The Company promoters hold 30.99% in dispersed structure

The Company’s 11 promoters hold 47,55,514 equity shares, or 30.99% of pre-issue capital, in a dispersed ownership structure. Reeta Deepak Raura is the largest individual promoter with 6,20,812 shares, or 4.05%, while promoters and the promoter group together own 69,91,827 shares, representing 45.56%.

Who controls The Company before the IPO?

The Company has no single promoter with more than a 4.05% pre-issue stake, while its 11 promoters collectively hold 30.99% of its equity share capital. The promoter block comprises 47,55,514 shares out of 1,53,44,997 outstanding equity shares. Individual promoter holdings range from Deepak Kumar Qeematramai Raura’s 46,200 shares, or 0.30%, to Reeta Deepak Raura’s 6,20,812 shares, or 4.05%.

The Company separately identifies 16 promoter-group holders with 22,36,313 shares, equal to 14.57% of pre-issue capital. Promoters and the promoter group therefore own 69,91,827 shares, or 45.56%, across 27 holders. The 65 public shareholders hold the remaining 83,53,170 shares, or 54.44%, which means public shareholding exceeds the combined promoter and promoter-group position before the initial public offering, or IPO.

The Company has 92 shareholders in total, comprising 27 promoter and promoter-group holders and 65 public shareholders. Each equity share carries one vote, and The Company has one class of fully paid equity shares with a paid-up value of Rs 10 each. The disclosed ownership percentages therefore correspond to voting rights because there are no differential voting-right shares or convertible securities.

How dispersed is The Company’s promoter ownership before the IPO?

The Company’s promoter ownership is dispersed because each of the 11 named promoters owns less than 5% of pre-issue capital. Reeta Deepak Raura’s 4.05% stake is the largest, followed by Jignaben Vipulbhai Bhalodi with 3.92%, Vipul Gokhalbhai Bhalodi with 3.59%, Jalpaben Hasmukhbhai Bhalodi with 3.55% and Vijay Jaysukhlal Thosani with 3.42%. These five promoters together account for 18.53% of pre-issue capital.

The wider shareholder register has larger individual stakes than the promoter table in some cases. Bharatkumar Damjibhai Kaneria holds 4.92%, Hetalben Dineshbhai Tank holds 4.29%, and Narayan Kumar Gilani holds 4.17%, according to the list of holders owning at least 1% of paid-up capital. Those shareholders are not listed in The Company’s 11-person promoter table, so their holdings do not change the 4.05% maximum for an individual promoter.

The Company’s 35 shareholders holding at least 1% each collectively own 1,30,78,422 shares, or 85.23% of pre-issue capital. That concentration measure covers promoters, promoter-group holders and other shareholders, rather than a single ownership category. It shows that 57 of the 92 shareholders together own the remaining 14.77% of the 1,53,44,997-share capital base.

What will happen to The Company’s promoter holding after the IPO?

The Company expects combined promoter and promoter-group ownership to decline to 32.76% after the IPO, assuming full allotment. The group’s share count is shown as unchanged at 69,91,827 shares, so the fall from 45.56% is caused by the increase in post-issue equity capital. The projected reduction is 12.80 percentage points.

The Company’s promoters alone are expected to hold 22.28% after the IPO, compared with 30.99% before the issue. The promoter group is expected to hold 10.48%, compared with 14.57% before the issue. The respective share counts of 47,55,514 for promoters and 22,36,313 for the promoter group are unchanged in the disclosed post-issue table, subject to finalisation of the basis of allotment.

The Company states that Regulation 236 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 requires minimum promoters’ contribution of at least 20% of post-issue equity share capital. Its promoters are shown at 22.28% after the IPO under the full-allotment assumption. This position would persist on the disclosed terms if the promoters retain 47,55,514 shares and the post-issue capital is as assumed in the prospectus.

How did The Company’s share base reach 1,53,44,997 shares?

The Company’s current share capital reflects several cash issues, rights issues and bonus issues between 2007 and 2026. In the two years preceding the red herring prospectus, it allotted 12,78,750 equity shares in a rights issue on March 29, 2025 and 51,14,991 equity shares in a bonus issue on February 27, 2026. The 2026 bonus issue allotted one fully paid equity share for every two equity shares held.

The Company’s shareholder list of holders with at least 1% of paid-up capital was unchanged at the filing date, 10 days before filing and one year before filing: 35 holders owned 1,30,78,422 shares, or 85.23%. Two years before filing, 29 holders on the equivalent list owned 74,46,101 shares, or 48.52%. The change in the disclosed threshold-holder base coincided with later rights and bonus issues that increased the number of shares outstanding.

The Company says it has not revalued assets since incorporation and has not issued equity shares by capitalising revaluation reserves. It also states that it has not issued shares under an employee stock option scheme or employee stock purchase scheme. These disclosures mean the reported pre-issue share base does not include outstanding employee-option shares or shares issued from a revaluation reserve.

What ownership restrictions and future capital plans apply to The Company?

The Company reports no partly paid shares, convertible securities, warrants, depository receipts or equity shares with differential voting rights. It also reports that no promoter-held shares are pledged or otherwise encumbered. An encumbrance has the meaning assigned under Regulation 28(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The Company states that all pre-IPO equity shares will be locked in before listing on the SME platform of BSE Ltd. It also says all promoter and promoter-group shares have been dematerialised, meaning they are held electronically, and that it has entered into tripartite agreements with Central Depository Services Ltd. and National Securities Depository Ltd. The lock-in and dematerialisation disclosures apply to the 69,91,827 shares held by promoters and the promoter group.

The Company says it will make no further capital issue, including a bonus issue, preferential allotment or rights issue, from the date of the draft red herring prospectus until listing or release of application money if the issue fails. It also does not intend to split or consolidate the Rs 10 equity-share denomination for six months from the opening of the offer. After listing, the board may issue equity shares or securities convertible into equity to finance an acquisition, merger, joint venture, regulatory compliance, a scheme of arrangement or another purpose it considers appropriate.

Conclusion

The Company enters the IPO with a 30.99% promoter holding spread across 11 individuals, rather than concentrated with one promoter. The promoter group adds 14.57%, taking the collective promoter and promoter-group position to 45.56%, while public shareholders hold 54.44%. The largest individual promoter stake is Reeta Deepak Raura’s 4.05%.

The next reported ownership change is the projected dilution to 32.76% for promoters and the promoter group combined, assuming full allotment. Investors can also watch whether The Company uses its disclosed post-listing ability to issue further equity or convertible securities for an acquisition, merger, joint venture, regulatory compliance or another board-approved purpose.