Company Background

Aanchal Ispat Limited (CIN: L27106WB1996PLC076866) was incorporated as 'Vinita Projects Private Limited' on January 30, 1996. The company changed its name to 'Aanchal Ispat Private Limited' in November 2012 and converted to a public limited company in August 2014. Equity shares are listed on BSE with scrip symbol 'AANCHALISP', scrip code '538812', and ISIN 'INE322R01022'.

The Rights Issue

Issue Details:

  • Issue of up to [●] equity shares of face value ₹10.00 each for cash at price of ₹[●] per share (including premium of ₹[●] per share)
  • Aggregate issue size: Up to ₹1500.00 lakh (₹15 crore)
  • Ratio: [●] rights equity share for every [●] fully paid-up equity shares held
  • Record Date: [●]
  • Issue Price: [●] times the face value of equity shares

Objects of the Issue:

1. Meeting payment obligations under NCLT-approved Resolution Plan including settlement/payment of dues of secured financial creditors and Fund for Operation: Upto ₹1,062.82 lakh

2. General Corporate Purposes: [●] (not exceeding 25% of issue proceeds)

Issue Schedule:

  • Last Date for credit of rights entitlements: [●]
  • Issue Opening Date: [●]
  • Last date for on-market renunciation: [●]
  • Issue Closing Date: [●]
  • Date of finalization of basis of allotment: [●]
  • Date of allotment: [●]
  • Date of credit of rights equity shares: [●]
  • Date of listing: [●]

The Board may extend the Issue Period up to 30 days from the Issue Opening Date. No withdrawal of applications permitted after Issue Closing Date.

Corporate Insolvency Resolution Process Background

The company was admitted into corporate insolvency resolution process (CIRP) under IBC 2016 pursuant to NCLT Kolkata order dated September 12, 2023. Mr. Santanu Brahma was appointed as Resolution Professional.

The Resolution Plan submitted by Mr. Mukesh Goel was approved by Committee of Creditors with 100% voting share and approved by NCLT vide order dated March 27, 2025. The approved plan provides for:

  • Total admitted claims: Approximately ₹22,365.94 lakh
  • Aggregate resolution amount payable: ₹5,450 lakh
  • Implementation funding through equity infusion and funding through affiliates/financial institutions

Mr. Mukesh Goel has infused ₹269.07 lakh against which equity shares were issued. Additional payments of ₹53 lakh towards CIRP costs and ₹1 lakh towards operational creditors have been made.

Capital Structure

Pre-Issue:

  • Authorized Equity Share Capital: 2,20,00,000 equity shares of ₹10 each (₹2,200.00 lakh)
  • Issued, subscribed and paid-up Equity Share Capital: 42,33,331 equity shares of ₹10 each (₹423.33 lakh)

Post-Issue (assuming full subscription):

  • Issued, subscribed and paid-up Equity Share Capital: [●] equity shares of ₹10 each ([●])
  • Securities Premium Account: [●] (from current nil)

Financial Information

Audited Financials (₹ in lakhs):

| Particulars | March 31, 2026 | March 31, 2025 |

| Revenue from Operations | 9,876.32 | 15,113.04 |

| Net Profit/Loss before Tax | 272.29 | (535.38) |

| Net Profit/Loss after Tax | 202.08 | (1,340.23) |

| Equity Share Capital | 283.33 | 2,085.38 |

| Net worth | 819.35 | 345.12 |

| Basic EPS (₹) | 7.13 | (6.43) |

Tax Benefits:

  • Carried forward business losses: ₹41,24,87,595 (available for 8 assessment years)
  • Unabsorbed depreciation: ₹3,16,97,465 (can be carried forward indefinitely)

Risk Factors

Key Internal Risks:

  • Past subject to Corporate Insolvency Resolution Plan with ongoing compliance requirements
  • Proceedings relating to implementation of approved Resolution Plan pending before NCLT
  • Revenue concentration in West Bengal (98.41% in Fiscal 2026)
  • Working capital intensive business requiring substantial financing
  • Dependence on limited number of customers and suppliers

External Risks:

  • Fluctuations in raw material and finished goods prices in steel industry
  • Regulatory changes and compliance requirements
  • Economic conditions affecting demand for steel products

Litigation and Defaults

Material Litigation:

  • Aldous Commodities Private Limited vs. Aanchal Ispat Limited - CP (IB) No. 1518/KB/2020 (CIRP proceedings)
  • Mukesh Goel vs. CA Santanu Brahma and Anrs. – I.A. (IBC) No. 1880/KB/2025 (implementation issues)
  • Government liabilities amounting to ₹85.00 lakh payable under Resolution Plan

Neither the company nor promoters/directors are categorized as wilful defaulters or fraudulent borrowers.

Management and Promoters

Board of Directors:

1. Mr. Mukesh Goel - Managing Director (DIN: 00555061, 50.20% shareholding)

2. Mr. Manoj Goel - Non-Executive Director (DIN: 00554986, 0% shareholding)

3. Ms. Nilu Nigania - Non-Executive Independent Director (DIN: 08203037)

4. Mr. Amit Kumar Agarwalla - Non-Executive Independent Director (DIN: 01779785)

Key Managerial Personnel:

  • Mr. Mukesh Kumar Agarwal - Chief Financial Officer
  • Mr. Puspendu Kayal - Company Secretary & Compliance Officer

Issue Administration

Registrar to the Issue: Purva Sharegistry (India) Private Limited

Bankers to the Issue: [●]

Monitoring Agency: Brickwork Ratings India Private Limited

Legal Advisor: [●]

Statutory Auditors: M/s Rajesh Jalan & Associates, Chartered Accountants

Application Process:

  • Only ASBA applications accepted
  • Rights entitlements credited in dematerialized form only
  • Trading of rights entitlements permitted on BSE under ISIN [●]
  • Allotment of equity shares only in dematerialized form

Restrictions and Compliance

  • The issue is not made in United States or any jurisdiction where prohibited
  • Foreign investment subject to FEMA regulations and RBI guidelines
  • SEBI disclaimer: Submission of draft letter of offer does not constitute SEBI approval
  • BSE is the designated stock exchange for the issue

The company undertakes to complete listing formalities within specified timelines and maintain proper investor grievance redressal mechanisms.