Roopa Screen IPO DRHP: Fresh issue; capacity to double to 163,200 screens
- Roopa Screen Ltd files DRHP for SME IPO with fresh issue structure.
- Funds allocated for new Sanand facility to double capacity to 163,200 screens.
- FY26 PAT rose to ₹6.48 Cr; margins expanded to 12.77%.
- Key risks include Narol unit closure due to regulatory issues and supplier concentration.
*this image is generated using AI for illustrative purposes only.
Roopa Screen Limited, a Gujarat-based manufacturer of rotary nickel screens for textile printing, has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO. The company intends to raise capital through a fresh issue to fund capacity expansion and working capital needs, leveraging its strong revenue and profit growth observed in recent fiscal years.
About the Company
Incorporated in 2013 and headquartered in Ahmedabad, Roopa Screen manufactures rotary nickel screens used in continuous fabric printing. Its product portfolio includes Delta, Penta, Standard, and Nova variants, with the Penta screen being the highest revenue contributor. The company operates a manufacturing facility at Gallops Industrial Park-II in Sanand and maintains distribution points in Surat and Panipat. It serves over 200 customers across 11 Indian states, with Gujarat accounting for 58.93% of its FY2026 revenue. The business also trades nickel cathodes as an ancillary activity.
Financial Performance
The company has demonstrated consistent growth in both top-line and bottom-line metrics over the past three years.
| Metric (₹ Cr) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations | 35.71 | 45.34 | 50.73 |
| Total Revenue | 35.85 | 45.63 | 51.32 |
| Profit After Tax (PAT) | 1.50 | 4.69 | 6.48 |
| Total Assets | 19.66 | 22.47 | 30.00 |
| Total Equity | 5.21 | 9.89 | 16.37 |
Revenue from operations grew by approximately 42% between FY2024 and FY2026, while Profit After Tax surged by 332% over the same period. The PAT margin expanded from 4.20% in FY2024 to 12.77% in FY2026, indicating improved operating leverage. The debt-to-equity ratio improved significantly from 2.77x in FY2024 to 0.83x in FY2026, reflecting substantial deleveraging.
Why the Company Is Raising Funds
The IPO proceeds are allocated towards specific growth and operational objectives:
- Funding of Capital Expenditure: ₹9.90 crore for setting up a new manufacturing facility adjacent to the existing Sanand unit. This project aims to increase installed capacity from 74,400 to 163,200 screens per annum, a 119.35% increase, and introduce larger diameter screens.
- Working Capital Requirements: ₹6.00 crore to support business expansion.
- General Corporate Purposes: Balance amount, not exceeding 15% of gross proceeds or ₹10 crore, whichever is lower.
Business Strengths
- Integrated Manufacturing: The company operates an in-house testing laboratory and quality control infrastructure at its Sanand facility, ensuring product consistency.
- Geographic Reach: It serves a domestic customer base across 11 states, with key markets in Gujarat, Maharashtra, Haryana, Punjab, and Tamil Nadu accounting for 96.58% of FY2026 revenue.
- Experienced Promoters: Managing Director Ghanshyambhai Ranchhodbhai Thakkar has over three decades of experience in the textile machinery sector, while CFO Kunal Ghanshyambhai Thakker brings nearly two decades of domain expertise.
Key Risks
- Regulatory Compliance: Manufacturing operations at the Narol facility were discontinued on December 15, 2025, due to the absence of a factory licence and GPCB consents. This presents a material regulatory risk and potential capacity constraints until the new facility is operational.
- Industry Dependence: Almost all revenue is derived from the textile sector, exposing the business to industry-specific slowdowns.
- Product Concentration: The Penta Screen product accounted for 38.54% of revenue in FY2026, creating significant product concentration risk.
- Supply Chain Risk: The top 10 suppliers accounted for 96.73% of total purchases in FY2026 without long-term agreements, exposing the company to price volatility and supply disruptions.
Important IPO Dates
- Opening Date: 24-Sep-2026
- Closing Date: 28-Sep-2026
- Allotment Date: 29-Sep-2026
- Listing Date: 01-Oct-2026
Offer Details
The offer consists entirely of a fresh issue of equity shares. Specific details regarding the price band, face value, and lot size were not disclosed in the available DRHP data.
Bottom Line
Roopa Screen Limited is pursuing an SME IPO to finance a significant capacity expansion that aims to more than double its production output. While the company has shown strong financial growth and margin improvement, investors must weigh this against the operational halt at its Narol facility due to regulatory non-compliance and the risks associated with high supplier and product concentration.
How will the regulatory compliance issues at the Narol facility impact Roopa Screen's production continuity and revenue stability before the new Sanand unit becomes fully operational?
What specific strategies is management implementing to mitigate the high supplier concentration risk, particularly regarding nickel cathode procurement without long-term agreements?
Given that Penta screens account for nearly 39% of revenue, how does the company plan to diversify its product mix to reduce dependency on this single variant?
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