Grace Renewable IPO

Easy to miss in the prospectus

• The offer sizes in the draft are caps, not fixed counts: up to 84,15,000 fresh Equity Shares, and up to 27,85,000 shares in the offer for sale - 19,01,000 by Manish Bagadia and 8,84,000 by Karuna Bagadia. Harsh Bagadia, the third promoter, is not selling.
• Every three-year table in the prospectus runs newest first - Fiscal 2026, then 2025, then 2024. Net asset value per Equity Share, which rises monotonically at Rs 10.66, Rs 5.38 and Rs 2.62, is the row that settles the column order.
• Pre-issue share capital is post-bonus and does not match the balance sheet. A bonus issue of 1,98,11,999 shares on 27 August 2026 took paid-up capital from 1,56,00,000 shares to 3,54,11,999, so the Rs 15.60 Cr of equity share capital shown at 31 March 2026 sits against a materially larger share count in the capital structure. Basic and diluted EPS are restated for the bonus under AS 20.
• The promoters paid almost nothing for their stock. The weighted average cost of acquisition for shares transacted in the three years preceding the draft is Rs 0.02 a share; all shares the three promoters acquired in the last year came by bonus issue at nil cost; and the two selling shareholders' disclosed weighted average cost is Rs 0.04 for Manish Bagadia and Rs 0.01 for Karuna Bagadia.
• The draft states the company's own return on net worth two ways. The Basis for Offer Price table gives 49.51% for FY26 on year-end net worth, the peer-comparison table gives 49.47% under a note saying the denominator is average net worth, and the KPI table separately discloses a 65.73% return on equity for FY26 computed on average total equity. The 49.51% is the figure recorded here.
• The financial indebtedness table does not add up. It shows Rs 0.93 Cr of borrowings less Rs 2.46 Cr of cash and bank balances, then states a Total debt of Rs 4.96 Cr and a net debt to equity ratio of 0.13 for FY26. The 0.13 is the disclosed ratio and is what this record carries; gross borrowings over total equity at 31 March 2026 give 0.02. Borrowings had risen again to Rs 6.35 Cr by 31 August 2026.
• The industry overview and several business-section claims rest on a Dun & Bradstreet report dated 29 September 2026, titled 'Solar Power EPC and BESS Segment, Globally and in India', which D&B was appointed to prepare on 2 August 2026 and which the draft states was exclusively commissioned and paid for by the company.
• The peer set is three companies and the draft's own arithmetic average P/E of 16.70 spans a narrow range: Solarium Green Energy at 12.81, SPML Infra at 17.79 and Waaree Energies at 19.50, all struck on closing prices of 23 September 2026 and FY26 diluted EPS. Waaree is roughly 129 times the issuer's revenue.
• Allocation here is the draft's statutory maximum and minimums - not more than 50% of the offer to qualified institutional buyers, not less than 15% to non-institutional bidders and not less than 35% to retail. The offer also carries an employee reservation portion capped at 5% of post-offer paid-up equity share capital.
• The statutory auditor, Tibrewal Bhagat & Associates, signed the restated financial statements on 25 September 2026, five days before the date on the draft, and reports no qualifications that have not been given effect to in those statements.
• The company was incorporated on 5 September 2013 as Winwin Building Materials Private Limited, renamed Grace Renewable Energy Private Limited on 22 February 2017, and converted to a public limited company on 3 September 2024. The CIN was U74110GJ2013PLC076707 under the older filing and is U35105GJ2013PLC076707 now.
• This is the issuer's second draft. Its own website also carries a draft red herring prospectus dated 25 March 2025 for a 55,00,000-share SME book filed under Regulations 229(2) and 253(1), with two promoters rather than three. This record covers the mainboard draft dated 30 September 2026, filed under Regulation 6(1).
• Outstanding litigation is small but not nil: three tax proceedings against the company aggregating Rs 0.11 Cr, and two against directors other than promoters aggregating Rs 0.11 Cr. No criminal, statutory or regulatory proceedings are disclosed against the company or the promoters.
• Employee headcount is 87 permanent staff at 31 August 2026 - 23 in Technical, 17 in Battery, 17 in Sales and Marketing - with contract labour engaged separately for project sites and varying with the work in hand.