Anawil Wire & Engineering IPO (3-5 August) Analysis

IPO Analysis | NSE Emerge | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 229(2) and 253(1)

Based on Red Herring Prospectus dated July 28, 2026 | Windmill Tower Manufacturing and Fabrication | Vapi, Gujarat

STATUS: LIVE RHP, ANCHOR BID JULY 31, BIDDING OPENS AUGUST 3 AND CLOSES AUGUST 5, 2026

Fresh Issue: up to 52,84,800 Equity Shares | Offer for Sale: up to 13,00,800 Equity Shares by Promoter Nimish Kumar Rameshchandra Vashi | NSE Emerge Platform

No Comparable Listed Peer Exists | PAT Grew More Than 8 Times Over 2 Years | RoNW of 40.92% (FY26) | Entire Fresh Issue Directed at Debt Repayment

 Anawil Wire and Engineering Limited was incorporated as Anawil Wire and Engineering Private Limited on January 2, 2021, and converted to a public limited company on March 11, 2025. Its CIN is U27320GJ2021PLC119254, with its registered office in Vapi, Valsad, Gujarat. The Promoters are Nimish Kumar Rameshchandra Vashi, Ayush Nimish Vashi, Bhavin Navinchandra Desai and Bijal Nimesh Vashi.

The Company manufactures windmill towers, fabricating heavy, precision tubular steel structures for the wind energy sector, having strategically shifted into this segment in 2023 after commencing operations in 2021 with weldmesh and boiler accessory fabrication. Towers are typically manufactured in 5 sections for road transport and can reach approximately 140 metres in height.

The Company operates 2 manufacturing facilities, in Koppal, Karnataka and Kutch, Gujarat (the latter commenced March 2026), together spanning 48.05 acres with an annual capacity of 612 towers, and holds ISO 9001:2015, ISO 14001:2015, ISO 14001:2018 and ISO 3834-2:2021 certifications. Production grew from 114 towers in FY24 to 210 towers in FY26, with capacity utilisation improving from 38.00% to 48.17% over the same period.

Revenue from operations grew from Rs.5,406.65 Lakhs in Fiscal 2024 to Rs.14,326.69 Lakhs in Fiscal 2026, while PAT grew from Rs.439.18 Lakhs to Rs.3,662.83 Lakhs over the same period, more than 8 times, with RoNW improving from 15.82% to 40.92%. EBITDA margin has remained unusually high and stable for a fabrication business, in the 38% to 43% range across all 3 disclosed fiscal years.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated July 28, 2026. This is a live offer: Anchor Investor Bid Friday, July 31, 2026, Bid or Offer opens Monday, August 3, 2026 and closes Wednesday, August 5, 2026.
Issue Structure	100% Book Built Offer comprising a Fresh Issue of up to 52,84,800 Equity Shares by the Company and an Offer for Sale of up to 13,00,800 Equity Shares by a single Promoter Selling Shareholder, aggregating to up to 65,85,600 Equity Shares. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Nimish Kumar Rameshchandra Vashi, Ayush Nimish Vashi, Bhavin Navinchandra Desai and Bijal Nimesh Vashi.
Selling Shareholder and WACA	The entire Offer for Sale is being sold by Promoter Nimish Kumar Rameshchandra Vashi, at a Weighted Average Cost of Acquisition of Rs.7.26 per Equity Share, close to face value and a small fraction of the likely Offer Price.
Eligibility Route	Regulation 229(2) and 253(1) of Chapter IX of the SEBI ICDR Regulations, 2018.
Listing Exchange	SME Platform of the National Stock Exchange of India (NSE Emerge).
BRLM	Hem Securities Limited.
Registrar	Bigshare Services Private Limited.
Bid or Offer Dates	Anchor Bid: Friday, July 31, 2026. Opens: Monday, August 3, 2026. Closes: Wednesday, August 5, 2026.
Listed Peers, One Line	None. The RHP states there are no listed companies in India engaged in a business similar to the Company's, so no industry comparison is provided.

This is one of the small number of reports in this series where no listed peer exists at all, reflecting the specialised, capital-intensive nature of windmill tower fabrication. The entire identified use of Net Proceeds is directed at debt repayment rather than capacity expansion or working capital, discussed further in Section 3, which is a distinctive structure relative to most other manufacturing IPOs in this series.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Repayment and/or prepayment of borrowings availed by the Company	11,500.00	The Company discloses total outstanding borrowings (secured and unsecured) of Rs.13,086.65 Lakhs as at May 31, 2026, of which Rs.11,500 Lakhs is targeted for repayment from Net Proceeds, covering specific named credit facilities; prepayment charges, if applicable, will be funded from internal accruals rather than Net Proceeds.
General corporate purposes	[TBD]	Capped at 15% of the amount raised or Rs.10 Crore, whichever is lower. No further breakdown provided, as is standard.

Unlike most manufacturing companies in this report series, this Issue has no capital expenditure or working capital Object at all: the overwhelming majority of Net Proceeds (an estimated Rs.11,500 Lakhs) is earmarked purely for debt repayment. This is a genuine, large-scale deleveraging exercise, reducing the Company's substantial existing borrowings (Rs.13,086.65 Lakhs as at May 2026) built up to fund the recent capacity expansion into the Kutch, Gujarat facility.

The Company frames this as improving its future capacity to raise additional resources, though as with all RHPs at this stage, none of the fund requirements have been independently appraised, and the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	14,326.69	7,858.86	5,406.65
EBITDA	6,108.90	2,997.57	2,222.28
EBITDA margin (%)	42.64	38.14	41.10
Profit after tax	3,662.83	1,230.58	439.18
PAT margin (%)	25.57	15.66	8.12
Net worth	8,951.16	4,007.59	2,776.75
Return on net worth / RoNW (%)	40.92	30.71	15.82
Return on capital employed (%)	23.05	21.84	13.68
NAV per equity share (Rs.)	46.75	21.86	15.14

Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Net cash from operating activities	1,843.94	966.31	889.33
Net cash used in investing activities	(9,727.16)	(700.77)	(696.01)
Net cash from / (used in) financing activities	8,030.36	(260.47)	(197.29)

Independently recomputed, revenue grew approximately 45.3% in FY25 and a further 82.3% in FY26, and PAT growth has been extraordinary: from Rs.439.18 Lakhs in FY24 to Rs.3,662.83 Lakhs in FY26, more than 8 times over 2 years, driven by both volume growth (tower production nearly doubling) and consistently strong margins. EBITDA margin has been unusually high and stable for a fabrication business, holding in the 38% to 43% range in every year of the disclosed track record, and RoNW climbed from 15.82% to 40.92% over the period.

Cash flow deserves a specific comparability note similar to a small number of other reports in this series: the Company's own Risk Factors are titled around 'negative cash flows', but on inspection operating cash flow was positive and growing in all 3 years (Rs.889.33 Lakhs to Rs.1,843.94 Lakhs), while the negative figures relate entirely to investing activities (driven by a large, deliberate Rs.9,305.37 Lakhs capital expenditure in FY26 alone, mostly the new Kutch facility) and, in earlier years, modest financing outflows from loan repayments.

FY26 financing cash flow turned sharply positive (Rs.8,030.36 Lakhs) as the Company drew down borrowings to fund this expansion, which is precisely the debt this Offer's Net Proceeds are now earmarked to repay. Readers should not mistake the risk factor's headline framing for an operating cash flow problem; the underlying business has been cash generative from operations throughout.

How Does It Compare to Peers?

The RHP states plainly that there are no listed companies in India engaged in a business similar to Anawil's specialised windmill tower manufacturing and fabrication, so no industry accounting ratio comparison is provided. This places the Company alongside a small number of others in this report series, such as H. R. Hygiene Products and Aegeus Technologies, where no meaningful peer benchmark exists. In the absence of a peer table, the Company's own 3 year trend, set out in Section 4 above, is the primary available reference point for assessing performance and valuation context.

Key Risks

l Revenue is very heavily concentrated in a single business segment, Tower Manufacturing and Fabrication, which accounted for 94.36% of FY 2026 revenue (up from 81.23% in FY24), leaving the Company exposed to any downturn in wind energy sector demand, technology shifts, or increased competition specific to this segment.

l The Company carries substantial debt (Rs.13,086.65 Lakhs outstanding as at May 31, 2026), and the entirety of this Offer's identified Net Proceeds use (an estimated Rs.11,500 Lakhs) is directed at repaying this debt rather than funding new growth, meaning the Offer itself is primarily a balance sheet repair exercise rather than an expansion-funding one.

l The Company depends on a small number of key suppliers concentrated in a few states (Gujarat, Karnataka and Maharashtra accounted for 97.76% of FY 2026 raw material purchases), without long-term supply arrangements, and the top 10 suppliers represented 90.11% of FY 2026 purchases, up sharply from 72.44% in FY24.

l One of the Company's vendors has used the address of the Company's Koppal, Karnataka manufacturing facility as its own place of business for GST registration purposes (under a No Objection Certificate that confers no ownership or tenancy rights); any GST authority investigation of that vendor could result in visits, information requests, or administrative scrutiny directed at the Company's own facility.

l The Company's Restated Financial Statements were certified by a Peer Reviewed Chartered Accountant who is not the Company's own Statutory Auditor, a structure the Company attributes to the Statutory Auditor's existing commitments.

l The Company's current order book is not necessarily indicative of future growth, and revenue remains dependent on a small number of customers without firm long-term commitments, alongside seasonal and cyclical variations inherent to the wind energy construction cycle.

l There are discrepancies or errors in certain corporate records filed with the Registrar of Companies (Form PAS-3, AOC-4, SH-7, DIR-12) spanning FY 2021-22 through FY 2025-26.

l The Company does not own its registered office premises, and its logo is not yet registered, leaving both premises continuity and brand protection incomplete at the time of listing.

l The Company is subject to restrictive covenants under its credit facilities that limit operational flexibility, and shows an excessive dependence on Bank of Baroda specifically for its loan facilities.

l The Company's Promoter, Promoter Group members and a Group Company have provided personal guarantees for loans availed by the Company, linking personal and group financial exposure to the Company's borrowings.

l There are outstanding legal proceedings involving the Company, its Directors and Promoters, and the Company carries contingent liabilities that could affect its financial condition if they materialise.

l The business is dependent on a single factory, and any disruption, breakdown or failure of machinery or power sources could affect production; the Company also carries under-utilised manufacturing capacity that has not yet been fully absorbed following its recent Kutch facility expansion.

Positives to Note

l Financial performance has scaled dramatically: PAT grew more than 8 times, from Rs.439.18 Lakhs in FY 2024 to Rs.3,662.83 Lakhs in FY 2026, while EBITDA margin remained unusually high and stable (38% to 43%) throughout the track record, an uncommon combination of high growth and high, consistent margin for a fabrication business.

l Operating cash flow has been positive and growing in every year of the disclosed track record (Rs.889.33 Lakhs to Rs.1,843.94 Lakhs), meaning the negative cash flow figures the Company discloses relate solely to deliberate capital expenditure and financing activity, not core operations.

l The Company has already commissioned its new Kutch, Gujarat manufacturing facility (March 2026), adding further production capacity, with this Offer's Net Proceeds now directed at repaying the debt that funded this expansion rather than seeking fresh capital for it.

l Capacity utilisation has improved steadily, from 38.00% in FY24 to 48.17% in FY26, alongside production volumes nearly doubling (114 to 210 towers), indicating genuine, demonstrated demand absorption rather than speculative capacity building.

l The Company holds a broad set of quality certifications (ISO 9001:2015, ISO 14001:2015, ISO 14001:2018, ISO 3834-2:2021) relevant to heavy structural fabrication, supporting its positioning as a qualified supplier to wind turbine generator OEMs.

l RoNW has improved substantially and consistently across all 3 disclosed years (15.82% to 30.71% to 40.92%), a clean upward trend without reversal.

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