PES Installations IPO

Easy to miss in the prospectus

• Risk factor 41 states that the three years of revenue and profit represent 'a CAGR of 76.46% and (2.49)%' respectively. Neither figure is a compound annual growth rate of either series. Both are year-on-year movements in profit after tax: ₹13.10 Cr to ₹23.12 Cr is +76.46%, and ₹13.44 Cr to ₹13.10 Cr is −2.49%. The revenue series in the same sentence compounds at a materially lower rate than the number printed beside it.
• The trade-receivables table in risk factor 7 prints 'Trade Receivables as a % of revenue from operations' as 75.06%, 78.22% and 83.25% under Fiscal 2026, 2025 and 2024, but the filing's own receivables and revenue divide the other way round - 83.25% for FY26 and 75.06% for FY24. The prose above the table says 83.25% for fiscal 2026, which agrees with the arithmetic, so the percentage row appears to be reversed relative to its own column headings. The days-sales-outstanding row beside it, 304/286/274, is in the stated newest-first order.
• Column order is not consistent across the DRHP. The KPI, segment, geography and receivables tables run newest-first; the capacity-utilisation table, the capacity sentence in risk factor 18 and the working-capital estimation table in the Objects chapter all run oldest-first. Each table in this record was mapped against a monotonic row before any year was assigned.
• The earnings per share of ₹8.46 and the net asset value of ₹54.75 are struck on different share counts. EPS is restated for the bonus issue of 3 September 2026 onto 2,73,16,656 shares, as the DRHP's own EPS note records under Ind AS 33.64; NAV divides the same year's net worth of ₹74.77 Cr by the 1,36,58,328 shares actually outstanding at 31 March 2026. The restated statement of profit and loss prints both an EPS of ₹16.93 and an 'after bonus' EPS of ₹8.46 for FY26; this record uses the after-bonus figure, which is the one the Basis for Offer Price chapter uses.
• Return on net worth of 36.50% is computed by the issuer on AVERAGE net worth, as its own note states, and reproduces exactly on that basis. On closing net worth the same FY26 profit gives 30.92%.
• The disclosed debt-equity ratio of 0.21 is total borrowings over net worth and excludes lease liabilities. Including the ₹0.96 Cr of lease liabilities at 31 March 2026 the ratio would be 0.23.
• The peer table has one company in it. Aparmeya Engineering Limited is the sole comparable, so the DRHP's 'industry P/E' prints 44.78 as highest, lowest and average alike, and the DRHP itself notes that, considering the nature and turnover of the business, the peers are not strictly comparable. Its closing price was taken on 25 September 2026.
• Contingent liabilities are presented two ways in the same filing. The Summary of Restated Financial Information splits them into ₹7.83 Cr of contingent liabilities and ₹12.43 Cr of commitments, then labels their ₹20.26 Cr sum 'Total commitments'; risk factor 58 prints the same ₹20.26 Cr as the total of contingent liabilities with the bank guarantees folded in.
• The company's Chief Financial Officer until 12 September 2026 was Pankaj Chadha, a promoter and now a Whole Time Director. His successor, appointed the same day and eighteen days before the DRHP was dated, has over six years of experience and was paid no remuneration by the company in fiscal 2026.
• The working-capital object is underwritten by projections, not by history. The Objects chapter estimates trade receivables rising from ₹92.05 Cr at FY26 to ₹127.12 Cr in FY27 and ₹178.00 Cr in FY28, and internal accruals funding the gap rising from ₹71.02 Cr to ₹183.22 Cr over the same period - against operating cash flow that has never exceeded ₹2.88 Cr in a year. The ₹63.00 Cr of IPO proceeds is scheduled as ₹29.50 Cr in FY27 and ₹33.50 Cr in FY28.
• Risk factor 22 carries an unresolved drafting placeholder: the FY26 financing outflow is attributed to '[repayment of borrowings / payment of interest and finance costs / payment of dividends / others]'.
• Two tables disagree on which brother holds which block. The capital structure, the 1%-plus shareholder tables and the Promoters chapter all put 74,09,534 shares with Gaurav Chadha and 74,09,182 with Pankaj Chadha; the weighted-average-cost table in risk factor 61 reverses the two counts while keeping the costs attached as the abridged prospectus states them. Both blocks round to 27.12%, and this record follows the capital structure.
• The promoter total of 98.17% is the filing's own printed figure and reconciles to 2,68,18,876 of 2,73,16,656 shares. The shareholding here lists the four holders the DRHP quantifies; three promoter-group members hold 400 shares each, which the filing describes only as 'Negligible' rather than as a percentage.
• Every operational figure in the DRHP - segment revenue, geography split, customer concentration, capacity, statutory dues - is certified by the statutory auditors or an independent chartered engineer by certificate rather than drawn from the restated financial statements, and the industry framing comes from a CARE Analytics report the company commissioned and paid for exclusively for this offer.
• SEBI has published only the draft abridged prospectus on its own site; the full Draft Red Herring Prospectus linked here is served by the issuer. The DRHP contemplates a pre-IPO placement of up to 20% of the offer, which would reduce the offer size if it happens.