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DRAFT RED HERRING PROSPECTUS Dated: June 28, 2019

Please read Section 32 of the Companies Act, 2013 (The Draft Red Herring Prospectus will be updated

upon registering with the RoC)100% Book Built Issue

ATMASTCO LIMITEDOur Company was incorporated as “Atmastco Private Limited” at Bhilai, Chhattisgarh (then Madhya Pradesh) as a Private Limited Company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated April 7, 1994 issued by the Registrar of Companies, Madhya Pradesh and Gwalior bearing Registration Number 10-08234. On December 02, 1994, our Company acquired the ongoing business of a partnership firm i.e. M/s. Atmastco where one of our promoters Mr. Subramaniam Swaminathan Iyer was partner. Subsequently, our Company was converted into a Public Limited Company pursuant to special resolution passed by the shareholders of our Company at Extra-ordinary General Meeting held on March 22, 2016 and the name of our Company was changed to “Atmastco Limited” vide a fresh Certificate of Incorporation dated May 10, 2016 issued by the Registrar of Companies, Chhattisgarh. The Corporate Identification Number of our Company is U29222CT1994PLC008234.

Registered Office: 157-158, Light Industrial Area, Nandini Road, Opp. Karuna Hospital, Bhilai, Durg – 490 026, Chhattisgarh, India;Tel: 0788-2286854; Fax: NA; E-Mail: [email protected]; Website: www.atmastco.com;

Contact Person: Vijaya Agrawal, Company Secretary and Compliance officerPROMOTERS OF OUR COMPANY: SUBRAMANIAM SWAMINATHAN IYER AND VENKATARAMAN GANESAN

THE ISSUEINITIAL PUBLIC OFFER CONSISTING OF FRESH ISSUE OF UPTO 54,78,000* EQUITY SHARES OF FACE VALUE OF ` 10 EACH (“EQUITY SHARES”) OF ATMASTCO LIMITED (“COMPANY” OR “ISSUER”) FOR CASH AT A PRICE OF ` [●] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ` [●] PER EQUITY SHARE) AGGREGATING UPTO ̀ [●] ** LAKHS (THE “ISSUE”). THE ISSUE INCLUDES A RESERVATION OF UPTO [●] EQUITY SHARES OF FACE VALUE ̀ 10/- EACH AT A PRICE OF ̀ [●] PER EQUITY SHARE AGGREGATING ̀ [●] LAKHS FOR SUBSCRIPTION BY THE MARKET MAKER TO THE ISSUE (THE “MARKET MAKER RESERVATION PORTION”). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. NET ISSUE OF UPTO [●] EQUITY SHARES OF FACE VALUE OF ̀ 10/- EACH FOR CASH AT A PRICE OF ` [●]/- PER EQUITY SHARE, AGGREGATING ` [●] LAKHS IS HEREINAFTER REFERED TO AS THE “NET ISSUE”. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE [●] % AND [●] % RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.THE FACE VALUE OF THE EQUITY SHARES IS ` 10 EACH. THE PRICE BAND AND THE MINIMUM BID LOT WILL BE DECIDED BY OUR COMPANY IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGER (“BRLM”) AND WILL BE ADVERTISED IN ALL EDITIONS OF THE ENGLISH NATIONAL NEWSPAPER, ALL EDITIONS OF THE HINDI NATIONAL NEWSPAPER AND THE REGIONAL NEWSPAPER [●], (HINDI BEING THE LOCAL LANGUAGE OF CHHATTISGARH, WHERE OUR REGISTERED OFFICE IS SITUATED], EACH WITH WIDE CIRCULATION, AT LEAST 2 (TWO) WORKING DAYS PRIOR TO THE BID / ISSUE OPENING DATE WITH THE RELEVANT FINANCIAL RATIOS CALCULATED AT THE FLOOR PRICE AND THE CAP PRICE AND SHALL BE MADE AVAILABLE TO THE NATIONAL STOCK EXCHANGE OF INDIA LIMITED REFERRED TO AS THE “STOCK EXCHANGE” FOR THE PURPOSE OF UPLOADING ON ITS WEBSITE.IN CASE OF ANY REVISIONS IN THE PRICE BAND OR FORCE MAJEURE, BANKING STRIKE OR SIMILAR CIRCUMSTANCES, THE ISSUER MAY, FOR REASONS TO BE RECORDED IN WRITING, MAY EXTEND THE BID / ISSUE PERIOD NOT EXCEEDING 10 WORKING DAYS. ANY REVISION IN THE PRICE BAND AND THE REVISED BID / ISSUE PERIOD, WILL BE WIDELY DISSEMINATED BY NOTIFICATION TO THE STOCK EXCHANGE, BY ISSUING A PRESS RELEASE, AND ALSO BY INDICATING THE CHANGE ON THE WEBSITE OF THE BRLM AND THE TERMINALS OF THE SYNDICATE MEMBER(S).In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”) the Issue is being made for at least 25% of the post- issue paid-up Equity Share capital of our Company. The Issue is being made through the Book Building Process, in compliance with Chapter IX of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended the (“SEBI ICDR Regulations”) and allocation in the net issue to the public will be made in terms of regulation 253 of the SEBI (ICDR) Regulations, as amended. In terms of SEBI Circular No. CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, all investors shall participate in this Issue mandatorily through the Applications Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts which will be blocked by SCSBs. Further, pursuant to SEBI Circular No. SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 01, 2018, Retail Individual Investors applying in public issue may use either Application Supported by Blocked Amount (ASBA) process or UPI payment mechanism by providing UPI ID in the Bid Cum Application Form which is linked from Bank Account of the investor. For details, see “Issue Procedure” on page 231 of this Draft Red Herring Prospectus.

RISK IN RELATION TO FIRST ISSUEThis being the first public issue of Equity Shares of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares is ` 10 each. The Issue Price (determined and justified by our Company in consultation with the BRLM as stated in “Basis for Issue Price” on page 96 of this DRHP) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed on Emerge Platform of National Stock Exchange of India Limited. No assurance can be given regarding an active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.

GENERAL RISKSInvestments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their entire investment. Investors are advised to read the risk factors carefully before taking an investment decision in the Issue. For taking an investment decision, investors must rely on their own examination of our Company and the Issue including the risks involved. The Equity Shares issued in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of the Draft Red Herring Prospectus. Specific attention of the investors is invited to the section “Risk Factors” beginning on page 29 of this Draft Red Herring Prospectus.

COMPANY’S ABSOLUTE RESPONSIBILITYOur Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Red Herring Prospectus contains all information with regard to our Company and the Issue, which is material in the context of the Issue; that the information contained in this Draft Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect; that the opinions and intentions expressed herein are honestly held; and that there are no other facts, the omission of which makes this Draft Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.

LISTINGThe Equity Shares of our Company offered through this Draft Red Herring Prospectus are proposed to be listed on the Emerge Platform of National Stock Exchange of India Limited (“NSE EMERGE”). In terms of the Chapter IX of the SEBI (ICDR) Regulations, 2018 as amended from time to time, our Company has received an In-principle approval letter dated [●] from National Stock Exchange of India Limited for using its name in the Offer document for listing of our shares on the Emerge Platform of National Stock Exchange of India Limited. For the purpose of this Issue, National Stock Exchange of India Limited shall be the Designated Stock Exchange.

BOOK RUNNING LEAD MANAGER REGISTRAR TO THE ISSUE

PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED406-408, Keshava Premises, Behind Family Court,Bandra Kurla Complex, Bandra East, Mumbai – 400 051, Maharashtra, IndiaTel: +91-22 6194 6700; Fax: +91-22 2659 8690Website: www.pantomathgroup.comEmail: [email protected] Investor Grievance Id: [email protected] Contact Person: Unmesh ZagadeSEBI Registration No: INM000012110

CAMEO CORPORATE SERVICES LIMITEDSubramanian Building No. 1, Club House Road, Chennai-600002Tel: +91 044 40020700Fax: +91 044 28460129Website: www.cameoindia.com Email: [email protected] Investor Grievance Id: [email protected] Contact Person: R.D. RamasamySEBI Registration Number: INR000003753

ISSUE PROGRAMME

BID / ISSUE OPENS ON : [●] BID / ISSUE CLOSES ON: [●]

*Number of shares may need to be adjusted for lot size upon determination of Issue Price.**Subject to finalization of basis of Allotment.

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TABLE OF CONTENTS

SECTION I – GENERAL ............................................................................................................................................. 3

DEFINITION AND ABBREVIATION .................................................................................................................... 3

PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA ......................................................... 19

FORWARD LOOKING STATEMENT ................................................................................................................. 21

SECTION II – OFFER DOCUMENT SUMMARY ................................................................................................... 22

SECTION III – RISK FACTORS ............................................................................................................................... 29

SECTION IV – INTRODUCTION ............................................................................................................................. 55

SUMMARY OF FINANCIAL STATEMENTS ..................................................................................................... 55

THE ISSUE ............................................................................................................................................................. 56

GENERAL INFORMATION ................................................................................................................................. 58

CAPITAL STRUCTURE ........................................................................................................................................ 71

OBJECTS OF THE ISSUE ..................................................................................................................................... 86

BASIS FOR ISSUE PRICE .................................................................................................................................... 96

STATEMENT OF POSSIBLE TAX BENEFITS ................................................................................................. 101

SECTION V – ABOUT THE COMPANY ............................................................................................................... 104

OUR INDUSTRY ................................................................................................................................................. 104

OUR BUSINESS ................................................................................................................................................... 120

KEY INDUSTRY REGULATIONS AND POLICIES ......................................................................................... 137

OUR HISTORY AND CERTAIN OTHER CORPORATE MATTERS .............................................................. 150

OUR MANAGEMENT ......................................................................................................................................... 155

OUR PROMOTERS AND PROMOTER GROUP ............................................................................................... 173

OUR GROUP COMPANIES ................................................................................................................................ 177

RELATED PARTY TRANSACTION .................................................................................................................. 181

DIVIDEND POLICY ............................................................................................................................................ 182

SECTION VI – FINANCIAL STATEMENTS ......................................................................................................... 183

FINANCIAL STATEMENT AS RESTATED ..................................................................................................... 183

OTHER FINANCIAL INFORMATION .............................................................................................................. 184

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATION ........................................................................................................................................................ 185

FINANCIAL INDEBTEDNESS ........................................................................................................................... 202

SECTION VII – LEGAL AND OTHER INFORMATION ...................................................................................... 205

OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS ........................................................... 205

GOVERNMENT AND OTHER STATUTORY APPROVALS .......................................................................... 210

OTHER REGULATORY AND STATUTORY DISCLOSURES ........................................................................ 216

SECTION VIII – ISSUE INFORMATION ............................................................................................................... 222

TERMS OF THE ISSUE ....................................................................................................................................... 222

ISSUE STRUCUTRE ........................................................................................................................................... 229

ISSUE PROCEDURE ........................................................................................................................................... 231

RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES ..................................................... 275

SECTION IX – MAIN PROVISIONS OF ARTICLES OF ASSOCIATION ........................................................... 278

SECTION X – OTHER INFORMATION ................................................................................................................ 338

MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ............................................................. 338

DECLARATION .................................................................................................................................................. 340

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The Equity Shares have not been and will not be registered under the U.S Securities Act of 1933, as

amended (“U.S. Securities Act”) or any state securities laws in the United States of America and may not

be offered or sold within the United States or to, or for the account or benefit of, “U.S. Persons (as defined

in Regulation S), except pursuant to exemption from, or in a transaction not subject to, the registration

requirements of the U.S. Securities laws. Accordingly the Equity Shares are being offered and sold only

outside the United States in offshore transaction in reliance on Regulation S under the U.S Securities Act

and the applicable laws of the jurisdiction where those offers and sale occur.

The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other

jurisdiction outside India and may not be offered or sold, and application may not be made by persons in

any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.

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SECTION I – GENERAL

DEFINITION AND ABBREVIATION

Unless the context otherwise indicates, requires or implies, the following terms shall have the following

meanings in this Draft Red Herring Prospectus. References to statutes, rules, regulations, guidelines and

policies will be deemed to include all amendments, modifications or re-enactments notified thereto.

Notwithstanding the foregoing, terms in “Main Provisions of the Articles of Association”, “Statement of

Special Tax Benefits”, “Industry Overview”, “Key Industry Regulations and Policies”, “Financial

Statements”, Outstanding Litigation and Other Material Developments”, will have the meaning ascribed

to such terms in these respective sections.

Term Description

“ATMASTCO Limited” or

“ATMASTCO” or “the

Company”, or “our Company” or

“we”, “us”, “our”, or “Issuer” or

the “Issuer Company”

Atmastco Limited, a Public Limited Company incorporated under

the provisions of the Companies Act, 1956.

“We”, “our”, “us” Unless the context otherwise indicates or implies, refers to our

Company.

COMPANY RELATED TERMS

Term Description

AOA or Articles or Articles of

Association

The Articles of Association of our Company, as amended from

time to time.

Audit Committee The committee of the Board of Directors constituted as the

Company’s Audit Committee in accordance with Section 177 of

the Companies Act, 2013 and rules made thereunder vide Board

Resolution dated April 15, 2019. For details, please refer to the

section titled “Our Management” on page 155 of this Draft Red

Herring Prospectus.

Auditor or Statutory Auditor or

Peer Reviewed Auditor

The statutory auditor of our Company, being M/s. Deepak

Ramesh Jain & Co., Chartered Accountants.

Bankers to the Company Such banks which are disclosed as bankers to our Company in the

chapter titled “General Information” on page 58 of this Draft Red

Herring Prospectus.

Board of Directors/ the Board /

our Board / Directors

The Board of Directors of our Company, as duly constituted from

time to time, including Committee(s) thereof.

CFO The Chief Financial Officer of our Company being Venkataraman

Ganesan.

Chairman The Chairman of our Company being Subramaniam Swaminathan

Iyer.

CIN Corporate Identification Number U29222CT1994PLC008234

Company Secretary and

Compliance Officer The Company Secretary & Compliance Officer of our Company

being Vijaya Agrawal

CSR Committee The committee of the Board of Directors constituted as the

Company’s CSR Committee in accordance with Section 135 of

the Companies Act, 2013 and rules made thereunder vide Board

Resolution dated April 15, 2019. For details, please refer to the


Herring Prospectus.

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Term Description

Equity Shares / Shares Equity Shares of our Company of face value of Rs. 10 each fully

paid up unless otherwise specified in the context thereof.

Equity Shareholders /

Shareholders Persons/ Entities holding Equity Shares of our Company.

Fresh Issue Upto 54,78,000 Equity Shares aggregating upto Rs. [●] Lakhs to

be issued by Company pursuant to the Issue.

Group Companies Such Companies as are included in the chapter titled ‘Our Group

Companies’ beginning on page 177 of this Draft Red Herring

Prospectus.

IPO Committee IPO Committee of the Board of Director constituted as the IPO

Committee vide Board Resolution dated December 12, 2018. For

details, please refer to the section titled “Our Management” on

page 155 of this Draft Red Herring Prospectus.

ISIN International Securities Identification Number, in this case being

INE05DH01017

Key Managerial Personnel (KMP) Key managerial personnel of our Company in terms of Section

2(51) of Companies Act, 2013 and Regulation 2(1)(bb) of the

SEBI ICDR Regulations and as disclosed in the chapter titled

“Our Management” beginning on page 155 of this DRHP.

Materiality Policy The policy adopted by our Board on June 26, 2019 for

identification of Group Companies, material outstanding

litigation and material dues outstanding to creditors in respect of

our Company, pursuant to the disclosure requirements under the

SEBI ICDR Regulations.

Manufacturing Unit-I 157-158, Light Industrial Area, Nandini Road, Opp. Karuna

Hospital, Bhilai, Durg – 490026, Chhattisgarh, India.

Manufacturing Unit-II Village: Birebhat, P.H.N. 17, R.I.D. – Ahiwara, Tehasil

Dhamdha, Dist. Durg, Chhattisgarh – 491331, India.

MD or Managing Director MD or Managing Director of our Company being Subramaniam

Swaminathan Iyer.

MOA / Memorandum /

Memorandum of Association

The Memorandum of Association of our Company, as amended

from time to time.

Nomination and Remuneration

Committee

The Nomination and Remuneration Committee of our Company

which was constituted in accordance with Section 178(1) of the

Companies Act, 2013 and rules made thereunder vide Board

resolution dated April 15, 2019. For details, please refer to the


Herring Prospectus.

Promoters, Promoters or our

Promoters

Promoters of our Company being Subramaniam Swaminathan

Iyer and Venkataraman Ganesan.

Promoter Group Persons and entities constituting the promoter group of our

Company, pursuant to Regulation 2(1)(pp) of the SEBI (ICDR)

Regulations and as enlisted in the chapter titled “Our Promoter

and Promoter Group” beginning on page 173 of this Draft Red

Herring Prospectus.

Registered Office Registered Office of our Company situated at 157-158, Light

Industrial Area, Nandini Road, Opp. Karuna Hospital, Bhilai,

Durg - 490026, Chhattisgarh, India

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Term Description

RoC / Registrar of Companies ROC-cum-Official Liquidator, 1st Floor, Ashok Pingley Bhawan,

Municipal Corporation, Nehru Chowk, Bilaspur–495001,

Chhattisgarh, India.

Stakeholders’ Relationship

Committee

The committee of the Board of Directors constituted as the

Company’s Stakeholders’ Relationship Committee in accordance

with Section 178(5) of the Companies Act, 2013 and rules made

thereunder vide Board resolution dated April 15, 2019. For

details, please refer to the section titled “Our Management” on

page 155 of this Draft Red Herring Prospectus.

you, your or yours Prospective investors in this Issue.

ISSUE RELATED TERMS

Term Description

Acknowledgement Slip The slip or document issued by the Designated Intermediary to a Bidder as

proof of registration of the Bid.

Allotment Advice Note or advice or intimation of Allotment sent to the successful Bidders

who have been or are to be Allotted the Equity Shares after the Basis of

Allotment has been approved by the Designated Stock Exchange.

Allotment/ Allot/

Allotted

Issue and allotment of Equity Shares of our Company pursuant to the Issue

of the Equity Shares to successful Bidders.

Allottee(s) Successful Bidders(s) to whom Equity Shares have been

allotted/transferred.

“Application Supported

by Blocked Amount or

“ASBA”

An application for subscribing to the Issue, along with an authorization to

self-certified syndicate bank to block the application money in the specified

bank account maintained with such SCSB and will include amounts blocked

by RIIs using the UPI mechanism.

ASBA Account Account maintained with an SCSB and specified in the Application Form

which will be blocked by such SCSB or account of the RIIs blocked upon

acceptance of UPI Mandate request by RIIs using the UPI mechanism to the

extent of the appropriate Bid Amount in relation to a Bid by an ASBA

Bidder.

ASBA Application

Location(s) / Specified

Cities

Locations at which ASBA Applications can be uploaded by the SCSBs,

namely Mumbai, New Delhi, Chennai, Kolkata and Durg.

ASBA form / Bid cum

application form

The application form (with and without the use of UPI, as may be

applicable), whether physical or electronic, used by the ASBA Bidders and

which will be considered as an application for allotment in terms of the Red

Herring Prospectus and the Prospectus. Banker(s) to the Issue/

Public Issue Bank(s) /

Refund Banker(s)

The banks which are clearing members and registered with SEBI as Banker

to an Issue with whom the Public Issue Account will be opened and in this

case being ICICI Bank Limited.

Basis of Allotment The basis on which Equity Shares will be Allotted to the successful Bidders

under the Issue and which is described under chapter titled “Issue

Procedure” beginning on page 231 of this Draft Red Herring Prospectus.

Bid An indication to make an issue during the Bid/Issue Period by a Bidder

pursuant to submission of the Bid cum Application Form, to subscribe to or

purchase the Equity Shares at a price within the Price Band, including all

revisions and modifications thereto as permitted under the SEBI ICDR

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Term Description

Regulations in accordance with the Draft Red Herring Prospectus and Bid

cum Application Form

Bid Amount The highest value of optional Bids indicated in the Bid cum Application

Form and in the case of Retail Individual Bidders Bidding at Cut Off Price,

the Cap Price multiplied by the number of Equity Shares Bid for by such

Retail Individual Bidder and mentioned in the Bid cum Application Form

and payable by the Retail Individual Bidder or blocked in the ASBA

Account upon submission of the Bid in the Issue.

Bid Cum Application

Collecting

Intermediaries

1. a SCSB with whom the bank account to be blocked, is maintained 2. a syndicate member (or sub-syndicate member) If any 3. a stock broker registered with a recognized stock exchange (and whose

name is mentioned on the website of the stock exchange as eligible for

this activity)(‘broker’) if any

4. a depository participant (‘DP’) (whose name is mentioned on the website of the stock exchange as eligible for this activity)

5. a registrar to an issue and share transfer agent (‘RTA’) (whose name is mentioned on the website of the stock exchange as eligible for this

activity)

Bid/ Issue Closing Date The date after which the Syndicate, the Designated Branches and the

Registered Brokers will not accept any Bids, which shall be notified in all

edition of the English national newspaper [●], all edition of the Hindi

national newspaper [●], and [●] edition of the [●] newspaper [●], each with

wide circulation and in case of any revision, the extended Bid/Issue Closing

Date shall also be notified on the website and terminals of the Syndicate

and SCSBs, as required under the SEBI ICDR Regulations.

Bid/ Issue Opening Date The date on which the Syndicate, the Designated Branches and the

Registered Brokers shall start accepting Bids, which shall be notified in all

edition of the English national newspaper [●], all edition of the Hindi

national newspaper [●], and [●] edition of the [●] newspaper [●], each with

wide circulation, and in case of any revision, the extended Bid/Issue

Opening Date also to be notified on the website and terminals of the

Syndicate and SCSBs, as required under the SEBI ICDR Regulations.

Bid/ Issue Period The period between the Bid/Issue Opening Date and the Bid/Issue Closing

Date, inclusive of both days, during which Bidders can submit their Bids,

including any revisions thereof.

Provided however that the Bidding/ Issue Period shall be kept open for a

minimum of three Working Days for all categories of Bidders.

Bidder Any prospective investor who makes a Bid pursuant to the terms of the

Draft Red Herring Prospectus and the Bid cum Application Form and unless

otherwise stated or implied and includes an ASBA Bidder.

Bid Lot [●] Equity shares and in multiples of [●] Equity Shares thereafter.

Bidding/collecting

Centre

Centres at which the Designated Intermediaries shall accept the ASBA

Forms, i.e., Designated SCSB Branch for SCSBs, Specified Locations for

Syndicate, Broker Centres for Registered Brokers, Designated RTA

Locations for RTAs and Designated CDP Locations for CDPs.

Book Building Process Book building process, as provided in Schedule XIII of the SEBI ICDR

Regulations, in terms of which the Issue is being made.

Book Running Lead

Manager or BRLM

The Book Running Lead Manager to the Issue namely Pantomath Capital

Advisors Private Limited, SEBI Registered Category I Merchant Banker.

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Term Description

Broker Centres Broker centres notified by the Stock Exchanges, where the Bidders can

submit the Bid cum application forms to a Registered Broker. The details

of such broker centres, along with the names and contact details of the

Registered Brokers, are available on the website of National Stock

Exchange of India Limited.

CAN or Confirmation

of Allocation Note

The note or advice or intimation sent to each successful Bidder indicating

the Equity Shares which will be Allotted/ transferred, after approval of

Basis of Allotment by the Designated Stock Exchange.

Cap Price The higher end of the Price Band, above which the Issue Price will not be

finalised and above which no Bids (or a revision thereof) will be accepted.

Client ID Client Identification Number t o b e maintained with one of the

Depositories in relation to demat account.

Collecting Depository

Participant or CDP A depository participant as defined under the Depositories Act, 1996,

registered with SEBI and who is eligible to procure Applications at the

Designated CDP Locations in terms of circular no.

CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 and

SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 01, 2018 issued by

SEBI.

Collecting Registrar and

Share Transfer Agent

Registrar to an Issue and share transfer agents registered with SEBI and

eligible to procure Bids at the Designated RTA Locations in terms of

circular no. CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015

issued by SEBI.

Controlling

Branch/Designated

Branch of SCSBs

Such branch of the SCSBs which coordinate Applications under this Issue

by the ASBA Applicants with the Registrar to the Issue and the Stock

Exchanges and a list of which is available at http://www.sebi.gov.in or at

such other website as may be prescribed by SEBI from time to time

Cut-off Price Issue Price, which shall be any price within the Price Band finalised by our

Company in consultation with the BRLM. Only Retail Individual Bidders

are entitled to Bid at the Cut-Off Price. QIBs and Non Institutional Bidder

are not entitled to Bid at the Cut-off Price.

Demographic Details The demographic details of the Bidders/Applicants such as their address,

PAN, occupation and bank account details and UPI ID wherever applicable.

Depositories Depositories registered with SEBI under the Securities and Exchange Board

of India (Depositories and Participants) Regulations, 1996, as amended

from time to time, being NSDL and CDSL.

Depository Participant A Depository Participant as defined under the Depositories Act, 1996.

Designated Date The date on which the Collection Banks transfer funds from the public issue

accounts, and the SCSBs issue instructions for transfer of funds from the

ASBA Accounts, to the Public Issue Account or the Refund Account, as

appropriate, in terms of the Red Herring Prospectus following which the

Board of Directors may Allot Equity Shares to successful Bidders in the

Fresh Issue..

Designated

Intermediary(ies)

Syndicate, Sub-Syndicate Members/agents, SCSBs, Registered Brokers,

CDPs and RTAs, who are authorized to collect ASBA Forms from the

Bidders, in relation to the Issue.

Designated RTA

Locations

Such centres of the RTAs where Bidder can submit the Bid cum Application

Forms. The details of such Designated RTA Locations, along with the

names and contact details of the RTAs are available on the respective

websites of the Stock Exchange (www.nseindia.com) and updated from

http://www.sebi.gov.in/http://www.nseindia.com/

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Term Description

time to time

Designated Stock

Exchange

National Stock Exchange of India Limited

Designated CDP

Locations

Such centres of the CDPs where Bidders can submit the Bid Cum

Application Forms. The details of such Designated CDP Locations, along

with names and contact details of the Collecting Depository Participants

eligible to accept Bid cum Application Forms are available on the website

of the Stock Exchange (www.nseindia.com) and updated from time to time.

Draft Red Herring

Prospectus or DRHP

The Draft Red Herring Prospectus dated June 28, 2019 issued in accordance

with Section 32 of the Companies Act, 2013 and filed with National Stock

Exchange of India Limited under SEBI (ICDR) Regulations.

Eligible NRIs NRIs from jurisdictions outside India where it is not unlawful to make an

issue or invitation under the Issue and in relation to whom this Draft Red

Herring Prospectus constitutes an invitation to subscribe to the Equity

Shares offered herein

EMERGE Platform of

NSE/SME Exchange

The EMERGE Platform of National Stock Exchange of India Limited,

approved by SEBI as an SME Exchange for listing of equity shares Issued

under Chapter IX of the SEBI (ICDR) Regulations.

FII/ Foreign

Institutional Investors

Foreign Institutional Investor (as defined under SEBI (Foreign Institutional

Investors) Regulations, 1995, as amended) registered with SEBI under

applicable laws in India.

First/sole Bidder Bidder whose name shall be mentioned in the Bid cum Application Form

or the Revision Form and in case of joint Bids, whose name shall also

appear as the first holder of the beneficiary account held in joint names.

Floor Price The lower end of the Price Band, subject to any revision thereto, at or above

which the Issue Price will be finalised and below which no Bids will be

accepted.

General Information

Document/GID

The General Information Document for investing in public issues prepared

and issued in accordance with the circular (CIR/CFD/DIL/12/2013) dated

October 23, 2013, notified by SEBI and updated pursuant to the circular

(CIR/CFD/POLICYCELL/11/2015) dated November 10, 2015 and

(SEBI/HO/CFD/DIL/CIR/P/2016/26) dated January 21, 2016 and

(SEBI/HO/CFD/DIL2/CIR/P/2018/22) dated February 15, 2018 and

SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 01, 2018 notified

by SEBI. Issue/ Issue Size/ Initial

Public Issue/ Initial

Public Offer/ Initial

Public Offering/ IPO

The Initial Public Issue of up to 54,78,000 Equity Shares of face value of

Rs.10 each for cash at a price of Rs. [●] each, aggregating up to Rs.[●]

comprising the Fresh Issue.

Issue Agreement The agreement dated June 27, 2019 between our Company and the BRLM,

pursuant to which certain arrangements are agreed to in relation to the Issue.

Issue Price The final price at which Equity Shares will be Allotted in terms of the Red

Herring Prospectus. The Issue Price will be decided by our Company in

consultation with the BRLM on the Pricing Date in accordance with the

Book-Building Process and the Red Herring Prospectus.

Issue Proceeds The proceeds of the Issue that is available to our Company. For further

information about use of Issue Proceeds, see “Objects of the Issue” on page

86 of this Draft Red Herring Prospectus.

Listing Agreement The Listing Agreement to be signed between our Company and EMERGE

http://www.nseindia.com/

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Term Description

Platform of National Stock Exchange of India Limited.

Market Making

Agreement

Market Making Agreement dated [●] between our Company, Book Running Lead Manager and Market Maker.

Market Maker Market Maker appointed by our Company from time to time, in this case

being Pantomath Stock Brokers Private Limited who has agreed to receive

or deliver the specified securities in the market making process for a period

of three years from the date of listing of our Equity Shares or for any other

period as may be notified by SEBI from time to time.

Market Maker

Reservation Portion

The Reserved Portion of up to [●] Equity Shares of face value of Rs. 10

each fully paid for cash at a price of Rs. [●] per Equity Share aggregating

Rs. [●] for the Market Maker in this Issue.

National Payments of

Corporation of India

(NPCI)

NPCI, a Reserve Bank of India (RBI) initiative, is an umbrella organization

for all retail payments in India. It has been set up with the guidance and

support of the Reserve Bank of India (RBI) and Indian Banks Association

(IBA).

Net Issue The Issue (excluding the Market Maker Reservation Portion) of [●] up to

[●] Equity Shares of face value of Rs. 10 each fully paid for cash at a price

of Rs [●] per Equity Share aggregating Rs. [●] by our Company

Net Proceeds The Issue Proceeds, less the Issue related expenses, received by the

Company.

NIF National Investment Fund set up by resolution F. No. 2/3/2005-DD-II dated

November 23, 2005 of Government of India published in the Gazette of

India.

Non Institutional

Bidders

All Bidders, including Category III FPIs that are not QIBs or Retail

Individual Investors, who have applied for Equity Shares for an amount of

more than Rs. 2,00,000 but not including NRIs other than Eligible NRIs

NSE National Stock Exchange of India Limited

Non-Resident A person resident outside India, as defined under FEMA and includes FIIs

and FPIs

OCB/ Overseas

Corporate Body

A company, partnership, society or other corporate body owned directly or

indirectly to the extent of at least 60% by NRIs, including overseas trusts in

which not less than 60% of beneficial interest is irrevocably held by NRIs

directly or indirectly as defined under the Foreign Exchange Management

(Deposit) Regulations, 2000, as amended from time to time. OCBs are not

allowed to invest in this Issue.

Other Investors Investors other than Retail Individual Investors. These include individual

bidders/ applicants other than retail individual investors and other investors

including corporate bodies or institutions irrespective of the number of

specified securities applied for.

Payment through

electronic transfer of

funds

Payment through NECS, NEFT or Direct Credit, as applicable

Person/ Persons Any individual, sole proprietorship, unincorporated association,

unincorporated organization, body corporate, corporation, company,

partnership, limited liability company, joint venture, or trust or any other

entity or organization validly constituted and/or incorporated in the

jurisdiction in which it exists and operates, as the context requires.

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Term Description

Price Band Price band of a minimum price of Rs. [●] per Equity Share (Floor Price)

and the maximum price of Rs. [●] per Equity Share (Cap Price) including

revisions thereof.

The Price Band and the minimum Bid Lot size for the Issue will be decided

by our Company in consultation with the BRLM and will be advertised at

least two Working Days prior to the Bid/ Issue Opening Date, in all edition

of the English national newspaper [●], all edition of the Hindi national

newspaper [●] and [●] edition of the Regional newspaper [●], each with

wide circulation.

Pricing date The date on which our Company in consultation with the BRLM, will

finalise the Issue Price.

Prospectus The Prospectus to be filed with the RoC on or after the Pricing Date in

accordance with Section 26 and 32 of the Companies Act, 2013, and the

SEBI (ICDR) Regulations containing, inter alia, the Issue Price, the size of

the Issue and certain other information.

Public Issue Account The account to be opened with the Banker to the Issue under Section 40 of

the Companies Act, 2013 to receive monies from the ASBA Accounts

Public Issue Account

Agreement/ Banker to

the Issue Agreement

Agreement entered on [] amongst our Company, Book Running Lead

Manager, the Registrar to the Issue, Public Issue Bank/Banker to the Issue

/ Refund Banker and Sponsor Bank for collection of the Bid Amount on the

terms and conditions thereof.

Qualified Institutional

Buyers or QIBs

Qualified Institutional Buyers as defined under Regulation 2(1) (ss) of the

SEBI (ICDR) Regulations.

Red Herring Prospectus

or RHP

The Red Herring Prospectus to be issued in accordance with Section 32 of

the Companies Act, 2013, and the provisions of the SEBI (ICDR)

Regulations, which will not have complete particulars of the price at which

the Equity Shares will be Issued and the size of the Issue, including any

addenda or corrigenda thereto.

Refund Account(s) The account opened with the Refund Bank(s), from which refunds, if any,

of the whole or part of the Bid Amount (excluding refund to Bidders) shall

be made.

Refund Bank(s) /

Refund Banker(s)

Bank which is / are clearing member(s) and registered with the SEBI as

Bankers to the Issue at which the Refund Account will be opened, in this

case being ICICI Bank.

Refund through

electronic transfer of

funds

Refunds through NECS, direct credit, RTGS or NEFT, as applicable.

Registered Broker Individuals or companies registered with SEBI as "Trading Members"

(except Syndicate/Sub-Syndicate Members) who hold valid membership of

National Stock Exchange of India Limited having right to trade in stocks

listed on Stock Exchanges, through which investors can buy or sell

securities listed on stock exchanges, a list of which is available on

www.nseindia.com

Registrar /Registrar to

the Issue

Registrar to the Issue, in this case being Cameo Corporate Services Limited

Registrar and Share

Transfer Agents or

RTAs

Registrar and share transfer agents registered with SEBI and eligible to

procure Applications at the Designated RTA Locations in terms of circular

no. CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by

SEBI.

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Term Description

Registrar Agreement The agreement dated June 27, 2019, entered into between the Company and

the Registrar to the Issue in relation to the responsibilities and obligations

of the Registrar to the Issue pertaining to the Issue.

Resident Indian A person resident in India, as defined under FEMA.

Restated Financial

Statement

Collectively, the Restated Consolidated Financial Statement and the

Restated Standalone Financial Statement.

Restated Consolidated

Financial Statement

Restated consolidated financial statement of assets and liabilities as at

December 31, 2018 and as at financial year ending March 31, 2018 and

statement of profit and loss and cash flow as at December 31, 2018 and as

at financial year ending March 31, 2018.

Restated Standalone

Financial Statement

Restated standalone financial statement of assets and liabilities as at

December 31, 2018 and as at financial year ending March 31, 2018, 2017

and 2016 and statement of profit and loss and cash flow as at December 31,

2018 and as at financial year ending March 31, 2018, 2017 and 2016.

Retail Individual

Bidder(s)/Retail

Individual

Investor(s)/RII(s)/RIB(s

)

Individual Bidders, or minors applying through their natural guardians,

including HUFs (applying through their Karta), who apply for an amount

less than or equal to Rs 2,00,000.

Retail Portion The portion of the Issue being not less than 50% of the Net Issue, consisting

of [●] Equity Shares, available for allocation to Retail Individual Bidders.

Revision Form Form used by the Bidders, to modify the quantity of the Equity Shares or

the Bid Amount in any of their Bid cum Application Forms or any previous

Revision Form(s).

Reservation Portion The portion of the Issue reserved for category of eligible Bidders as

provided under the SEBI (ICDR) Regulations, 2018.

Reserved Category /

Categories

Categories of persons eligible for making Bids under reservation portion.

SCSB/ Self Certified

Syndicate Banker

Shall mean a Banker to an Issue registered under SEBI (Bankers to an Issue)

Regulations, 1994, as amended from time to time, and which Issue the

service of making Bids/Application/s Supported by Blocked Amount

including blocking of bank account and a list of which is available on

http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised

Intermediaries or at such other website as may be prescribed by SEBI from

time to time

SEBI Listing

Regulations

Securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015 (as amended from time to time) and

includes the agreement to be entered into between our Company and the

Stock Exchange in relation to listing of Equity Shares on such Stock

Exchange.

SEBI (Foreign Portfolio

Investor) Regulations

Securities and Exchange Board of India (Foreign Portfolio Investors)

Regulations, 2014.

Specified Locations Bidding centres where the Syndicate shall accept Bid cum Application

Forms from Bidders, a list of which is available on the website of SEBI

(www.sebi.gov.in) and updated from time to time.

Sponsor Bank Sponsor Bank means a Banker to the issue registered with SEBI which is

appointed by issuer to act as conduit between the Stock Exchanges and

NPCI (National in order to push the mandate collect request and /or

http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised%20Intermediarieshttp://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised%20Intermediarieshttp://www.sebi.gov.in/

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Term Description

payment instructions of the retail investors into the UPI, the sponsor bank

in this case being ICICI Bank.

Sponsor Bank

Agreement

Sponsor Bank Agreement means an agreement dated [●] entered by and

amongst Sponsor Bank, Company, Book Running Lead Manager and RTA.

Syndicate Agreement The agreement dated [●] entered into among our Company, the BRLM and

the Syndicate Members in relation to the collection of Bid cum Application

Forms by the Syndicate

Syndicate Members Intermediaries registered with SEBI who are permitted to carry out

activities as an underwriters, namely, Pantomath Stock Brokers Private

Limited

Syndicate or Members

of the Syndicate

The BRLM and the Syndicate Members

Systemically Important

Non-Banking Financial

Company

Systemically important non-banking financial company as defined under

Regulation 2(1)(iii) of the SEBI ICDR Regulations.

TRS or Transaction

Registration Slip

The slip or document issued by the Syndicate, or the SCSB (only on

demand), as the case may be, to the Bidder as proof of registration of the

Bid.

Underwriter Pantomath Capital Advisors Private Limited.

Underwriting

Agreement

The agreement dated [] entered into between the Underwriters and our

Company

Unified Payments

Interface (UPI)

UPI is an instant payment system developed by the NPCI. It enables

merging several banking features, seamless fund routing & merchant

payments into one hood. UPI allows instant transfer of money between any

two persons’ bank accounts using a payment address which uniquely

identifies a person's bank a/c.

UPI ID ID created on Unified Payment Interface (UPI) for single-window mobile

payment system developed by the National Payments Corporation of India

(NPCI).

UPI ID Linked bank

account

Account of the RIIs, bidding in the Issue using the UPI mechanism, which

will be blocked upon acceptance of UPI Mandate request by RIIs to the

extent of the appropriate Bid Amount and subsequent debit of funds in case

of Allotment.

UPI Mechanism The bidding mechanism using UPI that may be used by an RII to make a

Bid in the Issue in accordance with SEBI Circular

(SEBI/HO/CFD/DIL2/CIR/P/2018/138) dated November 1, 2018

UPI Mandate Request Mandate request means a request initiated on the RII by sponsor bank to

authorize blocking of funds equivalent to application amount and

subsequent debit of funds in case of allotment.

UPI PIN Password to authenticate UPI transaction

Wilful defaulter A wilful defaulter, as defined under Regulation 2(1)(lll) of the SEBI

ICDR Regulations, means a person who or which is categorized as a

wilful defaulter by any bank or financial institution (as defined under

Companies Act, 2013) or consortium thereof, in accordance with the

guideline on wilful defaulter issued by the RBI. Working Day In accordance with Regulation 2(1)(mmm) of SEBI ICDR Regulations,

working days means, all days on which commercial banks in the city as

specified in the Red Herring Prospectus are open for business

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Term Description

1. However, in respect of announcement of price band and bid/ Issue period, working day shall mean all days, excluding Saturdays,

Sundays and public holidays, on which commercial banks in the

city as notified in the Red Herring Prospectus are open for business

2. In respect to the time period between the bid/ Issue closing date and the listing of the specified securities on the stock exchange,

working day shall mean all trading days of the stock exchange,

excluding Sundays and bank holidays in accordance with circular

issued by SEBI

TECHNICAL AND INDUSTRY TERMS

Term Description

AL Atmastco Limited

APAC Asia-Pacific

CAGR Compounded Annual Growth Rate

CII The Confederation of Indian Industry

Cr Crore

DFT Dry Film Thickness

DIPP Department of Industrial Policy and Promotion

DPIIT Department for Promotion of Industry and Internal Trade

DPT Dye Penetrant Testing

EEPC Engineering Export Promotion Council

FDI Foreign Direct Investment

FEMA Foreign Exchange Management Act

FY Financial Year

GDP Gross Domestic Product

GVA Gross Value Added

IBC Insolvency and Bankruptcy Code, 2016

IEEMA Indian Electrical & Electronics Manufacturers’ Association

IMF International Monetary Fund

L&T Larsen & Toubro’s

LPT Liquid Penetrant Testing

MPT Magnetic Particle Testing

M-SIPS Modified Special Incentive Package Scheme

NPE National Policy on Electronics

OMO Open Market Operations

PIB Press Information Bureau

PSB Public Sector Bank

RBI Reserve Bank of India

RT Radiography Testing

SEZ Special Economic Zone

SRTMI Steel Research and Technology Mission of India

UT Ultrasonic Testing

WA Washington Accord

YoY Year on year

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CONVENTIONAL AND GENERAL TERMS/ ABBREVIATIONS

Term Description

A.Y./AY Assessment Year.

A/C Account.

AGM Annual General Meeting.

AIF Alternative Investment Fund as defined in and registered with SEBI

under the Securities and Exchange Board of India (Alternative

Investments Funds) Regulations, 2012.

AoA Articles of Association.

AS/Accounting Standard Accounting Standards as issued by the Institute of Chartered

Accountants of India.

ASBA Application Supported by Blocked Amount.

BIFR Board for Industrial and Financial Reconstruction.

Category I Foreign

Portfolio Investors

FPIs who are registered as - Category I foreign portfolio investors under

the SEBI FPI Regulations.

Category II Foreign

Portfolio Investors

FPIs who are registered as - Category II foreign portfolio investors

under the SEBI FPI Regulations.

Category III Foreign

Portfolio Investors

FPIs who are registered as - Category III foreign portfolio investors

under the SEBI FPI Regulations.

CC Cash Credit.

CDSL Central Depository Services (India) Limited.

CENVAT Central Value Added Tax.

CFO Chief Financial Officer.

CIN Corporate Identification Number.

Cm Centimetre.

CMD Chairman and Managing Director.

Companies Act, 1956 Companies Act, 1956 (without reference to the provisions thereof that

have ceased to have effect upon notification of the Notified Sections)

and the Companies Act, 2013.

Companies Act, 2013 The Companies Act, 2013 (as amended from time to time), to the extent

in force pursuant to the notification of the notified sections.

CS Company Secretary.

CST Central Sales Tax.

Depositories NSDL (National Securities Depository Limited) and CDSL (Central

Depository Services Limited); Depositories registered with the SEBI

under the Securities and Exchange Board of India (Depositories and

Participants) Regulations, 1996, as amended from time to time.

Depositories Act The Depositories Act, 1996, as amended from time to time.

DGFT Directorate General of Foreign Trade.

DIN Director Identification Number.

DIPP Department of Industrial Policy & Promotion.

DP Depository Participant.

DP ID Depository Participant’s Identity.

EBIDTA Earnings before interest, depreciation, tax, amortization and

extraordinary items.

ECS Electronic Clearing System.

EGM Extraordinary General Meeting.

EPFA The Employees ‘Provident Funds and Miscellaneous Provisions Act,

1952.

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Term Description

EPS Earnings Per Share.

ESIC Employee State Insurance Corporation.

ESOP Employee Stock Option Plan.

ESPS Employee Stock Purchase Scheme.

F.Y./FY Financial Year.

FCNR Account Foreign Currency Non Resident Account.

FEMA Foreign Exchange Management Act 1999, as amended from time to

time and the regulations framed there under

FII Regulations Securities and Exchange Board of India (Foreign Institutional

Investors) Regulations, 1995, as amended from time to time.

FII(s) Foreign Institutional Investor, as defined under the FII Regulations and

registered with the SEBI under applicable laws in India.

FIPB The Foreign Investment Promotion Board, Ministry of Finance,

Government of India.

FIs Financial Institutions.

FPI(s) Foreign Portfolio Investor means a person who satisfies the eligibility

criteria prescribed under regulation 4 and has been registered under

Chapter II of Securities And Exchange Board Of India (Foreign

Portfolio Investors) Regulations, 2014, which shall be deemed to be an

intermediary in terms of the provisions of the SEBI Act, 1992.

FV Face Value.

FVCI Foreign Venture Capital Investor registered under the Securities and

Exchange Board of India (Foreign Venture Capital Investor)

Regulations, 2000.

FTP Foreign Trade Policy.

GAAP Generally Accepted Accounting Principles.

GDP Gross Domestic Product.

GIR Number General Index Registry number.

GoI/ Government Government of India.

HNI High Net-worth Individual.

HUF Hindu Undivided Family.

I. T. Act The Income Tax Act, 1961, as amended.

ICAI Institute of Chartered Accountants of India.

ICDR Regulations/ SEBI

Regulations/ SEBI (ICDR)

Regulations/Regulations

SEBI (Issue of Capital and Disclosure Requirements) Regulations,

2018 as amended from time to time.

IFRS International Financial Reporting Standards.

Indian GAAP Generally Accepted Accounting Principles in India.

INR or Rupee or ₹ or Rs. Indian Rupee, the official currency of the Republic of India

IPO Initial Public Offering.

IRDA Insurance Regulatory and Development Authority.

IT Authorities Income Tax Authorities.

IT Rules The Income Tax Rules, 1962, as amended from time to time.

Key Managerial Personnel

/ KMP

The officers declared as a Key Managerial Personnel and as mentioned

in the chapter titled “Our Management” beginning on page 155 of this

Draft Red Herring Prospectus.

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Term Description

Listing Regulations / SEBI

Listing Regulations/ SEBI

(LODR) Regulations

Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015, as amended from time to

time.

Ltd. Limited.

Maternity Benefit Act Maternity Benefit Act, 1961

MCA The Ministry of Corporate Affairs, GoI

MCI Ministry of Commerce and Industry, GoI

MD Managing Director.

MICR Magnetic Ink Character Recognition.

Mn Million.

MoA Memorandum of Association.

MoF Ministry of Finance, Government of India.

MoU Memorandum of Understanding.

MSME Micro, Small and Medium Enterprise

MWA Minimum Wages Act, 1948

Mutual Funds Mutual funds registered with the SEBI under the Securities and

Exchange Board of India (Mutual Funds) Regulations, 1996

N/A or N.A. Not Applicable.

NAV Net Asset Value.

NBFC Non-Banking Finance Company.

Net Worth The aggregate of the paid up share capital, share premium account, and

reserves and surplus (excluding revaluation reserve) as reduced by the

aggregate of miscellaneous expenditure (to the extent not adjusted or

written off) and the debit balance of the profit and loss account.

NI Act Negotiable Instruments Act, 1881.

NOC No Objection Certificate.

NR Non Resident.

NRE Account Non Resident (External) Account.

NRI Non Resident Indian, is a person resident outside India, who is a citizen

of India or a person of Indian origin and shall have the same meaning

as ascribed to such term in the Foreign Exchange Management

(Deposit) Regulations, 2000, as amended from time to time.

NRO Account Non Resident (Ordinary) Account.

NSDL National Securities Depository Limited.

NSE National Stock Exchange of India Limited.

OCB Overseas Corporate Bodies.

p.a. per annum.

P/E Ratio Price Earnings Ratio.

PAN Permanent Account Number.

PAT Profit After Tax.

PBT Profit Before Tax.

Pvt. Private.

QIB Qualified Institutional Buyer.

RBI Reserve Bank of India.

RBI Act The Reserve Bank of India Act, 1934, as amended from time to time.

RoC Registrar of Companies.

RoNW Return on Net Worth.

Rs. / INR Indian Rupees.

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Term Description

RTGS Real Time Gross Settlement.

SARFAESI The Securitization and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002.

SCRA Securities Contracts (Regulation) Act, 1956 as amended from time to

time.

SCRR Securities Contracts (Regulation) Rules, 1957.

SCSB Self Certified Syndicate Bank.

SEBI Securities and Exchange Board of India.

SEBI Act Securities and Exchange Board of India Act, 1992, as amended from

time to time.

SEBI AIF Regulations Securities and Exchange Board of India (Alternative Investments

Funds) Regulations, 2012.

SEBI FII Regulations Securities and Exchange Board of India (Foreign Institutional

Investors) Regulations, 1995.

SEBI FPI Regulations Securities and Exchange Board of India (Foreign Portfolio Investors)

Regulations, 2014.

SEBI FVCI Regulations Securities and Exchange Board of India (Foreign Venture Capital

Investors) Regulations, 2000.

SEBI Insider Trading

Regulations

The SEBI (Prohibition of Insider Trading) Regulations, 2015, as

amended from time to time, including instructions and clarifications

issued by SEBI from time to time.

SEBI Takeover

Regulations / Takeover

Code

Securities and Exchange Board of India (Substantial Acquisition of

Shares and Takeovers) Regulations, 2011.

SEBI VCF Regulations Securities and Exchange Board of India (Venture Capital Fund)

Regulations, 1996 as repealed pursuant to the SEBI AIF Regulations.

Sec Section.

SICA Sick Industrial Companies (Special Provisions) Act, 1985, as amended

from time to time.

SME Small Medium Enterprise.

SSI Undertaking Small Scale Industrial Undertaking.

Stock Exchange National Stock Exchange of India Limited.

STT Securities Transaction Tax.

Sub-Account Sub-accounts registered with SEBI under the SEBI (Foreign

Institutional Investor) Regulations, 1995, other than sub-accounts

which are foreign corporate or foreign individuals.

TAN Tax Deduction Account Number.

TIN Taxpayers Identification Number.

TNW Total Net Worth.

TRS Transaction Registration Slip.

U.S. GAAP Generally accepted accounting principles in the United States of

America.

u/s Under Section

UIN Unique Identification Number

UOI Union of India

US/ U.S. / USA/ United

States

United States of America

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Term Description

USD / US$ / $ United States Dollar, the official currency of the United States of

America

UV Ultraviolet

VAT Value Added Tax

VCF / Venture Capital

Fund

Foreign Venture Capital Funds (as defined under the Securities and

Exchange Board of India (Venture Capital Funds) Regulations, 1996)

registered with SEBI under applicable laws in India.

w.e.f. With effect from

WDV Written Down Value

WTD Whole-time Director

YoY Year over year

Notwithstanding the following: -

i. In the section titled “Main Provisions of the Articles of Association” beginning on page 278 of this Draft Red Herring Prospectus, defined terms shall have the meaning given to such terms in that

section;

ii. In the section titled “Financial Statements as Restated” beginning on page 183 of this Draft Red Herring Prospectus, defined terms shall have the meaning given to such terms in that section;

iii. In the section titled “Risk Factor” beginning on page 29 of this Draft Red Herring Prospectus, defined terms shall have the meaning given to such terms in that section;

iv. In the chapter titled “Statement of Possible Tax Benefits” beginning on page 101 of this Draft Red Herring Prospectus, defined terms shall have the meaning given to such terms in that chapter; and

v. In the chapter titled “Management’s Discussion and Analysis of Financial Position and Results of Operations” beginning on page 185 of this Draft Red Herring Prospectus, defined terms shall have

the meaning given to such terms in that chapter.

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PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA

All references to “India” are to the Republic of India and all references to the “Government” are to the

Government of India.

FINANCIAL DATA

Unless stated otherwise, the financial data included in this Draft Red Herring Prospectus are extracted from

the restated financial statements of our Company, prepared in accordance with the applicable provisions of

the Companies Act, Indian GAAP and restated in accordance with SEBI (ICDR) Regulations, as stated in

the report of our Peer Reviewed Auditor, set out in the section titled “Financial Statements as Restated”

and “Other Financial Statement” beginning on page 183 and 184 of this Draft Red Herring Prospectus. Our

restated financial statements are derived from our audited financial statements prepared in accordance with

Indian GAAP and the Companies Act, and have been restated in accordance with the SEBI (ICDR)

Regulations.

Our fiscal year commences on April 1st of each year and ends on March 31st of the next year. All references

to a particular fiscal year are to the 12 month period ended March 31st of that year. In this Draft Red Herring

Prospectus, any discrepancies in any table between the total and the sums of the amounts listed are due to

rounding-off. All decimals have been rounded off to two decimal points.

There are significant differences between Indian GAAP, IFRS and US GAAP. The Company has not

attempted to quantify their impact on the financial data included herein and urges you to consult your own

advisors regarding such differences and their impact on the Company’s financial data. Accordingly to what

extent, the financial statements included in this Draft Red Herring Prospectus will provide meaningful

information is entirely dependent on the reader’s level of familiarity with Indian accounting practices /

Indian GAAP. Any reliance by persons not familiar with Indian Accounting Practices on the financial

disclosures presented in this Draft Red Herring Prospectus should accordingly be limited.

Any percentage amounts, as set forth in “Risk Factors”, “Our Business”, “Management’s Discussion and

Analysis of Financial Position and Results of Operations” and elsewhere in this Draft Red Herring

Prospectus unless otherwise indicated, have been calculated on the basis of the Company’s restated

financial statements prepared in accordance with the applicable provisions of the Companies Act, Indian

GAAP and restated in accordance with SEBI (ICDR) Regulations, as stated in the report of our Peer

Reviewed Auditor, set out in the section titled “Financial Statements as Restated” beginning on page 183

of this Draft Red Herring Prospectus.

CURRENCY OF PRESENTATION

In this Draft Red Herring Prospectus, references to “Rupees” or “Rs.” or “INR” are to Indian Rupees, the

official currency of the Republic of India. All references to “$”, “US$”, “USD”, “U.S. $”or “U.S. Dollars”

are to United States Dollars, the official currency of the United States of America.

All references to ‘million’ / ‘Million’ / ‘Mn’ refer to one million, which is equivalent to ‘ten lacs’ or ‘ten

lakhs’, the word ‘Lacs / Lakhs / Lac’ means ‘one hundred thousand’ and ‘Crore’ means ‘ten million’ and

‘billion / bn./ Billions’ means ‘one hundred crores’.

INDUSTRY AND MARKET DATA

Unless stated otherwise, Industry and Market data and various forecasts used throughout this Draft Red

Herring Prospectus have been obtained from publically available information, Industry Sources and

Government Publications.

Industry Sources as well as Government Publications generally state that the information contained in those

publications has been obtained from sources believed to be reliable but their accuracy and completeness

and underlying assumptions are not guaranteed and their reliability cannot be assured.

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Although we believe that industry data used in this Draft Red Herring Prospectus is reliable, it has not been

independently verified by the Book Running Lead Manager or our Company or any of their affiliates or

advisors. Such data involves risks, uncertainties and numerous assumptions and is subject to change based

on various factors, including those discussed in the section titled “Risk Factors” beginning on page 29 of

this Draft Red Herring Prospectus. Accordingly, investment decisions should not be based solely on such

information.

Further, the extent to which the industry and market data presented in this Draft Red Herring Prospectus is

meaningful depends on the reader‘s familiarity with and understanding of the methodologies used in

compiling such data. There are no standard data gathering methodologies in the industry in which we

conduct our business, and methodologies and assumptions may vary widely among different industry

sources.

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FORWARD LOOKING STATEMENT

This Draft Red Herring Prospectus contains certain “forward-looking statements”. These forward looking

statements can generally be identified by words or phrases such as “aim”, “anticipate”, “believe”, “expect”,

“estimate”, “intend”, “objective”, “plan”, “project”, “shall”, “will”, “will continue”, “will pursue” or other

words or phrases of similar meaning. Similarly, statements that describe our strategies, objectives, plans or

goals are also forward-looking statements. All forward looking statements are subject to risks, uncertainties

and assumptions about us that could cause actual results and property valuations to differ materially from

those contemplated by the relevant forward looking statement.

Important factors that could cause actual results to differ materially from our expectations include, but are

not limited to the following:-

• General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

• Changes in laws and regulations relating to the sectors/areas in which we operate; • Increased competition in the Industry which we operate; • Factors affecting the Industry in which we operate; • Our ability to meet our capital expenditure requirements; • Fluctuations in operating costs; • Our ability to attract and retain qualified personnel; • Changes in political and social conditions in India, the monetary and interest rate policies of India and

other countries;

• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices; • The performance of the financial markets in India and globally; • Any adverse outcome in the legal proceedings in which we are involved; • Our failure to keep pace with rapid changes in technology; • The occurrence of natural disasters or calamities; • Other factors beyond our control; • Our ability to manage risks that arise from these factors; • Conflict of Interest with affiliated companies, the promoter group and other related parties; and • Changes in government policies and regulatory actions that apply to or affect our business.

For a further discussion of factors that could cause our actual results to differ, refer to section titled “Risk

Factors” and chapter titled “Management’s Discussion and Analysis of Financial Position and Results of

Operations” beginning on pages 29 and 185 respectively of this Draft Red Herring Prospectus. By their

nature, certain market risk disclosures are only estimates and could be materially different from what

actually occurs in the future. As a result, actual future gains or losses could materially differ from those that

have been estimated.

Future looking statements speak only as of the date of this Draft Red Herring Prospectus. Neither we, our

Directors, Book Running Lead Manager, Underwriter nor any of their respective affiliates have any

obligation to update or otherwise revise any statements reflecting circumstances arising after the date hereof

or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

In accordance with SEBI requirements, the BRLM and our Company will ensure that investors in India are

informed of material developments until the grant of listing and trading permission by the Stock Exchange.

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SECTION II – OFFER DOCUMENT SUMMARY

OVERVIEW OF INDUSTRY

The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by

increased investments in infrastructure and industrial production. India exports its engineering goods

mostly to the US and Europe, which accounts for over 60 per cent of the total exports. Turnover of capital

goods industry is expected to increase to US$ 115.17 billion by 2025F. India’s engineering R&D market

will increase from US$ 28 billion in FY18 to US$ 42 billion by FY22F. Sales of construction equipment

are expected to reach 90,115 and 100,000 in 2018 and 2022, respectively, while the market size of

construction equipment industry is expected to grow from US$ 4.3 billion in FY18 to US$ 5 billion by

FY20. Production of machine tools industry is forecasted to increase to Rs 9,000 crore (US$ 1.40 billion)

in 2018-19.

For further details please see the chapter titled “Our Industry” beginning on page 104 of this DRHP.

OVERVIEW OF BUSINESS

Our Company is engaged in the business of design, manufacturing and supply of precision equipments and

heavy fabrication structures for various industrial use. We are mainly into manufacturing and fabrication

work of heavy structures such as Ceiling Girder, Railway Girder, Columns & Bracings, Bolted Structures,

Equipments and Pressure ducts, Box Columns etc. which are used in Power and Energy, Steel Plants,

Cement Plants, Railway Bridges, Water Treatment Plants, Refinery & Fertilizer plants. Pre Engineered

Building etc. We are also engaged into trading of steel, iron, chemical alloys, metals, grinding wheels,

welding electrodes, abrasives, industrial helmets which are used extensively for industrial use. We have

delivered our fabrication work for various industrial projects executed in various states for projects

undertaken by government companies and private enterprises.

Subramaniam Swaminathan Iyer and Venkataraman Ganesan are the Promoters of Our Company.

For, further details regarding risk involved in Business of the Company and risk in relation to the Issue,

refer to chapter titled “Risk Factor” and “Our Business” beginning on page 29 and 120 of this Draft Red

Herring Prospectus.

DETAILS OF THE ISSUE

Initial public offer of up to 54,78,000 equity shares of face value of ₹ 10 each (“equity shares”) of Atmastco

Limited (“company” or “Issuer”) for cash at a price of ₹ [●] per equity share (including a share premium

of ₹ [●] per equity share) aggregating up to ₹ [●] lakhs (the “Issue”). The Issue includes a reservation of up

to [●] equity shares of face value ₹ 10/- each at a price of ₹ [●] per equity share aggregating ₹ [●] lakhs for

subscription by the market maker to the Issue (the “market maker reservation portion”). The Issue less

market maker reservation portion i.e. Net Issue of up to [●] equity shares of face value of ₹ 10/- each for

cash at a price of ₹ [●]/- per equity share, aggregating ₹ [●] lakhs is hereinafter referred to as the “Net

Issue”. The Issue and the Net Issue will constitute [●] % and [●] % respectively of the post Issue paid up

equity share capital of our company.

OBJECTS OF THE ISSUE

Our Company intends to utilize the Net Proceeds of the Issue (Issue proceeds of less the Issue Expenses)

towards the following Objects:

Sr.

No.

Particulars Amount (Rs in

lakhs)

Percentage of

Gross Proceeds

Percentage of Net

Proceeds

1. 1 To finance expansion of our existing manufacturing unit II;

400.00 [●]% [●]%

2. 2 Funding the working capital requirement of the Company

1,000.00 [●]% [●]%

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Sr.

No.

Particulars Amount (Rs in

lakhs)

Percentage of

Gross Proceeds

Percentage of Net

Proceeds

3. 3 General corporate purposes(1) [●] [●]% [●]%

(1)To be finalised on determination of the Issue Price and updated in the Prospectus prior to filing with the

RoC.

PRE-ISSUE SHAREHOLDING OF PROMOTERS AND PROMOTER GROUP

Our Promoters and Promoter Group members are collectively holding 1,44,24,900 equity shares of our

Company aggregating to 97.39% of the pre-issue paid-up share capital of our Company. Following are the

details of shareholding of Promoters and Promoter group members:

Sr.

No. Name of the Shareholders

Pre – Issue Post – Issue

No. of

Equity

Shares

% of Pre-

Issue

Capital

No. of

Equity

Shares

% of Post-

Issue Capital

(I) (II) (III) (IV) (V) (VI)

Promoter

1 Subramaniam Swaminathan Iyer 47,54,400 32.10 [●] [●]

2 Venkataraman Ganesan 33,18,000 22.40 [●] [●]

Subtotal (A) 80,72,400 54.50 [●] [●]

Promoter Group

1 Jayasudha Iyer 2,94,000 1.98 [●] [●]

2 S. Sowrirajan 94,500 0.64 [●] [●]

3 R. Sitalaxmi 84,000 0.57 [●] [●]

4 Banumathi G 1,05,000 0.71 [●] [●]

5 Apex Steel & Technology (India)

Private Limited

57,75,000 38.99 [●] [●]

Subtotal (B) 63,52,500 42.89 [●] [●]

Total (A+B) 144,24,900 97.39 [●] [●]

SUMMARY OF FINANCIAL INFORMATION

Following are the details as per the Restated Consolidated Financial Information for the nine-month period

ended December 31, 2018 and as at and for the Financial Year ended on March 31, 2018 and as per the

Restated Standalone Financial Information for the nine-month period ended December 31, 2018 and as at

and for the Financial Years ended on March 31, 2017 and 2016:

Based on Restated Standalone Financial Information:

(Amount in Lakhs)

Particulars December 31,

2018*

March 31,

2018

March 31,

2017

March 31,

2016

Share Capital 1481.13 70.53 70.53 70.53

Net Worth 3,493.12 3082.76 2683.27 2529.88

Revenue** 6,933.10 10,632.23 6,292.09 7,307.33

Profit after tax 410.36 399.49 153.38 254.76

Earnings per share (in Rs.) 2.77 2.70 1.04 1.72

NAV per share after Bonus (in Rs.) 23.58 20.81 18.12 17.08

Total borrowings (as per balance

sheet)***

5,907.86 4,175.47 3,833.13 2,663.99

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Based on Restated Consolidated Financial Information:

(Amount in Lakhs)

Particulars December 31, 2018* March 31, 2018

Share Capital 1481.13 70.53

Net Worth 3493.12 3082.76

Revenue** 7267.16 10974.63

Profit after tax 439.34 423.09

Earnings per share (in Rs.) 2.77 2.70

NAV per share after Bonus Issue (in Rs.) 23.58 20.81

Total borrowings (as per balance sheet)*** 5961.14 4233.86

*Not annualised

**Revenue from operations

***inclusive of current maturities

AUDITOR QUALIFICATIONS

There are no Auditor qualification which have not been given effect to in the Restated Financial Statements.

SUMMARY OF OUTSTANDING LITIGATIONS

Our Company, Subsidiary Company, Group Companies, Promoters and Directors are currently involved in

certain litigation which is currently pending at various stages, the details of the same are summarised in the

table set forth below:

Name of Entity Criminal

Proceedin

gs

Actions by

Regulatory

Authorities

Tax

Proceed

ings

Other

Material

Proceedings

Aggregate amount

involved

(Rs. in lakhs)

By the Company Nil Nil Nil 1 165.267

Against the

Company

Nil 2 10 Nil 251.02

By the Promoters Nil Nil Nil Nil Nil

Against the

Promoters

Nil Nil 03 Nil 172.16

By the Directors Nil Nil Nil Nil Nil

Against the

Directors

Nil Nil 02 Nil 0.44

By Group

Companies

Nil Nil Nil Nil Nil

Against Group

Companies

Nil Nil Nil Nil Nil

By the Subsidiary Nil Nil Nil Nil Nil

Against the

Subsidiary

Nil Nil Nil Nil Nil

For further details in relation to legal proceedings involving our Company, Subsidiary Company, Group

Companies, Promoters and Directors, refer chapter titled “Outstanding Litigation and Material

Developments” on page 205 of this Draft Red Herring Prospectus.

RISK FACTORS

Please see the chapter “Risk factors” beginning on page 29.

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SUMMARY OF CONTINGENT LIABILITIES






(Amount in Lakhs)

Particulars For the Period ended

on December 31,

2018

For the Year ended on

March 31,

2018

March 31,

2017

March 31,

2016

Central Excise 211.15 211.15 211.15 211.15

Income Tax Department 30.27 19.76 - -

Bank guarantees 1,796.00 489.66 1,277.30 848.46

Total 2,037.42 720.57 1,488.45 1,059.61


(Amount in Lakhs)

Particulars For the Period ended on

December 31, 2018

For the Year ended on

March 31, 2018

Central Excise 211.15 211.15

Income Tax Department 30.27 19.76

Bank guarantees 1,796.00 489.66

Total 2,037.42 720.57

For further details regarding the same, refer the Chapter titled “Financial Statement as Restated” beginning

on page 183 of this Draft Red Herring Prospectus.

SUMMARY OF RELATED PARTY TRANSACTIONS






a) Names of related parties and description of relationship

Nature of related parties Description of relationship

Mr. Subramaniam Swaminathan Iyer Managing Director

Mr. Venkatraman Ganesan Executive Director & CFO

Mrs. Jayasudha Iyer Whole Time Director

Mr. S.R.Vardarajan Independent Director

Mr. Virendra Kumar Mehta Independent Director

Mr. Sreenivasan Ramsubramaniam Independent Director

Mr. Vaidyanathan Krishnaiyer Lakshminarayanpuram Independent Director

Apex Industries, & Apex Steel Technology (India) P Ltd Associates

Vishwam Constructions Pvt. Ltd. Associates

Concord Helmet & Saftey Products Pvt. Ltd. Subsidiary Company

Mr. L. Jaishankar Relative of director

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b) Names of related parties and transaction details

Particulars As at

As at and for the year ended 31

March

December 31, 2018 2018 2017 2016

Remuneration paid

Mr. Subramaniam Swaminathan Iyer 70.42 89.09 89.09 105.36

Mr. Venkatraman Ganesan 40.28 50.11 50.11 50.11

Mrs. Jayasudha Iyer 3.15 4.20 4.20 4.32

Services Received

Apex Industries 2.13

Vishwam Constructions Pvt. Ltd 9.18

Purchase of Goods

Concord Helmet & Safety Products

Private Limited

3.01 3.67 2.70 1.10

Apex Steel Technology (India) P Ltd 737.46 1,534.84 1,256.65


Sales Of Goods

Apex Steel Technology (India) P Ltd 123.15 34.51


Purchase of Plant & Machinery

Apex Steel Technology (India) P Ltd 101.60


Unsecured Loan Received:

Mr. Subramaniam Swaminathan Iyer 12.00

Advance Given:

Apex Industries 9.21 6.14


a) Names of related parties and description of relationship

Nature of related parties

Description of relationship

Atmastco Limited Concord Helmet & Safety

Products Private Limited

Atmastco Limited Holding Company

Mr. Subramaniam Swaminathan Iyer Managing Director Direct

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