Rights Issue Details

Issue Structure

  • Total Shares Offered: Up to 20,22,03,345 fully paid-up equity shares of face value ₹1 each
  • Issue Price: ₹1.63 per share (including premium of ₹0.63 per share)
  • Total Issue Size: ₹32,95,91,452 (₹32.96 crore)
  • Rights Entitlement Ratio: 3 rights shares for every 2 existing shares held
  • Record Date: Thursday, July 2, 2026
  • Face Value: ₹1 per share

Issue Schedule

  • Last Date for Credit of Rights Entitlements: Friday, July 3, 2026
  • Issue Opening Date: Friday, July 10, 2026
  • Last Date for On-Market Renunciation: Wednesday, July 15, 2026
  • Date of Closure of Off-Market Transfer: Friday, July 17, 2026
  • Issue Closing Date: Monday, July 20, 2026
  • Finalization of Basis of Allotment: Tuesday, July 21, 2026
  • Date of Allotment: Tuesday, July 21, 2026
  • Date of Credit of Rights Equity Shares: Tuesday, July 22, 2026
  • Date of Listing: On or about Wednesday, July 22, 2026

Capital Structure

  • Pre-Issue Paid-Up Capital: 13,48,02,230 equity shares (₹13.48 crore)
  • Post-Issue Paid-Up Capital (assuming full subscription): 33,70,05,575 equity shares (₹33.70 crore)
  • Securities Premium Account Pre-Issue: ₹14.35 crore
  • Securities Premium Account Post-Issue: ₹27.09 crore

Objects of the Issue

Net Proceeds Utilization

  • Gross Proceeds: ₹32.96 crore
  • Estimated Issue Expenses: ₹0.35 crore
  • Net Proceeds: ₹32.61 crore

Detailed Utilization

1. Repayment of Solar Project Loan: ₹6.00 crore

2. Capital Expenditure for Solar Project: ₹3.38 crore

3. Repayment of Railway Clip Manufacturing Loan: ₹1.70 crore

4. Forging Business Capital Expenditure: ₹2.28 crore

5. Repayment of Cash Credit Facility: ₹7.00 crore

6. Working Capital for Elastic Rail Clip Production: ₹7.37 crore

7. General Corporate Purposes: ₹4.88 crore (not exceeding 25% of gross proceeds)

Key Management Personnel

Board of Directors

  • Hiralal Mahidas Tilva: Chairman & Managing Director (DIN: 00022539)
  • Rakesh Chhaganlal Patel: Managing Director (DIN: 00510990)
  • Sheetal Sanjivkumar Chaniara: Whole-time Director (DIN: 07528297)
  • Parulben Rakeshbhai Patel: Whole-time Director (DIN: 07528313)
  • Nayankumar Karshanbhai Virparia: Independent Director (DIN: 03297965)
  • Jasubhai Khimjibhai Patel: Independent Director (DIN: 01006449)
  • Rameshbhai Gordhanbhai Dhingani: Independent Director (DIN: 07946841)
  • Sagar Ramniklal Govani: Independent Director (DIN: 09185913)

Key Managerial Personnel

  • Avni Nileshkumar Dadhaniya: Chief Financial Officer
  • Drashti Arvindbhai Vaghasiya: Company Secretary & Compliance Officer (M. No. A58976)
  • Raviraj Chandubhai Raval: HR Manager

Financial Information

Audited Standalone Financials (Extract)

| Particulars | FY 2026 (₹ in Lakh) | FY 2025 (₹ in Lakh) |

| Other Income | 17.14 | 22.92 |

| Total Income | 3,578.78 | 4,344.87 |

| Net Profit/Loss Before Tax | (368.37) | 86.55 |

| Net Profit/Loss After Tax | (365.38) | 61.31 |

| Equity Share Capital | 1,348.02 | 1,348.02 |

| Reserves and Surplus | 1,502.34 | 1,870.91 |

| Net Worth | 2,850.36 | 3,218.93 |

| EPS (Basic) (₹) | (0.27) | 0.05 |

| EPS (Diluted) (₹) | (0.27) | 0.05 |

| Return on Net Worth (%) | (12.82%) | 1.90% |

| Net Asset Value per Share (₹) | 2.11 | 2.39 |

Approvals Obtained

  • In-principle NSE Listing Approval: Letter dated February 16, 2026 (Ref. No. NSE/LIST/52920)
  • SEBI ICDR Regulations Compliance: Full compliance with Regulations 61 and 62
  • SEBI Master Circular Compliance: Para 1.5 of Chapter 4 of SEBI Master Circular No. (HO/49/14/14(2)2026-CFD-POD2/I/4518/2026) dated February 09, 2026

Service Providers

  • Registrar to Issue: MUFG Intime India Private Limited (SEBI Registration No.: INR000004058)
  • Banker to Issue: Axis Bank Limited
  • Advisor to Issue: Turnaround Corporate Advisors Private Limited (SEBI Registration No.: MB/INM000012290)
  • Monitoring Agency: Brickwork Ratings India Private Limited (SEBI Registration No.: IN/CRA/005/2008)
  • Statutory Auditors: M/s. M. N. Manvar & Co. (Firm Registration No.: 106047W)

Risk Factors

Company-Specific Risks

  • Dependence on cyclical steel and forging industry demand
  • Volatility in raw material prices, particularly steel
  • Negligible presence in export markets (1.43% of total revenue)
  • High energy consumption and exposure to power cost fluctuations
  • Revenue concentration from single customer (10.34% from Avdhoot Technocrats Private Limited)
  • Dependence on unsecured loans from directors (₹2.01 crore total)

Issue-Specific Risks

  • Minimum subscription requirement of 90% of issue size
  • No withdrawal of applications permitted after issue closing date
  • Rights entitlements lapse if not exercised by closing date
  • Trading price may decline below issue price of ₹1.63

Legal and Compliance Status

Litigation Summary

  • No material litigation against the company, promoters, or directors
  • No criminal proceedings, tax proceedings, or regulatory actions pending
  • No disciplinary action by SEBI or stock exchanges in last five years

Default Status

  • Neither company, promoters, nor directors are wilful defaulters or fraudulent borrowers
  • No fugitive economic offenders
  • Equity shares not suspended from trading as disciplinary measure

Corporate Actions

Board Meetings

  • January 6, 2026: Initial approval for rights issue
  • June 25, 2026: Final approval of terms including record date, issue price, and ratio

Fractional Entitlement Treatment

  • Fractional entitlements ignored for holdings less than 2 shares
  • Eligible shareholders with fractional entitlements get preference for one additional share if they apply for additional shares

Additional Information

Material Contracts

  • Registrar Agreement dated January 6, 2026
  • Banker to Issue Agreement dated January 8, 2026
  • Monitoring Agency Agreement dated January 6, 2026

Documents Available for Inspection

  • Memorandum and Articles of Association
  • Annual Reports for FY 2022-23, 2023-24, 2024-25
  • Board resolutions related to the issue
  • Tripartite agreements with NSDL and CDSL
  • In-principle listing approval from NSE