Roopa Screen Limited IPO

01At a glance

What the company does: makes rotary nickel screens, the cylindrical perforated stencils that rotary screen-printing machines use to print patterns on fabric, and also trades nickel cathodes (RHP p.112, RHP p.116).

Who pays it: textile printing units, all business to business; 210 customers in FY26, the largest 6.43% of revenue and the top ten 34.53% (RHP p.119, RHP p.113). Gujarat was 58.93% of FY26 revenue (RHP p.115).

Why it is raising money: ₹990.46 lakh to build a new plant on a plot next to the existing one, and ₹600.00 lakh for working capital, with general corporate purposes left blank (RHP p.79, RHP p.82).

How fast it has grown: revenue from ₹3,570.53 lakh in FY24 to ₹5,072.73 lakh in FY26, about 19.2% a year, and profit after tax from ₹150.36 lakh to ₹648.33 lakh, about 107.6% a year (our arithmetic, RHP p.49).

The one thing to understand: on 16 September 2026, three days before this prospectus was dated, two promoters sold 8,06,750 shares, 10.00% of the capital, at ₹54 a share to Kedia Securities Private Limited and Zion Infraventure LLP (RHP p.72, RHP p.73, RHP p.75). The band announced for this issue is ₹60 to ₹64.

02The business, in plain words

Roopa Screen buys nickel cathodes and plating chemicals, deposits copper then nickel on a cylindrical mandrel, etches the mesh and chrome-plates the surface, and sells the finished screen to textile printers, who wear it out and replace it (RHP p.117, RHP p.118). The screens are consumables, so demand is repeat demand rather than project orders, and the company keeps no order book (RHP p.89).

A textile printer needs a stencil → purchases a rotary nickel screen in a given mesh, thickness and repeat size → Roopa plates, etches and finishes it from nickel cathodes at Sanand → Roopa keeps what is left after nickel and chemicals, power, labour and interest.

The company was incorporated in April 2013 as Roopa Screen Private Limited and converted to a public limited company on 2 June 2025 (RHP p.235). It runs one manufacturing plant at Gallops Industrial Park II, Sanand, Ahmedabad, a godown at Surat and a sales depot at Panipat, Haryana (RHP p.113). A second unit at Narol, Ahmedabad stopped manufacturing on 15 December 2025 because the company did not hold certain statutory approvals for it; its machines are to be moved to the plant the issue will build (RHP p.113, RHP p.119). There were 128 permanent employees at 31 August 2026 and no contract labour (RHP p.121).

Earnings equation: Profit ≈ screens sold × (price per screen − nickel and chemical cost) − power, labour and plant costs − interest. In FY26 the company made 71,800 screens at Sanand and 6,800 at Narol, purchased ₹3,356.07 lakh of materials and reported revenue of ₹5,072.73 lakh (RHP p.119, RHP p.120, RHP p.49).

03Where the money comes from

Source: RHP p.116. The total differs slightly from revenue from operations of ₹5,072.73 lakh, which includes other operating revenue (RHP p.49).

By geography, FY26 revenue was Gujarat 58.93%, Maharashtra 17.30%, Haryana 11.31%, Punjab 6.72% and Tamil Nadu 2.32%, across eleven states, with ₹15.63 lakh, 0.31%, exported to Sri Lanka (RHP p.115).

Source: RHP p.119, RHP p.120. Revenue does not depend on a few customers: no single customer was more than 10% of revenue in any of the three years, and there were 210 customers in FY26 (RHP p.24, RHP p.113). Purchases are the concentrated side: the largest supplier was 56.35% of FY26 purchases and the top ten 96.73% (RHP p.121, RHP p.25). One customer in the FY24 top ten is recorded as a related party in which directors of the company hold an interest (RHP p.25).

04The growth record

Source: RHP p.113, RHP p.49, RHP p.50.

Net worth was ₹520.53 lakh, ₹989.06 lakh and ₹1,637.39 lakh; total borrowings fell from ₹898.06 lakh at March 2024 to ₹741.75 lakh at March 2026; return on equity was 33.76%, 62.07% and 49.37% and return on capital employed 22.76%, 42.21% and 39.33% (our arithmetic, RHP p.47, RHP p.113). Our arithmetic: revenue grew about 19.2% a year from FY24 to FY26, EBITDA about 53.6% and profit about 107.6%; EBITDA margin rose 785 basis points and PAT margin 857 basis points (RHP p.113).

05What the growth is made of

Trading, and then margin. Read from the filing: revenue from the company's own screens went from ₹3,518.91 lakh in FY24 to ₹4,207.33 lakh in FY26, about 9.3% a year, while trading of nickel cathodes went from ₹45.96 lakh to ₹856.50 lakh; trading accounts for ₹810.54 lakh of the ₹1,498.97 lakh increase in product revenue over the two years, about 54% of it (our arithmetic, RHP p.116). The prospectus describes the cathode trading as a low-margin and competitive business (RHP p.30).

Screens made rose from 62,038 to 71,800 at Sanand over the same two years, with utilisation going from 83.38% to 96.51%, while the Narol unit fell from 11,040 to 6,800 screens before it stopped (RHP p.119). Read from the filing: total screens made went from 73,078 in FY24 to 78,600 in FY26, about 3.7% a year, so the rise in screen revenue is mostly realisation and mix rather than units (our arithmetic, RHP p.119). Profit grew faster than either, as EBITDA margin went from 11.87% to 19.72% (RHP p.113); the prospectus does not give a margin by product, so the trading and manufacturing margins cannot be separated.

06Earnings quality

Two items need explaining. First, cash: operating cash flow has fallen in each of the three years even as profit has trebled, from ₹586.45 lakh in FY24 to ₹284.64 lakh in FY26, because receivables rose from ₹701.57 lakh to ₹1,277.75 lakh and inventories from ₹448.62 lakh to ₹698.40 lakh (RHP p.50, RHP p.47). The company projects receivable days at 90 for the next two years, against 72 in FY24 (RHP p.88). Second, other income: ₹59.28 lakh in FY26 includes a government interest subsidy of ₹26.27 lakh and ₹7.52 lakh of vehicle rent from a promoter group firm (RHP p.193, RHP p.198).

07The balance sheet

At March 2026 borrowings were ₹741.75 lakh: ₹74.40 lakh long term and ₹667.35 lakh short term, against ₹898.06 lakh at March 2024 (RHP p.47). Debt to equity was 0.45 times in FY26, against 1.73 in FY24 (RHP p.201). Cash and bank balances were ₹30.06 lakh, of which ₹6.80 lakh was cash in hand (RHP p.47, RHP p.51).

The auditor's indebtedness statement at 31 August 2026 shows ₹891.50 lakh of secured facilities sanctioned by Bank of Baroda, including a ₹625.00 lakh cash credit and a ₹400.00 lakh term loan for a solar plant that was fully drawn (RHP p.209). Separately, ₹286.52 lakh was owed to four directors at 6.50% interest, repayable on demand (RHP p.212, RHP p.32). The bank security includes property owned by Kunal Ghanshyambhai Thakker, by Ghanshyambhai Ranchhodbhai Thakkar and by Ghanshyambhai Ranchhodbhai Thakkar with Bhartiben Ghanshyambhai Thakkar, and the loans carry personal guarantees from the promoters (RHP p.210, RHP p.40).

Contingent liabilities were ₹33.38 lakh of GST at March 2026 and capital commitments ₹344.17 lakh, nil in both earlier years (RHP p.52).

After the issue: at the upper band the fresh issue brings in ₹1,920.00 lakh before expenses, against net worth of ₹1,637.39 lakh at March 2026, and none of it repays debt (our arithmetic, RHP p.47, RHP p.79).

08What the money is for

Source: RHP p.79; percentages our arithmetic on a fresh issue of ₹1,920.00 lakh at ₹64.

The new facility is on Plot No. 191 at Gallops Industrial Estate Part II, Sanand, about 1,174 square metres next to the existing plot, leased under a deed dated 10 December 2025 from Deval Ghanshyam Bhai Thakker, a member of the promoter group (RHP p.82).

Its total cost is put at ₹1,060.98 lakh: civil construction ₹297.57 lakh, plant and machinery ₹671.88 lakh, electrical work ₹41.01 lakh and a contingency of ₹50.52 lakh to come from internal accruals, of which ₹20.00 lakh had already been paid to the civil contractor in July 2026 (RHP p.82, RHP p.83). No orders had been placed for the machinery as at the date of the prospectus; the quotations are budget estimates (RHP p.85).

The schedule runs from civil work in July 2026 to commercial operation in March 2027 (RHP p.87). Of the working capital money, ₹400.00 lakh is for FY 2026-27 and ₹200.00 lakh for the period to December 2027 (RHP p.88).

No monitoring agency has been appointed, because the issue is below ₹5,000 lakh (RHP p.91). Our arithmetic: at the upper band ₹329.54 lakh of the gross proceeds is not allotted to a named object and covers general corporate purposes and issue expenses, both left blank (RHP p.79, RHP p.90).

Into the business the whole issue: up to 30,00,000 new shares, ₹1,920.00 lakh at the upper band (our arithmetic, RHP p.65). To selling shareholders nothing: there is no offer for sale (RHP p.45).

09Who is selling

No one in the issue. It is entirely new shares issued by the company, of which 2,10,000 are reserved for the market maker, B.N. Rathi Securities Limited (RHP p.45, RHP p.62).

Outside the issue, two promoters sold shares three days before the prospectus was dated. On 16 September 2026 Bhartiben Ghanshyambhai Thakkar transferred 6,05,063 shares, 7.50% of the capital, to Kedia Securities Private Limited, and Preksha Kunal Thakkar transferred 2,01,687 shares, 2.50%, to Zion Infraventure LLP, both at ₹54 a share (RHP p.72, RHP p.73, RHP p.74, RHP p.75). That is ₹435.65 lakh between them (our arithmetic, RHP p.75).

10Promoters

The promoters are Ghanshyambhai Ranchhodbhai Thakkar, aged 75, chairman and managing director, with 35 years of experience; Kunal Ghanshyambhai Thakker, aged 44, whole time director and chief financial officer, with 20 years; Bhartiben Ghanshyambhai Thakkar, aged 67, non-executive director, with 9 years; and Preksha Kunal Thakkar, aged 44, executive director, with 10 years (RHP p.154, RHP p.155).

The prospectus states the relationships: Bhartiben Ghanshyambhai Thakkar is the spouse of Ghanshyambhai Ranchhodbhai Thakkar, Kunal Ghanshyambhai Thakker is their son, Preksha Kunal Thakkar is the spouse of Kunal Ghanshyambhai Thakker, and Deval Ghanshyambhai Thakkar, a member of the promoter group, is the daughter of Ghanshyambhai Ranchhodbhai Thakkar and Bhartiben Ghanshyambhai Thakkar (RHP p.157, RHP p.158).

Ghanshyambhai Ranchhodbhai Thakkar and Kunal Ghanshyambhai Thakker are partners in Roopa Engineers, a promoter group firm in a similar line of business (RHP p.154, RHP p.33).

The four promoters held 68,75,750 shares, 85.23% of the capital, and the promoter group a further 1,75,000, taking the total to 87.40% (RHP p.74, RHP p.69). Four of the six board seats are held by promoters (RHP p.55).

Promoter economics: the shares were built up through eight rights issues between 2013 and 2021 at ₹10, ₹17, ₹22 and ₹25 a share, and then a bonus issue of six for one on 22 September 2025 (RHP p.66, RHP p.72).

Average cost of acquisition is stated as ₹2.70 for Kunal Ghanshyambhai Thakker, ₹2.71 for Ghanshyambhai Ranchhodbhai Thakkar and nil for Bhartiben Ghanshyambhai Thakkar and Preksha Kunal Thakkar, the last two having recovered their cost in the September 2026 sales at ₹54 (RHP p.74). No promoter shares are pledged (RHP p.69). Promoter remuneration was ₹51.00 lakh in FY24 and ₹82.80 lakh in FY26 across the four (our arithmetic, RHP p.53, RHP p.54).

A notice under Section 154 of the Income Tax Act for ₹4,190 for assessment year 2017-18 against Ghanshyambhai Ranchhodbhai Thakkar remains pending because no reply was filed (RHP p.233, RHP p.234).

11Who already owns it

Before the issue there are 80,67,500 shares held by ten shareholders: five in the promoter and promoter group category with 87.40% and five in the public category with 12.60% (RHP p.69). After the issue there will be up to 1,10,67,500 shares, and the promoters' 68,75,750 would be about 62.1%, with the promoter group taking the total to about 63.7% (our arithmetic, RHP p.65, RHP p.74).

The holders of 1% or more are Kunal Ghanshyambhai Thakker 38.26%, Ghanshyambhai Ranchhodbhai Thakkar 34.92%, Kedia Securities Private Limited 7.50%, Preksha Kunal Thakkar 6.61%, Bhartiben Ghanshyambhai Thakkar 5.43%, Zion Infraventure LLP 2.50% and Deval Ghanshyambhai Thakkar 2.17% (RHP p.70). Kedia Securities Private Limited and Zion Infraventure LLP were not holders ten days before the prospectus; both came in on 16 September 2026 at ₹54 a share (RHP p.70, RHP p.75). The securities premium account stood at ₹109.05 lakh before the issue, the whole of it raised in the rights issues (RHP p.65, RHP p.66).

12What changed just before the IPO

• The company converted from private to public and was renamed on 2 June 2025 (RHP p.235).
• The authorised capital was raised from ₹1.50 crore to ₹12.00 crore on 19 May 2025 (RHP p.66).
• A bonus issue of 69,15,000 shares, six for one, was allotted on 22 September 2025, taking the capital from 11,52,500 to 80,67,500 shares (RHP p.66).
• The statutory auditor changed: ASHOK K BHATT & Co. resigned on 3 July 2025 citing preoccupation with other assignments, and G M C S & Co. was appointed on 21 July 2025 to fill the casual vacancy (RHP p.62).
• Two independent directors, Nigambhai Govindbhai Sathavara and Uttam Rewatchand Bhandari, were appointed on 11 August 2025, and a company secretary on 1 July 2025 (RHP p.53).
• Manufacturing at the Narol unit stopped on 15 December 2025 because the company did not hold certain statutory approvals for it (RHP p.113).
• A non-compete agreement with Roopa Engineers, the promoter group firm in a similar business, was signed on 31 January 2026 (RHP p.32).
• A lease for the new plot was signed on 10 December 2025 with Deval Ghanshyambhai Thakkar, of the promoter group (RHP p.82).
• Trading of nickel cathodes went from ₹45.96 lakh of revenue in FY24 to ₹856.50 lakh in FY26 (RHP p.116).
• On 16 September 2026 two promoters sold 8,06,750 shares, 10.00% of the capital, at ₹54 a share (RHP p.75).

13Capacity and expansion

Source: RHP p.119, RHP p.81, RHP p.87. The new facility is to take installed capacity from 74,400 to about 1,63,200 screens a year, on a chartered engineer's report of 15 September 2026 (RHP p.81). The company also plans to add a 1,018 mm diameter screen to a range that is now 640 mm, 819 mm and 914 mm (RHP p.81).

It notes that aggregate utilisation understates the constraint, because changeovers between sizes and designs limit effective throughput (RHP p.81). The Narol machines are to be moved to the new plant once construction and approvals are complete (RHP p.113). Consent to establish for the new plant is in hand and valid to January 2033; the building completion certificate and consent to operate are still to come (RHP p.87).

14Market size and industry structure

As claimed: the industry chapter draws on a report titled "Research Report for Rotary Nickel Screen Industry, February 2025", prepared by Care Analytics and Advisory Private Limited and commissioned and paid for by the company (RHP p.112).

It states that the Indian rotary nickel screen market is projected to grow at 10.8% a year by volume and 12.6% by value over 2020 to 2030, and that the North American market is projected to pass USD 24 million by CY30 at about 6% a year (RHP p.110, RHP p.108).

The market size charts in that chapter are images and carry no figures in the text of the filing, so the size of the Indian market in rupees is not stated in words.

The part that is addressable: rotary nickel screens sold to textile printing units in India, chiefly in Gujarat, Maharashtra, Haryana, Punjab and Tamil Nadu, which were 96.58% of FY26 revenue (RHP p.114).

What the company is today: 78,600 screens made in FY26 across the two units and ₹5,072.73 lakh of revenue (RHP p.119, RHP p.49). Because the commissioned report's size figures are not given in the text, the company's share cannot be worked out from the filing.

On structure, the prospectus calls the segment fragmented, with organised and unorganised players competing on quality, price, consistency, technical support and delivery times, and notes that some competitors have larger capacity, broader portfolios and greater financial and distribution resources (RHP p.120). The prospectus also states that certain industry, market and statistical information in it has not been independently verified (RHP p.37).

15Competitive position

The prospectus names its competitors: Stovec Industries Limited, which is listed, and the unlisted Gurjar Gravures Private Limited, Screen O Tex India Pvt. Ltd. and Harish Nickel Screens Pvt. Ltd. (RHP p.120). The reasons it gives for customers buying from it are in-house manufacturing with integrated testing, screens offered in four variants and several mesh counts, a customer base spread across eleven states, and promoters with long experience in the trade (RHP p.93, RHP p.114).

Against that, the trademark under which it operates is not registered (RHP p.30), the manufacturing facility, godown, sales depot and registered office are all leased rather than owned (RHP p.26), and a promoter group firm, Roopa Engineers, is in a similar line of business, with a non-compete agreement signed in January 2026 (RHP p.32).

16Peers the company named

Peer named in the offer document: Stovec Industries Limited (RHP p.95).

Source: RHP p.95; Stovec's price is the BSE close of 7 September 2026 and its financials are for the calendar year ended 31 December 2025, because it follows a calendar year (RHP p.95). The prospectus notes that the product portfolios differ: Stovec's business includes rotary printing systems, digital textile printing machines and related consumables (RHP p.94). Stovec's revenue is about 3.9 times Roopa Screen's (our arithmetic, RHP p.95). The prospectus also flags that limited availability of comparable listed peers may affect assessment of the company (RHP p.41), and that certain key performance indicators for listed peers in the document are as computed by the company (RHP p.41).

17Valuation at the issue price

At the upper band of ₹64, with the full 30,00,000 new shares added to 80,67,500 existing shares (our arithmetic, RHP p.65):

Source: RHP p.65, RHP p.207, RHP p.49. At the lower band of ₹60 the market capitalisation is ₹6,640.50 lakh and the P/E on FY26 profit 10.2 times (our arithmetic, RHP p.65). Enterprise value, adding March 2026 borrowings of ₹741.75 lakh and deducting cash of ₹30.06 lakh but not the issue proceeds, is ₹7,794.89 lakh, 7.8 times FY26 EBITDA of ₹1,000.32 lakh (our arithmetic, RHP p.47, RHP p.113). After the issue, book value including the gross proceeds would be about ₹3,557.39 lakh, and the market capitalisation at the upper band 2.0 times that (our arithmetic, RHP p.47).

The one peer the prospectus names traded at 50.54 times earnings on 7 September 2026 (RHP p.94). At the upper band the issue is priced at 10.9 times FY26 profit on the enlarged share count, about 78% below that figure, and at 8.0 times on the prospectus's own pre-issue EPS basis (our arithmetic, RHP p.95, RHP p.207). Against the promoters' sale of 16 September 2026 at ₹54, the upper band is 18.5% higher and the lower band 11.1% higher (our arithmetic, RHP p.75).

18Risks, in plain words

The closed unit: manufacturing at Narol stopped on 15 December 2025 because the company did not hold certain statutory approvals for it (RHP p.21, RHP p.113) → past operations there may attract regulatory action, and the capacity is out until the new plant is built → the unit made 6,800 screens in FY26, about 9% of the 78,600 made in total (our arithmetic, RHP p.119).

Suppliers: the largest supplier was 56.35% of FY26 purchases and the top three 90.32% (RHP p.121) → there are no long-term contracts with any of them, so a supply break or a nickel price move passes straight through → purchases were ₹3,356.07 lakh against revenue of ₹5,072.73 lakh (RHP p.120, RHP p.49).

One end market: the business is entirely textile printing consumables, and 58.93% of FY26 revenue came from Gujarat (RHP p.22, RHP p.115) → a slowdown in textile printing or in that state moves the whole company → Penta screens alone were 38.54% of FY26 product revenue (RHP p.116).

Cash and working capital: receivable days rose from 72 in FY24 to 92 in FY26 and operating cash flow fell from ₹586.45 lakh to ₹284.64 lakh while profit trebled (RHP p.88, RHP p.50) → growth is being funded by the balance sheet → inventories and receivables were ₹1,976.15 lakh of ₹2,071.65 lakh of current assets at March 2026 (our arithmetic, RHP p.88).

Low-margin trading: trading of nickel cathodes was ₹856.50 lakh, 16.91% of FY26 product revenue, against ₹45.96 lakh in FY24 (RHP p.116) → the prospectus itself describes it as low margin and competitive → it accounts for about 54% of the two-year increase in product revenue (our arithmetic, RHP p.30, RHP p.116).

Leased premises and property held by promoters: the plant, godown, sales depot and registered office are all leased, and the land for the new plant is leased from a promoter group member (RHP p.26, RHP p.82) → the company does not control the premises it operates from → bank security includes property owned by promoters (RHP p.210).

Debt repayable on demand: ₹286.52 lakh owed to four directors at 31 August 2026 is repayable on demand (RHP p.32, RHP p.212) → a call would have to be met from bank limits or the proceeds → none of the issue proceeds is earmarked to repay it (RHP p.79).

Issue-specific: no monitoring agency will oversee the use of proceeds, because the issue is below ₹5,000 lakh (RHP p.91), no orders have been placed for the new plant's machinery (RHP p.85), and no-objection certificates have not been obtained from certain secured and unsecured lenders for the issue (RHP p.37).

19Litigation and regulatory matters

There are no criminal proceedings against the company, its promoters or its directors, no actions by statutory or regulatory authorities against the promoters or directors, and no group company (RHP p.232, RHP p.234). The prospectus records past instances of delayed payment of statutory dues including state insurance, GST and professional tax, and discrepancies in filings made with the Registrar of Companies (RHP p.28, RHP p.31). At March 2026 three creditors were owed ₹467.42 lakh between them, above the company's 5% materiality threshold, of total trade payables of ₹475.90 lakh (RHP p.234).

20Related-party transactions

Source: RHP p.53, RHP p.54, RHP p.198; remuneration and interest totals are our arithmetic on the rows in that annexure. Loans from the four directors stood at ₹340.01 lakh at March 2026 and ₹286.52 lakh at 31 August 2026 (our arithmetic, RHP p.53, RHP p.54, RHP p.212).

What appeared and disappeared in the two years before the filing: the lease of the new plot from Deval Ghanshyambhai Thakkar was signed in December 2025 and rent paid to directors and a relative rose from ₹6.24 lakh to ₹17.60 lakh (RHP p.82, RHP p.54); a non-compete agreement with Roopa Engineers was signed in January 2026, and sales to that firm fell from 2.76% of revenue in FY25 to 1.45% in FY26 (RHP p.32); sitting fees to two independent directors and a salary to the company secretary began in FY26 (RHP p.198).

21What the offer document does not say

Customers are not named, only counted and grouped. Suppliers are not named. The margin on the traded nickel cathodes, and the margin on manufactured screens, are not disclosed separately, so the effect of the shift into trading on profit cannot be worked out. Realisation per screen is not disclosed. The market size figures from the commissioned Care Edge report appear only in charts and not in the text of the filing.

Why the Narol unit operated without the statutory approvals it required, and what action if any has followed, is not stated. The basis on which the 16 September 2026 transfers were priced at ₹54 is not explained. The price band, bid lot, issue amount, general corporate purposes and issue expenses are left blank in the prospectus.

22Five questions for management

1. What was the gross margin on traded nickel cathodes against manufactured screens in FY24, FY25 and FY26?
2. How was ₹54 arrived at for the transfers to Kedia Securities Private Limited and Zion Infraventure LLP on 16 September 2026, nine days before the issue opened?
3. Which statutory approvals was the Narol unit operating without, from when, and what liability attaches to the period before 15 December 2025?
4. What price per screen did the company realise in each of FY24, FY25 and FY26, and how much of the margin increase came from price rather than cost?
5. What utilisation does the new 88,800-screen facility need to cover its own depreciation and the cost of the plot leased from a promoter group member?

1Sources and cited facts

This study was read from 1 document the company filed. The 102 figures it cites are listed under the document each came from, with the page and the sentence as printed.