Bhadora Industries Ltd IPOBHADORA

The IPO opens on 04 Aug 2025 & closes on 06 Aug 2025.

Bhadora Industries Limited initially established as Partnership Firm pursuant to Deed of Partnership dated April 29, 1986. The Partnership firm was registered on May 14, 1986 with the Registrar of Firms, Tikamgarh, Madhya Pradesh and then was converted into Private Limited Company as 'Bhadora Industries Private Limited' on May 17, 2013, vide Certificate of incorporation issue by Registrar of Companies, Madhya Pradesh. Subsequently, the status was converted into a Public Company and the name was changed to 'Bhadora Industries Limited' by the Registrar of Companies, Central Processing Centre dated August 7, 2024. The Company is engaged in business of manufacturing of premium industrial and power cables which provide efficient electricity transmission and distribution solutions to government discoms and EPC companies which cater to the diverse electrical connectivity needs of various industrial sectors. It operate under brand name of 'Vidhut Cables'. The current Plant is located at 4 S U Industrial Estate Dhonga, Tikamgarh, MP. The Company started with production of Polyvinyl Chloride (PVC) cables in 1988, and later expanded the range to include Low Voltage (LV) cables, LT Aerial Bunched Cables, Cross-Linked Polyethylene (XLPE) cables. In 2007, two new products got launched followed by 'XLPE Cable' and 'AB Cable'. These products are designed for specific functions in electricity transmission and distribution. Each product serves a specific function in electricity transmission, from reliable power distribution in low voltage applications to high-performance cables used in overhead power lines. The Company hold ISO 9001:2015 certification for its Quality Management System, which covers the manufacture and supply of PVC, XLPE, Aerial Bunch Cable, Armoured and Unarmoured cables. Additionally, it has been accredited with ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001: 2018 (Occupational Health and Safety Management System) standards in same areas. Company launched the initial public offer of 54,00,000 equity shares of Rs 10/- each through fresh issue in August, 2025.

Bhadora Industries Ltd IPO will close on 06 Aug 2025.

<ul><li>Approved Vendor in Government Schemes.</li><li>Visionary Leadership and Management.</li><li>Quality Assurance.</li><li>Sustainable Business Operations.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Shashank Bhadora</td> <td>2430560</td> <td>18.41</td> <td>2430560</td> <td>13.07</td> </tr> <tr> <td>2</td> <td>Pradeep Bhadora</td> <td>5866160</td> <td>44.44</td> <td>5866160</td> <td>31.54</td> </tr> <tr> <td>3</td> <td>Anil Bhadora</td> <td>3374960</td> <td>25.57</td> <td>3374960</td> <td>18.14</td> </tr> <tr> <td>4</td> <td>Sandhya Bhadora</td> <td>132000</td> <td>1</td> <td>132000</td> <td>0.71</td> </tr> <tr> <td>5</td> <td>Prachi Bhadora</td> <td>132000</td> <td>1</td> <td>132000</td> <td>0.71</td> </tr> <tr> <td>6</td> <td>Shikha Bhadora</td> <td>132000</td> <td>1</td> <td>132000</td> <td>0.71</td> </tr> <tr> <td>7</td> <td>Shaifali Bhadora</td> <td>132000</td> <td>1</td> <td>132000</td> <td>0.71</td> </tr> </tbody> </table>

<ul><li>The company is highly dependent on its top ten customers and the loss of any of these customers or a substantial reduction in their purchasing activity would have a significant negative impact on its business.</li><li>The company raw material cost constitutes a significant percentage of its total expenses. Any increase in the prices, availability and quality of raw materials could adversely affect the company reputation, business, results from operations, financial conditions and cash flows. The company relies on few qualified suppliers for its primary raw material, loss of these suppliers may have an adverse effect on its business, results of operations and financial conditions.</li><li>Its primary source of revenue largely depends on the sale to EPC Contractors. Consequently, any downturn in sales within this segment would significantly hamper its operations and profitability.</li><li>Its Business is dependent on the company Continuing relationships with its customers, with whom the company has not entered into long term arrangements. Further the company has been procuring business from Government entities, which are undertaken through bidding process and failure to procure such tenders on a continuous basis could adversely impact its revenues and profitability.</li><li>The company derives a significant portion of its revenue from certain of its products. If sales volume or price of such products declines in the future, or if the company is unable to sell such products for any reason, its business, financial condition, cash flows and results of operations could be adversely affected.</li><li>Dependence on a Single Manufacturing Facility may have an adverse effect on its business, results of operations and financial condition.</li><li>The company is measured against high quality standards and stringent performance requirements by its customers. Any failures to meet these standards or requirements could result in the cancellation of current and future orders, product recalls, or liquidated damages. Such events could significantly harm its reputation, business operations, financial condition, and cash flows.</li><li>The Company is dependent on a domestic market for its sales and any downturn in it could reduce its sales.</li><li>Its may faces several risks associated with the expansion of the company proposed manufacturing unit, which could hamper its growth, prospects, cash flow and business and financial condition.</li><li>The company requires working capital for its smooth day-to-day operations and insufficient working capital may result in the company being unable to meet its daily operational needs. This could lead to delays in paying suppliers, wages, or other operational expenses, affecting production schedules and delivery timelines.</li><li>The company Operates its Registered Office and Manufacturing Facility that are held by the company on leasehold basis. In the event the company lose or are unable to renew such leasehold rights, its business, results of operations, financial condition, cash flows and prospects may be adversely affected.</li><li>The Company is yet to place orders for the plant and machinery for the proposed new manufacturing unit. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commissioning the manufacturing unit.</li><li>Under-utilization of its production capacities could have an adverse effect on its business, future prospects, and future financial performance.</li><li>If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operates the company business, it may have a material adverse effect on its business, results of operations and financial condition.</li><li>Information relating to historical installed capacity of its manufacturing facility and the projected capacity utilization of the manufacturing facility is often based on assumed demand levels for the company's products If actual demand falls short of expectations, the company may not be able to utilize its full production capacity, leading to underutilization.</li><li>The company does not own any trade names or trademarks. Its may be unable to adequately protect the company intellectual property. Furthermore, its may be subject to claims alleging breach of third party intellectual property rights. Any litigation related to its intellectual property could be time consuming and costly.</li><li>Its Existing and the proposed new factory are located at significant distances from each other, it can have several significant effects on a business, both operationally and financially.</li><li>There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.</li><li>The company has certain contingent liabilities, and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.</li><li>The company acknowledges that the success of the business heavily depends on the leadership and expertise of its Promoters and Directors and on senior Management. The risk arises if the company faces challenges in attracting, retaining, or replacing key personnel (including executive Director) and senior management.</li><li>Its manufacturing activities are dependent upon availability of skilled and unskilled labour.</li><li>The personal guarantees and property provided by the Promoters and Directors of a company for loans obtained by the business can be a significant risk for both the individuals involved and the company itself. If the company fails to repay its loans as agreed, the personal guarantees could trigger repayment obligations on the Promoter and Directors. This could have a range of adverse effects on the business and its leadership.</li><li>There have been some instances of delays in filing of statutory forms and regulatory dues in the past with the various government authorities.</li><li>Relying exclusively on EPC contracts and government Contracts (B2B) while excluding retail cable sales or broader consumer markets can expose a business to several risks.</li><li>The cost estimates for the proposed expansion of its manufacturing unit have been derived from internal estimates of the company management and may not be accurate.</li><li>The company is dependent on third party transportation providers for delivery of raw materials to the company from its suppliers and delivery of the company finished products to its customers. The company has not entered into any formal contracts with its transport providers and any failures on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.</li><li>There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to ROC.</li><li>The company failures to adapt to technological developments or industry trends could affect the performance and features of its products and reduce the company attractiveness to its customers.</li><li>The company is in the government contract and tenders' agreement which is subjected to penalties and liquidated damages including blacklisting for certain period of time in case of default and failure to fulfil the term and conditions of particular tender, which can have a significant impact on the company's operations, financial health, and long-term growth.</li><li>The company lenders have charge over its immovable and movable properties in respect of finance availed by it, if the company fails to meet its repayment obligations, the lenders have the right to seize or liquidate these assets to recover the outstanding debt. This poses several risks to its business.</li><li>The Company does not have any documentary evidence for the past experience of its Independent Directors, Rahul Verma and Company Secretary and Compliance Officer, Archana Khare.</li><li>The Company had negative cash flows in the past years and may continue to have negative cash flows in the future.</li><li>Its insurance coverage may not fully address all material hazards or if there are exclusions in the policy, the company may not receive adequate compensation for certain losses. This could result in significant financial strain, as the company may have to cover these costs out of pocket.</li><li>The company Promoters will continue to retain significant shareholding in the Company after the Issue, which will allow it to exercise control over the Company.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with its Shareholders.</li><li>This Draft Red Herring Prospectus contains information from an industry report prepared by Infomerics Analytics & Research, commissioned by it for the purpose of the Issue for an agreed fee.</li><li>If the Company cannot anticipate shifting product trends or industry preferences, it may continue to produce outdated or less desirable products. This could lead to a significant decline in market demand, affecting sales and overall revenue generation.</li><li>The contracts in the Order Book are adjusted, cancelled, or suspended, the anticipated revenues from these contracts may not realized as revenues. This uncertainty makes it difficult to accurately forecast future cash flows, potentially leading to financial instability and impacting the Company's ability to meet its financial obligations or planned investments.</li><li>The Company may submit the lowest bid (L-1) for government tenders, there is no guarantee that being the lowest bidder will result in being awarded the contract.</li><li>The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".</li><li>The company could be harmed by employee misconduct or errors that are difficult to detect, and any such incidences could adversely affect its financial condition, results of operations and reputation.</li><li>The ability to pay dividends in the future will depends upon future earnings, financial condition, and capital expenditures.</li><li>Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoters Group may adversely affect the trading price of the Equity Shares.</li><li>The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of its Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, The company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.</li><li>The Equity Shares have never been publicly traded, and, after the issue, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the issue price, or at all.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.</li><li>The requirements of being a listed company may strain its resources.</li><li>Investors may be subject to Indian taxes arising out of capital gains on the sale of its Equity Shares.</li><li>There are ongoing legal proceedings involving our Promoter and Director, which, if decided adversely, may materially affect our business, financial condition, results of operations, and reputation.</li><li>We derive a significant portion of our revenue from certain of our products. If sales volume or price of such products declines in the future, or if we are unable to sell such products for any reason, our business, financial condition, cash flows and results of operations could be adversely affected.</li><li>Dependence on a Single Manufacturing Facility may have an adverse effect on our business, results of operations and financial condition.</li><li>We are measured against high quality standards and stringent performance requirements by our customers. Any failure to meet these standards or requirements could result in the cancellation of current and future orders, product recalls, or liquidated damages. Such events could significantly harm our reputation, business operations, financial condition, and cash flows.</li><li>We are in the government contract and tenders' agreement which is subjected to penalties and liquidated damages including blacklisting for certain period of time in case of default and failure to fulfil the term and conditions of particular tender, which can have a significant impact on the company's operations, financial health, and long-term growth.</li><li>We require working capital for our smooth day-to-day operations and insufficient working capital may result in the company being unable to meet its daily operational needs. This could lead to delays in paying suppliers, wages, or other operational expenses, affecting production schedules and delivery timelines as well as fluctuation in working capital turnover ratio could also adversely impact our business and financials of the Company.</li><li>Our Company is dependent on a domestic market for its sales and any downturn in it could reduce our sales.</li><li>We may face several risks associated with the expansion of our proposed manufacturing unit, which could hamper our growth, prospects, cash flow and business and financial condition.</li><li>We Operate our Registered Office and Manufacturing Facility that are held by our company on leasehold basis. In the event we lose or are unable to renew such leasehold rights, our business, results of operations, financial condition, cash flows and prospects may be adversely affected.</li><li>Our Company is yet to place orders for the plant and machinery for the proposed new manufacturing unit. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commissioning the manufacturing unit.</li><li>Under-utilization of our production capacities could have an adverse effect on our business, future prospects, and future financial performance.</li><li>If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to operate our business, it may have a material adverse effect on our business, results of operations and financial condition.</li><li>Information relating to historical installed capacity of our manufacturing facility and the projected capacity utilization of the manufacturing facility is often based on assumed demand levels for the company's products If actual demand falls short of expectations, the company may not be able to utilize its full production capacity, leading to underutilization.</li><li>We do not own any trade names or trademarks. We may be unable to adequately protect our intellectual property. Furthermore, we may be subject to claims alleging breach of third party intellectual property rights. Any litigation related to our intellectual property could be time consuming and costly.</li><li>Our Existing and the proposed new factory are located at significant distances from each other, it can have several significant effects on a business, both operationally and financially.</li><li>If the Company cannot anticipate shifting product trends or industry preferences, it may continue to produce outdated or less desirable products. This could lead to a significant decline in market demand, affecting sales and overall revenue generation.</li><li>The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of our Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>We have not made any alternate arrangements for meeting our capital requirements for the Objects of the Issue. Further, we have not identified any alternate source of financing the `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect our growth plans, operations and financial performance.</li><li>There are outstanding legal proceedings involving our Company. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition.</li><li>We have certain contingent liabilities, and our financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.</li><li>The company acknowledges that the success of the business heavily depends on the leadership and expertise of Our Promoters and Directors and on senior Management. The risk arises if the company faces challenges in attracting, retaining, or replacing key personnel (including executive Director) and senior management.</li><li>Our manufacturing activities are dependent upon availability of skilled and unskilled labour.</li><li>The personal guarantees and property provided by the Promoters and Directors of a company for loans obtained by the business can be a significant risk for both the individuals involved and the company itself. If the company fails to repay its loans as agreed, the personal guarantees could trigger repayment obligations on the Promoters and Directors. This could have a range of adverse effects on the business and its leadership.</li><li>There have been some instances of delays in filing of statutory forms and regulatory dues in the past with the various government authorities.</li><li>If we are unable to identify customer demand accurately and maintain an optimal level of inventory proportionately, our business, results of operations and financial condition may be adversely affected.</li><li>Improper storage, processing and handling of raw materials, work products and products could damage inventories and, as a result, have an adverse effect on the business, results of operations and cash flows.</li><li>Our inability to effectively manage our growth or to successfully implement our business plan and growth strategy could adversely affect our business, results of operations and financial condition.</li><li>Warranty claims, which may increase in the future and have a material adverse effect on the financial condition.</li><li>Competition pressures in the business.</li><li>Directors and Promoters may enter into ventures that may lead to real or potential conflicts of interest.</li><li>Our business are Labor-intensive industry and may be adversely affected by work stoppages, increased wage demands by our employees, or an increase in minimum wages across various states, and if we are unable to engage new employees at commercially attractive terms.</li><li>Our manufacturing facilities are dependent on adequate and uninterrupted supply of electricity and fuel. Any shortage or disruption in electricity, water, or fuel supply may lead to disruption in operations, higher operating cost, and consequent decline in our operating margins.</li><li>We are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our results of operations.</li><li>The Issue Price, market capitalization to revenue from operations and price to earnings ratio based on the Issue Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.</li><li>The manufacturing activities are subject to risks of operational hazards and can cause injury to people or property in certain circumstances, the occurrence of which may hamper our reputation, business, financial condition, and results of operations.</li><li>Many of our Directors are or were not directors of listed companies and hence lack such adequate experience to address complexities associated with listed companies, could have an adverse impact on our business and operations.</li><li>Relying exclusively on EPC contracts and government Contracts (B2B) while excluding retail cable sales or broader consumer markets can expose a business to several risks.</li><li>The cost estimates for the proposed expansion of our manufacturing unit have been derived from internal estimates of our management and may not be accurate.</li><li>We are dependent on third party transportation providers for delivery of raw materials to our company from our suppliers and delivery of our finished products to our customers. We have not entered into any formal contracts with our transport providers and any failure on part of such service providers to meet their obligations could adversely affect our business, financial condition and results of operation.</li><li>There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to ROC.</li><li>Our failure to adapt to technological developments or industry trends could affect the performance and features of our products and reduce our attractiveness to our customers.</li><li>Our lenders have charge over our immovable and movable properties in respect of finance availed by us, if we fail to meet our repayment obligations, the lenders have the right to seize or liquidate these assets to recover the outstanding debt. This poses several risks to our business:</li><li>Our Company does not have any documentary evidence for the past experience of our Independent Directors, Rahul Verma and Company Secretary and Compliance Officer, Archana Khare.</li><li>Our insurance coverage may not fully address all material hazards or if there are exclusions in the policy, the company may not receive adequate compensation for certain losses. This could result in significant financial strain, as the company may have to cover these costs out of pocket.</li><li>Our Promoters will continue to retain significant shareholding in our Company after the Issue, which will allow it to exercise control over our Company.</li><li>We have in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with our Shareholders.</li><li>This Red Herring Prospectus contains information from an industry report prepared by Infomerics Analytics & Research, commissioned by us for the purpose of the Issue for an agreed fee.</li><li>The contracts in the Order Book are adjusted, cancelled, or suspended, the anticipated revenues from these contracts may not realized as revenues. This uncertainty makes it difficult to accurately forecast future cash flows, potentially leading to financial instability and impacting the Company's ability to meet its financial obligations or planned investments.</li><li>The Company may submit the lowest bid (L-1) for government tenders, there is no guarantee that being the lowest bidder will result in being awarded the contract.</li><li>We could be harmed by employee misconduct or errors that are difficult to detect, and any such incidences could adversely affect our financial condition, results of operations and reputation.</li><li>The ability to pay dividends in the future will depend upon future earnings, financial condition, and capital expenditures.</li><li>Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by our Company may dilute your shareholding and any sale of Equity Shares by our Promoters or members of our Promoters Group may adversely affect the trading price of the Equity Shares.</li><li>The Equity Shares have never been publicly traded, and, after the issue, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the issue price, or at all.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid</li><li>Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.</li><li>The requirements of being a listed company may strain our resources.</li><li>Investors may be subject to Indian taxes arising out of capital gains on the sale of our Equity Shares.</li></ul>

The Issue type of Bhadora Industries Ltd is Book Building - SME.

The minimum application for shares of Bhadora Industries Ltd is 2400.

The total shares issue of Bhadora Industries Ltd is 5400000.

Initial public issue of up to 54,00,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of Bhadora Industries Limited ("Company" or "Bhadora" or "Issuer") for cash at a price of Rs. 103 per equity share (Including a Share Premium of Rs. 93 per Equity Share) ("Issue Price") aggregating up to Rs. 55.62 crores of which up to 2,73,600 equity shares of face value of Rs. 10 each for cash at a price of Rs. 103 per equity share including a share premium of Rs. 93 per equity share aggregating to Rs. 2.82 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of 51,26,400 equity shares of face value of Rs. 10/- each at a price of Rs. 103 per equity share aggregating to Rs. 52.80 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 29.03% and 27.56% respectively of the post issue paid up equity share capital of the company.