Bon Bon Ventures Limited IPO

01At a glance

What the company does: supplies school uniforms and uniforms for corporates, security staff and hospital staff, made by third-party job workers, and trades uniform fabric, bedsheets and readymade garments, through business customers and its own shops and website (DRHP p.147, DRHP p.148).

Who pays it: schools, institutions and trade buyers, none named. Business customers were 82.97% of FY26 revenue (DRHP p.147). The largest customer was 11.29% of FY26 revenue and the top ten 51.76% (DRHP p.154).

Why it is raising money: ₹10.9 crore to purchase the office-cum-godown it now rents and ₹8.2 crore to purchase two godowns in Andheri, ₹6.0 crore for working capital and ₹4.0 crore to repay loans; the general corporate purposes amount is blank (DRHP p.97).

How fast it has grown: revenue from ₹32.1 crore in FY24 to ₹53.8 crore in FY26, about 29.4% a year, and profit after tax from ₹2.9 crore to ₹5.2 crore, about 32.4% a year (our arithmetic, DRHP p.64). In between, FY25 revenue was ₹73.1 crore, and FY26 revenue fell 26.45% from it (DRHP p.282).

The one thing to understand: the auditor qualified the FY26 accounts. A write-off of ₹6.6 crore of money owed by customers was taken straight to reserves instead of the profit and loss account; charged to profit, FY26 profit before tax of ₹6.9 crore would have been about ₹0.32 crore (DRHP p.31, DRHP p.226). The restated profit printed in the document is still ₹6.9 crore before tax (DRHP p.64).

02The business, in plain words

What Bon Bon Ventures does

Bon Bon Ventures sells school uniforms and the things that go with them: shirts, skirts, track suits, blazers, sweaters, ties, belts, badges, bags and shoes (DRHP p.148, DRHP p.155). It also sells uniforms for corporates, security staff and hospital staff, and trades uniform fabric, bedsheets, jeans, T-shirts and other readymade garments (DRHP p.148).

A school or trade buyer orders uniforms or fabric → the company sources fabric or has the job worker source it → third-party job workers cut, stitch and label the garments → the company checks, packs and delivers, and invoices the buyer (DRHP p.149, DRHP p.151).

The business began in 2006 as the proprietorship Shree Bon Bon Traders (DRHP p.191). The company was incorporated as a public limited company on March 14, 2024 (DRHP p.3) and took over Shree Bon Bon Traders, the proprietorship of the promoter Manish Dahyalal Limbachiya, by a business transfer agreement dated March 31, 2024, and JVB Enterprises, the proprietorship of the promoter Damini Biren Limbachiya, on January 27, 2025 (DRHP p.147).

It owns 330 sewing and other machines, placed at job workers' premises (DRHP p.150). It had 30 employees at March 31, 2026, 13 of them in sales (DRHP p.173). It serves more than 15 educational institutions (DRHP p.150). It sells through a retail shop at Boisar, uniform shops and a website for school uniforms (DRHP p.147, DRHP p.150). All premises are rented or on leave and licence (DRHP p.30). It is ISO 9001:2015 certified (DRHP p.149).

Earnings equation: Revenue = uniform sets and metres of fabric sold × price. The document gives neither volumes nor prices, so the equation cannot be filled in from the filing.

03Where the money comes from

By business model (₹ crore):

Source: DRHP p.148, converted from ₹ lakh. School uniforms were 61.48% of FY25 revenue and 38.97% of FY26 (DRHP p.148). Trading was 59.56% of FY26 revenue (DRHP p.148). No profit by line is given.

By channel, business customers were 92.33% of FY24 revenue and 82.97% of FY26 (DRHP p.147).

By state, Maharashtra was 73.97% of FY26 revenue and Gujarat 16.55% (DRHP p.156). Andhra Pradesh was 26.49% of FY24 revenue and nil in FY26 (DRHP p.155). Telangana was 15.80% of FY25 revenue (DRHP p.156).

By quarter, January to March brought 44.07% of FY26 revenue (DRHP p.149).

Bon Bon Ventures customers: how concentrated the revenue is

Source: DRHP p.153, DRHP p.154; the top five is our arithmetic from the same tables. No customer is named. The risk factors give FY24 as 34.34% for the largest and 90.96% for the top ten (DRHP p.29).

On the supply side, the largest supplier was 16.00% of FY26 purchases and the top ten 70.57% (DRHP p.155). No supplier is named, and there are no long-term supply agreements with all suppliers (DRHP p.30).

04The growth record

Bon Bon Ventures financials: revenue, profit and margins

Source: DRHP p.63, DRHP p.64, DRHP p.65, DRHP p.122, converted from ₹ lakh. Revenue went from ₹32.1 crore in FY24 to ₹53.8 crore in FY26 and profit after tax from ₹2.9 crore to ₹5.2 crore (DRHP p.64).

Our arithmetic over FY24 to FY26:

• Revenue: about 29.4% a year (our arithmetic, DRHP p.64).
• EBITDA: about 47.2% a year (our arithmetic, DRHP p.122).
• Profit after tax: about 32.4% a year (our arithmetic, DRHP p.64).
• EBITDA margin: 15.90% to 20.59%, up 469 basis points, so 15.9% to 20.6% rounded (DRHP p.122).

FY26 revenue fell 26.45% from FY25, which the company puts down to seasonal business and the number of schools served (DRHP p.282).

How the years are built: FY24 is the proforma account of the proprietorship Shree Bon Bon Traders, and FY25 covers the company from March 14, 2024 to March 31, 2025 (DRHP p.225, DRHP p.283). There is no FY24 earnings per share (DRHP p.119).

The audit qualification: the auditor's FY26 opinion is qualified. A write-off of trade receivables of ₹6.6 crore was debited to reserves and surplus instead of the profit and loss account (DRHP p.31). The risk factor says FY26 would then show a loss of ₹0.32 crore (DRHP p.31). The auditor's examination report says a profit of ₹0.32 crore, and says the necessary adjustments have been made in the restated statements (DRHP p.226).

The restated profit before tax printed is ₹6.9 crore (DRHP p.64). Read from the filing: the printed restated profit does not show the write-off as a charge. The document also says there are no audit qualifications not given effect to (DRHP p.285).

What sits around the record:

• Cash: operating cash flow was ₹1.6 crore in FY26, −₹30.9 crore in FY25 and ₹3.8 crore in FY24 (DRHP p.65). Cash and bank was ₹0.14 crore at March 31, 2026 (DRHP p.63).
• Other income was ₹0.03 crore, about 0.4% of FY26 profit before tax of ₹6.9 crore (our arithmetic, DRHP p.64).
• Debt: borrowings were ₹21.6 crore at March 31, 2026 (DRHP p.63), debt to equity 1.08 times, about 1.1× (DRHP p.122), and net debt of about ₹21.4 crore was about 1.9× FY26 EBITDA (our arithmetic, DRHP p.63, DRHP p.122). Finance cost was ₹3.8 crore in FY26 against ₹1.2 crore in FY25 (DRHP p.64).
• Returns: return on capital employed was 45.61% in FY26, so 45.6% rounded (DRHP p.122).
• Customers: the largest customer was 11.29% of FY26 revenue, so 11.3% rounded, and the top ten 51.76%, so 51.8% (DRHP p.154). The top ten suppliers were 70.57% of FY26 purchases, so 70.6% (DRHP p.155).
• Working capital days: 260 days in FY26, against 65 in FY24 (DRHP p.105).
• Contingent liabilities: ₹0.07 crore of disputed TDS amounts (DRHP p.67).
• Pay: the Chairman and Managing Director, Birenkumar Dahyalal Limbachiya, was paid ₹1.2 crore in FY26 (DRHP p.202).
• Related-party loans: Birenkumar Dahyalal Limbachiya's loan to the company stood at ₹1.6 crore at March 31, 2026 (DRHP p.68).
• Industry: the company describes itself as making and processing school and corporate uniforms, fabrics and readymade garments (DRHP p.129).

05What the growth is made of

Revenue rose ₹41.0 crore from FY24 to FY25 and fell ₹19.3 crore from FY25 to FY26 (our arithmetic, DRHP p.64).

FY24 to FY25: school uniform job work went from ₹18.1 crore to ₹45.0 crore and uniform fabric trading from ₹13.0 crore to ₹25.6 crore (DRHP p.148). The company took over Shree Bon Bon Traders from March 31, 2024 and JVB Enterprises on January 27, 2025 (DRHP p.147). The FY25 period also runs a little over twelve months, from March 14, 2024 (DRHP p.283).

FY25 to FY26: school uniform job work fell from ₹45.0 crore to ₹21.0 crore, while bedsheet trading of ₹4.7 crore appeared for the first time (DRHP p.148). The company gives the reason as seasonal business and fewer schools served (DRHP p.282). Telangana fell from ₹11.6 crore to ₹1.9 crore and Gujarat rose from ₹0.10 crore to ₹8.9 crore (DRHP p.156).

Orders that did not pay: in 2024 the company received orders from Rashtriya Gramin Saksharta Mission, which it later found was not genuine (DRHP p.27). In March 2026 one order was returned for quality defects (DRHP p.33).

The document gives no volumes, no prices and no customer names, so the change cannot be split into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is money owed by customers. Trade receivables went from ₹1.5 crore at March 2024 to ₹28.1 crore at March 2025 and ₹36.1 crore at March 2026 (DRHP p.63), even after the ₹6.6 crore written off in FY26 (DRHP p.31). Inventory went from ₹8.9 crore to ₹28.9 crore over the same two years (DRHP p.63). The company says it stocked raw material to benefit from low prices (DRHP p.107) and that its contracts are mainly with government entities that take five to six months to pay (DRHP p.108); the business chapter elsewhere describes customers as schools and trade buyers (DRHP p.147).

Suppliers are paid slowly too. Trade payables were ₹38.6 crore at March 2026 (DRHP p.104), and dues to micro and small suppliers were ₹15.1 crore at that date, later reduced to ₹2.5 crore (DRHP p.33). Some school counter sales are collected in cash by staff (DRHP p.38).

07The balance sheet

At March 31, 2026 total assets were ₹84.0 crore: trade receivables ₹36.1 crore, inventories ₹28.9 crore, short-term loans and advances ₹7.5 crore, long-term loans and advances ₹5.0 crore, other non-current assets ₹4.0 crore, property, plant and equipment ₹2.1 crore and cash and bank ₹0.14 crore (DRHP p.63). Against them: trade payables ₹38.6 crore, short-term borrowings ₹17.8 crore, long-term borrowings ₹3.8 crore, short-term provisions ₹2.3 crore and net worth ₹19.9 crore (DRHP p.63, DRHP p.104).

Borrowings at March 31, 2026 were ₹21.6 crore (DRHP p.274):

• fifteen unsecured term loans from banks and finance companies totalling ₹4.9 crore, at 14.00% to 19.00% (DRHP p.274, DRHP p.276);
• a Saraswat Co-operative Bank loan against property of ₹1.1 crore at 9.00%, secured on flats including the promoters' residence (DRHP p.274, DRHP p.276);
• a Yes Bank cash credit of ₹2.0 crore at 11.01%, guaranteed by Birenkumar Dahyalal Limbachiya, Manish Dahyalal Limbachiya and Damini Biren Limbachiya (DRHP p.277, DRHP p.276);
• an Insta Capital working capital loan of ₹1.0 crore at 27.00% (DRHP p.277);
• interest-free loans of ₹1.7 crore from Simstreet Advisors Private Limited and ₹0.63 crore from Commercinate Enterprises Private Limited (DRHP p.277);
• a loan of ₹1.6 crore from Birenkumar Dahyalal Limbachiya (DRHP p.277).

Commercinate Enterprises Private Limited bought shares from Manish Dahyalal Limbachiya in 2024 (DRHP p.89).

Source: DRHP p.63, DRHP p.97. The capitalisation statement leaves the post-issue column blank and sets March 2026 borrowings against the March 2025 equity of ₹17.7 crore (DRHP p.273). ₹4.0 crore is about 18.5% of March 2026 borrowings (our arithmetic, DRHP p.97, DRHP p.63).

08What the money is for

Bon Bon Ventures IPO objects: what the money is for

Source: DRHP p.97; the percentages are our arithmetic over the ₹29.1 crore of named objects, because the issue size is not set (DRHP p.97).

Office-cum-godown, ₹10.9 crore: 1,472 sq. ft. at ₹69,640 a sq. ft., ₹10.25 crore, plus ₹0.62 crore of stamp duty, from Pravin Trilokchand Jain, a real estate builder (DRHP p.99, DRHP p.100). The company already occupies it on leave and licence at ₹1.25 lakh a month (DRHP p.178). A memorandum of understanding of January 16, 2025, with an addendum of September 10, 2026, carries a ₹0.50 crore advance, and the MOU states that it is not a binding contract for sale (DRHP p.99). The price rests on a valuation by Ar. Shrenik P. Shetgar of PSS Associates (DRHP p.100).

Two godowns, ₹8.2 crore: Gala No. A55, 725 sq. ft., ₹2.8 crore with charges, from M/s. Hindustan Importer Corporation, and Gala No. A/08, 1,435 sq. ft., ₹5.5 crore with charges, from Arvindkumar Damodar Choudhary, both at ₹36,000 a sq. ft. against a valuer's ₹40,000 (DRHP p.102, DRHP p.103). Each rests on a letter of intent of September 7, 2026 with ₹0.05 crore paid (DRHP p.102).

Working capital, ₹6.0 crore: in FY27, against a projected gap of ₹31.6 crore that assumes receivable days fall from 245 to 85 and inventory days from 279 to 85 (DRHP p.103, DRHP p.105).

Debt repayment, ₹4.0 crore: from eighteen listed loans, mostly unsecured loans at 14.00% to 19.00% and the Saraswat Co-operative Bank loan (DRHP p.110, DRHP p.115).

The objects have not been appraised (DRHP p.117), and no monitoring agency will be appointed because the offer is under ₹50 crore (DRHP p.75).

Into the business the fresh issue of up to 31,00,000 shares, at a price not yet set (DRHP p.3). To selling shareholders up to 3,56,000 shares, at a price not yet set (DRHP p.3).

09Who is selling

Bon Bon Ventures IPO offer for sale: who is selling

Source: DRHP p.1, DRHP p.62. The other fourteen are Upendra Narayan Choudhary 9,841, Ashish Poddar 9,841, Shweta Poddar 7,874, Sakshi Manish Jain 12,500, Ashok Kumar Bhawsinghka 11,811, Ashish Kumar Himmatsingka HUF 9,841, Renu Devi 3,937, Naved Iqbal 7,874, Mina Devi Parmaka 5,904, Kiran Gokaldas Gadhia 3,000, Ila Kiran Gadhia 2,500, Prashant Manhar Lakhani 1,500, Devinder Kumar Dua 5,000 and Bharat Laxmidas Kotadia 1,500 (DRHP p.62).

The names add up to 3,56,000 shares, which is the cover figure, though the table total prints 366,500 (our arithmetic, DRHP p.62, DRHP p.3). All are classed as investor selling shareholders (DRHP p.298). The promoters and promoter group will not take part except through the offer for sale, in which they are not sellers (DRHP p.94).

10Promoters

The promoters are Birenkumar Dahyalal Limbachiya, Manish Dahyalal Limbachiya, Damini Biren Limbachiya, Chandni Biren Limbachiya and Anjana M Limbachiya, holding 71.46% before the issue (DRHP p.213). The document states that Birenkumar Dahyalal Limbachiya and Manish Dahyalal Limbachiya are brothers, that Damini Biren Limbachiya is Birenkumar Dahyalal Limbachiya's daughter, and that Chandni Biren Limbachiya and Anjana M Limbachiya are the spouses of Birenkumar Dahyalal Limbachiya and Manish Dahyalal Limbachiya (DRHP p.200, DRHP p.218).

Birenkumar Dahyalal Limbachiya, 52, is Chairman and Managing Director, educated to the ninth standard, with more than 25 years with Bon Bon and associated firms (DRHP p.198, DRHP p.199). Manish Dahyalal Limbachiya, 46, is Chief Executive Officer, also educated to the ninth standard (DRHP p.213). Damini Biren Limbachiya, 27, is Whole Time Director, with a Bachelor of Management Studies and six years with the business (DRHP p.199).

Pay: ₹1.2 crore to the Chairman and Managing Director and ₹0.18 crore to the Whole Time Director in FY26 (DRHP p.202). Remuneration and salary to the five promoters came to about ₹1.6 crore in FY25 and in FY26 (our arithmetic, DRHP p.68, DRHP p.69). The company rents a shop from Manish Dahyalal Limbachiya at ₹15,000 a month (DRHP p.178).

Other businesses: promoter group entities M/s. Bon Bon, Bavji Enterprise, Shreeji Bon Bon Limited, Bon Bon Overseas Limited and Bon Bon Fashion Private Limited are or may be in a similar business, and there is no non-compete agreement (DRHP p.47). Another page says the promoters have no group entity in the same line of business (DRHP p.217).

Cases: no criminal cases or regulatory actions against the promoters (DRHP p.289). Birenkumar Dahyalal Limbachiya has five tax demands totalling ₹0.03 crore (DRHP p.292). Birenkumar Dahyalal Limbachiya is the complainant in the Rashtriya Gramin Saksharta Mission fraud case (DRHP p.289).

Promoter economics: Manish Dahyalal Limbachiya received 43,84,773 shares at ₹10 for Shree Bon Bon Traders on March 31, 2024, and Damini Biren Limbachiya 13,33,333 shares at ₹150, ₹20.0 crore, for JVB Enterprises on January 29, 2025 (DRHP p.83, DRHP p.85). Manish Dahyalal Limbachiya sold shares at ₹40 in September 2024, ₹85 in November 2024 and ₹44 in July 2026; Damini Biren Limbachiya sold 3,33,333 shares at ₹150 in April 2025 (DRHP p.89, DRHP p.90). The average cost is stated as ₹3.45 a share for Manish Dahyalal Limbachiya, ₹149.93 for Damini Biren Limbachiya and ₹10 for the others (DRHP p.51). No promoter shares are pledged (DRHP p.89).

11Who already owns it

Bon Bon Ventures promoter holding before and after the IPO

Source: DRHP p.87, DRHP p.91. There are 68,15,359 shares of ₹10 before the issue (DRHP p.61). If all 31,00,000 new shares are issued, the total becomes 99,15,359, and the promoters' 71.46% becomes about 49.1%, so 71.5% → 49.1% (our arithmetic, DRHP p.89). The document leaves the after-issue holding blank (DRHP p.91).

The largest outside holders are Sourav Choudhary 2.48%, Shashikant Rajkumar Banka 2.46%, Vikasa India EIF I fund - Incube Global Opportunities 2.31% and Suresh Kumar Agarwal HUF 1.96% (DRHP p.88). Vikasa India EIF I fund came in at ₹127 in July 2024 (DRHP p.85). Outside investors came in through preferential allotments at ₹92 in June 2024 and ₹127 in July 2024 (DRHP p.83).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹32.1 crore in FY24 to ₹53.8 crore in FY26 and profit after tax from ₹2.9 crore to ₹5.2 crore (DRHP p.64).
• Receivables: receivable days went from 18 in FY24 to 245 in FY26 (DRHP p.105).
• Promoter pay: remuneration and salary to the promoters came to about ₹1.6 crore in FY25 and again in FY26 (our arithmetic, DRHP p.68, DRHP p.69).
• Incorporation: incorporated as a public limited company on March 14, 2024 (DRHP p.3).
• Business transfers: Shree Bon Bon Traders from March 31, 2024 and JVB Enterprises on January 27, 2025, both for shares (DRHP p.147, DRHP p.85).
• Bonus issues: none (DRHP p.80).
• Pre-IPO placement: 5,07,873 shares at ₹127 on July 15, 2024 (DRHP p.83).
• Last allotment before the IPO: 13,33,333 shares at ₹150 to Damini Biren Limbachiya for JVB Enterprises, January 29, 2025 (DRHP p.83).
• Auditors: HVMJ & Associates appointed first auditor on March 15, 2024; Doshi Doshi & Co appointed January 30, 2025 and resigned May 24, 2025; Panchal S K & Associates appointed May 26, 2025 (DRHP p.76, DRHP p.77).
• Objects clause: medical kits and devices added to the objects on January 27, 2025 (DRHP p.193).
• Borrowings: from nil at March 2024 to ₹21.6 crore at March 2026 (DRHP p.63).
• Write-off: ₹6.6 crore of receivables written off against reserves in FY26 (DRHP p.31).
• Compliance: voluntary disclosure to the Registrar of Companies of past non-compliances under several sections (DRHP p.41, DRHP p.42).

13Capacity and expansion

Source: DRHP p.173, DRHP p.99, DRHP p.100, DRHP p.102; the area is our arithmetic. The company says installed capacity and utilisation do not apply to a job-work model (DRHP p.173). It owns 330 machines at job workers' premises (DRHP p.173). The number of workers employed by job workers is not given (DRHP p.173).

14Market size and industry structure

Bon Bon Ventures industry: market size and growth

As claimed: the industry chapter is not a commissioned report. It is drawn from publicly available sources, chiefly the IMF World Economic Outlook update of July 2026 and the India Brand Equity Foundation pages on the economy and on textiles, and the company says it has not verified them (DRHP p.131, DRHP p.138, DRHP p.146). The largest figure it gives for the company's world is the global apparel market, valued at US$ 1.8 trillion in 2024 (DRHP p.143). For India, it says the textile and apparel industry contributes about 2% of GDP and about 11% of manufacturing gross value added, and employs more than 45 million people (DRHP p.142).

The part that is addressable: the company sells school and institutional uniforms, uniform fabric, bedsheets and readymade garments, mostly in Maharashtra (DRHP p.148, DRHP p.156). The chapter does not size school uniforms, institutional uniforms or uniform fabric anywhere. It sizes technical textiles, home textiles and apparel exports instead.

What the company is today: FY26 revenue of ₹53.8 crore (DRHP p.64). With no market figure for its segment, no share can be calculated.

Size over time: the chapter quotes forecasts that the domestic textile and apparel market could reach US$ 225 billion by 2025, growing 10% to 12% a year (DRHP p.142). It quotes a projection that India's textile and apparel market will reach US$ 350 billion by 2030 (DRHP p.146).

It also prints that the market "is projected to grow at a 10% CAGR to reach US$ 2.3 billion by 2030" (DRHP p.142), a figure that does not match the others on the same pages. Technical textiles are put at US$ 29 billion in 2024 and projected at US$ 45 billion by 2026 (DRHP p.142). These are the cited sources' claims, not figures from the company's accounts.

On the economy, the chapter puts India's real GDP growth at 7.7% in FY2025-26 (DRHP p.139) and quotes an IMF projection of 6.4% for 2026 (DRHP p.135).

Segments: the chapter divides textiles into technical textiles, home textiles, mobiltech and apparel (DRHP p.142, DRHP p.143). Readymade garments were the largest export category at US$ 4,193 million, 45% of US$ 9.40 billion of textile and apparel exports in April to June 2025 (DRHP p.143). India makes about 22,000 million garments a year (DRHP p.143). The company sits in domestic uniforms and fabric trading, which the chapter does not treat as a segment.

What drives demand: the chapter names rising household incomes, urbanisation and demand from housing, healthcare and hospitality (DRHP p.146), and government schemes: the Textile Ministry's allocation of ₹5,272 crore in 2025-26 (DRHP p.144), the ₹10,683 crore production-linked incentive scheme for textiles (DRHP p.144) and PM MITRA parks, the first opened at Warangal at a cost of ₹1,695.54 crore (DRHP p.144). For uniforms, the company's own chapters point to school sessions: demand peaks before the academic year, and January to March brought 44.07% of FY26 revenue (DRHP p.149).

Structure: the company describes uniforms as a highly competitive and largely unorganised business, with small and regional makers, local wholesalers, established brands and economy suppliers, and low entry barriers (DRHP p.173). Competitors are not named, apart from the one listed peer in the price chapter, New Light Industries Limited (DRHP p.121).

Inputs and trade: fabric is the main input, bought on purchase orders without long-term contracts, and its price moves with cotton and synthetic fibre prices (DRHP p.30, DRHP p.31). India produced an estimated 302.25 lakh bales of cotton in the 2024-25 season (DRHP p.143). The company does not export (DRHP p.173) and supplies only from Maharashtra (DRHP p.28).

Rules: the company holds GST registration in Maharashtra and Assam, Shops and Establishments registration, EPF and Udyam registration and ISO 9001:2015 (DRHP p.129, DRHP p.295). Address updates to its professional tax, ESIC and Assam GST registrations are pending (DRHP p.296, DRHP p.297).

What the chapter says can go wrong: the chapter's risks are economy-wide: energy prices about 25% above pre-war levels after the Middle East war, trade fragmentation and a possible correction in technology-led expectations (DRHP p.132, DRHP p.131). The risk factors add changes in school uniform policy or centralised procurement (DRHP p.32, DRHP p.33), seasonal demand (DRHP p.34) and fabric price rises that cannot be passed on (DRHP p.31).

15Competitive position

Bon Bon Ventures competitors

Source: DRHP p.64, DRHP p.120, DRHP p.121. The peer's P/E is at its closing price on September 22, 2026 (DRHP p.121). The peer table prints the company's EPS as ₹4.08, the FY25 figure, while saying it uses FY26 (DRHP p.121). The document does not give the peer's revenue, borrowings or what it makes. The industry P/E is stated as high 67.50, low 19.50 and average 28.20, although only one peer is listed (DRHP p.120).

What the company puts forward: promoters with over 25 years in apparel, existing customer and supplier relationships, an order-driven job-work model, a range across uniforms, fabric and garments, quality checks and both business and retail channels (DRHP p.151, DRHP p.152). It had orders of ₹34.7 crore from eight customers at September 22, 2026 (DRHP p.107). Against that: the company says entry barriers are low (DRHP p.173), customers order on purchase orders without long-term contracts (DRHP p.32), and all its premises are rented (DRHP p.30).

16Peers the company named

Peers named in the offer document: New Light Industries Limited (DRHP p.121).

The only listed peer earned ₹0.048 a share on a face value of ₹1, with a return on net worth of 2.84% (DRHP p.121). The company's FY26 return on net worth was 25.93% (DRHP p.120). The document says the peers are not exactly comparable (DRHP p.121). With no offer price, no P/E for the company can be stated.

17Risks, in plain words

Bon Bon Ventures IPO risks

Financial: the audit qualification: the FY26 audit is qualified over a ₹6.6 crore receivable write-off kept out of profit (DRHP p.31) → the profit shown may overstate what the business earned that year → the auditor puts FY26 profit before tax at about ₹0.32 crore against ₹6.9 crore shown (DRHP p.226).

Customers: collections: receivable days went from 18 to 245 between FY24 and FY26 (DRHP p.105) → sales are not turning into cash → operating cash flow was −₹30.9 crore in FY25 and ₹1.6 crore in FY26 (DRHP p.65).

Customers: false orders: orders from Rashtriya Gramin Saksharta Mission, which presented itself as a Government of India body, were not genuine (DRHP p.27) → deposits, cash paid and goods supplied may not be recovered → the FIR alleges a fraud of about ₹23.6 crore, including ₹0.70 crore of deposits and about ₹0.80 crore paid in cash as commission (DRHP p.289, DRHP p.290). Goodwill was recognised on an RGSM order of ₹35.0 crore held by JVB Enterprises when the company took it over (DRHP p.27).

Financial: borrowing cost: most loans are short, unsecured and priced at 14.00% to 27.00% (DRHP p.274, DRHP p.277) → interest takes a growing share of profit → finance cost was ₹3.8 crore in FY26, against ₹1.2 crore in FY25 (DRHP p.64).

Issue-specific: property: ₹19.1 crore of the ₹29.1 crore of named objects goes to premises (DRHP p.97) → the money goes into buildings rather than the business's working capital → the office deal is a non-binding MOU and the godowns rest on letters of intent (DRHP p.99, DRHP p.102).

Promoters: control and related businesses: promoter group entities are in similar businesses without a non-compete (DRHP p.47) → business may be split between them → the promoters hold 71.46% before the issue (DRHP p.89).

Regulation: compliance record: EPF, ESIC, GST and TDS were paid or filed late, one TDS return by 247 days (DRHP p.38, DRHP p.39), and nineteen company forms were filed late (DRHP p.40, DRHP p.41) → penalties are possible and are not quantified → the company has made a voluntary disclosure to the Registrar of Companies (DRHP p.42).

Customers: concentration: the top ten customers were 51.76% of FY26 revenue (DRHP p.154) → losing a few large schools or trade buyers hurts sales → Maharashtra alone was 73.97% (DRHP p.156).

18Litigation and regulatory matters

Cases against Bon Bon Ventures and its promoters

Criminal, against: none against the company, promoters or directors (DRHP p.288, DRHP p.289). Regulatory: no actions by statutory or regulatory authorities (DRHP p.288). Criminal, by: the company's complaint against M/s Nova Fashion House over a school uniform contract, where it paid a ₹0.10 crore deposit and says it spent about ₹0.90 crore on goods, pending since August 31, 2026 (DRHP p.288); Birenkumar Dahyalal Limbachiya's complaint in the RGSM matter, FIR no.

80/25 with the Economic Offences Wing, Delhi, where a chargesheet is filed and three accused are in custody (DRHP p.289, DRHP p.290); two cheque bounce cases by Manish Dahyalal Limbachiya from 2017 (DRHP p.290); and two complaints by Shree Bon Bon Traders over unpaid dues of ₹0.24 crore and ₹0.11 crore (DRHP p.291).

The risk factor summary gives the company's tax matters as ₹0.18 crore, against ₹1.85 crore in the litigation chapter (DRHP p.36, DRHP p.288).

19Related-party transactions

Source: DRHP p.68, DRHP p.69, DRHP p.70, converted from ₹ lakh. Shares worth ₹4.4 crore were issued to Manish Dahyalal Limbachiya for Shree Bon Bon Traders (DRHP p.68). Interest of ₹0.08 crore was paid on the Birenkumar Dahyalal Limbachiya loan in FY26, and ₹1.6 crore was outstanding at March 31, 2026 (DRHP p.68). The company pays Manish Dahyalal Limbachiya rent of ₹0.02 crore a year (DRHP p.69). Salaries go to the relatives Kamlesh Babubhai Limbachiya and Aditi Limbachiya (DRHP p.69).

What appeared or changed in the two years before filing: the company was formed in March 2024 and took over both family proprietorships, in March 2024 and January 2025; promoter remuneration began at the company level in FY25; and the promoter loan account rose and fell within each year (DRHP p.3, DRHP p.147, DRHP p.68).

20What the offer document does not say

Customers and suppliers are not named. Volumes and prices are not given, so growth cannot be split into volume and price. Profit by line of business is not given. The school uniform market is not sized (DRHP p.131).

The notes to the restated statements are scanned images and could not be read as text here, so where the ₹20.0 crore paid in shares for JVB Enterprises and the goodwill on the RGSM order sit in the balance sheet is not shown in the text read (DRHP p.27, DRHP p.85). What the long-term loans and advances of ₹5.0 crore are is not explained in the text read (DRHP p.63).

The issue size, offer price, general corporate purposes and offer expenses are blank (DRHP p.97, DRHP p.116). The after-issue shareholding is blank (DRHP p.91).

Some inconsistencies are recorded as document matters: the risk factor says the FY26 write-off would turn profit into a loss of ₹0.32 crore while the auditor's report says a profit of ₹0.32 crore (DRHP p.31, DRHP p.226); the offer for sale is 3,56,000 shares on the cover and 366,500 in one table total (DRHP p.3, DRHP p.62);

securities premium before the offer is ₹8.6 crore in one table and ₹29.0 crore cumulative in the allotment history (DRHP p.81, DRHP p.83); EPS notes refer to a bonus issue though none is recorded (DRHP p.120, DRHP p.80); dues to micro and small suppliers are ₹15.1 crore in the risk factors, ₹15.9 crore on the balance sheet and ₹1.1 crore in the creditors table (DRHP p.33, DRHP p.63, DRHP p.293);

the company's tax matters are ₹0.18 crore in the risk summary and ₹1.85 crore in the litigation chapter (DRHP p.36, DRHP p.288); the risk factor gives top ten customer shares as 90.96%, 73.84% and 51.76% for FY26, FY25 and FY24, in reverse order to the business chapter (DRHP p.29, DRHP p.154); the working capital chapter says contracts are mainly with government entities (DRHP p.108) while the business chapter describes schools and trade buyers (DRHP p.147);

and promoter group businesses are described as similar on one page and not in the same line on another (DRHP p.47, DRHP p.217).

21Five questions for management

1. Which customers make up the ₹36.1 crore of receivables at March 31, 2026, how much is older than six months, and why was ₹6.6 crore written off against reserves rather than profit?
2. How much of the JVB Enterprises consideration of ₹20.0 crore was recorded as goodwill on the RGSM order, and where does that amount stand today?
3. How many uniform sets and metres of fabric were sold in FY24, FY25 and FY26, and at what average prices?
4. Why purchase the Goregaon office for ₹10.9 crore when the current rent is ₹1.25 lakh a month, and what return on the purchase does the board expect?
5. What share of the ₹34.7 crore order book has been delivered and paid for since September 22, 2026?

1Sources and cited facts

This study was read from 1 document the company filed. The 207 figures it cites are listed under the document each came from, with the page and the sentence as printed.