Rudra Green Ship Recycling IPO

Easy to miss in the prospectus

• The restated tables run newest-first. The mapping was checked against other equity, which rises each year - ₹15.01 Cr at March 2024, ₹24.82 Cr at March 2025, ₹37.47 Cr at March 2026 - and FY26 NAV per share of ₹17.49 is the highest of the three, so FY26 is the leftmost column.
• The KPI definitions are worth reading. EBITDA is profit before tax plus finance costs and depreciation minus other income, so it excludes other income, while EBIT is profit before tax plus finance costs and includes it - which is why FY26 EBIT of ₹21.82 Cr is slightly above EBITDA of ₹21.79 Cr. The disclosed 6.17% PAT margin divides profit by total income of ₹205.00 Cr; on revenue from operations it is 6.18%. Return on capital employed of 19.03% is EBIT over total equity plus total borrowings.
• Return on net worth is struck on average net worth, as the DRHP's note says: 27.40% for FY26. On closing net worth of ₹52.47 Cr the same profit gives 24.10%. The company has no subsidiary, so net worth equals total equity and matches the eligibility table. The debt to equity of 1.19 times is total borrowings of ₹62.21 Cr over that net worth.
• Eligibility under Regulation 6(1) is met narrowly on profit: average pre-tax operating profit over FY24-FY26 was ₹15.25 Cr against the ₹15 Cr minimum, on operating profit of ₹21.33 Cr in FY26 and ₹16.34 Cr in FY25.
• The fresh issue is of up to 1,90,00,000 shares against 3,00,00,000 in issue before the offer, and any pre-IPO placement, of up to ₹22 Cr, would be deducted from the fresh issue. There is no offer for sale.
• Promoters hold 98.86% of the pre-issue capital; adding promoter-group members Sugandh Sahil Gupta (1.00%) and Sahil Ashok Gupta HUF (0.14%) the family holds 100%. Promoter Sonthalia Steel Rolling Mills (40.00%) is itself 97.48% owned by Sahil Ashok Gupta. The only share transaction in three years was a gift of 42,000 shares to his HUF on 25 February 2026, so the weighted average cost of acquisition is nil.
• Other related-party links run through the operation: the backyard (₹50,000 a month) and Ghanghali storage (₹30,000 a month) are leased from Ashokkumar Gupta and the registered office (₹35,000 a month) from Shamarani Gupta, all under leases of 11 June 2026 valid until cancelled; YSR Building Solutions, where promoter Shrishti Gupta is a director, received a ₹3.40 Cr supplier advance in FY26 and sold the company ₹4.04 Cr of goods; and the company signed a non-compete agreement with Rudra Global Infra Products on 29 September 2026. Rudra Global Infra Products' registered office is the same BL D-60 Kaliabid address.
• Borrowings nearly doubled after the balance-sheet date - ₹62.21 Cr at 31 March 2026 to ₹121.37 Cr at 31 August 2026, most of it import and inland letters of credit - against sanctioned working capital facilities of ₹127.42 Cr. The Union Bank of India facilities sanctioned on 19 September 2025 for 12 months are marked as under renewal.
• The DRHP is not internally consistent in places: the conversion to a public company is attributed to a shareholder resolution of 18 April 2026 in History and Certain Corporate Matters but of 30 September 2025 in the notes to the accounts; headcount at 31 March 2026 is 58 in the attrition table and 52 in a risk factor; the approvals chapter lists no pending applications although the plot renewal is outstanding; and the restated statements carry signature dates of 29/09/2029.
• Contingent liabilities were ₹0.79 Cr of GST claims at 31 March 2026, nil in the two earlier years. Outstanding tax proceedings total 9 cases and ₹0.82 Cr against the company and 6 direct-tax cases and ₹0.45 Cr against promoters; there is no criminal or material civil litigation.
• There is one listed peer, so the industry P/E of 29.75 times is VMS Industries' alone, on its 25 September 2026 close and FY26 diluted EPS of ₹0.60. Its FY26 revenue from operations was ₹157.43 Cr, down from ₹288.56 Cr in FY25.
• Insurance cover at 31 March 2026 was ₹0.88 Cr, measured against net tangible assets of ₹2.13 Cr as the company defines them for this purpose (property, plant and equipment excluding buildings). The policies named are public liability (industrial risks), marine cargo transit, employee compensation and an ambulance package; the disclosed cover ratio is struck against fixed assets only, while inventories stood at ₹99.87 Cr.
• Market-size and Hong Kong Convention compliance figures come from a report by ICRA Analytics that the company commissioned and paid for for this issue.