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Mittal Sections Ltd IPO

Status:

Overview

IPO date
07 Oct 2025 to 09 Oct 2025
Face value
₹ 10 per share
Price
₹ 136 to ₹143 per share
Issue Size
3,700,000 shares
(aggregating up to ₹ 52.91 Cr)
Allotment Date
10 Oct 2025
Listing at
NSE
Issue type
Book Building - SME
Sector

Objectives of Mittal Sections Ltd IPO

Mittal Sections Ltd IPO Strategy

About Mittal Sections Ltd

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T&C*

Strengths vs Risks of Mittal Sections Ltd

Know the pros & cons

Strengths

  • arrowWide Range of Products.
  • arrowStrong relationship with customers and suppliers.
  • arrowExperienced management team with industry expertise.

Risks

  • arrowThere are outstanding legal mattersinvolving our Company, Promoters and Directors. Any adverse decisions could divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.
  • arrowOur revenues are highly dependent on our operations in geographical region of state of Gujarat. Any adverse development affecting our operations in this region could have an adverse impact on our business, financial condition and results of operations.
  • arrowSeveral of our key raw materials and components are sourced from a limited group of third-party suppliers giving rise to supplier concentration risks. Any restrictions in supply or defects in quality could cause delays in project construction or implementation and impair our ability to provide our services to customers at a price that is profitable to us, which could have a material adverse effect on our business, financial condition and results of operations.
  • arrowWe may continue to derive a material portion of our revenue from our top five customers and our financial dependence on our top five customers poses a potential risk. A reduction in business from these top five customers or any other major clients could have negative implications for both our revenue and profitability.
  • arrowLabour-Intensive Operations and the Potential Risks of Workforce Disruptions.
  • arrowWe have not been able to obtain certain records of educational qualifications one of our Director and Senior Managerial Personnel, and have relied on certificates and affidavits furnished by them for such details of their profile, included in this Draft Red Herring Prospectus.
  • arrowOur Company requires significant amounts of working capital for continued growth. Our inability to meet our working capital requirements may have an adverse effect on the results of operations.
  • arrowWe have issued Equity Shares in the last twelve months, the price of which is lower than the Issue Price.
  • arrowWe have experienced negative cash flows from investing and financing activities in the past.
  • arrowThe average cost of acquisition of Equity Shares by our Promoters is lower than the issue price.
  • arrowOur Promoter Entities is engaged in the same line of business similar as our Company. We cannot assure that our Promoter will not favour the interests of that entities over our interest or that the said entities will not expand which may increase our competition, which may adversely affect business operations and financial condition of our Company.
  • arrowWe 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.
  • arrowOur Registered Office from where we operate is not owned by us.
  • arrowOur business is a High Volume-Low Margin Business.
  • arrowThe logo "MSL MITTAL" has been registered under the name of our company. Any failure to protect our intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • arrowThe logo [*] is registered in the name of our promoter. Any failure to protect the intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • arrowWe could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in our products, which in turn could adversely affect our business operations and our sales could be diminished if we are associated with negative publicity.
  • arrowThe demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on our business, results of operations margins and financial condition.
  • arrowWe have not entered into any long-term agreements with our suppliers for supply of items and accordingly may face disruptions in supply from our current suppliers.
  • arrowNo Objection Certificate (NOC) or consent from bank is awaited to fulfil condition of Sanction Letter.
  • arrowWe face competition in our business from domestic competitors. Such competition would have an adverse impact on our business and financial performance.
  • arrowOur capital subscription related payment proofs are not able to trace by the company and the shareholders of the company.
  • arrowCertain documents relating to transfer of shares/ business to our corporate promoter is not traceable.
  • arrowCertain delays, discrepancies and Omissions have been detected in our statutory records, as well as in records related to the submission of returns to the concerned Registrar of Companies.
  • arrowOur operations may cause injury to people or property and therefore could subject us to significant disruptions in our business, legal and regulatory actions, costs and liabilities which could materially and adversely affect our business, financial condition and results of operations.
  • arrowFailure to manage our stocks could have an adverse effect on our net sales, profitability, cash flow and liquidity.
  • arrowOur Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect our financial condition.
  • arrowOur indebtedness, including various conditions and restrictive covenants imposed on us under our financing agreements and could adversely affect our ability to grow our business or react to changes in our business environment.
  • arrowWe require certain approvals, licenses, registrations and permits for our business and the failure to obtain or renew them in a timely manner may adversely affect our operations.
  • arrowThe Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
  • arrowWe intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. We are yet to place orders 100% of the capital expenditure, as specified in the Objects of the Issue chapter. Any delay in procurement of such capital expenditure may delay the schedule of implementation and may also lead to increase in cost of these capital expenditure, further affecting our revenue and profitability.
  • arrowAny variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
  • arrowIf we fail to maintain an effective system of internal controls, we may not be able to successfully manage, or accurately report, our financial risks. Despite our internal control systems, we may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect our reputation, business, financial condition, results of operations and cash flows.
  • arrowWe 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.
  • arrowIf we are unable to manage our growth effectively and further expand into new markets our business, future financial performance and results of operations could be materially and adversely affected.
  • arrowPricing pressure from customers may adversely affect our gross margin, profitability and ability to increase our prices.
  • arrowWe are subject to strict quality requirements and any product defect issues or failure by us or our suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
  • arrowAny increase in interest rates would have an adverse effect on our results of operations and will expose our Company to interest rate risks.
  • arrowWe are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our results of operations.
  • arrowDisruption of logistics and transportation services could impact the ability of our suppliers to deliver raw materials or our ability to deliver products to our customers and/ or increase our transportation costs, which may adversely affect our operations.
  • arrowWe are dependent on our management team and key personnel /senior managerial personnel and the loss of any key team member may adversely affect our business performance.
  • arrowOur insurance coverage may not be adequate to protect us against certain operating hazards and this could affect our business.
  • arrowWe have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.
  • arrowThe Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • arrowOur business activities are exposed to fluctuations in the prices of raw materials.
  • arrowOur Promoters and members of our Promoter Group will continue to retain majority control in the Company after the Issue, which will enable them to influence the outcome of matters submitted to shareholders for approval.
  • arrowIndustry information included in this Draft Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • arrowWe may not be successful in implementing our business strategies.
  • arrowYou may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
  • arrowThe price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not develop.
  • arrowWe cannot assure you that our equity shares will be listed on the SME platform of BSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
  • arrowSale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • arrowursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measures (GSM) by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
  • arrowAfter this Issue, the price of the Equity Shares may be subject to change, or an active trading market for the Equity Shares may not develop.
  • arrowQIBs 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, and Individual investor who applies for minimum application size are not permitted to withdraw their Bids after Bid/Offer Closing Date.
  • arrowThere are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • arrowThe Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • arrowThere is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds.
  • arrowThere are outstanding legal matters involving our Company, Promoters and Directors. Any adverse decisions could divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.
  • arrowOur revenues are highly dependent on our operations in geographical region of state of Gujarat. Any adverse development affecting our operations in this region could have an adverse impact on our business, financial condition and results of operations.
  • arrowOur Promoter Entities is engaged in the same line of business similar as our Company. We cannot assure that our Promoter will not favour the interests of that entities over our interest or that the said entities will not expand which may increase our competition, which may adversely affect business operations and financial condition of our Company.
  • arrowSeveral of our key raw materials and components are sourced from a limited group of third-party suppliers giving rise to supplier concentration risks. Any restrictions in supply or defects in quality could cause delays in project construction or implementation and impair our ability to provide our services to customers at a price that is profitable to us, which could have a material adverse effect on our business, financial condition and results of operations.
  • arrowWe have experienced negative cash flows from investing and financing activities in the past.
  • arrowLabour-Intensive Operations and the Potential Risks of Workforce Disruptions.
  • arrowWe may continue to derive a material portion of our revenue from our top five customers and our financial dependence on our top five customers poses a potential risk. A reduction in business from these top five customers or any other major clients could have negative implications for both our revenue and profitability.
  • arrowWe have not been able to obtain certain records of educational qualifications one of our Director and Senior Managerial Personnel, and have relied on certificates and affidavits furnished by them for such details of their profile, included in this Red Herring Prospectus.
  • arrowOur Company requires significant amounts of working capital for continued growth. Our inability to meet our working capital requirements may have an adverse effect on the results of operations.
  • arrowWe have issued Equity Shares in the last twelve months, the price of which is lower than the Issue Price.
  • arrowThe average cost of acquisition of Equity Shares by our Promoters is lower than the issue price.
  • arrowWe 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.
  • arrowOur Registered Office from where we operate is not owned by us.
  • arrowOur business is a High Volume-Low Margin Business.
  • arrowThe logo "MSL MITTAL" has been registered under the name of our company. Any failure to protect our intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • arrowThe logo "M" is registered in the name of our promoter. Any failure to protect the intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • arrowWe could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in our products, which in turn could adversely affect our business operations and our sales could be diminished if we are associated with negative publicity.
  • arrowThe demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on our business, results of operations margins and financial condition.
  • arrowWe have not entered into any long-term agreements with our suppliers for supply of items and accordingly may face disruptions in supply from our current suppliers.
  • arrowWe face competition in our business from domestic competitors. Such competition would have an adverse impact on our business and financial performance.
  • arrowOur capital subscription related payment proofs are not able to trace by the company and the shareholders of the company.
  • arrowCertain documents relating to transfer of shares/business to our corporate promoter is not traceable
  • arrowCertain delays, discrepancies and Omissions have been detected in our statutory records, as well as in records related to the submission of returns to the concerned Registrar of Companies.
  • arrowOur operations may cause injury to people or property and therefore could subject us to significant disruptions in our business, legal and regulatory actions, costs and liabilities which could materially and adversely affect our business, financial condition and results of operations.
  • arrowFailure to manage our stocks could have an adverse effect on our net sales, profitability, cash flow and liquidity.
  • arrowOur Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect our financial condition.
  • arrowOur indebtedness, including various conditions and restrictive covenants imposed on us under our financing agreements and could adversely affect our ability to grow our business or react to changes in our business environment.
  • arrowWe require certain approvals, licenses, registrations and permits for our business and the failure to obtain or renew them in a timely manner may adversely affect our operations.
  • arrowThe Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
  • arrowWe intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. We are yet to place orders 100% of the capital expenditure, as specified in the Objects of the Issue chapter. Any delay in procurement of such capital expenditure may delay the schedule of implementation and may also lead to increase in cost of this capital expenditure, further affecting our revenue and profitability.
  • arrowAny variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
  • arrowIf we fail to maintain an effective system of internal controls, we may not be able to successfully manage, or accurately report, our financial risks. Despite our internal control systems, we may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect our reputation, business, financial condition, results of operations and cash flows.
  • arrowWe 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.
  • arrowIf we are unable to manage our growth effectively and further expand into new markets our business, future financial performance and results of operations could be materially and adversely affected.
  • arrowPricing pressure from customers may adversely affect our gross margin, profitability and ability to increase our prices.
  • arrowWe are subject to strict quality requirements and any product defect issues or failure by us or our suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
  • arrowAny increase in interest rates would have an adverse effect on our results of operations and will expose our Company to interest rate risks.
  • arrowWe are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our results of operations.
  • arrowDisruption of logistics and transportation services could impact the ability of our suppliers to deliver raw materials or our ability to deliver products to our customers and/ or increase our transportation costs, which may adversely affect our operations.
  • arrowWe are dependent on our management team and key personnel /senior managerial personnel and the loss of any key team member may adversely affect our business performance.
  • arrowOur insurance coverage may not be adequate to protect us against certain operating hazards and this could affect our business.
  • arrowWe have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.
  • arrowThe Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • arrowOur business activities are exposed to fluctuations in the prices of raw materials.
  • arrowOur Promoters and members of our Promoter Group will continue to retain majority control in the Company after the Issue, which will enable them to influence the outcome of matters submitted to shareholders for approval.
  • arrowIndustry information included in this Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • arrowWe may not be successful in implementing our business strategies.
  • arrowYou may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
  • arrowThe price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not develop.
  • arrowWe cannot assure you that our equity shares will be listed on the SME platform of BSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
  • arrowSale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • arrowPursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measures (GSM) by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
  • arrowAfter this Issue, the price of the Equity Shares may be subject to change, or an active trading market for the Equity Shares may not develop.
  • arrowQIBs 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, and Individual investor who applies for minimum application size are not permitted to withdraw their Bids after Bid/Offer Closing Date.
  • arrowThere are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • arrowThe Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

Mittal Sections Ltd Peer Comparison

Understand the company’s industry standing

Mittal Sections Ltd
Rhetan TMT Ltd
Riddhi Steel & Tube Ltd
Face Value
10
1
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
161.6496
65.2136
330.1791
EPS-Basis
2.41
0.05
5.79
EPS-Diluted
2.41
0.05
5.79
NAV Per Share
8.56
4.34
8.38
P/E-Basic EPS
---
339.8
19.66
P/E-Diluted EPS
---
---
---
RONW(%)
28.13
4.37
8.37
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 07 Oct 2025 & closes on 09 Oct 2025.

Mittal Sections Limited was originally formed as Partnership Firm as 'Mittal Steel Industries' on November 01, 2006. Subsequently, the constitution of partnership firm was changed on July 29, 2008 for admission of partners. Subsequently, the name of the Firm was changed from 'M/s. Mittal Steel Industries' to 'M/s. Mittal Sections' on August 02, 2008. Subsequently, 'M/s. Mittal Sections' was converted from a partnership firm to a joint stock company as 'M/s. Mittal Sections Limited' and a Certificate of Incorporation dated April 02, 2009, was issued by Registrar of Companies, Gujarat. Company launched the IPO through a fresh issue of 37,00,000 equity shares of Rs 10, by raising Rs 52.91 crores in October, 2025. Company is a leading manufacturer of an extensive range of Mild Steel sections and structural steel products, including MS Flat Bars, MS Round Bars, MS Angles, and Channels. It currently operate through two manufacturing plants which are located at Changodar in Ahmedabad, Gujarat. As of May 31, 2025, the combined installed capacity of these plants is 36,000 metric tons per annum (MTPA), with Unit 1 having an installed capacity of 18,000 MTPA and Unit 2 having 18,000 MTPA. Product portfolio includes a diverse range of Mild Steel Flat Bars, Mild Steel Round Bars, Mild Steel Angles, and Channels, which cater to a broad spectrum of customers, including industrial clients and end-users. These products are integral to various sectors, such as construction, infrastructure development, manufacturing, automotive, and general engineering. Mild steel structural and sectional products like flat bars, round bars, angles, and channels are essential for fabricating frameworks, reinforcement structures, machinery, and equipment, making them versatile in a range of applications due to their strength, durability, and ease of fabrication.

Mittal Sections Ltd IPO will close on 09 Oct 2025.

  • Wide Range of Products.
  • Strong relationship with customers and suppliers.
  • Experienced management team with industry expertise.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Ajaykumar Balwantrai Mittal 3202500 40.71 3202500 27.69
2 Atul Balwantrai Mittal 3202500 40.71 3202500 27.69
3 Well Plan Tradelink Pvt Ltd 1342500 17.06 1342500 11.61
4 Sushiladevi Balwantrai Mittal 108000 1.37 108000 0.93
5 Ritu Ajay Mittal 3000 0.04 3000 0.03
6 Monika Atul Mittal 3000 0.04 3000 0.03

  • There are outstanding legal mattersinvolving our Company, Promoters and Directors. Any adverse decisions could divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.
  • Our revenues are highly dependent on our operations in geographical region of state of Gujarat. Any adverse development affecting our operations in this region could have an adverse impact on our business, financial condition and results of operations.
  • Several of our key raw materials and components are sourced from a limited group of third-party suppliers giving rise to supplier concentration risks. Any restrictions in supply or defects in quality could cause delays in project construction or implementation and impair our ability to provide our services to customers at a price that is profitable to us, which could have a material adverse effect on our business, financial condition and results of operations.
  • We may continue to derive a material portion of our revenue from our top five customers and our financial dependence on our top five customers poses a potential risk. A reduction in business from these top five customers or any other major clients could have negative implications for both our revenue and profitability.
  • Labour-Intensive Operations and the Potential Risks of Workforce Disruptions.
  • We have not been able to obtain certain records of educational qualifications one of our Director and Senior Managerial Personnel, and have relied on certificates and affidavits furnished by them for such details of their profile, included in this Draft Red Herring Prospectus.
  • Our Company requires significant amounts of working capital for continued growth. Our inability to meet our working capital requirements may have an adverse effect on the results of operations.
  • We have issued Equity Shares in the last twelve months, the price of which is lower than the Issue Price.
  • We have experienced negative cash flows from investing and financing activities in the past.
  • The average cost of acquisition of Equity Shares by our Promoters is lower than the issue price.
  • Our Promoter Entities is engaged in the same line of business similar as our Company. We cannot assure that our Promoter will not favour the interests of that entities over our interest or that the said entities will not expand which may increase our competition, which may adversely affect business operations and financial condition of our Company.
  • 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.
  • Our Registered Office from where we operate is not owned by us.
  • Our business is a High Volume-Low Margin Business.
  • The logo "MSL MITTAL" has been registered under the name of our company. Any failure to protect our intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • The logo [*] is registered in the name of our promoter. Any failure to protect the intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • We could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in our products, which in turn could adversely affect our business operations and our sales could be diminished if we are associated with negative publicity.
  • The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on our business, results of operations margins and financial condition.
  • We have not entered into any long-term agreements with our suppliers for supply of items and accordingly may face disruptions in supply from our current suppliers.
  • No Objection Certificate (NOC) or consent from bank is awaited to fulfil condition of Sanction Letter.
  • We face competition in our business from domestic competitors. Such competition would have an adverse impact on our business and financial performance.
  • Our capital subscription related payment proofs are not able to trace by the company and the shareholders of the company.
  • Certain documents relating to transfer of shares/ business to our corporate promoter is not traceable.
  • Certain delays, discrepancies and Omissions have been detected in our statutory records, as well as in records related to the submission of returns to the concerned Registrar of Companies.
  • Our operations may cause injury to people or property and therefore could subject us to significant disruptions in our business, legal and regulatory actions, costs and liabilities which could materially and adversely affect our business, financial condition and results of operations.
  • Failure to manage our stocks could have an adverse effect on our net sales, profitability, cash flow and liquidity.
  • Our Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect our financial condition.
  • Our indebtedness, including various conditions and restrictive covenants imposed on us under our financing agreements and could adversely affect our ability to grow our business or react to changes in our business environment.
  • We require certain approvals, licenses, registrations and permits for our business and the failure to obtain or renew them in a timely manner may adversely affect our operations.
  • The Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
  • We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. We are yet to place orders 100% of the capital expenditure, as specified in the Objects of the Issue chapter. Any delay in procurement of such capital expenditure may delay the schedule of implementation and may also lead to increase in cost of these capital expenditure, further affecting our revenue and profitability.
  • Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
  • If we fail to maintain an effective system of internal controls, we may not be able to successfully manage, or accurately report, our financial risks. Despite our internal control systems, we may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect our reputation, business, financial condition, results of operations and cash flows.
  • 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.
  • If we are unable to manage our growth effectively and further expand into new markets our business, future financial performance and results of operations could be materially and adversely affected.
  • Pricing pressure from customers may adversely affect our gross margin, profitability and ability to increase our prices.
  • We are subject to strict quality requirements and any product defect issues or failure by us or our suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
  • Any increase in interest rates would have an adverse effect on our results of operations and will expose our Company to interest rate risks.
  • 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.
  • Disruption of logistics and transportation services could impact the ability of our suppliers to deliver raw materials or our ability to deliver products to our customers and/ or increase our transportation costs, which may adversely affect our operations.
  • We are dependent on our management team and key personnel /senior managerial personnel and the loss of any key team member may adversely affect our business performance.
  • Our insurance coverage may not be adequate to protect us against certain operating hazards and this could affect our business.
  • We have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.
  • The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • Our business activities are exposed to fluctuations in the prices of raw materials.
  • Our Promoters and members of our Promoter Group will continue to retain majority control in the Company after the Issue, which will enable them to influence the outcome of matters submitted to shareholders for approval.
  • Industry information included in this Draft Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • We may not be successful in implementing our business strategies.
  • You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
  • The price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not develop.
  • We cannot assure you that our equity shares will be listed on the SME platform of BSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
  • Sale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • ursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measures (GSM) by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
  • After this Issue, the price of the Equity Shares may be subject to change, or an active trading market for the Equity Shares may not develop.
  • QIBs 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, and Individual investor who applies for minimum application size are not permitted to withdraw their Bids after Bid/Offer Closing Date.
  • There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds.
  • There are outstanding legal matters involving our Company, Promoters and Directors. Any adverse decisions could divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.
  • Our revenues are highly dependent on our operations in geographical region of state of Gujarat. Any adverse development affecting our operations in this region could have an adverse impact on our business, financial condition and results of operations.
  • Our Promoter Entities is engaged in the same line of business similar as our Company. We cannot assure that our Promoter will not favour the interests of that entities over our interest or that the said entities will not expand which may increase our competition, which may adversely affect business operations and financial condition of our Company.
  • Several of our key raw materials and components are sourced from a limited group of third-party suppliers giving rise to supplier concentration risks. Any restrictions in supply or defects in quality could cause delays in project construction or implementation and impair our ability to provide our services to customers at a price that is profitable to us, which could have a material adverse effect on our business, financial condition and results of operations.
  • We have experienced negative cash flows from investing and financing activities in the past.
  • Labour-Intensive Operations and the Potential Risks of Workforce Disruptions.
  • We may continue to derive a material portion of our revenue from our top five customers and our financial dependence on our top five customers poses a potential risk. A reduction in business from these top five customers or any other major clients could have negative implications for both our revenue and profitability.
  • We have not been able to obtain certain records of educational qualifications one of our Director and Senior Managerial Personnel, and have relied on certificates and affidavits furnished by them for such details of their profile, included in this Red Herring Prospectus.
  • Our Company requires significant amounts of working capital for continued growth. Our inability to meet our working capital requirements may have an adverse effect on the results of operations.
  • We have issued Equity Shares in the last twelve months, the price of which is lower than the Issue Price.
  • The average cost of acquisition of Equity Shares by our Promoters is lower than the issue price.
  • 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.
  • Our Registered Office from where we operate is not owned by us.
  • Our business is a High Volume-Low Margin Business.
  • The logo "MSL MITTAL" has been registered under the name of our company. Any failure to protect our intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • The logo "M" is registered in the name of our promoter. Any failure to protect the intellectual property could have a material adverse effect on our business. We are, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business.
  • We could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in our products, which in turn could adversely affect our business operations and our sales could be diminished if we are associated with negative publicity.
  • The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on our business, results of operations margins and financial condition.
  • We have not entered into any long-term agreements with our suppliers for supply of items and accordingly may face disruptions in supply from our current suppliers.
  • We face competition in our business from domestic competitors. Such competition would have an adverse impact on our business and financial performance.
  • Our capital subscription related payment proofs are not able to trace by the company and the shareholders of the company.
  • Certain documents relating to transfer of shares/business to our corporate promoter is not traceable
  • Certain delays, discrepancies and Omissions have been detected in our statutory records, as well as in records related to the submission of returns to the concerned Registrar of Companies.
  • Our operations may cause injury to people or property and therefore could subject us to significant disruptions in our business, legal and regulatory actions, costs and liabilities which could materially and adversely affect our business, financial condition and results of operations.
  • Failure to manage our stocks could have an adverse effect on our net sales, profitability, cash flow and liquidity.
  • Our Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect our financial condition.
  • Our indebtedness, including various conditions and restrictive covenants imposed on us under our financing agreements and could adversely affect our ability to grow our business or react to changes in our business environment.
  • We require certain approvals, licenses, registrations and permits for our business and the failure to obtain or renew them in a timely manner may adversely affect our operations.
  • The Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
  • We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. We are yet to place orders 100% of the capital expenditure, as specified in the Objects of the Issue chapter. Any delay in procurement of such capital expenditure may delay the schedule of implementation and may also lead to increase in cost of this capital expenditure, further affecting our revenue and profitability.
  • Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
  • If we fail to maintain an effective system of internal controls, we may not be able to successfully manage, or accurately report, our financial risks. Despite our internal control systems, we may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect our reputation, business, financial condition, results of operations and cash flows.
  • 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.
  • If we are unable to manage our growth effectively and further expand into new markets our business, future financial performance and results of operations could be materially and adversely affected.
  • Pricing pressure from customers may adversely affect our gross margin, profitability and ability to increase our prices.
  • We are subject to strict quality requirements and any product defect issues or failure by us or our suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
  • Any increase in interest rates would have an adverse effect on our results of operations and will expose our Company to interest rate risks.
  • 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.
  • Disruption of logistics and transportation services could impact the ability of our suppliers to deliver raw materials or our ability to deliver products to our customers and/ or increase our transportation costs, which may adversely affect our operations.
  • We are dependent on our management team and key personnel /senior managerial personnel and the loss of any key team member may adversely affect our business performance.
  • Our insurance coverage may not be adequate to protect us against certain operating hazards and this could affect our business.
  • We have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.
  • The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • Our business activities are exposed to fluctuations in the prices of raw materials.
  • Our Promoters and members of our Promoter Group will continue to retain majority control in the Company after the Issue, which will enable them to influence the outcome of matters submitted to shareholders for approval.
  • Industry information included in this Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • We may not be successful in implementing our business strategies.
  • You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
  • The price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not develop.
  • We cannot assure you that our equity shares will be listed on the SME platform of BSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.
  • Sale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • Pursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measures (GSM) by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
  • After this Issue, the price of the Equity Shares may be subject to change, or an active trading market for the Equity Shares may not develop.
  • QIBs 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, and Individual investor who applies for minimum application size are not permitted to withdraw their Bids after Bid/Offer Closing Date.
  • There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

The Issue type of Mittal Sections Ltd is Book Building - SME.

The minimum application for shares of Mittal Sections Ltd is 2000.

The total shares issue of Mittal Sections Ltd is 3700000.

Initial public issue of 37,00,000 equity shares of face value of Rs. 10/- each of Mittal Sections Limited ("M S L" or the "Company" or the "Issuer") for cash at a price of Rs. 143.00/- per equity share including a share premium of Rs. 133/- per equity share (the "Issue Price") aggregating to Rs. 52.91 crores ("the Issue"), of which 1,85,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 143.00/- per equity share including a share premium of Rs. 133.00/- per equity share aggregating to Rs. 2.65 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 35,15,000 equity shares of face value of Rs. 10/- each at a price of Rs. 143.00/-per equity share including a share premium of Rs. 133.00/- per equity share aggregating to Rs. 50.26 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 31.99%, and 30.39 %, respectively, of the post issue paid up equity share capital of the company. Price Band: Rs. 136/- to Rs. 143/- for equity share of face value of Rs. 10 each. The floor price is 13.60 times times the face value and cap price is 14.30 times of the face value of the equity shares. Bids can made for a minimum of 2,000 equity shares and in multiples of 1,000 equity shares thereafter.