Glass Wall Systems (India) Ltd

The business has not compounded well, having grown at a 3.9% CAGR over the last 7 years, with a highly cyclical business concentrated among a few large clients, the top three at 57% of FY26 revenue. Governance gaps add to the discomfort. There have been four company secretaries in 25 months, the current one appointed a month before the RHP, and the CFO chair has changed hands three times in two years. Employee attrition was 27.0% in FY26. The FY24 audit report carried a qualification, with ₹31.2 cr of VAT left unprovided against net worth of ₹121 cr at the time. Yes Systems, acquired from the promoter family in a share swap in August 2025, also had to restate its earlier accounts after its auditor found revenue had been recognised incorrectly.

The company incurred ₹53.4 cr of subcontracting charges in FY26, which included ₹20.6 cr, or 39%, paid to M.J. Coaters, a promoter group entity of which both promoters are directors. Motilal Oswal has backed the company since 2014 and held 35.6% before the offer. It is the largest seller, taking ₹272 cr of the ₹368 cr offer for sale and leaving 17.3% post-listing. The other founding family (Kamlesh Choudhary) sold their stake entirely between 2023-24. The order book of ₹982 cr is 2.15x FY26 revenue, but the mix is tilting toward domestic EPC work, which could weigh on margins. The domestic industry is fragmented and faces competition from low-cost operators.

An IPO ask valuation of 13.9x EV/EBITDA and 19.1x P/E provides little margin of safety, and we would skip. At the current GMP of ~25% (7 September 2026), the issue points to modest listing gains, if it sustains. However, it is important to note that GMP has been a poor guide of late and has been unstable. For example in recent IPOs: Skyways Air Services had a 30% GMP and listed 10% below its issue price, Symbiotec Pharmalab carried 27% and listed flat, and Annu Projects carried 8% and listed 24% below issue.