.7% of revenue, our arithmetic (RHP p.77, RHP p.79).

02The business, in plain words

What Vishal Nirmiti does

A PSC sleeper is the concrete beam that railway track rests on; it is cast around steel wires that are stretched before the concrete sets (RHP p.249). Vishal Nirmiti wins railway tenders through a reverse auction on the railways' portal, receives a letter of intent for a quantity, and then supplies against purchase orders released over the contract period (RHP p.255). Separately, contractors building dams, irrigation and pumped-storage projects hire it to fabricate large steel pipes at or near their sites (RHP p.250).

A railway zone needs sleepers for track renewal → tenders them → the company casts them at its nearest plant from cement, steel wire and aggregate → it is paid per sleeper under the purchase order. A pipeline contractor needs large pipes → subcontracts the fabrication → the company welds and coats them on site, often from the contractor's own steel → it is paid job-work charges.

The company was incorporated in 1994 and took over the sleeper plants at Mohol and Bankhedi through a 2007 amalgamation (RHP p.242). It also earns small amounts from 1.8 MW of windmills in Maharashtra, lease rentals and scrap (RHP p.251). It had 420 employees on its payroll and 805 contract personnel at June 30, 2026 (RHP p.276).

In FY26 the manufacturing vertical was 75.01% of revenue and services 24.99% (RHP p.251). For services work, the prospectus says raw materials are typically supplied by the contractor and the company's role is fabrication and assembly (RHP p.37).

Earnings equation: Revenue = sleepers supplied × price per sleeper + tonnes of pipe fabricated × job-work rate, and profit is what remains after cement and steel, labour contractors, transport and interest. In FY26 materials consumed were ₹15,684.96 lakh, other expenses ₹10,610.44 lakh and finance costs ₹1,504.04 lakh against revenue of ₹33,867.73 lakh (RHP p.73). Labour charges alone were ₹4,355.86 lakh (RHP p.422).

03Where the money comes from

Source: (RHP p.251); the fifth row is our arithmetic. These totals leave out provisions for price escalation, so they differ from reported revenue.

Vishal Nirmiti customers: how concentrated the revenue is

Source: (RHP p.29).

Revenue depends on a few customers: the top ten were between 92.91% and 96.49% in each year (RHP p.29). The consistent top five include Indian Railways, Larsen & Toubro and Samruddhi Industries; some customers are not named for want of consent (RHP p.29). By state, Maharashtra was 35.52% of FY26 revenue, Madhya Pradesh 33.96% and Gujarat 17.90% (RHP p.32). Government bodies buying sleepers fell from 58.09% of revenue in FY24 to 42.61% in FY26 (RHP p.28).

04The growth record

Vishal Nirmiti financials: revenue, profit and margins

Source: KPI table (RHP p.146), borrowings (RHP p.373).

Our arithmetic: revenue grew about 18.1% a year from FY24 to FY26 (RHP p.73), EBITDA about 48.6% and profit after tax about 169.2% (RHP p.73); EBITDA margin rose 557 basis points and PAT margin 595 basis points (RHP p.146). The prospectus gives the same revenue and profit growth rates, 18.09% and 169.23% (RHP p.247). FY25 revenue grew 31.14% and FY26 revenue 6.33% (RHP p.146).

Other income of ₹545.53 lakh was 16.1% of FY26 profit before tax of ₹3,377.92 lakh, our arithmetic (RHP p.73). In FY24 other income of ₹504.98 lakh was larger than that year's profit before tax of ₹458.37 lakh (RHP p.73). Trade receivable days were 64 in FY24, 48 in FY25 and 59 in FY26 (RHP p.35). Net worth in the balance sheet is ₹8,678.35 lakh at March 2026 (RHP p.71), against ₹8,634.40 lakh in the KPI table, which uses a narrower definition (RHP p.146).

05What the growth is made of

Revenue excluding escalation provisions rose ₹8,546.26 lakh from FY24 to FY26: subcontract and job work added ₹5,528.46 lakh, sleepers ₹2,003.78 lakh and MS pipe manufacturing ₹929.15 lakh, our arithmetic from the vertical table (RHP p.251). The company attributes FY26 growth to MS pipes and construction services, partly offset by lower sleeper sales (RHP p.421), and FY25 growth to sleepers, MS pipes and construction services (RHP p.422).

Sleeper output was 6,80,482 in FY24, 8,37,042 in FY25 and 7,15,673 in FY26 (RHP p.266). Read from the filing: sleeper revenue divided by sleepers produced comes to about ₹2,866 in FY24, ₹2,583 in FY25 and ₹3,005 in FY26, our arithmetic (RHP p.251, RHP p.266). Output is not the same as sleepers sold, and the prospectus gives no sales volume, so the change cannot be firmly split into volume and price.

The services segment carries the margin: its profit before tax was 20.63% of its revenue in FY26 and 23.29% in FY25, against a loss of 8.96% in FY24 (RHP p.30). The prospectus says the rise in related-party business with Samruddhi Industries followed a rise in MS pipe orders that Samruddhi Industries received from its own customers (RHP p.81). The prospectus does not give sleeper margins separately.

06Earnings quality

The item that needs explaining is other income. In FY24 it exceeded profit before tax, and interest from associate concerns was ₹298.60 lakh of it (RHP p.422). That interest came from loans to Jethmal Radhakishan & Sons LLP, a related party, which stood at ₹3,001.39 lakh at March 2024 and ₹633.80 lakh at March 2026 (RHP p.81). Interest from it fell from ₹407.32 lakh in FY25 to ₹133.43 lakh in FY26 (RHP p.80). Inventory is the second item: 178 days in FY26, which the company expects to bring to 153 days in FY27 (RHP p.132).

07The balance sheet

At March 2026 borrowings were ₹8,741.70 lakh (RHP p.35): ₹3,831.46 lakh non-current and ₹4,910.24 lakh current (RHP p.71). Of the total, ₹6,769.13 lakh was secured and ₹1,972.57 lakh unsecured (RHP p.134). Cash credit was ₹4,192.79 lakh, and unsecured loans included ₹650.00 lakh from related parties, ₹1,108.85 lakh from companies and ₹190.19 lakh from shareholders (RHP p.373). Cash was ₹16.55 lakh and other bank balances ₹757.87 lakh (RHP p.71). The cash flow statement, which nets the overdraft, shows cash of minus ₹4,176.24 lakh at March 2026 (RHP p.424).

Contingent liabilities were ₹2,186.64 lakh, of which bank guarantees ₹2,002.33 lakh and claims not acknowledged as debt ₹184.31 lakh (RHP p.75). At June 30, 2026 bank guarantees were ₹2,089.80 lakh (RHP p.40) and letters of credit ₹1,148.66 lakh (RHP p.431). Infomerics rated the long-term facilities IVR BBB/Stable in October 2025 (RHP p.56).

Source: (RHP p.71). The right-hand column is our arithmetic: ₹14,500.00 lakh of gross proceeds added and ₹1,900.00 lakh of loans repaid, before issue expenses (RHP p.128).

08What the money is for

Vishal Nirmiti IPO objects: what the money is for

Source: (RHP p.128); percentages are our arithmetic on ₹14,500.00 lakh.

Working capital: the company puts its FY27 requirement at ₹16,441.46 lakh, to be met by ₹7,500.00 lakh from the issue, ₹2,000.00 lakh of bank borrowing and ₹6,941.46 lakh of internal accruals or equity (RHP p.132). That plan assumes trade payable days fall from 126 to 75 and inventory days from 178 to 153 (RHP p.132).

Loans: twenty-five loans with ₹1,918.75 lakh outstanding at June 30, 2026 are listed as candidates for repayment, including two Standard Chartered loans against property of ₹698.76 lakh and ₹423.20 lakh (RHP p.136, RHP p.137).

The balance: general corporate purposes may not exceed 25% of the fresh issue (RHP p.129). The whole amount is to be deployed in FY27 (RHP p.129). A monitoring agency has been appointed (RHP p.56).

Into the business: ₹14,500.00 lakh of new shares, 65,90,909 shares at the upper band, our arithmetic (RHP p.68). To the selling shareholder: up to 15,00,000 shares, ₹3,300.00 lakh at ₹220, our arithmetic (RHP p.68).

09Who is selling

Vishal Nirmiti IPO offer for sale: who is selling

Source: (RHP p.122); the last column is our arithmetic. The seller's weighted average cost is ₹31.82 a share (RHP p.1). Brij B Tapadiya and Pavan Vithaldas Tapadiya are shareholders and directors of Vaman Prestressing (RHP p.327). Before the bonus, Vaman Prestressing transferred shares to individuals in 2025 at ₹575 to ₹1,562.50 a share of ₹10 face value (RHP p.104).

10Promoters

There are nine promoters: Brij B Tapadiya, Ajay Bhagwandas Tapadiya, Pavan Vithaldas Tapadiya, Akhil Ranchod Tapadiya, Naveen Tapadiya, Rajendrakumar Badrinarayan Tapadiya, Suyash Vithaldas Tapadiya, Vedant Tapadiya and Keshav Tapadiya (RHP p.322). Together they hold 37.51% (RHP p.322). The prospectus lists Brij B Tapadiya and Ajay Bhagwandas Tapadiya as brothers, Pavan Vithaldas Tapadiya as their cousin and Akhil Ranchod Tapadiya as their nephew (RHP p.300).

Brij B Tapadiya, 62, chairman and whole-time director, has been a director since 1994 and has over 45 years in sleeper manufacturing, according to the prospectus (RHP p.300). Ajay Bhagwandas Tapadiya and Pavan Vithaldas Tapadiya are joint managing directors (RHP p.302). Akhil Ranchod Tapadiya became chief operating officer in September 2025 and was paid ₹18.00 lakh in FY26 (RHP p.318). The other five promoters hold no executive role in the company; their stated businesses include railway track components, agricultural products, retail and real estate (RHP p.323, RHP p.324).

Pay in FY26 was ₹60.00 lakh for Brij B Tapadiya, ₹36.00 lakh for Ajay Bhagwandas Tapadiya and ₹3.60 lakh for Pavan Vithaldas Tapadiya (RHP p.302). In FY24 the three drew ₹13.00 lakh, ₹9.00 lakh and ₹3.60 lakh (RHP p.77). With the chief operating officer, promoter pay rose from ₹25.60 lakh in FY24 to ₹117.60 lakh in FY26, our arithmetic (RHP p.77).

The promoters hold interests in firms in similar lines of business, including Natraj Prestress Concrete, Raghavendra Rail Infrastructure, Gita Gazebo Infra and Samruddhi Industries, and the company has signed non-compete agreements with each (RHP p.327, RHP p.328). No promoter shares are pledged (RHP p.114). A National Company Law Tribunal order of September 11, 2026 set compounding fines of ₹3.00 lakh on the company and ₹1.50 lakh on Brij B Tapadiya over accounts signed while that director was disqualified, still to be paid at the prospectus date (RHP p.40).

Promoter economics: average cost per share is ₹11.92 for Brij B Tapadiya, ₹12.55 for Ajay Bhagwandas Tapadiya, ₹6.29 for Pavan Vithaldas Tapadiya, ₹0.83 for Akhil Ranchod Tapadiya, ₹3.03 for Naveen Tapadiya, ₹6.13 for Suyash Vithaldas Tapadiya, and nil for Rajendrakumar Badrinarayan Tapadiya, Vedant Tapadiya and Keshav Tapadiya (RHP p.124). Vedant Tapadiya, Keshav Tapadiya and Naveen Tapadiya received shares as gifts in June 2025 (RHP p.124). The ₹100 shares were split into ₹10 shares under a March 2025 resolution, and a 10-for-1 bonus followed on September 17, 2025 (RHP p.97).

11Who already owns it

Vishal Nirmiti promoter holding before and after the IPO

Source: (RHP p.118, RHP p.122); the second row and the after-issue column are our arithmetic on 2,63,90,909 shares after the issue (RHP p.68).

The company has 40 shareholders (RHP p.119). The promoters and promoter group hold 73.42% before the issue (RHP p.110) and about 49.4% after it, our arithmetic (RHP p.110). The largest public holders are Rajshree Gilda (4.14%), Sampat Shankarlal Gilada (3.67%), Gourajadevi Shankarlal Gilada (2.83%), Rajgopal Shankarlal Gilada (2.70%) and Deepak J Mehta and Bhakti D Mehta (2.33%) (RHP p.119). No fund or company outside the promoter group holds 1% or more (RHP p.119). In December 2025 Shankarlal Gilada & Sons Private Limited, then a 7.83% holder, transferred its 15,51,000 shares to six individuals at ₹30 a share (RHP p.105, RHP p.120).

The allocation changed from the draft (section 29): not more than 1% of the offer goes to qualified institutions, not less than 29% to non-institutional bidders and not less than 70% to retail bidders (RHP p.3). The prospectus lists no anchor investor bidding date (RHP p.2).

12What changed just before the IPO

• February 12, 2025: 3,00,000 preference shares held by Vaman Prestressing redeemed (RHP p.99).
• February 19, 2025: the CBI searched the Mumbai office in an inquiry centred on another sleeper maker and seized ₹39.00 lakh of cash; no charge was laid against the company or its people (RHP p.36).
• FY25: property, plant and equipment of ₹1,096.22 lakh bought from Brij B Tapadiya, 52.15% of that year's additions (RHP p.78).
• March 30, 2025: agreements to take the Mohol plant land from Brij B Tapadiya for ₹3,52,82,000 and ₹2,93,82,000; sale deeds await lender consent (RHP p.34).
• March 2025: shares split from ₹100 to ₹10 (RHP p.97).
• June 16 and July 10, 2025: statutory auditor Kabra & Associates resigned on merging with another firm and Samria Kabra & Associates was appointed (RHP p.85).
• September 12, 2025: converted to a public company (RHP p.291).
• September 16 and 17, 2025: executive directors reappointed for five years, a chief operating officer and chief financial officer appointed (RHP p.302, RHP p.319).
• September 17, 2025: 10-for-1 bonus issue of 1,80,00,000 shares (RHP p.97).
• December 22, 2025: Shankarlal Gilada & Sons Private Limited transferred six blocks of 2,58,500 shares at ₹30 each (RHP p.105).
• FY26: loans to Jethmal Radhakishan & Sons LLP reduced from ₹1,732.66 lakh to ₹633.80 lakh (RHP p.81).
• Director remuneration: ₹41.60 lakh in FY24, ₹161.30 lakh in FY25, ₹135.60 lakh in FY26 (RHP p.423, RHP p.421).
• Margins: EBITDA margin moved from 9.53% in FY24 to 15.10% in FY26 (RHP p.146).

13Capacity and expansion

Source: (RHP p.266), certified by Vrishak Engineering.

MS pipe fabrication capacity across sites was 1,54,000 tonnes in FY26 with 62,710 tonnes produced, 40.72%, against 81,000 tonnes and 59.58% in FY25 (RHP p.266). At Nadiad the precast unit ran at 47.49% for noise barriers and 52.77% for cable ducts (RHP p.267). The risk factors describe the facilities as operating "at near optimal level of capacity utilization" (RHP p.47). The issue proceeds will not create any fixed or tangible assets (RHP p.129), so the offer document gives no capacity addition from the issue.

14Market size and industry structure

Vishal Nirmiti industry: market size and growth

As claimed: the industry chapter draws on a report by Dun & Bradstreet dated August 7, 2026, commissioned and paid for by the company (RHP p.23, RHP p.157). According to that commissioned report, Indian Railways used an estimated 17.90 million concrete sleepers in FY2025, up from 10.10 million in FY2021 (RHP p.190). The same commissioned report puts India's mild steel pipes and tubes market at USD 22.3 billion in FY2025 (RHP p.220, RHP p.249). The chapter's opening pages on the world and Indian economy size neither product (RHP p.157 to RHP p.175).

The part that is addressable: railway sleepers in the states where the plants sit, and pipe fabrication for contractors on water and pumped-storage projects. The prospectus does not size those regional markets or the penstock work.

What the company is today: 8,37,042 sleepers produced in FY25, about 4.7% of the commissioned report's FY2025 railway consumption figure, our arithmetic (RHP p.266, RHP p.190). The 48,260 tonnes of MS pipe produced in FY25 were about 0.5% of the 9.2 million tonnes of pipes and tubes the commissioned report gives for India, a figure that covers sizes from half an inch upward, our arithmetic (RHP p.266, RHP p.221, RHP p.210). The pipe market figure in money is in US dollars and the prospectus gives no rate to compare it with.

Size over time: the commissioned report shows railway sleeper use rising in every year from FY2021 to FY2025, a CAGR it states as 18.4% for FY2021 to FY2024 (RHP p.190), and India's pipes and tubes market rising from USD 14.5 billion in FY2021 to USD 22.3 billion in FY2025 (RHP p.220). The commissioned report projects 29.4 million sleepers in FY2031 (RHP p.195) and a pipes and tubes market of USD 38.9 billion in FY2030, a CAGR of 11.8% (RHP p.226).

Segments: the commissioned report divides sleepers by material, concrete being one of four (RHP p.176), and by customer, from national railways to metros, freight corridors and ports (RHP p.179). It divides pipes by diameter and by use, naming penstocks for pumped-storage and hydropower plants (RHP p.210, RHP p.215). The company makes concrete railway sleepers and pipes of 219 mm diameter and above (RHP p.242, RHP p.243).

What drives demand: for sleepers the commissioned report names network expansion, track renewal, modernisation, metro rail, freight corridors and government spending (RHP p.190, RHP p.191). For pipes it names the Jal Jeevan Mission, the National Electricity Plans and the Hydropower Policy (RHP p.221), and counts 11 pumped-storage projects of about 15,870 MW under construction (RHP p.229).

Structure: sleeper orders come through railway tenders and reverse auctions (RHP p.255), and suppliers need approval from the Research Designs and Standards Organisation, the railways' standards body (RHP p.41). The company won 10 of 14 bids in FY26 and 20 of 33 in FY25 (RHP p.31).

The commissioned report calls the sleeper market consolidated and entry-restricted, with one dominant purchaser and standard designs, and says a new plant may wait 24 to 36 months for full approval and steady orders (RHP p.239, RHP p.240). It calls the pipe market fragmented between organised and regional unorganised makers (RHP p.239), and profiles Indian Hume Pipe Company and GPT Infraprojects as competitors (RHP p.241).

Inputs and trade: sleepers are cast from cement, high-tensile steel wire, aggregates and admixtures (RHP p.192); the commissioned report says steel wire prices follow global iron ore and coking coal, and monsoon limits on quarrying disrupt aggregate supply (RHP p.193). Pipes start from hot-rolled steel coil (RHP p.212). India exported USD 723.87 million of tubes, pipes and hollow profiles in FY2025 and imported USD 206.64 million (RHP p.223).

Rules: PSC sleepers follow the standards IRS T-39 and IRS T-45 (RHP p.196), and approved vendors face RDSO surveillance, downgrading or delisting (RHP p.202). MS pipes must meet BIS standards such as IS 1239, and failure can bring suspension of certification (RHP p.227).

What the chapter says can go wrong: for sleepers the commissioned report lists alternative materials, carbon rules on cement, failed quality checks, high capital needs and the cost of moving heavy sleepers (RHP p.199, RHP p.200), and says freight-corridor orders come in phases whose timing can shift (RHP p.198, RHP p.199). For pipes it lists steel price swings, plastic and stainless steel substitutes, and demand that follows public and private spending (RHP p.237, RHP p.238).

15Competitive position

Vishal Nirmiti competitors

Source: (RHP p.149).

The company's stated strengths are plants located near its customers' sites, which it says keeps logistics costs low, experience across sleepers, pipes and precast work, and its order book (RHP p.253). The order book was ₹58,176.82 lakh at June 30, 2026 (RHP p.37), including ₹30,687.08 lakh of sleeper work (RHP p.131). It says it competes on pricing, technical capability, quality and track record (RHP p.31). Its trademark applications are pending (RHP p.49).

16Peers the company named

Vishal Nirmiti listed peers

Peers named in the offer document: GPT Infraprojects and Indian Hume Pipe Company (RHP p.145).

Both are about 3.8 to 3.9 times the company's FY26 revenue, our arithmetic (RHP p.145). Indian Hume Pipe makes concrete and steel pipes and also concrete sleepers; GPT Infraprojects does civil construction and makes concrete sleepers in India and Africa (RHP p.241). The prospectus says no listed company is directly comparable across all of its business lines (RHP p.149). At July 23, 2026 closing prices, GPT Infraprojects traded at 14.83 times and Indian Hume Pipe at 13.86 times FY26 earnings (RHP p.145).

17Valuation at the issue price

Vishal Nirmiti IPO valuation and P/E

At the upper band of ₹220, the ₹14,500.00 lakh fresh issue is 65,90,909 new shares, added to 1,98,00,000 existing shares (our arithmetic, RHP p.68):

Source: our arithmetic on shares (RHP p.68), profit (RHP p.73), EPS and book value (RHP p.143, RHP p.144) and EBITDA (RHP p.146).

At the lower band of ₹208 the fresh issue is 69,71,153 shares, the market capitalisation ₹55,684.00 lakh and the P/E on FY26 profit 22.3 times, our arithmetic (RHP p.68). Enterprise value, our arithmetic, takes the 1,98,00,000 existing shares at ₹220, ₹43,560.00 lakh, adds borrowings of ₹8,741.70 lakh and deducts cash of ₹16.55 lakh (RHP p.68, RHP p.35, RHP p.71).

After the issue, book value including the gross proceeds would be about ₹23,178.35 lakh, and the market capitalisation at ₹220 about 2.5 times that, our arithmetic (RHP p.71). The upper band is 6.9 times the selling shareholder's average cost of ₹31.82, our arithmetic (RHP p.124). Over the last 18 months, shares changed hands at a weighted average of ₹100.71, in a range of ₹30 to ₹1,562.50 before adjusting for the bonus (RHP p.126).

The two peers the prospectus names traded at 14.83 and 13.86 times earnings on July 23, 2026; the prospectus gives their average as 14.35, which with two peers is also the median (RHP p.144). At the upper band the issue is priced at 23.2 times FY26 profit on the enlarged share count and 17.4 times FY26 EPS as the prospectus computes it, 62% above the peer median on the first measure, our arithmetic (RHP p.144).

18Risks, in plain words

Vishal Nirmiti IPO risks

Customers: Indian Railways alone was 40.56% of FY26 revenue (RHP p.29) → a slowdown in railway tenders reaches revenue directly → government sleeper sales were ₹14,421.16 lakh in FY26 (RHP p.28), and letters of intent do not oblige customers to place orders (RHP p.31).

Services margin: the profit rise rests on the services segment (RHP p.30) → if its margin falls back, profit falls with it → services profit before tax was ₹1,710.30 lakh in FY26 against a loss of ₹255.38 lakh in FY24 (RHP p.30).

Related parties: Samruddhi Industries, a promoter group firm, is a top-five customer and holds ₹2,060.04 lakh of the order book (RHP p.29, RHP p.259) → terms with it are not set at arm's length by an outsider → promoter group firms Prestress Steel LLP and Siddhi Ferrous supplied ₹2,262.87 lakh of material in FY26, our arithmetic (RHP p.77).

Working capital and debt: inventory was 178 days in FY26 (RHP p.132) → growth needs cash before it is collected → borrowings were ₹8,741.70 lakh and finance costs ₹1,504.04 lakh, including ₹460.48 lakh of interest on trade payables (RHP p.35, RHP p.421). Unsecured loans of ₹1,972.51 lakh can be recalled at any time (RHP p.51).

Property: the Mohol plant, the most fully used, sits on land owned by Brij B Tapadiya (RHP p.34) → without a sale deed the company has no freehold right → consideration of ₹3,52,82,000 and ₹2,93,82,000 has been acknowledged, but the deeds await lender consent (RHP p.34).

Compliance: filings under the Companies Act were delayed, some corporate records cannot be traced, and statutory dues were paid late (RHP p.40, RHP p.49, RHP p.51) → penalties can follow → provident fund payments were late in 15 instances in FY26, six of them by 91 days or more (RHP p.52).

Issue-specific: most of the proceeds go to working capital, and the objects have not been appraised by a bank (RHP p.56) → the use of funds rests on management estimates → the FY27 working capital plan assumes payable days fall from 126 to 75 (RHP p.132).

19Litigation and regulatory matters

Cases against Vishal Nirmiti and its promoters

The criminal cases against promoters include a property-sale complaint naming Suyash Vithaldas Tapadiya (RHP p.442). There are no outstanding actions by statutory or regulatory authorities against the company or the promoters (RHP p.440, RHP p.443). The CBI's charge sheet of April 16, 2025 named none of the company's people (RHP p.440). Outstanding demand notices against the company and some promoters total ₹163.45 lakh (RHP p.447).

20Related-party transactions

Source: (RHP p.77, RHP p.78, RHP p.79, RHP p.80).

Interest paid to Prestress Steel LLP and Siddhi Ferrous was ₹387.40 lakh in FY26, our arithmetic (RHP p.79). Managerial remuneration was ₹195.50 lakh in FY26 (RHP p.77). What appeared or disappeared: the ₹1,096.22 lakh asset purchase from Brij B Tapadiya in FY25 (RHP p.78); a ₹250.00 lakh loan from Pavan Vithaldas Tapadiya taken and repaid in FY26 (RHP p.80); an office leased from Pavan Vithaldas Tapadiya at ₹4.40 lakh a year from August 2025 (RHP p.326); and the fall in loans to Jethmal Radhakishan & Sons LLP (RHP p.81).

21What the offer document does not say

The number of sleepers sold and the price per sleeper are not disclosed, so revenue cannot be split into volume and price. Profit by segment is given only as a services margin; sleeper and pipe margins are not shown. The margin on work for Samruddhi Industries against unrelated customers is not disclosed. The purpose and terms of the loans to Jethmal Radhakishan & Sons LLP are not explained in the pages read. The names of some top customers and suppliers are withheld for want of consent. The amounts for general corporate purposes and issue expenses are left blank.

22Five questions for management

1. How many sleepers were sold in each of FY24 to FY26, and at what average price per sleeper?
2. What margin does the company earn on job work for Samruddhi Industries, compared with the same work for Larsen & Toubro or Kalpataru Projects?
3. Why did the company lend ₹3,001.39 lakh to Jethmal Radhakishan & Sons LLP by March 2024, at what rate, and when will the remaining ₹633.80 lakh be repaid?
4. Why was the Timba plant at 35.08% utilisation in FY26, and what orders are expected to use it?
5. How will payable days fall from 126 to 75 in FY27, and what interest on trade payables does that save?

24Draft to final: what changed

The selling shareholder, its 15,00,000 shares and the sole lead manager, Saffron Capital Advisors, are unchanged (DRHP p.1, RHP p.1, RHP p.85). The March 2025 figure for claims not acknowledged as debt was restated between the two documents, and the prospectus does not say why.

1Sources and cited facts

This study was read from 1 document the company filed. The 203 figures it cites are listed under the document each came from, with the page and the sentence as printed.