Shakti Infra Projects Limited IPO

01At a glance

What the company does: executes water supply schemes, pipeline networks, water treatment plants and allied civil and mechanical works, mainly as a sub-contractor to principal contractors that won the government tender, and does not bid for tenders itself (DRHP p.125).

Who pays it: principal contractors on government water projects in Uttar Pradesh, Jharkhand and Chhattisgarh (DRHP p.125). The risk factors name Megha Engineering and Infrastructures Limited and R.M.N. Infrastructures Limited as the source of most sales (DRHP p.29). The largest customer brought 40.55% of FY26 revenue (DRHP p.26). A company of a director, Shri Radha Infra India Private Limited, was the largest customer in FY25 (DRHP p.26, DRHP p.242).

Why it is raising money: ₹38.1 crore for working capital, up to ₹14.7 crore to repay borrowings and ₹2.7 crore for an excavator pair and a concrete batch plant, with general corporate purposes left blank (DRHP p.94, DRHP p.99, DRHP p.95). Twelve investor shareholders offer 2,75,598 shares for sale (DRHP p.1).

How fast it has grown: revenue from ₹11.9 crore in FY24 to ₹54.8 crore in FY26, about 114.2% a year, and profit after tax from ₹3.4 crore to ₹7.3 crore, about 47.1% a year (our arithmetic, DRHP p.61).

The one thing to understand: 73% of FY26 revenue, ₹40.0 crore, was a sale of pipeline in Maharashtra, a state where the company lists no project, and ₹40.0 crore of FY26 purchases, 85.31% of the total, came from one supplier in Gujarat (DRHP p.128, DRHP p.130). Operating cash flow was negative in each of the three years (DRHP p.63).

02The business, in plain words

What Shakti Infra Projects does

Shakti Infra Projects builds the pipes, pumps, tanks and treatment plants that carry drinking water from a river or tube well to household taps. It does this on a sub-contract basis: a large contractor wins a state tender, and the company takes on a part of the work on a back-to-back basis, following the principal contractor's drawings and specifications (DRHP p.125, DRHP p.139). Much of the work sits under the Jal Jeevan Mission, the central scheme for household tap connections (DRHP p.125, DRHP p.29).

A state water agency awards a scheme to a principal contractor → the principal contractor hands a portion to the company under a work order → the company purchases pipes, valves, pumps, cement and steel, and petty subcontractors lay the pipelines and build the tanks and pump houses under the company's supervision → the company bills the principal contractor as work progresses (DRHP p.135, DRHP p.136, DRHP p.99).

The company calls its model asset-light: subcontractors bring the labour, equipment and logistics, and the company's project team supervises (DRHP p.125). It owns one concrete mixer and one pipeline system set (DRHP p.145). It had 30 employees at August 31, 2026 and uses contract labour without formal agreements with the labour contractors (DRHP p.147). It was incorporated on August 12, 2022 and has completed no project in its own name (DRHP p.3, DRHP p.30). The track record it describes is that of Aarav Construction, a proprietorship of the promoter Amitendra Singh, which completed 20 work orders worth ₹27.9 crore between January 2021 and November 2024 (DRHP p.138, DRHP p.139).

It also supplies goods. In FY26 "Pipeline" product sales were ₹40.0 crore and construction material ₹0.28 crore, against ₹14.5 crore of project revenue (DRHP p.127, DRHP p.128). The business chapter says the company also supplies customised machinery and assemblies made by outside manufacturers under its supervision (DRHP p.126).

Earnings equation: Revenue = value of work orders × share of work completed in the year, plus product sales. The company recognises project revenue by percentage of completion (DRHP p.32). It gives each project's value, balance and percentage complete, but not revenue by work order in each year beyond the project list, so the equation can only be partly filled in (DRHP p.139, DRHP p.142).

03Where the money comes from

By source, ₹ crore:

Source: DRHP p.127, DRHP p.128, converted from ₹ lakh. The negative Barabanki figure is a credit note for material supplied in the previous year (DRHP p.127). By state, FY26 revenue was 73% Maharashtra, 16.18% Jharkhand and 10.82% Uttar Pradesh; in FY25, 99.91% came from Uttar Pradesh (DRHP p.128). The risk factor on Maharashtra gives the same revenue as ₹400.00 lakh, a tenth of the ₹4,000.00 lakh in the state table (DRHP p.29, DRHP p.128). All revenue is domestic (DRHP p.145).

Shakti Infra Projects customers: how concentrated the revenue is

Source: DRHP p.26, DRHP p.27, DRHP p.127; the top two are our arithmetic. Revenue depends on very few customers: four customers brought ₹55.4 crore of FY26 revenue of ₹54.8 crore, offset by the ₹0.90 crore credit note (DRHP p.26). Customers are not named in the table. The first two FY26 customers together account for ₹40.0 crore, the same as the Maharashtra pipeline sale (DRHP p.26, DRHP p.128). The FY26 fourth customer at ₹6.6 crore and the FY25 largest at ₹12.3 crore match the sales to Shri Radha Infra India Private Limited, a company of a director (DRHP p.26, DRHP p.42).

On the supply side, the largest supplier was 85.31% of FY26 purchases and the top ten 98.58% (DRHP p.28). The largest FY26 supplier sold ₹40.0 crore, and purchases from Gujarat were ₹40.0 crore (DRHP p.130). In FY25 the largest supplier, at ₹5.4 crore, matches purchases from Shri Radha Infra India Private Limited (DRHP p.131, DRHP p.42). There are no long-term supply agreements (DRHP p.28).

04The growth record

Shakti Infra Projects financials: revenue, profit and margins

Source: DRHP p.59, DRHP p.61, DRHP p.63, DRHP p.107, converted from ₹ lakh. EBITDA here excludes other income, at the lead manager's request (DRHP p.126). Revenue went from ₹11.9 crore in FY24 to ₹54.8 crore in FY26 and profit after tax from ₹3.4 crore to ₹7.3 crore (DRHP p.61).

Our arithmetic over FY24 to FY26: revenue grew about 114.2% a year (our arithmetic, DRHP p.61), EBITDA about 57.0% a year (our arithmetic, DRHP p.107) and profit after tax about 47.1% a year (our arithmetic, DRHP p.61). EBITDA margin moved from 41.91% to 22.52%, down 1,939 basis points, so from 41.9% to 22.5% rounded (DRHP p.107).

The year ends on March 31 throughout. FY24 earnings per share of ₹1,335.12 reflects a rights issue on March 30, 2024 counted for two days (DRHP p.239). The FY26 EPS of ₹68.06 and NAV of ₹233.10 a share are on the share count before the August 2026 bonus (DRHP p.106, DRHP p.81). Net worth at March 2026 includes a ₹2.7 crore earlier-year income tax adjustment recorded in reserves (DRHP p.248).

What sits around the record:

• Cash: operating cash flow was −₹6.5 crore in FY26, −₹11.6 crore in FY25 and −₹2.3 crore in FY24 (DRHP p.63). In FY26, inventory absorbed ₹13.6 crore, receivables ₹9.0 crore and loans and advances ₹5.3 crore, offset by ₹9.7 crore more owed to suppliers (DRHP p.63).
• Other income was ₹0.88 crore, about 8.6% of FY26 profit before tax of ₹10.3 crore, mostly fixed deposit interest (our arithmetic, DRHP p.61, DRHP p.241).
• Debt: borrowings were ₹26.5 crore at March 31, 2026 (DRHP p.59), debt to equity 1.05 times, about 1.1× (DRHP p.238), and net debt of ₹15.9 crore about 1.3× FY26 EBITDA (our arithmetic, DRHP p.126). Net debt deducts fixed deposits pledged with banks (DRHP p.239). Return on capital employed was 23.14%, so 23.1% rounded (DRHP p.107).
• Customers and suppliers: the largest customer was 40.55% of FY26 revenue, so 40.6% rounded (DRHP p.26); the largest supplier 85.31% of FY26 purchases, so 85.3%, and the top ten suppliers 98.58%, so 98.6% (DRHP p.28).
• One state: Maharashtra was 73.0% of FY26 revenue, the ₹40.0 crore pipeline sale (DRHP p.128).
• Related-party sales: ₹13.4 crore in FY25 and ₹6.8 crore in FY26 (DRHP p.242).
• Related-party receivables: Shri Radha Infra India Private Limited owed ₹11.7 crore and Aarav Construction ₹2.2 crore at March 31, 2026, together ₹13.9 crore of ₹35.7 crore of receivables (our arithmetic, DRHP p.67).
• Unsecured loans from directors: ₹5.3 crore at March 31, 2026, repayable on demand (DRHP p.101).
• Order book: an unexecuted balance of ₹495.8 crore across four work orders, as certified by S V V S & Associates (DRHP p.141).
• Contingent liabilities: none stated (DRHP p.65).
• Cases against promoters: five income tax demands, no criminal or civil case (DRHP p.44).
• Industry: the company describes itself as an infrastructure execution company in water supply systems and pipeline networks (DRHP p.125).

05What the growth is made of

Revenue rose ₹42.9 crore from FY24 to FY26 (our arithmetic, DRHP p.61). The MD&A attributes FY25 growth mainly to sales to related parties, which rose from ₹0.04 crore to ₹13.4 crore, including ₹12.3 crore to Shri Radha Infra India Private Limited (DRHP p.244). For FY26 it says related-party sales fell to ₹6.8 crore while other revenue rose to ₹48.0 crore (DRHP p.242).

Products: the ₹40.0 crore pipeline sale in Maharashtra is new in FY26 and accounts for most of the year's increase (DRHP p.128).

Projects: Ramgarh in Jharkhand added ₹3.9 crore over FY25; Unnao fell ₹5.7 crore and Barabanki turned to a ₹0.90 crore credit (our arithmetic, DRHP p.127, DRHP p.128).

Geography: revenue moved from 99.91% Uttar Pradesh in FY25 to 73% Maharashtra in FY26 (DRHP p.128).

The MD&A states that the separate effects of volume and price are not quantified (DRHP p.242). The document gives no breakdown of the pipeline sale by quantity or price, so the increase cannot be split into volume and price. That is the finding.

06Earnings quality

The item that needs explaining is receivables. They went from ₹6.9 crore at March 2024 to ₹26.8 crore at March 2025 and ₹35.7 crore at March 2026, so that receivable days reached 208 (DRHP p.60, DRHP p.98). Of the March 2026 balance, ₹13.9 crore was owed by two related parties (our arithmetic, DRHP p.67). On the largest project, Ramgarh, 20% of the physical work is done and 3% of the payment received (DRHP p.142). The risk factors explain that the principal contractors pay when government agencies pay them (DRHP p.47).

Inventory went from ₹3.2 crore to ₹16.8 crore in FY26, of which ₹14.4 crore was raw material (DRHP p.60, DRHP p.242). FY26 also carried MSME late-payment interest of ₹0.23 crore and interest on delayed statutory dues of ₹0.04 crore (DRHP p.242).

07The balance sheet

At March 31, 2026 total assets were ₹71.2 crore: trade receivables ₹35.7 crore, inventories ₹16.8 crore, cash and bank balances ₹10.6 crore, short-term loans and advances ₹7.3 crore and property, plant and equipment ₹0.46 crore (DRHP p.59, DRHP p.60). Of the cash and bank balances, ₹10.5 crore was fixed deposits pledged against bank facilities and ₹0.08 crore free cash (DRHP p.64). Against them: short-term borrowings ₹26.1 crore, trade payables ₹12.8 crore, other current liabilities ₹3.7 crore, short-term provisions ₹3.0 crore and net worth ₹25.1 crore (DRHP p.59).

Borrowings at March 31, 2026: a Canara Bank cash credit of ₹18.4 crore against a ₹20.0 crore limit at 9.50%, an ICICI Bank overdraft against a fixed deposit of ₹2.3 crore at 8.60%, nil by August 31, 2026, three vehicle loans of ₹0.48 crore, and ₹5.3 crore of unsecured loans from directors (DRHP p.100, DRHP p.101).

The cash credit is secured on stock and book debts, two flats in Lucknow, a negative lien on plots of land in the name of Amitendra Singh, ₹5.13 crore of fixed deposits, and personal guarantees of Amitendra Singh, Shakti Narayan Singh and Sadhna Singh (DRHP p.101). The document states that Sadhna Singh is the spouse of Shakti Narayan Singh (DRHP p.186).

Contingent liabilities and capital commitments are shown as nil; disputed income tax demands of ₹0.04 crore are fully provided (DRHP p.65, DRHP p.247).

Source: DRHP p.59, DRHP p.94, DRHP p.95, DRHP p.99, DRHP p.228. The capitalisation statement leaves the post-issue column blank (DRHP p.228). The debt to be repaid is described as IndusInd Bank borrowings, but the borrowing schedule lists no IndusInd Bank facility, and the same paragraph puts secured borrowings at ₹77.4 crore against ₹21.2 crore in the schedule (DRHP p.99, DRHP p.101).

08What the money is for

Shakti Infra Projects IPO objects: what the money is for

Source: DRHP p.93, DRHP p.94, DRHP p.95, DRHP p.99, DRHP p.102. The rupee size of the fresh issue depends on a price not yet set, so the share of each object cannot be worked out (DRHP p.3). The opening list of objects names only working capital, general corporate purposes and issue expenses; the equipment and the loan repayment appear later in the chapter (DRHP p.93, DRHP p.95, DRHP p.99).

Working capital, ₹38.1 crore: the utilisation table prints "38.11" in a ₹ lakh table, and the deployment table ₹3,811.00 lakh (DRHP p.93, DRHP p.94). The working capital projection uses ₹6.4 crore of IPO money in FY27 and ₹27.5 crore in FY28, together ₹33.8 crore (DRHP p.98). It assumes receivable days of 176 and 157 in the table, while the justification text says 208 days in both years (DRHP p.98, DRHP p.99). The deployment is certified by Piyush Kothari & Associates in a certificate dated December 04, 2024 (DRHP p.94).

Repayment of borrowings, up to ₹14.7 crore: noted by the board on September 27, 2026, for IndusInd Bank borrowings that the debt schedule does not list (DRHP p.99, DRHP p.101).

Equipment, ₹2.7 crore: two Tata Hitachi hydraulic excavators at ₹1.1 crore from Ghanaram Motors Private Limited and a stationary concrete batch plant at ₹1.6 crore from Apollo Inffratech Private Limited, on quotations dated September 28, 2026, valid 180 days, excluding GST; no orders are placed (DRHP p.96, DRHP p.97).

The objects have not been appraised by any bank or financial institution (DRHP p.72). A monitoring agency will be appointed because the offer is above ₹50.0 crore (DRHP p.103).

Into the business the fresh issue of up to 35,00,000 shares, at a price not yet set (DRHP p.3). To selling shareholders up to 2,75,598 shares from twelve investor selling shareholders, at a price not yet set (DRHP p.3).

09Who is selling

Shakti Infra Projects IPO offer for sale: who is selling

Source: DRHP p.1, DRHP p.57, DRHP p.82, DRHP p.86. The cover calls all twelve investor selling shareholders and gives each one's average cost (DRHP p.1, DRHP p.3). The share offered of each holding is our arithmetic from the holdings in the top-ten list and the bonus allotment (our arithmetic, DRHP p.82, DRHP p.86).

The "% of the pre-offer paid-up capital" column in the offer chapter is each seller's whole holding, not the part offered (DRHP p.57). The offer for sale is 2,75,598 of the 37,75,598 shares offered, about 7.3% of the offer (our arithmetic, DRHP p.3). The promoters are not selling (DRHP p.92).

The fresh issue is up to 35,00,000 shares and the offer for sale up to 2,75,598 shares by twelve investor selling shareholders, amounts not set (DRHP p.3).

The ₹125.00 cost matches the ₹750 rights issue price of September 2024 spread over the 5:1 bonus, and ₹13.10 the ₹78.60 price at which Amitendra Singh sold shares in August 2024 (our arithmetic, DRHP p.81, DRHP p.83).

10Promoters

The promoters are Amitendra Singh and Shakti Narayan Singh, who together hold 77.32% of the company; there is no other promoter group shareholder (DRHP p.182, DRHP p.83, DRHP p.188). The document states that none of the directors are related to each other (DRHP p.167).

Amitendra Singh, 39, is Managing Director, a commerce graduate with 12 years of experience, director since incorporation and Managing Director from September 05, 2024 (DRHP p.164, DRHP p.166). Shakti Narayan Singh, 50, is Whole-Time Director from April 23, 2026, with 20 years of experience and a high school education (DRHP p.164, DRHP p.171). The business chapter says the two have more than 11 years of combined experience, while the management chapter gives 12 and 20 years each (DRHP p.132, DRHP p.164).

Pay: remuneration to the two promoters was ₹0.40 crore in FY24, ₹0.81 crore in FY25 and ₹0.51 crore in FY26 (DRHP p.42). Amitendra Singh's terms are ₹0.26 crore a year for five years from September 2024; Shakti Narayan Singh's terms as Whole-Time Director from April 2026 are nil (DRHP p.168).

Other businesses and group companies: Amitendra Singh is interested in Shri Radha Infra India Private Limited, VIP Infradevelopers Private Limited, Aarav Construction, Amitendra Singh HUF (trading as Shri Radha Consultancy) and Akhand Buildcon; Shakti Narayan Singh in Maa Shakti Construction & Suppliers (DRHP p.182, DRHP p.183). Shri Radha Infra India Private Limited, incorporated on December 04, 2023 with its registered office on Kalu Kuwan, Baberu Road, Banda, is the group company and is in a similar line of business (DRHP p.269, DRHP p.270). It is both a customer and a principal contractor that has given the company two work orders worth ₹80.0 crore (DRHP p.42, DRHP p.140, DRHP p.141).

Guarantees and loans: the promoters guarantee the bank loans (DRHP p.101). At March 31, 2026, Shakti Narayan Singh had lent the company ₹4.1 crore and Amitendra Singh ₹0.57 crore, both at 10% and repayable on demand (DRHP p.101). No promoter shares are pledged (DRHP p.92).

Cases: no criminal or regulatory case against either promoter; three income tax demands against Amitendra Singh and two against Shakti Narayan Singh (DRHP p.257, DRHP p.258, DRHP p.259). Shakti Narayan Singh has filed two cheque-dishonour complaints and, through Maa Shakti Construction and Suppliers, two petitions before the Allahabad High Court over a Zila Panchayat tender (DRHP p.260).

Promoter economics: each promoter subscribed 10,000 shares at ₹10 on incorporation and 4,90,000 at ₹10 in the rights issue of March 30, 2024; Shakti Narayan Singh transferred 4,40,000 shares to Amitendra Singh at ₹10 in April 2024 (DRHP p.83). On August 13, 2024 Amitendra Singh sold 1,52,660 shares to Comercinate Enterprises Private Limited and 7,200 each to Prem Prakash and Nitin Kumar Mishra at ₹78.60 (DRHP p.83). Both then received the 5:1 bonus of August 01, 2026 (DRHP p.83). The average cost is shown as (0.80), treated as nil, for Amitendra Singh and ₹1.67 for Shakti Narayan Singh (DRHP p.86).

11Who already owns it

Shakti Infra Projects promoter holding before and after the IPO

Source: DRHP p.86, DRHP p.87. There are 64,63,968 shares of ₹10 before the issue and 38 shareholders (DRHP p.81, DRHP p.89); the offer chapter prints 1,09,56,064 instead (DRHP p.56). The document leaves the after-issue holding blank (DRHP p.86). If all 35,00,000 new shares are issued, the total becomes 99,63,968 shares and the promoters' 77.32% becomes about 50.2%, so 77.3% → 50.2% (our arithmetic, DRHP p.83).

Chhatisgarh Investments Limited holds 3.08% before the issue and is the only company holding 1% or more besides the promoters (DRHP p.86). It came in through the ₹750 rights issue of September 2024 (DRHP p.82). A year before filing, Comercinate Enterprises Private Limited held 79,140 shares, 7.35%; that line is now held by Praveen Sevantilal Panchal, whose relationship to it the document does not state (DRHP p.87, DRHP p.86).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹11.9 crore in FY24 to ₹54.8 crore in FY26 and profit after tax from ₹3.4 crore to ₹7.3 crore (DRHP p.61).
• Receivables: receivable days went from 106 in FY24 to 208 in FY26 (DRHP p.98).
• Promoter pay went from ₹0.40 crore in FY24 to ₹0.51 crore in FY26 (DRHP p.42).
• Borrowings went from ₹13.0 crore at March 2025 to ₹26.5 crore at March 2026 (DRHP p.59).
• Pre-IPO placement: 77,328 shares at ₹750 a share to 18 investors in a rights issue on September 24, 2024 (DRHP p.81). The company has identified non-compliance with Section 62(1)(a) on rights issues, including allotment before receipt of money and excess application money (DRHP p.46).
• Promoter sale: 1,67,060 shares sold by Amitendra Singh at ₹78.60 on August 13, 2024 (DRHP p.83).
• Bonus issue: 5:1, allotted August 01, 2026, 53,86,640 shares, the last allotment before the IPO, with no price paid (DRHP p.81).
• Public company: converted with a fresh certificate dated July 18, 2025 (DRHP p.3).
• Auditor: no change in auditors in the last three years (DRHP p.73).
• Board and officers: Prashant Gupta joined in June 2025; an independent director joined in August 2025 and resigned in January 2026; two independent directors joined on April 01, 2026; a company secretary and a chief financial officer were appointed on April 01, 2026 (DRHP p.171, DRHP p.180).
• GST: the Uttar Pradesh GST registration was cancelled with effect from March 3, 2026 for non-filing of returns and restored on March 26, 2026 (DRHP p.253).
• Market: the first sale outside Uttar Pradesh and Jharkhand, the ₹40.0 crore Maharashtra pipeline sale, came in FY26 (DRHP p.128).

13Capacity and expansion

Source: DRHP p.145, DRHP p.96. The company says it is not a manufacturer, so capacity and utilisation do not apply (DRHP p.145). Equipment is otherwise hired, or brought by subcontractors (DRHP p.145).

What the document gives instead is the order book. Four work orders total ₹617.6 crore, with ₹495.8 crore still to execute, about nine times FY26 revenue (DRHP p.141, our arithmetic, DRHP p.61). The Ramgarh scheme, sub-contracted by RMN-Sree Subha Joint Venture, is ₹537.7 crore with ₹430.2 crore left; it was awarded on January 23, 2025 and is 20% done physically with 3% of the payment received (DRHP p.139, DRHP p.142).

The Megha Engineering & Infrastructures order is ₹52.7 crore with ₹10.5 crore left, and the two Shri Radha Infra India Private Limited orders ₹51.6 crore and ₹28.3 crore, with ₹33.6 crore and ₹21.5 crore left (DRHP p.139, DRHP p.140, DRHP p.141). The progress reports do not say when each scheme is due to finish.

14Market size and industry structure

Shakti Infra Projects industry: market size and growth

As claimed: the Industry Overview chapter is not a commissioned report. It is extracts from public sources, mainly the IMF World Economic Outlook of April 2026 and the India Brand Equity Foundation (IBEF) pages on the economy and on infrastructure, which the company, the lead manager and their advisors say they have not verified (DRHP p.114, DRHP p.118, DRHP p.124). It sizes no water supply, pipeline or Jal Jeevan Mission market.

The nearest figures it gives are the Union Budget 2025-26 capital outlay for infrastructure of ₹11.21 lakh crore, which it puts at 3.1% of GDP, and a planned infrastructure spend of US$ 1.723 trillion, about ₹143 trillion, between FY24 and FY30 (DRHP p.121, DRHP p.122).

The part that is addressable: the company executes water supply schemes as a sub-contractor in Uttar Pradesh, Jharkhand and Chhattisgarh, and in FY26 sold pipeline in Maharashtra (DRHP p.125, DRHP p.128). The chapter does not size water supply works in any of these states, the sub-contracting segment, or the pipe supply market.

What the company is today: FY26 revenue of ₹54.8 crore cannot be set against any market figure in the chapter, because the chapter sizes nothing at the company's level (DRHP p.61).

Size over time: the chapter cites CRISIL's Infrastructure yearbook 2023 for a claim that India will spend nearly ₹143 lakh crore on infrastructure in the seven fiscals through 2030, more than twice the near ₹67 lakh crore of the previous seven years (DRHP p.123). It cites a Morgan Stanley report that projects infrastructure investment rising from 5.3% of GDP in FY24 to 6.5% by FY29 (DRHP p.123). These are the cited reports' own claims.

The National Infrastructure Pipeline is described as 9,142 projects across 34 sub-sectors, with around 3,500 projects of ₹25,00,000 crore added in FY25 (DRHP p.119). The chapter also puts India's real GDP growth for FY 2025-26 at 7.4% (DRHP p.115).

Segments: the chapter lists power, bridges, dams, roads and urban infrastructure, and says that historically more than 80% of infrastructure spending went to transport, electricity, and water and irrigation (DRHP p.119). The company sits in water: pipelines, overhead tanks, pump houses and treatment plants for drinking water schemes (DRHP p.132).

What drives demand: the chapter names government spending through the National Infrastructure Pipeline, PM Gati Shakti, the Smart Cities Mission and the Union Budget (DRHP p.119, DRHP p.120, DRHP p.121). It notes the Housing and Urban Affairs Ministry budget rising 18% to ₹96,777 crore for FY26 and 56 new watershed development projects with a budget of ₹700 crore (DRHP p.121). The chapter does not discuss the Jal Jeevan Mission itself; the risk factors tie a significant portion of the company's projects to it and to its budget allocations (DRHP p.29).

Structure: the chapter names no water supply contractor. The companies it mentions, such as Larsen & Toubro, BHEL, GMR and the Adani Group, appear in investment news items, not as competitors (DRHP p.122, DRHP p.123). The business chapter says competition comes from small, regional, national and international players, that price and service quality decide work, and that there are minimal entry barriers (DRHP p.146). The company does not take part in tenders, so its work depends on principal contractors winning them (DRHP p.30).

Inputs and trade: the chapter does not discuss inputs. The working capital chapter lists pipes, pipe fittings, valves, pumps, cement and steel as the materials held (DRHP p.99). The chapter quotes an expectation that GST 2.0 will reduce construction costs by 3.5% to 4.5% (DRHP p.120). Imports and exports play no part: all revenue is domestic (DRHP p.145).

Rules: the Key Industry Regulations chapter lists the National Building Code, 2016, state urban planning and development acts, the National Highways Act, 1956, the NHAI Act, 1988, the land acquisition act of 2013, the Uttar Pradesh Revenue Code, 2006 and the four labour codes in force from November 21, 2025 (DRHP p.150, DRHP p.151, DRHP p.152). The company holds GST registrations in three states and ISO 9001, 14001 and 45001 certificates issued on April 18, 2026 (DRHP p.267, DRHP p.268).

What the chapter says can go wrong: the IMF extract describes an adverse case in which global growth slows to 2.5% in 2026 on higher energy prices after the conflict in the Middle East (DRHP p.114). The risk factors add heavy rain and weather delays, changes in Jal Jeevan Mission funding, and delays in payments that flow from government agencies through principal contractors (DRHP p.28, DRHP p.29, DRHP p.47).

15Competitive position

Shakti Infra Projects competitors

Source: DRHP p.107, DRHP p.108, DRHP p.109, converted from ₹ lakh. Peer borrowings are not given, so net worth is shown instead. The summary peer table prints SPML Infra's revenue as ₹851.2 crore, the same as Vishnu Prakash R Punglia's, against ₹868.5 crore in its own table (DRHP p.108, DRHP p.109). The document does not describe the peers' businesses; the overlap column is the document's own label of them as listed industry peers.

What the company puts forward: experienced promoters, a focus on water supply projects, a skilled workforce and long-standing customer relationships (DRHP p.132). Against that: the company has completed no project in its own name, works only as a sub-contractor, four customers brought all of FY26 revenue, and the largest work order is 20% complete (DRHP p.30, DRHP p.26, DRHP p.142).

16Peers the company named

Peers named in the offer document: EMS Limited, Vishnu Prakash R Punglia Limited and SPML Infra Limited (DRHP p.108).

The document picks them as listed industry peers, with prices as on September 11, 2026 (DRHP p.108). Each is eleven to sixteen times the company's FY26 revenue (our arithmetic, DRHP p.108, DRHP p.109). Vishnu Prakash R Punglia made a loss in FY26 of ₹150.1 crore (DRHP p.109). The document prints their P/E as 31.2 for EMS, not meaningful for Vishnu Prakash R Punglia and 18.4 for SPML Infra (DRHP p.108). With no price band, no P/E for the company can be stated.

17Risks, in plain words

Shakti Infra Projects IPO risks

Customers: four customers brought all of FY26 revenue and the largest 40.55% (DRHP p.26) → losing one would remove a share of revenue the company cannot quickly replace → in FY24 one customer was 93.39% (DRHP p.27).

Business: one sale: 73% of FY26 revenue was a ₹40.0 crore pipeline sale in Maharashtra, and 85.31% of purchases came from one Gujarat supplier (DRHP p.128, DRHP p.130) → FY26 revenue rests on one trade outside the company's project states → project revenue alone was ₹14.5 crore (DRHP p.127).

Financial: cash and receivables: operating cash flow negative in all three years, −₹6.5 crore in FY26 (DRHP p.63) → growth is funded by bank and director loans → receivable days reached 208 and borrowings ₹26.5 crore (DRHP p.98, DRHP p.59).

Promoters: related parties: Shri Radha Infra India Private Limited, a company of a director, was the largest FY25 customer at ₹12.3 crore and largest FY25 supplier at ₹5.4 crore, and owed ₹11.7 crore at March 2026 (DRHP p.26, DRHP p.42, DRHP p.67) → the terms of these trades decide part of reported revenue and profit → it also gave two work orders worth ₹80.0 crore (DRHP p.140, DRHP p.141).

Business: no completed project: the company, incorporated in 2022, has completed no project and relies on the promoters' record through Aarav Construction (DRHP p.30, DRHP p.138) → execution in its own name is untested → the largest order, ₹537.7 crore, is 20% complete (DRHP p.139, DRHP p.142).

Regulation: compliance record: months-long delays in GST returns, EPF and ESIC payments, late ROC filings, three pending ROC adjudications and a GST registration cancelled for three weeks in March 2026 (DRHP p.34, DRHP p.37, DRHP p.39, DRHP p.253) → further penalties or loss of registration would interrupt billing → EPF for April 2025 was paid 426 days late (DRHP p.38).

Financial: loans on demand: ₹5.3 crore of director loans and the ₹18.4 crore cash credit are repayable on demand (DRHP p.29, DRHP p.101) → recall would cut working capital → these are most of the ₹26.5 crore of borrowings (DRHP p.59).

Issue-specific: the objects chapter names a debt not in the borrowing schedule and two different sets of objects, and leaves general corporate purposes blank (DRHP p.93, DRHP p.99, DRHP p.101) → how the money is used may differ from the plan → the selling investors' cost is ₹13.10 to ₹177.04 a share (DRHP p.1).

Other: no group accident insurance for workers; only three vehicles are insured (DRHP p.43, DRHP p.148).

18Litigation and regulatory matters

Cases against Shakti Infra Projects and its promoters

Criminal: none against the company, promoters, directors or key managerial personnel (DRHP p.250, DRHP p.257, DRHP p.261, DRHP p.262). Shakti Narayan Singh has filed two cheque-dishonour complaints under section 138 of the Negotiable Instruments Act (DRHP p.260). Regulatory: no action by statutory or regulatory authorities against any of them (DRHP p.250). Tax: the document's summary puts the company's tax matters at ₹3.70 lakh and the promoters' at ₹12.67 lakh (DRHP p.44). Corporate law:

17 delayed ROC filings in three years, up to 594 days late and a board approval on September 28, 2026 to file for adjudication of Section 62(1)(a) breaches on rights issues (DRHP p.39, DRHP p.46). Civil: Shakti Narayan Singh's firm Maa Shakti Construction and Suppliers has a contempt application and a writ petition at the Allahabad High Court over a Zila Panchayat tender deposit (DRHP p.260).

19Related-party transactions

Source: DRHP p.42, DRHP p.66, DRHP p.67, converted from ₹ lakh. Interest on promoter loans was ₹0.35 crore in FY26 (DRHP p.42). Tapasya Construction and Suppliers, a firm of a relative of a director, sold the company ₹0.27 crore of goods in FY24 (DRHP p.42). The registered office is rented for ₹22,000 a month from Phool Singh, whom the document names as father of Amitendra Singh; the board has noted the rent is below market and not at arm's length (DRHP p.38, DRHP p.186). The company says its related-party transactions are at arm's length (DRHP p.42).

What appeared or changed in the two years before filing: sales to Shri Radha Infra India Private Limited began in FY25 after its incorporation in December 2023, and it became both customer and principal contractor (DRHP p.244, DRHP p.269, DRHP p.140). Aarav Construction, the promoter's proprietorship, still carried a work order dated November 28, 2024 worth ₹15.7 crore after the company was formed (DRHP p.138).

20What the offer document does not say

The restated financial statements and the auditor's report could not be read in the copy on file, so audit opinions, the receivables ageing and the notes are not covered here. Customers are not named in the concentration table. Who bought the ₹40.0 crore of pipeline in Maharashtra, who supplied it, and at what margin are not stated (DRHP p.128, DRHP p.130). Completion dates for the four work orders are not given.

The Jal Jeevan Mission share of revenue is not given. The IndusInd Bank borrowing to be repaid does not appear in the debt schedule (DRHP p.99, DRHP p.101). The issue size in rupees, the price band, general corporate purposes and offer expenses are blank (DRHP p.93, DRHP p.102). The after-issue shareholding is blank (DRHP p.86). The relationship between Comercinate Enterprises Private Limited and Praveen Sevantilal Panchal is not stated (DRHP p.87).

Some inconsistencies are recorded as document matters, not business ones: pre-offer shares are 1,09,56,064 in the offer chapter and 64,63,968 in the capital structure (DRHP p.56, DRHP p.81); Maharashtra revenue is ₹400.00 lakh in a risk factor and ₹4,000.00 lakh in the state table (DRHP p.29, DRHP p.128); the objects list, the utilisation table and the later text give different objects (DRHP p.93, DRHP p.95, DRHP p.99);

secured borrowings are ₹7,740.78 lakh in the objects chapter and ₹2,118 lakh in the schedule (DRHP p.99, our arithmetic, DRHP p.101); the working capital projection uses ₹33.8 crore of IPO money against a ₹38.1 crore object (DRHP p.98, DRHP p.94); the deployment certificate is dated December 04, 2024 (DRHP p.94);

the company secretary is said to have been appointed on April 01, 2026 and also to have held office from August 25, 2025 (DRHP p.180, DRHP p.45); the basis for issue price says it uses figures for FY23 to FY25 while showing FY24 to FY26 (DRHP p.105); and the peer table repeats one peer's revenue for another (DRHP p.108).

21Five questions for management

1. Who bought the ₹40.0 crore of pipeline in Maharashtra in FY26, who supplied it from Gujarat, at what gross margin, and has the buyer paid?
2. Of the ₹35.7 crore of receivables at March 31, 2026, how much has been collected since, and how much of the ₹11.7 crore owed by Shri Radha Infra India Private Limited?
3. What prices and margins applied to the FY25 sales of ₹12.3 crore to and purchases of ₹5.4 crore from Shri Radha Infra India Private Limited, compared with unrelated customers?
4. When is each of the four work orders due to be completed, and what share of the ₹495.8 crore balance is expected to be billed in FY27?
5. Which IndusInd Bank facility is to be repaid from the issue, how much is outstanding on it, and why is it absent from the borrowing schedule?

1Sources and cited facts

This study was read from 1 document the company filed. The 175 figures it cites are listed under the document each came from, with the page and the sentence as printed.