Electromech Infraprojects Limited

Draft Red Herring Prospectus dated September 23, 2026

Summary

Electromech Infraprojects Limited is proposing to raise ₹326.00 crore through a fresh issue of shares, alongside an offer for sale of 18,91,000 shares by existing shareholders. The document does not yet state the price.

About 31% of the fresh issue proceeds go to funding working capital requirements of the company, and about 23% to investment in its Subsidiary, Jika EPC Services Limited to increase shareholding from 34.78% to 60%, with smaller amounts for other objects. The amount for general corporate purposes is not yet stated.

The review found 1 point to read closely and 19 worth checking.

Read closely

1. Customer concentration

How the capital was built

• The last priced issue of shares was a fundraise in 4 allotments between 19 May 2026 and 21 Aug 2026: 51,84,607 shares, mostly to promoters and others, at ₹223 each (54 allottees, including people linked to the promoters), 14.2% of the pre-issue capital, at 1.7 times the price of the previous issue 9 months earlier; it came 1 month before this prospectus.
• The largest price step in the two years before the prospectus was 739.2 times, on 17 Jun 2025 (non-promoter investors).
• From the first priced issue (30 Nov 2013, ₹0.18 in today's shares) to the last, the price per share rose 1249 times over 13 years.

Conclusion

Of the 1 points to read closely, 1 concerns the business, the valuation or the quality of disclosure. These could not be scored automatically and need reading: group entities in the same business; guarantees given for group entities; promoters have limited experience in this business. These wait for the price and the final share count: shares issued shortly before the IPO at a deep discount to the issue price; low promoter holding after the issue. The pages to read are 268.