Roopa Screen IPO (24 Sep-28 Sep) Analysis

Sep 28

7 min read

Updated: Oct 4

SME IPO Analysis | BSE SME Platform | 100% Book Built Issue (Fresh Issue Only) | Regulation 229(2) and 253(1)

Based on Red Herring Prospectus dated September 19, 2026 | Rotary Nickel Screens for Textile Printing | Ahmedabad, Gujarat

Roopa Screen Limited was incorporated as Roopa Screen Private Limited on April 12, 2013 and converted to a public company in June 2025. The registered office is at 6, Sudama Estate, Behind Swastik Bansidhar Opp. Sudama Furniture, Narol, Ahmedabad 382405, Gujarat. The website is www.roopaindia.in.

The promoters are Ghanshyambhai Ranchhodbhai Thakkar, Kunal Ghanshyambhai Thakker, Bhartiben Ghanshyambhai Thakkar and Preksha Kunal Thakkar. Karina Deepak Chandwani is Company Secretary and Compliance Officer.

The statutory auditor is G M C S and Co., Chartered Accountants.

The company manufactures rotary nickel screens used in rotary screen printing machines for continuous fabric printing, almost entirely serving the textile industry. Its main product variants are Penta, Standard, Delta and Nova screens, plus a trading line in nickel cathodes.

Manufacturing is now consolidated at a facility in Gallops Industrial Park II, Sanand, Ahmedabad, with an installed capacity of 74,400 screens per annum running at 96.51% utilisation as of March 31, 2026.

The company's older Narol facility, its current registered office, stopped manufacturing on December 15, 2025 because certain factory and pollution control approvals were not in place there; it is now used only as a warehouse and registered office.

The Penta screen alone contributed 38.54% of FY2026 revenue from operations. The company's financial year ends March 31.

Key Basics

This is an SME book built issue on the BSE SME platform, made under Regulation 229(2) and 253(1) of the SEBI ICDR Regulations. The RHP is dated September 19, 2026. The Price Band and lot size remain undetermined at this stage, though bidding is scheduled to open in a few days.

Field	Value
Document Type	Red Herring Prospectus dated September 19, 2026. Price Band and lot size are [TBD].
Platform	BSE SME. Designated Stock Exchange: BSE.
Issue Structure	Fresh Issue only, up to 30,00,000 Equity Shares. No Offer for Sale.
Face Value	Rs.10 per Equity Share
Market Maker Reservation	2,10,000 Equity Shares, leaving a Net Issue of 27,90,000 shares. The Public Issue and Net Issue are 27.11% and 25.21% respectively of post issue paid up capital.
Recent Secondary Transaction	6,05,063 and 2,01,687 shares transferred between promoter group members on September 16, 2026 at Rs.54 per share, the weighted average cost of acquisition figure disclosed in this RHP
BRLM	Seren Capital Private Limited
Registrar	Bigshare Services Private Limited
Bid Dates	Anchor September 23, 2026. Bidding opens September 24, 2026 and closes September 28, 2026.

What distinguishes this issue is the disclosed weighted average cost of acquisition of Rs.54 per share, from a promoter group internal transfer just days before this RHP, which gives a concrete reference point against the eventual Price Band. This is a Fresh Issue only, with no promoter or investor exit.

How Will the IPO Money Be Used?

This is a Fresh Issue only, with no Offer for Sale.

Object	Amount (Rs. Lakhs)	Details
Capital expenditure: new manufacturing facility at Sanand	990.46	Total project cost Rs.1,060.98 Lakhs, on a 10 year leased plot adjacent to the existing unit. Raises installed capacity from 74,400 to 1,63,200 screens per annum and adds a new 1,018 mm diameter product line. Rs.20.00 Lakhs already paid from internal accruals; a further Rs.50.52 Lakhs contingency also from internal accruals.
Working capital	600.00	To fund the growing working capital requirement alongside existing bank borrowings and internal accruals.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.1,000.00 Lakhs, whichever is lower.
Total Net Proceeds	[TBD]	To be finalised once the Issue Price is set.

The new facility is being built specifically to absorb machinery relocated from the closed Narol unit and to consolidate manufacturing at a single site. Neither the capex nor the working capital object has been appraised by a bank or financial institution, and no government subsidy is expected for the new facility, though the company has received small, non recurring subsidies in the past.

Financial Performance

Revenue, EBITDA, and Profitability

Rs. Lakhs	FY2026	FY2025	FY2024
Revenue from Operations	5,072.73	4,534.12	3,570.53
EBITDA	1,000.32	812.71	423.91
EBITDA Margin	19.72%	17.92%	11.87%
Profit After Tax	648.33	468.53	150.36
PAT Margin	12.78%	10.33%	4.21%
EPS, Basic and Diluted (Rs.)	8.04	5.81	1.86
Return on Equity	49.37%	62.07%	33.76%
Return on Capital Employed	39.33%	42.21%	22.76%

Revenue grew 11.88% in FY2026 to Rs.5,072.73 Lakhs, and PAT grew 38.37% to Rs.648.33 Lakhs, continuing a much steeper 211.65% jump the year before. EBITDA margin has nearly doubled since FY2024, from 11.87% to 19.72%, and PAT margin has tripled, from 4.21% to 12.78%.

Both RoE and RoCE peaked in FY2025 and eased slightly in FY2026, even as absolute profit kept growing, a pattern that reflects the larger equity and capital base following the company's conversion to a public company.

Balance Sheet and Cash Flow

Rs. Lakhs	FY2026	FY2025	FY2024
Total Assets	3,000.22	2,246.91	1,966.33
Total Equity (Share Capital plus Reserves)	1,637.39	989.06	520.53
Total Borrowings	741.75	702.58	898.06
NAV per Share (Rs.)	20.30	12.26	6.45
Net Cash from Operating Activities	284.64	381.31	586.45

Total Equity, computed as share capital plus reserves, more than tripled from Rs.520.53 Lakhs in FY2024 to Rs.1,637.39 Lakhs in FY2026, and NAV per share rose from Rs.6.45 to Rs.20.30 over the same period. Total Borrowings actually fell from Rs.898.06 Lakhs in FY2024 to Rs.741.75 Lakhs in FY2026, even as the business grew.

Operating cash flow has stayed positive throughout, though it declined each year, from Rs.586.45 Lakhs in FY2024 to Rs.284.64 Lakhs in FY2026, as growth in trade receivables and inventory absorbed more of the cash generated.

How Does It Compare to Peers?

The RHP names a single peer, Stovec Industries Limited, based on the closing price on BSE as of September 7, 2026, but flags upfront that Stovec's product portfolio, rotary printing systems and digital textile printing machines, differs from Roopa Screen's own rotary nickel screen manufacturing. Roopa Screen's own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
Roopa Screen Limited	8.04	[TBD]	20.30	39.60%
Stovec Industries Limited	33.04	50.54	631.12	5.37%

Roopa Screen's RoNW of 39.60% is far higher than Stovec's 5.37%, but the two companies are of very different scale and product mix, as the RHP itself notes; Stovec's revenue of Rs.19,811.10 Lakhs is roughly four times Roopa Screen's Rs.5,072.73 Lakhs, and Stovec's NAV per share of Rs.631.12 dwarfs Roopa Screen's Rs.20.30. With only one, imperfectly comparable peer named, this comparison is directional at best.

Key Risks to Know Before Applying

• The company discontinued manufacturing at its Narol facility, its own registered office, from December 15, 2025 because factory licence and pollution control approvals were not in place; no action has been taken by authorities so far, but the RHP itself says future inquiry or prosecution over the earlier period cannot be ruled out, with penalties under the Factories Act and environmental laws running up to six years' imprisonment for designated persons.

• The new manufacturing facility that will absorb 78% of the disclosed Net Proceeds is not yet built; it depends on a 10 year leased plot, ongoing civil construction, and machinery still to be delivered from multiple named vendors, so timeline and cost overrun risk sits directly on this Issue's proceeds.

• The single largest product, Penta screens, was 38.54% of FY2026 revenue, and the company depends almost entirely on the textile printing industry for demand.

• Only one industry peer is named for comparison, Stovec Industries Limited, and the RHP itself flags that its product range differs materially from Roopa Screen's, and its scale is roughly four times larger, limiting how much the comparison can inform the eventual Price Band.

• A recent related party transfer priced shares at Rs.54 each on September 16, 2026, involving two promoter group members; investors should judge the eventual Price Band against this recent internal transaction.

• Both RoE and RoCE fell from their FY2025 peaks, from 62.07% to 49.37% and from 42.21% to 39.33% respectively, even as absolute profit kept rising, reflecting a larger capital base following the company's conversion to a public company.

• Top 10 customers were 34.53% of FY2026 revenue, up from 27.22% in FY2025, and one of the FY2025 top 10 customers was disclosed as a related party in which the company's directors hold interest.

• Operating cash flow declined every year shown, from Rs.586.45 Lakhs in FY2024 to Rs.284.64 Lakhs in FY2026, even as profit grew, as receivables and inventory absorbed more cash.

• The company has applied for renewal of its boiler use certificate at the Sanand facility and to update boiler records with its new corporate name; both applications remain pending as of the RHP date.

• The lease for the new facility's land carries a 5% rent escalation every two years over its 10 year term, adding a known, growing cost to the new facility regardless of how it performs.

• The estimated project cost of Rs.1,060.98 Lakhs and the working capital requirement have not been appraised by any bank or financial institution.

Positives to Note

• PAT grew every year shown, from Rs.150.36 Lakhs in FY2024 to Rs.468.53 Lakhs in FY2025 to Rs.648.33 Lakhs in FY2026, a compound roughly two times growth over two years.

• EBITDA margin nearly doubled from 11.87% in FY2024 to 19.72% in FY2026, and PAT margin roughly tripled from 4.21% to 12.78% over the same period.

• Total Borrowings fell from Rs.898.06 Lakhs in FY2024 to Rs.741.75 Lakhs in FY2026 even as the business grew, and operating cash flow, while declining, stayed positive throughout the period shown.

• Capacity utilisation at the existing Sanand facility rose from 83.38% in FY2024 to 96.51% in FY2026, evidence of genuine demand pressure behind the expansion this Issue funds.

• No single customer contributed more than 10% of revenue in any of the three years shown, despite rising overall customer concentration in the top 10.

• The company has already committed Rs.20.00 Lakhs of its own internal accruals to the new facility's civil construction, evidence that the expansion has genuinely begun rather than remaining only a plan on paper.

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