SJP Ultrasonics Limited IPO

01At a glance

SJP Ultrasonics IPO date, price band and lot size

What the company does: designs and builds plastic joining machines and tools (ultrasonic, vibration, hot plate, spin welding and heat staking), builds custom industrial automation machines, and resells laser marking, welding and cutting machines, from a rented factory at Vasai, Palghar (RHP p.125, RHP p.136).

Who pays it: manufacturers, mainly automotive Tier 1 suppliers; automotive was 44.79% of FY26 revenue, packaging 16.35% and pharma 11.66% (RHP p.127, RHP p.144, RHP p.145). The top five customers were 38.52% of FY26 revenue and the top ten 55.28%, none of them named (RHP p.20).

Why it is raising money: ₹1,321.64 lakh for 23 lines of machinery and software, ₹492.00 lakh for working capital and ₹305.00 lakh for general corporate purposes, with ₹226.36 lakh of issue expenses (RHP p.76, RHP p.92).

How fast it has grown: revenue went from ₹1,521.07 lakh in FY24 to ₹2,655.77 lakh in FY26, about 32.1% a year, and profit after tax from ₹340.20 lakh to ₹524.26 lakh, about 24.1% a year (our arithmetic, RHP p.48).

The one thing to understand: the profit is not yet turning into cash. Over FY24 to FY26 the company reported ₹1,281.71 lakh of profit and an operating cash outflow of ₹542.61 lakh, as inventory rose from ₹879.15 lakh to ₹1,643.03 lakh and short-term loans and advances from ₹86.06 lakh to ₹592.80 lakh (our arithmetic, RHP p.47, RHP p.48, RHP p.49).

02The business, in plain words

What SJP Ultrasonics does

A factory wants two plastic parts, say a car lamp housing and its lens, joined permanently. The company studies the part, suggests a welding method, builds or imports the machine, makes the tool that holds the part, runs trials at Vasai until the customer approves the welded samples, and then ships and installs the machine. On the automation side it designs a special purpose machine from a concept drawing, builds the frame, electrical panel and PLC program, and installs it. Laser machines are bought from suppliers and resold with installation (RHP p.139 to p.142).

A component maker sends a drawing and a joining requirement → the company designs the joint and quotes → an advance comes with the purchase order → the machine or tool is built or imported and trialled → the balance is billed at trials and the final payment comes after installation and customer acceptance (RHP p.90, RHP p.140).

The company was incorporated in January 2012 and became a public company in November 2023 (RHP p.2). It works from two rented units of 4,383.38 square feet in total at Village Waliv, Vasai, on a leave and licence agreement running to May 31, 2027, with demo and service locations in Vasai, Pune, Gurugram and Chennai (RHP p.83, RHP p.151, RHP p.152). It had 84 employees at March 31, 2026, including 10 in design, 7 PLC programmers and 14 in sales (RHP p.149, RHP p.150). Certain ultrasonic and vibration welding machines are imported from overseas manufacturers and resold with the company's own tools (RHP p.128).

Earnings equation: Revenue = machines and tools delivered × price per project, where the price is negotiated order by order. The Prospectus counts output in units: 649 units in FY26 against an installed capacity of 730 (RHP p.150). At March 31, 2026 it held 64 purchase orders worth ₹2,118.56 lakh yet to be executed (RHP p.126).

03Where the money comes from

Source: RHP p.125. The mix moved sharply in FY26: plastic joining fell from 74.43% to 46.52% of revenue and industrial automation rose from 24.53% to 50.48% (RHP p.125). By industry, automotive fell from 56.95% of revenue in FY25 to 44.79% in FY26, while packaging rose from 1.87% to 16.35% and pharma from 0.01% to 11.66% (RHP p.144, RHP p.145). Exports appeared in FY25 at 4.31% of revenue and were 13.82% in FY26; Maharashtra was 44.05% of FY26 revenue and Haryana 15.48% (RHP p.147).

SJP Ultrasonics customers: how concentrated the revenue is

Source: RHP p.20. The Prospectus does not disclose the largest single customer's share or name any customer. On the supplier side it prints two different sets of FY26 figures: the top five suppliers were 77.18% of purchases and the top ten 88.64% on one page (RHP p.22), and 59.41% and 68.23% on another (RHP p.143). The FY24 and FY25 figures agree on both pages.

04The growth record

SJP Ultrasonics financials: revenue, profit and margins

Source: RHP p.47, RHP p.48, RHP p.49, RHP p.97, RHP p.228. Revenue was ₹1,521.07 lakh in FY24 and ₹2,655.77 lakh in FY26, and profit after tax ₹340.20 lakh and ₹524.26 lakh (RHP p.48). The company reports return on equity of 69.79%, 38.86% and 30.01% and return on capital employed of 80.53%, 50.80% and 38.49% (RHP p.97). The industry report reproduced in the Prospectus prints a different FY26 return on capital employed for the company, 25.96% (RHP p.123), and the accounting ratios give FY24 net worth as ₹662.82 lakh against ₹673.49 lakh in the balance sheet (RHP p.47, RHP p.228).

Our arithmetic over FY24 to FY26: revenue about 32.1% a year higher, EBITDA about 23.3% a year higher and profit after tax about 24.1% a year higher; EBITDA margin fell 458 basis points and PAT margin 263 basis points (RHP p.48, RHP p.97). Earnings a share are stated after the July 2024 bonus with retrospective effect, which is why FY24 EPS is ₹6.19 rather than ₹30.93 on the 11,00,000 shares then in issue (RHP p.228).

05What the growth is made of

The company attributes the FY26 revenue increase of 26.12% to higher volumes of products and services sold to existing and new customers (RHP p.236). Its own unit count moves much less: actual production was 579 units in FY24, 634 in FY25 and 649 in FY26, a rise of 12.1% over two years against a 74.6% rise in revenue (our arithmetic, RHP p.48, RHP p.150). So on the company's own units, most of the revenue increase came from a higher value per unit rather than more units. The Prospectus explains this as a shift from FY24 towards special purpose machines, produced in far lower quantities than standard welding units (RHP p.85).

The FY26 step also coincides with the segment swing: industrial automation revenue rose from ₹516.51 lakh to ₹1,340.52 lakh while plastic joining fell from ₹1,567.24 lakh to ₹1,235.53 lakh (RHP p.125). The Prospectus does not disclose price per machine, units by segment or gross margin by segment, so the increase cannot be split cleanly between volume, price and mix.

Revenue is bunched at the year end. The company states that 57.12% of FY25 revenue came in the fourth quarter against 30.48% in FY24 (RHP p.89). For FY26 it prints quarterly revenue of ₹114.88 lakh, ₹638.39 lakh, ₹725.36 lakh and ₹1,681.51 lakh (RHP p.91); those four figures add to ₹3,160.14 lakh, which is the "projected revenue" figure on the same page and not the restated FY26 revenue of ₹2,655.77 lakh (our arithmetic, RHP p.48, RHP p.91).

06Earnings quality

The line that needs explaining is working capital. Inventory rose from ₹879.15 lakh to ₹1,643.03 lakh and short-term loans and advances from ₹86.06 lakh to ₹592.80 lakh over FY24 to FY26, and in FY26 alone those two lines absorbed ₹1,036.74 lakh of cash against operating profit before working capital changes of ₹831.93 lakh (our arithmetic, RHP p.47, RHP p.49).

Of FY26 inventory, raw materials were ₹674.24 lakh, work in progress ₹558.93 lakh and finished goods ₹409.86 lakh (RHP p.88). The company explains the long cycle by milestone billing: receivables are recognised only after machine trials and final payment follows installation and acceptance, which can take more than four months (RHP p.90).

Of the ₹1,162.57 lakh of receivables at March 2025, ₹796.64 lakh had been collected by November 20, 2025, the rest being retentions (RHP p.91). The Prospectus does not break down the ₹592.80 lakh of short-term loans and advances on the pages that carry text.

07The balance sheet

At March 31, 2026 total assets were ₹3,520.43 lakh: inventories ₹1,643.03 lakh, trade receivables ₹978.19 lakh, short-term loans and advances ₹592.80 lakh, cash ₹47.89 lakh, property plant and equipment ₹82.79 lakh and intangible assets and assets under development ₹82.51 lakh (RHP p.47). Against that, short-term borrowings were ₹567.64 lakh, long-term borrowings ₹10.45 lakh, trade payables ₹240.20 lakh, other current liabilities ₹479.22 lakh and short-term provisions ₹180.59 lakh, leaving net worth of ₹2,008.99 lakh (RHP p.47).

At September 10, 2026 borrowings stood at ₹649.46 lakh: ₹563.09 lakh on a ₹578.00 lakh Saraswat Bank overdraft sanctioned on June 25, 2026 at 10.50% a year, secured on current and movable assets and guaranteed personally by Jignesh Parekh and Rupal Parekh; ₹13.54 lakh on a vehicle loan; and ₹72.83 lakh of unsecured loans from the two promoters (RHP p.86, RHP p.230, RHP p.231).

The Prospectus states the secured total as ₹577.47 lakh, while its two lines add to ₹576.63 lakh (our arithmetic, RHP p.230). Jignesh Parekh has also given a personal property as collateral (RHP p.34). The company reports net debt to EBITDA of 0.17, 0.20 and 0.64 times for FY24 to FY26 (RHP p.97).

After the issue: at ₹67 the fresh issue brings in ₹2,345.00 lakh gross and ₹2,118.64 lakh net of expenses, against net worth of ₹2,008.99 lakh (RHP p.47, RHP p.76). None of the proceeds is earmarked to repay debt (RHP p.76). Net asset value a share is stated as ₹21.28 at March 2026 and ₹33.65 after the issue (RHP p.96).

08What the money is for

SJP Ultrasonics IPO objects: what the money is for

Source: RHP p.76, RHP p.92; percentages are our arithmetic. The whole of the net proceeds is scheduled for deployment in FY2026-27 (RHP p.77).

The machinery list runs to 23 quotations: vertical milling and turning centres from Phillips Machine Tools India Private Limited (₹134.63 lakh and ₹200.36 lakh), four vibration welders and a laser plastic welder from Zhejiang Zhenbo Precision Machinery Co. Ltd., ultrasonic machines from Herrmann Ultraschalltechnik and Lingke Ultrasonics, a coordinate measuring machine, a robot, a crane, generators and design software (RHP p.77 to p.83).

No orders have been placed; the quotations include GST or 12% import duty, and freight, installation and similar costs are to come from internal accruals (RHP p.82, RHP p.83). A chartered engineer's certificate puts installed capacity after the purchase at 2,150 units in FY2026-27, against 730 today; that is the company's certificate, not a figure this study relies on (RHP p.85).

The working capital object sits inside a projected requirement of ₹3,610.15 lakh for FY2026-27 (RHP p.87). The objects have not been appraised by any bank or agency and no monitoring agency is appointed (RHP p.56, RHP p.93).

Into the business the whole issue: 35,00,000 new shares at ₹67, ₹2,345.00 lakh, of which ₹2,118.64 lakh is net proceeds (RHP p.76). To selling shareholders nothing: there is no offer for sale (RHP p.1).

09Who is selling

SJP Ultrasonics IPO offer for sale: who is selling

No one. The issue is a fresh issue of 35,00,000 shares, of which 1,76,000 shares worth ₹117.92 lakh are reserved for the market maker, Aftertrade Broking Private Limited, leaving a net issue of 33,24,000 shares worth ₹2,227.08 lakh (RHP p.2, RHP p.45, RHP p.60). The shares on offer are 27.05% of the post-issue capital (RHP p.2). The issue is 100% underwritten by Khandwala Securities Limited, the lead manager (RHP p.58).

The price is ₹67, the trading lot 2,000 shares, and an individual applying at the minimum size applies for 4,000 shares; the issue opens on September 30, 2026 and closes on October 5, 2026 (RHP p.2, RHP p.268, RHP p.269). The promoters and promoter group will not apply in the issue (RHP p.74).

10Promoters

The promoters are Jignesh Pravinchandra Parekh, Rupal Jignesh Parekh, Parth Jignesh Parekh, Parthvi Jignesh Parekh and Jignesh Pravinchandra Parekh HUF (RHP p.182). Jignesh Parekh, aged 49, is Chairman and Managing Director, holds a diploma in plastic engineering and has been with the company since incorporation; Rupal Parekh, aged 47, is Whole-time Director and oversees human resources and administration (RHP p.168).

The Prospectus records Rupal Parekh as the spouse of Jignesh Parekh, and Parth Parekh, aged 19, and Parthvi Parekh, aged 23, as their son and daughter (RHP p.168, RHP p.183, RHP p.186, RHP p.187). The HUF has Jignesh Parekh as karta (RHP p.183). Together the promoters hold 75,05,642 shares, 79.51% before the issue and 58.01% after (RHP p.71).

Other ventures: Jignesh Parekh is a director of LUFT Robotics and Controls Private Limited, the one group company, and holds 70% of its shares; it had no income in FY24 or FY25; both executive promoters are partners in RJP Jewels LLP and SJP Ultrasonics Advance Technology (RHP p.184, RHP p.188, RHP p.189). Tejas Shashikant Shah, recorded as a brother of Rupal Parekh, is the company's purchase head and a promoter group member (RHP p.186).

Promoter economics: Jignesh Parekh and Rupal Parekh subscribed at ₹10 in 2012 and in the March 2015 rights issue, received bonus shares in the 4 for 1 issue of July 29, 2024, and took up 21,90,000 and 17,50,000 shares at ₹10 in the rights issue of January 27, 2025 (RHP p.63, RHP p.64, RHP p.68, RHP p.69, RHP p.70).

In between, the two promoters sold shares to outside holders: at ₹455 a share in May and June 2024, before the bonus, then at ₹70 to ₹90 from August 2024 to April 2025, and 1,64,700 shares at ₹81 to Maxgrow Fintrade Private Limited on July 28, 2025 (RHP p.69, RHP p.70, RHP p.99). The Prospectus puts the weighted average price of the last five secondary transactions at ₹83.25 a share (RHP p.99).

Jignesh Parekh acquired 5,22,840 shares by transmission from the late Pravinchandra Nandlal Parekh in November 2023 (RHP p.68). Remuneration was ₹18.50 lakh to Jignesh Parekh and ₹55.00 lakh to Rupal Parekh in FY24, and ₹18.00 lakh and ₹15.01 lakh in FY26 (RHP p.51). None of the promoter shares is pledged (RHP p.71).

Jignesh Parekh and the company face one criminal proceeding filed in 2019 by InCred Financial Services Limited over a ₹20.20 lakh business loan; the Prospectus states the loan was settled for ₹7.06 lakh in January 2020, one case was dismissed in July 2022 and the other remains unassigned to any court (RHP p.242, RHP p.243). Two direct tax matters of ₹1.65 lakh are open against the promoters (RHP p.244).

11Who already owns it

SJP Ultrasonics promoter holding before and after the IPO

Source: RHP p.66, RHP p.67, RHP p.71. The larger public holders are Mahindar Pomaram Choudhary with 4.62%, Maxgrow Fintrade Private Limited with 3.09%, Sidharth R Ajwani with 2.62%, Mahendra Keshavlal Kothari with 1.59% and Aakash Mahendra Kothari with 1.06% (RHP p.67).

Each of them bought from the promoters: Sidharth R Ajwani 49,500 shares at ₹455 in June 2024, before the bonus, and the others at ₹70 to ₹85 after it; Maxgrow Fintrade Private Limited bought 1,27,000 shares at ₹70 in November 2024 and 1,64,700 at ₹81 in July 2025 (RHP p.64, RHP p.69, RHP p.70). There is no private equity, venture capital or institutional holder and no employee stock option scheme (RHP p.65, RHP p.66).

On full allotment the count rises to 1,29,40,000 shares (RHP p.62). The whole pre-issue public holding is locked in for a year after allotment (RHP p.73).

12What changed just before the IPO

• The company became a public company on November 16, 2023 (RHP p.2).
• A 4 for 1 bonus of 44,00,000 shares on July 29, 2024, out of reserves, took the count from 11,00,000 to 55,00,000 (RHP p.64, RHP p.65, RHP p.228).
• A rights issue at ₹10 on January 27, 2025 of 39,40,000 shares, all to Jignesh Parekh and Rupal Parekh, brought in ₹394.00 lakh and is the last allotment before the IPO (RHP p.49, RHP p.64, RHP p.65).
• Promoter share sales to outside holders ran from May 2024 to July 2025, the last at ₹81 a share (RHP p.69, RHP p.70).
• No pre-IPO placement is contemplated (RHP p.57).
• Two changes of statutory auditor: Deven C. Dholakia resigned in February 2023 and C.J. Mehta & Co. was appointed in August 2023; C.J. Mehta & Co. resigned on September 6, 2024 and Chirag N. Shah & Associates was appointed on September 16, 2024 (RHP p.57).
• Provident fund and ESI registration came only on June 15, 2024, although the company had employed more than 20 people; the Prospectus states it did not pay the applicable contributions for the earlier period and has informed both authorities (RHP p.18, RHP p.19).
• Late regulatory filings were regularised, including a share allotment return due in March 2015 filed in September 2024 and loan conversion resolutions filed in 2025 (RHP p.19, RHP p.20).
• Operating cash flow turned negative: ₹14.94 lakh in FY24, then outflows of ₹287.68 lakh in FY25 and ₹269.87 lakh in FY26 (RHP p.49).
• Short-term borrowings rose from ₹56.23 lakh to ₹567.64 lakh in FY26, and a new ₹578.00 lakh Saraswat Bank overdraft was sanctioned in June 2026 (RHP p.47, RHP p.230).
• Promoter remuneration fell: Rupal Parekh's from ₹55.00 lakh in FY24 to ₹15.01 lakh in FY26 (RHP p.51).
• The board was built out: independent directors appointed from October 2023 onwards, a chief financial officer from April 2024 and a company secretary from August 2024 (RHP p.51, RHP p.171).
• Exports began: ₹90.84 lakh in FY25 and ₹366.97 lakh in FY26, from nil in FY24 (RHP p.147).

13Capacity and expansion

Source: RHP p.85, RHP p.150, certified by a practising chartered engineer. The unit is a machine or tool of any size, and the company says capacity fell from FY23 to FY24 because it moved to larger special purpose machines made in lower numbers (RHP p.85). The Prospectus does not say what a unit is worth or how units split between segments. The new machinery needs 2,177.14 square feet against 2,339.73 square feet free at the existing units (RHP p.84, RHP p.85). The chain from those machines to revenue is capacity, then utilisation, then orders; the Prospectus gives the certified capacity, not the orders to fill it.

14Market size and industry structure

SJP Ultrasonics industry: market size and growth

As claimed: the chapter draws on a report by Dun & Bradstreet Information Services India Private Limited dated July 15, 2026, which the company appointed on June 14, 2025 and exclusively commissioned and paid for (RHP p.15, RHP p.103).

The commissioned report puts India's industrial automation market at USD 8.4 billion in FY2020 and USD 19.4 billion in FY2026 (RHP p.103, RHP p.106), and states that India's exports of specialised machinery including plastic welding machines were USD 475.8 million in FY2025 (RHP p.146). The chapter's opening pages on the world and Indian economy size nothing the company makes (RHP p.103, RHP p.104). The Prospectus does not size the plastic welding market on its own.

The part that is addressable: plastic joining machines and tools, custom automation machines and resold laser machines, sold mainly to automotive component makers in India (RHP p.125, RHP p.144). The commissioned report does not size that segment; its one market series covers all industrial automation, from PLCs and SCADA to robots and assembly lines (RHP p.104 to p.106).

What the company is today: ₹2,655.77 lakh of FY26 revenue from one rented factory and 84 employees (RHP p.48, RHP p.150). The market figures are in US dollars and the company reports in ₹ lakh, so no share is worked out; its FY26 exports of ₹366.97 lakh (RHP p.147) likewise differ in currency and year from the report's export figure.

Size over time: the commissioned report gives only the two points, USD 8.4 billion in FY2020 and USD 19.4 billion in FY2026, a CAGR of about 15% by its own count (RHP p.106), and the business chapter quotes it at USD 17.50 billion for FY2025 (RHP p.146). The commissioned report projects USD 29.43 billion by FY2029, 14.9% a year from FY2026 (RHP p.110). It states that specialised machinery exports went from USD 428.1 million in FY2023 to USD 475.8 million in FY2025 (RHP p.146). Citing the International Federation of Robotics, the chapter records 9,123 industrial robots installed in India in FY2025-26, up 7% (RHP p.104).

Segments: the report splits automation by technology, placing plastic welding under fixed welding automation (RHP p.104 to p.106), and by user industry, led by automotive, pharmaceuticals, power and food (RHP p.107, RHP p.108). It splits plastic welding by method: ultrasonic, vibration, hot plate, spin, infrared and laser (RHP p.113 to p.115). The company works across plastic joining, special purpose automation and resold laser machines (RHP p.125); none of these is sized.

What drives demand: for plastic welding the chapter names automotive first: electric vehicles, lightweighting and BS-VI norms raising the use of thermoplastics, with Tier-1 suppliers investing in automated joining (RHP p.116); then electronics, FMCG packaging, medical devices and furniture (RHP p.117). For automation it names Make in India, Industry 4.0 and rising labour costs (RHP p.106), and a PLI framework with an approved outlay of ₹1.97 lakh crore, of which about ₹2,377.56 crore had been disbursed to automobiles and auto components by December 31, 2025 (RHP p.112).

Structure: the commissioned report describes a market where global OEMs and system integrators lead in high-capex industries and newer Indian solution providers compete on application engineering, service support and local presence (RHP p.118). Smaller manufacturers are price-sensitive and judge automation on return on investment (RHP p.118). It profiles Titan Engineering & Automation, Unique Circle Automation, Rinco Ultrasonics India and Roop Ultrasonix (RHP p.120 to p.122), and gives no market shares. The company itself says it works in a niche with no directly comparable companies (RHP p.21).

Inputs and trade: the chapter does not discuss raw material prices. It names dependence on imported components such as laser sources, actuators and motion controllers as adding to lead times and cost (RHP p.118, RHP p.119). The company imports certain welding machines for resale (RHP p.128), and its materials consumed and stock-in-trade purchases were 48.48% of FY26 revenue (RHP p.22).

Rules: the chapter does not set out the licences a machine builder needs; it names customer standards such as IATF and ISO 3834 in automotive (RHP p.118) and ISO 13485 in medical devices (RHP p.116). The Prospectus records that the company cannot locate its electricity load sanction letter or its consent to establish for the factory (RHP p.23, RHP p.151).

What the chapter says can go wrong: scarce skilled manpower, high capital costs, slower take-up among MSMEs because of return-on-investment and space concerns, and imported components that lengthen lead times (RHP p.118); costly custom tooling for ultrasonic welding and expensive vibration welding equipment (RHP p.114); automation spending that rests on each company's capital-expenditure decisions (RHP p.112); and the conflict involving Israel, the United States and Iran disrupting shipping through the Strait of Hormuz (RHP p.103).

15Competitive position

SJP Ultrasonics competitors

Source: RHP p.97, RHP p.98. Both named peers are unlisted private companies whose FY26 accounts were not yet filed (RHP p.96, RHP p.98). The commissioned report also profiles Titan Engineering & Automation Limited, with FY25 revenue from operations of ₹865.76 crore, and Roop Ultrasonix Ltd (RHP p.120, RHP p.122, RHP p.123).

Why a customer orders from this company, on the Prospectus's own account: design and application engineering from joint design through trials, a range of welding methods under one roof, relationships with overseas machine makers for imported machines, and installation and service support (RHP p.142, RHP p.143). Against that, it owns no trademark, rents its factory, relies on imported machines for part of its range and has no long-term contracts with customers or suppliers (RHP p.21, RHP p.150, RHP p.151).

16Peers the company named

SJP Ultrasonics listed peers

Peers named in the offer document: Rinco Ultrasonics India Private Limited and Unique Circle Automation Private Limited (RHP p.96).

Rinco Ultrasonics India is a subsidiary of Rinco Ultrasonics AG of Switzerland and Crest Ultrasonics of the USA and sells ultrasonic welding and cleaning equipment; its FY25 revenue was about 58% of the company's FY25 revenue (our arithmetic, RHP p.96, RHP p.121). Unique Circle Automation makes inspection fixtures and special purpose machines for the automotive sector in Pune; its FY25 revenue was about 1.2 times the company's (our arithmetic, RHP p.96, RHP p.121).

Both earned lower margins than the company in FY25 (RHP p.97). Neither is listed, so neither has a price or a P/E, and the Prospectus states that an industry peer group P/E cannot be ascertained (RHP p.95). The company's second peer table, from the commissioned report, prints Unique Circle's EBITDA as ₹5.41 crore in one row and 9.57% margin in another, and several of its columns repeat figures from the company's and Titan's columns.

Read from the filing: that table appears misaligned and is not used here (RHP p.123).

17Valuation at the issue price

SJP Ultrasonics IPO valuation and P/E

At the fixed issue price of ₹67, with all 35,00,000 new shares added to the 94,40,000 in issue (our arithmetic, RHP p.62):

Source: RHP p.48, RHP p.62, RHP p.95, RHP p.96. On the net asset value of ₹33.65 a share the Prospectus states for the position after the issue, the price is 2.0 times book (our arithmetic, RHP p.96). Enterprise value, taking March 2026 borrowings of ₹578.09 lakh and cash of ₹47.89 lakh, is ₹9,200.00 lakh, 11.2 times FY26 EBITDA of ₹823.81 lakh (our arithmetic, RHP p.47, RHP p.228). The Prospectus itself states a P/E of 12.07 on FY26 EPS and 11.06 on weighted average EPS of ₹6.06 (RHP p.95). The issue price is 6.7 times the face value of ₹10 (RHP p.2).

There is no peer multiple to set the issue against. The two peers the Prospectus names are unlisted, their P/E is shown as not applicable, and the Prospectus states that the industry peer group P/E cannot be ascertained (RHP p.95, RHP p.96). The one market reference the document gives is the promoters' own recent share sales: the last five secondary transactions averaged ₹83.25 a share, and the most recent was at ₹81 in July 2025, against an issue price of ₹67 (RHP p.99).

18Risks, in plain words

SJP Ultrasonics IPO risks

Cash tied up in the cycle: receivable days rose from 87 to 147 and inventory days stood at 484 in FY26 (RHP p.87) → a project business that bills after trials and collects after installation has to fund each machine for months → operating cash flow was an outflow of ₹269.87 lakh in FY26 and ₹287.68 lakh in FY25 (RHP p.49).

Customers: the top ten customers were 55.28% of FY26 revenue and the top five 38.52% (RHP p.20) → work comes order by order without long-term agreements (RHP p.21) → automotive alone was 44.79% of FY26 revenue (RHP p.144).

Year-end bunching: 57.12% of FY25 revenue fell in the fourth quarter (RHP p.89) → a slipped installation or trial can move revenue from one year into the next → the company assumes the same pattern for FY2026-27 (RHP p.90).

Statutory compliance: the company was not registered for provident fund and ESI until June 15, 2024 and did not pay the earlier contributions; GST returns were filed late in many months, up to 73 days (RHP p.18, RHP p.28, RHP p.29) → the Prospectus says penalties could follow and would be paid from internal accruals → the amount cannot be ascertained (RHP p.18, RHP p.20).

Debt and guarantees: borrowings were ₹649.46 lakh at September 10, 2026, of which ₹563.09 lakh is on a bank overdraft guaranteed by the two executive promoters (RHP p.86, RHP p.230) → the lender relies on those guarantees and on a promoter's property → the promoters' unsecured loans of ₹72.83 lakh are recallable (RHP p.35, RHP p.231).

Premises and approvals: the factory is on a leave and licence running to May 31, 2027, and the company cannot find its electricity load sanction letter or its consent to establish for the factory (RHP p.23, RHP p.151) → the whole operation sits at one rented address → the Prospectus gives no alternative site.

Issue-specific: no machinery orders have been placed, the objects are not appraised, no monitoring agency is appointed, and issue expenses of ₹226.36 lakh are 9.65% of the issue (RHP p.30, RHP p.56, RHP p.92).

19Litigation and regulatory matters

Cases against SJP Ultrasonics and its promoters

The Prospectus records no civil litigation, no regulatory action and no SEBI or exchange action against the company, promoters, directors or the group company (RHP p.24, RHP p.25, RHP p.245). Contingent liabilities at March 2026 were ₹13.62 lakh of direct tax (RHP p.50). Dues to micro, small and medium enterprises were ₹25.24 lakh at March 2026, and the company had not filed a charge form for an earlier loan, which it says has since been repaid (RHP p.20, RHP p.247).

20Related-party transactions

Source: RHP p.51, RHP p.52; the loan rows are our arithmetic on the two promoters' lines. The promoters run a revolving loan account with the company: at March 2026 ₹25.90 lakh was owed to Jignesh Parekh and ₹81.81 lakh to Rupal Parekh, against ₹0.11 lakh and ₹0.83 lakh at March 2024 (RHP p.52).

What appeared in the two years before the filing: salaries to the chief financial officer, from ₹3.70 lakh in FY24 to ₹10.44 lakh in FY26, and the company secretary; sitting fees to independent directors; a ₹4.68 lakh salary in FY26 to Sunder Lal, a director of the group company LUFT Robotics; and ₹1.00 lakh of sales to SJP Ultrasonics Advance Technologies (RHP p.51, RHP p.52).

A ₹4.03 lakh balance from RPKS Construction Pvt Ltd, a company since struck off from which Jignesh Parekh disassociated, was written off in FY24 (RHP p.52, RHP p.186).

21What the offer document does not say

The largest customer's share of revenue is not disclosed and no customer is named. The FY26 supplier concentration is printed two different ways. Price per machine, units by segment and gross margin by segment are not disclosed, so growth cannot be split into volume, price and mix.

The restated notes in the copy read carry no text, so the make-up of the ₹592.80 lakh of short-term loans and advances, the ₹3.28 lakh exceptional item and any auditor remarks could not be read. The FY26 quarterly revenue table adds to the projected figure, not the restated one. The Prospectus does not quantify the provident fund and ESI contributions left unpaid before June 2024.

No listed peer is named, so there is no market multiple to compare the issue price with. The commissioned report does not size the plastic welding market.

22Five questions for management

1. Which customer is the largest, and what share of FY26 revenue did it contribute?
2. What was the average revenue per unit in plastic joining and in industrial automation in FY25 and FY26?
3. What is inside the ₹592.80 lakh of short-term loans and advances at March 2026, and how much has been recovered since?
4. What provident fund and ESI contributions were unpaid for the years before June 2024, in rupees?
5. Of the ₹2,118.56 lakh order book at March 31, 2026, how much had been installed and accepted by the date of the Prospectus?

1Sources and cited facts

This study was read from 1 document the company filed. The 124 figures it cites are listed under the document each came from, with the page and the sentence as printed.