B.S. Sponge IPO

Easy to miss in the prospectus

• Every rupee figure in the offer is an "up to" ceiling in the draft, not a fixed amount: ₹1,000 Cr in total, ₹800 Cr fresh and ₹200 Cr offered for sale, with the share counts left as placeholders. A pre-IPO placement of up to ₹160 Cr may also be done before the red herring prospectus is filed, and if it happens that amount is deducted from the fresh issue — so what the company actually raises in the offer can be smaller than the cover figure.
• The restated tables in the draft prospectus run newest-first. The mapping used here was checked against net asset value per share, which rises monotonically — ₹18.26 for FY24, ₹25.76 for FY25 and ₹33.84 for FY26 — so FY26 is the leftmost column.
• Net worth and total equity are not the same number in this filing. netWorthCr carries the prospectus' own net worth (₹385.81 Cr, ₹544.17 Cr, ₹714.82 Cr), which excludes the revaluation reserve on freehold land; total equity on the balance sheet is higher at ₹452.21 Cr, ₹617.96 Cr and ₹797.48 Cr. Return on net worth and NAV per share are struck on the narrower figure, while return on equity (24.18% in FY26) and the Debt/Equity ratio of 0.97 times are struck on total equity.
• Return on net worth is calculated by the issuer on AVERAGE net worth, as its own note states, and the arithmetic reproduces the disclosed figure: ₹171.11 Cr over the average of ₹714.82 Cr and ₹544.17 Cr gives 27.18%. On closing net worth the same profit would give 23.94%.
• Earnings and NAV per share are restated for a bonus issue that happened after the balance sheet date. On 17 September 2026 the company allotted 206,545,240 bonus shares in a 44:1 ratio, taking the count from 4,694,210 to 211,239,450; the balance sheet's equity share capital of ₹4.69 Cr is the pre-bonus figure, and every per-share number in the filing uses the post-bonus count.
• ebitdaCr carries the prospectus' Operating EBITDA, which deducts other income — ₹373.01 Cr in FY26, a margin of 14.39% on revenue from operations. The same filing also discloses EBITDA including other income of ₹386.55 Cr for FY26, a margin of 14.83% measured on total income instead. The two are not interchangeable, and FY25 and FY24 carry the same pair.
• totalBorrowingsCr carries the capitalisation statement's total borrowings, current plus non-current. The KPI table's 'Debt' is a slightly wider measure that adds lease liabilities — ₹773.22 Cr for FY26 against ₹770.99 Cr here — and both round to the same 0.97 ratio against total equity.
• The 50 / 15 / 35 split recorded here is Regulation 6(1)'s statutory ceiling and floors for the NET offer — not more than 50% to qualified institutional buyers, not less than 15% to non-institutional and not less than 35% to retail. The employee reservation portion, capped at 5% of post-Offer capital, and every share count in the offer are left as placeholders in the draft.
• The peer comparison column is TOTAL INCOME, not revenue from operations, and the peer P/E figures are the peers' NSE closing prices on 29 September 2026 over their FY26 diluted earnings per share. The company's own row in that table shows total income of ₹2,606.06 Cr against revenue from operations of ₹2,592.52 Cr. The filing puts the peer-set P/E range at 26.86 to 44.61 times with an arithmetic average of 32.97.
• The litigation summary is printed in ₹ million, and the three rows mean different things. ₹4.13 million (₹0.41 Cr) is claimed against the company in one tax proceeding and ₹0.17 million against one director. The largest figure in the table, ₹147.55 million (₹14.76 Cr), is for two tax matters and one material civil litigation brought BY the promoters — claims they have made, not claims against them. Nothing is recorded against the promoters, the key managerial personnel or the senior management.
• Contingent liabilities not provided for at 31 March 2026 total ₹10.99 Cr as the filing's own total states: ₹6.08 Cr of bank guarantees to South Eastern Coalfields and Mahanadi Coalfields under fuel supply agreements, a ₹4.34 Cr recovery suit pending at Indore, ₹0.41 Cr of disputed GST interest and two smaller claims.
• Capacity utilisation above 100% is not a misprint. The filing computes it on AVAILABLE capacity, pro-rated for the days a line was actually available in the year, which is how sponge iron reads 108.14% and ferro alloys 111.88% in FY26 while the total plant sits well below its 1,627,500 TPA of installed capacity.
• The CARO observation about the untitled land is specific: a freehold parcel with a gross carrying value of ₹14.27 Cr, held since March 2010, for which an administrative order sanctioning a land exchange with the Government of Chhattisgarh is on record but no registered title deed exists.
• The company became a public limited company only on 9 September 2026 — it was B.S. Sponge Private Limited until then — and five of its eight directors, its chief executive, its chief financial officer and its company secretary were all appointed to their current roles in September 2026.
• The 'leading manufacturer' framing, the integration claim and the peer-set averages all come from a CRISIL Intelligence report dated September 2026 that the company commissioned and paid for in connection with this offer.
• Two things changed after the balance sheet date and before the filing: the 15 MW circulating fluidised bed power unit received its consent to operate and began commercial production in July 2026, taking captive power to 67 MW, and the bonus issue above was allotted.