Brooks Restaurant and Banquets Limited IPO

01At a glance

What the company does: runs one integrated venue at Tragad, Ahmedabad, comprising three banquet halls, an outdoor party lawn, an open-air and indoor restaurant and 11 accommodation rooms, and sells venue hire, catering, dining and rooms as a package for weddings, social functions and corporate events (DRHP p.162, DRHP p.163).

Who pays it: hosts of social events, who were ₹1,038.05 lakh of FY26 revenue (54.71%), corporate customers at ₹360.51 lakh (19.00%) and restaurant diners at ₹498.91 lakh (26.29%) (DRHP p.168). The whole of revenue comes from Gujarat (DRHP p.25).

Why it is raising money: up to ₹4,370.00 lakh towards a new banquet and hotel with about 47 accommodation rooms, out of a total project cost of ₹4,521.39 lakh (DRHP p.88, DRHP p.27).

How fast it has grown: revenue from ₹1,247.21 lakh in FY25 to ₹1,897.47 lakh in FY26, 52.1%, and profit from ₹202.74 lakh to ₹605.84 lakh, 198.8%, by our arithmetic (DRHP p.60). FY24 covers only 59 days of operation, from February 2024 (DRHP p.38).

The one thing to understand: everything rests on one building. One venue in one city produced all of FY26 revenue, its largest hall was booked on 40.0% of available days, and the issue funds a second building of similar kind (DRHP p.25, DRHP p.39, DRHP p.88).

02The business, in plain words

A family books a wedding or a company books a conference. Brooks provides the hall or the lawn, cooks and serves the food from its own kitchen, decorates the space, and rents rooms to guests who have travelled. The same kitchen and premises also run a restaurant that serves walk-in diners on ordinary days (DRHP p.163, DRHP p.166).

A host needs a venue for a wedding or a conference → books a hall, a lawn or both → Brooks supplies the space, the catering and, where needed, rooms → Brooks is paid per event, plus restaurant takings.

The company was incorporated on June 28, 2022 and became a public company with a fresh certificate of incorporation in January 2026; the prospectus prints that certificate's date as January 2, 2026 in two places and January 5, 2026 in a third (DRHP p.2, DRHP p.201, DRHP p.65). Operations at the venue started in February 2024 (DRHP p.38). It had 61 permanent employees at July 31, 2026, of whom 38 were in kitchen and food service and 11 in sales and marketing (DRHP p.186). It has one subsidiary, Amoure Restaurant and Banquets Limited (DRHP p.63).

Earnings equation: Profit ≈ events held × average event value + restaurant covers × average spend − food cost − staff − rent and upkeep. In FY26 the cost of materials consumed was ₹455.49 lakh against revenue of ₹1,897.47 lakh, employee cost ₹264.49 lakh, other expenses ₹237.68 lakh and depreciation ₹112.13 lakh (DRHP p.60). The halls hosted 782 functions across 544 booked days (DRHP p.39).

03Where the money comes from

Source: DRHP p.168. FY24 covers 59 days of operation from February 2024 (DRHP p.38).

Banquet and event hosting was 73.71% of FY26 revenue and restaurant services 26.29% (DRHP p.168). Within events, social functions were 54.71% of total revenue and corporate events 19.00%, the corporate share having risen from 3.00% in FY25 (DRHP p.168).

The entire revenue comes from the State of Gujarat, and from a single facility (DRHP p.25). The prospectus does not disclose customer concentration, because no single customer is material in a business of many one-off bookings; nor does it name any customer. It does not disclose average revenue per event or per cover directly, although both can be worked back from the utilisation table (DRHP p.39).

04The growth record

Source: DRHP p.58, DRHP p.60, DRHP p.61. EBITDA, its margin, the PAT margin, net worth and borrowings are our arithmetic on those statements: EBITDA is profit before tax plus finance costs and depreciation less other income, and net worth is share capital plus reserves.

A compound growth rate from FY24 is not meaningful here, because FY24 covers 59 days of operation from February 2024 rather than a year (DRHP p.38). On the two full years, revenue grew 52.1% and profit 198.8%, by our arithmetic (DRHP p.60). The EBITDA margin moved from 31.15% to 49.53%, 1,838 basis points, by our arithmetic (DRHP p.60).

Two things sit behind the margin. Depreciation was almost flat, ₹109.15 lakh in FY25 and ₹112.13 lakh in FY26, on a property, plant and equipment base that moved from ₹716.19 lakh to ₹687.04 lakh, so the fixed cost of the building did not grow with revenue (DRHP p.60, DRHP p.58). Employee cost rose 20.3% while revenue rose 52.1%, by our arithmetic (DRHP p.60).

05What the growth is made of

Revenue rose from ₹1,247.21 lakh in FY25 to ₹1,897.47 lakh in FY26, an increase of ₹650.26 lakh (DRHP p.60). What the document supports:

More events, and busier days. The four venues hosted 782 functions on 544 booked days in FY26. Occupancy by venue was 42.7% for Spread-1, 40.0% for the Grand Banquet, 39.5% for Spread-2 and 26.8% for the Party Lawn, against 15.3% to 25.4% in the 59 days of FY24 (DRHP p.39, DRHP p.38).

Corporate work. Corporate events went from ₹37.40 lakh to ₹360.51 lakh, ₹323.11 lakh of the increase, by our arithmetic; social events added ₹243.24 lakh and restaurant services ₹83.79 lakh (DRHP p.168).

Restaurant covers. The prospectus works out actual covers a day from walk-in revenue and average spend: 199 a day in FY25 and 218 in FY26, against a target of 545, so utilisation went from 36.5% to 40.0% of target. Average spend a cover was ₹550 in both years (DRHP p.39).

The company does not publish average revenue per event, so the split of the banquet increase between more functions and higher prices cannot be made from the document. That sentence is the finding.

06Earnings quality

The line that needs explaining is receivables. Trade receivables were ₹6.26 lakh at March 2025 and ₹197.91 lakh at March 2026, against revenue that grew by half (DRHP p.58). In a business where hosts pay around the event, a jump from about 2 days to about 38 days of revenue, by our arithmetic, is a change in how money is collected, and the prospectus does not explain it.

A second line is tax. The charge went from ₹72.24 lakh to ₹207.67 lakh, and the effective rate from 26.3% to 25.5%, by our arithmetic (DRHP p.60). Income tax paid in cash was ₹119.06 lakh in FY26 against a current tax charge of ₹227.35 lakh (DRHP p.61, DRHP p.60).

07The balance sheet

At March 31, 2026 the company had no borrowings, against ₹144.74 lakh a year earlier and ₹486.01 lakh two years earlier; long-term borrowings of ₹205.47 lakh were repaid during FY26 (DRHP p.58, DRHP p.61). Cash and cash equivalents were ₹447.17 lakh (DRHP p.58). Net worth was ₹1,220.36 lakh (DRHP p.58).

Property, plant and equipment was ₹687.04 lakh and intangible assets ₹22.59 lakh (DRHP p.58). Trade payables were ₹26.85 lakh, of which ₹22.92 lakh were due to micro and small enterprises, by our arithmetic (DRHP p.58). Short-term provisions rose from ₹1.59 lakh to ₹126.40 lakh (DRHP p.58).

The company states it had no contingent liabilities as at the date of the prospectus (DRHP p.62).

The whole of the issue proceeds, up to ₹4,370.00 lakh, would go into a new building, against a net worth of ₹1,220.36 lakh and fixed assets of ₹709.63 lakh today, by our arithmetic (DRHP p.88, DRHP p.58). The rupee size of the issue is not yet set, so nothing further can be worked out.

08What the money is for

Source: DRHP p.88. General corporate purposes are blank ([●]) and cannot exceed 15% of the amount raised or ₹10 crore, whichever is less (DRHP p.88).

The new facility is to carry about 47 accommodation rooms alongside banquet and restaurant space, and the company intends to let those rooms to standalone guests as well as event guests, to use the building outside the wedding season (DRHP p.27).

The total estimated project cost is ₹4,521.39 lakh, of which ₹4,370.00 lakh would come from the net proceeds and any shortfall from internal accruals; because the balance is to come from internal accruals, the company states that no firm arrangement of finance for 75% of the means of finance is required (DRHP p.88). The objects have not been appraised by any bank or financial institution (DRHP p.42).

The prospectus records that no alternate source of funding has been identified for the part of the capital expenditure to be funded from the issue (DRHP p.48).

Into the business the whole of the issue. It is a fresh issue of 2,85,00,000 equity shares of ₹2 each, with no offer for sale (DRHP p.73, AP p.1). To selling shareholders nil.

The rupee amount cannot be stated, because the price band is blank at this stage (DRHP p.73).

09Who is selling

No one. The issue is a fresh issue of 2,85,00,000 equity shares of face value ₹2 each and the abridged prospectus records the offer for sale as nil, so there are no selling shareholders and no weighted average cost of acquisition to disclose for them (AP p.1).

Part of the issue is to be reserved for the market maker; the number of shares is blank at this stage (DRHP p.73).

10Promoters

The promoters are Ronak Vasantbhai Patel, Amitkumar Govindbhai Patel, Jimit Amitbhai Patel, Kushal Nitinbhai Patel, Nitinbhai Govindbhai Patel, Riya Harshit Shah, Gitaben Nitinbhai Patel, KN Family Trust and NG Family Trust (DRHP p.1). Six of them hold shares: Ronak Vasantbhai Patel is managing director and chairman, and Amitkumar Govindbhai Patel and Jimit Amitbhai Patel are non-executive directors (AP p.8, DRHP p.65). Three named promoters, Nitinbhai Govindbhai Patel, Gitaben Nitinbhai Patel and Kushal Nitinbhai Patel, hold no shares at all (DRHP p.78).

Promoter economics. The weighted average cost of acquisition, adjusted for the bonus issue and the share split, is ₹0.67 a share for Ronak Vasantbhai Patel and ₹0.65 for Amitkumar Govindbhai Patel, Jimit Amitbhai Patel, Riya Harshit Shah, NG Family Trust and KN Family Trust; none acquired shares in the last year (AP p.8).

Those costs follow from the capital history: 1,00,000 shares at ₹10 on incorporation, a rights issue of 38,90,000 shares at ₹10 on March 29, 2025 raising ₹389.00 lakh, a split of the face value from ₹10 to ₹2 on May 16, 2026, and a bonus issue of 3,99,00,000 shares in the ratio 2:1 on May 25, 2026 (DRHP p.74, DRHP p.75).

The rights issue price of ₹10 becomes ₹0.67 after the split and bonus (DRHP p.121). The prospectus records no secondary sale or acquisition involving a promoter in the 18 months before the filing (DRHP p.121).

Litigation touches the promoters rather than the company. A show cause notice dated July 8, 2026 has been issued by SEBI to the promoter Kushal Nitinbhai Patel concerning alleged contraventions of the SEBI Act, 1992 and the regulations on fraudulent and unfair trade practices; the notice states no amount (DRHP p.288, AP p.8). Ten tax proceedings are outstanding against the promoters, involving ₹306.48 lakh, and one material civil litigation, while the promoters have themselves filed three writ matters that involve no money claim (AP p.8). Two land disputes in Ahmedabad and Kadi involve promoters as defendants (DRHP p.287, DRHP p.288).

The related-party note records loans taken from and repaid to directors and their relatives, but no remuneration to them in any of the three years; all such loan balances were nil at March 31, 2026 (DRHP p.64).

11Who already owns it

Source: DRHP p.78, and our arithmetic for the column after the issue on 8,83,50,000 shares. Promoters hold 99.50% before the issue and would hold 67.40% after it, by our arithmetic (DRHP p.78, DRHP p.73).

There were seven shareholders in all before the issue, six promoters and one public holder (DRHP p.77). There is no private equity, no venture capital, no institutional holding and no employee stock option scheme (DRHP p.77, DRHP p.76). Two of the six promoter holdings are family trusts, which together hold 55.96%, by our arithmetic (DRHP p.78).

12What changed just before the IPO

• June 28, 2022: the company was incorporated as Brooks Restaurant and Banquets Private Limited (DRHP p.65).
• February 2024: the venue began operating, giving FY24 only 59 days of trading (DRHP p.38).
• October 14, 2024 and March 17, 2026: authorised capital raised from ₹10,00,000 to ₹5,00,00,000 and then to ₹15,00,00,000 (DRHP p.74).
• March 29, 2025: rights issue of 38,90,000 shares at ₹10, raising ₹389.00 lakh; the promoter trusts took 21,88,125 of them (DRHP p.75).
• December 12, 2025 and January 2026: the company became a public company and was renamed Brooks Restaurant and Banquets Limited (DRHP p.65).
• FY26: borrowings went to nil from ₹144.74 lakh, and all director loan balances went to nil (DRHP p.58, DRHP p.64).
• FY26: trade receivables rose from ₹6.26 lakh to ₹197.91 lakh (DRHP p.58).
• March 7, 2026: Imdadali Mikdadali Ganthiya ceased to be a director; the same person remains the only public shareholder (DRHP p.63, DRHP p.78).
• April 15, 2026: two independent directors, a chief financial officer and a company secretary were appointed (DRHP p.63).
• May 16, 2026: face value split from ₹10 to ₹2 (DRHP p.74).
• May 25, 2026: bonus issue of 3,99,00,000 shares, two for one (DRHP p.75).
• June 2, 2026: the board approved the business plan behind the objects of the issue, and authorised capital was raised to ₹20,00,00,000 (DRHP p.88, DRHP p.74).
• July 8, 2026: SEBI issued a show cause notice to the promoter Kushal Nitinbhai Patel (DRHP p.288).

13Capacity and expansion

Source: DRHP p.162, DRHP p.164, DRHP p.165, DRHP p.166, DRHP p.39, DRHP p.168. Areas and capacities are certified by a chartered engineer, Hitesh Parekh, by a certificate dated August 17, 2026 (DRHP p.166). Spread 1 and Spread 2 can be combined to hold about 400 persons, and with the Party Lawn about 800 (DRHP p.162).

What the issue adds is a second banquet and hotel with about 47 accommodation rooms, more than four times the rooms the company has today (DRHP p.27). The prospectus states the aims in words, being more events, more customers and a separate stream of room revenue, and does not state the capacity the new halls will carry or the revenue they are expected to earn (DRHP p.177). The consent to operate for the existing Tragad facility has been applied for and is pending approval (DRHP p.37).

14Market size and industry structure

As claimed: the industry information comes from the report "Industry Report on Integrated Hospitality & Event Solutions in India" dated September 3, 2026, prepared by Dun & Bradstreet Information Services India Private Limited, appointed on April 16, 2026 and, as the prospectus states, exclusively commissioned and paid for by the company for the purposes of the issue; the prospectus adds a risk factor about relying on it (DRHP p.161, DRHP p.46).

The report describes a shift from many local vendors to a single professional provider, driven by urbanisation, rising incomes and the growing scale of weddings and corporate events (AP p.3, DRHP p.149). It states no market size that this study can quote for the company's own segment and city.

The part that is addressable: weddings, social functions, corporate events and restaurant dining in and around Ahmedabad, Gujarat, which is where all of the company's revenue arises (DRHP p.25).

What the company is today: revenue of ₹1,897.47 lakh from one venue with four event spaces, 215 restaurant covers and 11 rooms (DRHP p.60, DRHP p.162).

Structure, as far as the document supports it: the prospectus describes the hospitality and event solutions market as competitive and fragmented (DRHP p.31). Demand is discretionary and seasonal, concentrating in wedding and festive periods (DRHP p.34, DRHP p.38). Food, kitchen supplies and other inputs are bought without long-term agreements from a majority of suppliers and vendors (DRHP p.28). Regulation is tightening: the prospectus notes that food safety has moved from a one-time licence to continuous digital compliance, and sets out the goods and services tax framework for hotels, restaurants, catering and banquets (DRHP p.152).

15Competitive position

The prospectus states there are no listed companies in India engaged in a business similar to the company's, and therefore gives no industry comparison of accounting ratios (DRHP p.119). This study does not supply one, because doing so would mean going outside the offer document.

What the document does give, as the basis on which the company competes: one integrated site where venue, catering, dining and rooms are sold together, so a host can settle an event in one place; four configurable spaces from about 125 to about 800 persons; a kitchen that serves Indian, Continental, Chinese, Mexican, Thai and Italian cuisine; and 11 rooms for guests travelling in (DRHP p.162, DRHP p.163, DRHP p.166). It does not disclose repeat-booking rates, enquiry-to-booking conversion, or any measure of share of the Ahmedabad market. The registered office and the facility are on premises the company does not own (DRHP p.43, DRHP p.23).

16Peers the company named

Peers named in the offer document: none. The prospectus states that there are no listed companies in India in a similar business and gives no peer comparison (DRHP p.119).

Because no peer set exists in the document, there is no peer price to earnings ratio, no peer return on net worth and no peer net asset value to set against the company's own. The company's own figures at the draft stage are a return on equity and a return on capital employed it defines in its key performance indicators, and an earnings per share of ₹1.01 for FY26 after adjusting for the bonus issue and the share split (DRHP p.120, DRHP p.60).

Once a price band exists, a reader will have no listed comparison printed in the offer document itself. That absence is itself information, and it is stated here rather than filled in.

17Risks, in plain words

One building, one city: all revenue comes from one facility at Tragad, Ahmedabad, in the State of Gujarat (DRHP p.25, DRHP p.23) → a fire, a closure order or a local downturn stops the whole business → the consent to operate for that facility has been applied for and is still pending approval (DRHP p.37), and the premises are not owned by the company (DRHP p.23).

Utilisation: the largest hall was booked on 40.0% of available days in FY26 and the Party Lawn on 26.8% (DRHP p.39) → fixed costs run whether or not a hall is booked → depreciation alone was ₹112.13 lakh in FY26, 5.9% of revenue, by our arithmetic (DRHP p.60).

Discretionary and seasonal demand: 54.71% of FY26 revenue came from social events, chiefly weddings (DRHP p.168, DRHP p.38) → bookings fall away outside the wedding and festive seasons and in a weak economy → the company states that corporate customers also cut spending on conferences and functions in uncertain periods (DRHP p.34).

The new project: the issue funds a second banquet and hotel costing ₹4,521.39 lakh, against net worth of ₹1,220.36 lakh today (DRHP p.88, DRHP p.58) → a building that does not fill absorbs capital and fixed cost → the objects have not been appraised by any bank or financial institution, and no alternate source of funding has been identified for the part to be funded from the issue (DRHP p.42, DRHP p.48).

Promoters and regulators: SEBI issued a show cause notice to the promoter Kushal Nitinbhai Patel on July 8, 2026 concerning alleged contraventions of the SEBI Act and the regulations on fraudulent and unfair trade practices (DRHP p.288) → an adverse finding would affect a promoter of a company seeking listing → ten tax proceedings against the promoters involve ₹306.48 lakh, and the notice itself states no amount (AP p.8).

Receivables: trade receivables went from ₹6.26 lakh to ₹197.91 lakh in one year (DRHP p.58) → money owed after an event is money not yet collected → that is about 38 days of revenue against about 2 a year earlier, by our arithmetic (DRHP p.58, DRHP p.60).

Compliance: the prospectus records past non-compliance with certain provisions of the Companies Act, 2013, and delays and compliance issues in corporate records and forms filed with taxation and other public authorities (DRHP p.35, DRHP p.39). The prospectus also gives two different dates, January 2 and January 5, 2026, for the fresh certificate of incorporation on conversion to a public company (DRHP p.2, DRHP p.65).

Suppliers and food safety: there are no long-term agreements with a majority of suppliers and vendors, and the business depends on maintaining the quality, hygiene and safety of food (DRHP p.28, DRHP p.31).

18Litigation and regulatory matters

Source: AP p.8. There are no criminal proceedings against the company, its promoters, its directors or its key managerial personnel, and no actions by statutory or regulatory authorities against the company (DRHP p.287, DRHP p.289).

The SEBI notice, reference DIS/17845-17857/2026 dated July 8, 2026, was issued to the promoter Kushal Nitinbhai Patel in relation to alleged contraventions of the SEBI Act, 1992 and the regulations on the prohibition of fraudulent and unfair trade practices (DRHP p.288).

Of the civil matters, one is a suit before the Principal Senior Civil Judge at Sanand concerning agricultural land at Rethal Village in which promoters are among the defendants, and another concerns a right of way at Thol Village, Kadi, where an order of January 20, 2024 went against the promoters and a revision was rejected on March 15, 2025 (DRHP p.287, DRHP p.288).

The company itself has no tax proceedings of any kind (DRHP p.289).

19Related-party transactions

Source: DRHP p.64, and our arithmetic in adding the individual lines. The prospectus records no remuneration, rent, purchases or sales with related parties in any of the three years; the only transactions shown are loans (DRHP p.64).

The related parties named are the subsidiary Amoure Restaurant and Banquets Limited, the directors and key managerial personnel, three relatives of directors, and ten enterprises over which key managerial personnel or their relatives have significant influence, including Aditya Oil Industries Limited, Axita Cotton Limited, Maitrisatya Palace LLP, Rang Infosoft Private Limited, Rang Digitech Private Limited, NG Family Trust and KN Family Trust (DRHP p.63).

What changed: the business was started on director loans, ₹662.20 lakh of them in FY24, by our arithmetic, and every such balance was cleared by March 31, 2026 (DRHP p.64).

20What the offer document does not say

• Average revenue per event is not disclosed, so the banquet increase cannot be split between more functions and higher prices (DRHP p.39).
• Occupancy of the 11 accommodation rooms is not disclosed (DRHP p.166).
• The capacity, room rates and expected revenue of the proposed new facility are not stated (DRHP p.177).
• There is no listed peer comparison, because the prospectus states no similar listed company exists in India (DRHP p.119).
• No market size for the company's own segment and city is quoted from the commissioned report (DRHP p.161).
• The reason receivables rose from ₹6.26 lakh to ₹197.91 lakh is not explained (DRHP p.58).
• The lease terms for the existing facility and the registered office are not summarised in the pages read (DRHP p.23, DRHP p.43).
• The price band, the bid lot and the rupee size of the issue are blank at this stage (DRHP p.73).

21Five questions for management

1. What was the average billing per function in FY25 and FY26, hall by hall, and how much of the ₹650.26 lakh revenue increase came from price rather than from more functions (DRHP p.39)?
2. What was room occupancy across the 11 existing rooms in FY26, and what occupancy and room rate does the 47-room project assume (DRHP p.27)?
3. Why did trade receivables rise from ₹6.26 lakh to ₹197.91 lakh, and who owes the March 2026 balance (DRHP p.58)?
4. When is the consent to operate for the Tragad facility expected, and what happens to bookings if it is delayed (DRHP p.37)?
5. What is the status of the SEBI show cause notice to the promoter Kushal Nitinbhai Patel, and what reply has been filed (DRHP p.288)?

2Sources and cited facts

This study was read from 2 documents the company filed. The 126 figures it cites are listed under the document each came from, with the page and the sentence as printed.