Chiraharit coming with IPO to raise Rs 31.07 crore

Chiraharit

• Chiraharit is coming out with an initial public offering (IPO) of 1,47,96,000 equity shares of face value of Rs 1 each for cash at a fixed price of Rs 21 per equity share.
• The issue will open on September 29, 2025 and will close on October 3, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 21 times higher to its face value of Rs 1.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Dixitula Venkata Kama Dixitulu.

Profile of the company

Chiraharit is engaged into turnkey EPC (Engineering, Procurement and Construction) projects focusing on two broad segment viz Water-based and Renewable Energy-based. With a commitment to excellence, it delivers innovative and comprehensive solutions tailored to meet the unique challenges of each project, ensuring optimal performance and sustainability. In the Water-based segment, its focus is on the efficient and reliable movement of piped water in pressurized applications. Its expertise in water movement extends across diverse sub-sectors, including piped irrigation for agriculture, drinking water supply projects for Industrial and residential townships, large-scale pressurized irrigation networks, water based solar module cleaning systems and landscape irrigation.

Its Renewable Energy-based segment is focused on the construction of Compressed Bio-Gas (CBG) plants. In this domain, it provides turnkey execution of all civil, mechanical, and pumping systems, ensuring seamless project delivery. As a recent addition to its portfolio, this segment represents its commitment to sustainable energy solutions and technical excellence.

Its expertise in water movement extends across diverse sub-sectors, including Solar Module Cleaning Systems, Irrigation Solutions for Agriculture and Landscape, Water Pipeline Solutions for Industrial and Residential Projects and supply of HDPE, UPVC, CPVC, PVC Pipes and Fittings etc. In addition to this, it also undertakes construction of Compressed Bio-Gas plants (CBG) and construction of Industrial and Residential Projects.

Proceed is being used for:

• Funding Capital Expenditure for setting up of HDPE Ball Valves and Fittings Manufacturing Unit
• Repayment and/or pre-payment, in full or part, of certain borrowings
• Meeting working capital requirements
• Meeting the issue expenses
• General corporate purposes

Industry Overview

Solar Panel Cleaning Market Size was valued at $0.8 Billion in 2022. The Solar Panel Cleaning market industry is projected to grow from $0.85 Billion in 2023 to $1.47 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2024 - 2032). Growing demand for solar panels and cost-effective maintenance are the primary drivers propelling the market's expansion.

India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for around 55% of India’s population. India has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. The agriculture sector in India holds the record for second largest agricultural land in the world generating employment for about half of the country’s population. Thus, farmers become an integral part of the sector to provide its with a means of sustenance.

The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to the concerted effort of scientists to get early maturing varieties of pulses and the increase in minimum support price.

Pros and strengths

Diversified service portfolio: The company's strength lies in its diversified portfolio, which encompasses a wide range of services designed to address critical needs in water management and renewable energy. Its offerings include advanced solar module cleaning systems, EPC (Engineering, Procurement, and Construction) solutions for piped water projects, various irrigation systems tailored for agricultural efficiency, the installation and setup of bio-gas plants, and civil construction projects focused on piped water infrastructure for housing townships, residential layouts, and commercial developments. This broad expertise enables it to deliver comprehensive and sustainable solutions that cater to diverse sectors, ensuring optimal utilization of resources and contributing to long-term growth.

Strong project execution capabilities: The company takes pride in its exceptional project execution capabilities, which form the backbone of its operational excellence and customer satisfaction. This strength stems from the extensive experience and unwavering commitment of its promoters, senior management, and dedicated team members. With a thorough understanding of industry dynamics and deep technical expertise, it is adept at delivering projects across every service segment within its diverse portfolio. Its systematic approach, combined with robust project management practices, project delivery adhering to quality standards, and alignment with client expectations. From initial planning to final execution, its team consistently demonstrates its ability to handle complex projects with precision and efficiency.

Commitment to quality assurance and standards: Solar module cleaning and water distribution networks are two vital segments of its operations, both of which require the highest standards of quality control to ensure optimal performance and reliability. In solar module cleaning, nonperformance of module cleaning system by way of breakdown of pipeline or pumps can result in loss of energy and revenues to the client. It designs and installs robust and predictable system to ensure that there are no break downs. Its skilled professionals follow industry best practices to ensure the highest quality in every joint, supporting the reliability of renewable energy infrastructure and safeguarding client investments. Similarly, as the company is primarily engaged in water distribution networks and irrigation products, it recognizes the immense responsibility of maintaining the highest standards of quality, given that water plays an essential lifeline for communities.

Risks and concerns

Dependent on few customers: It is dependent on and derive a substantial portion of its revenue from a limited number of customers. For the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, its top ten customers accounted for around 71.95%, 75.84% and 76.87% of its revenue from operations. Significant revenue from a few customers increases the potential volatility of its results and exposure to individual contract risks with such customers, which may have an adverse effect on its results of operations.

Geographical concentrate: Its business operations are majorly concentrated in certain geographical regions. For the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, a substantial portion of its revenue was derived from the states of Telangana, Rajasthan, Gujarat, Andhra Pradesh, and Maharashtra, contributing Rs 4,818.36 lakh, Rs 2,654.95 lakh, and Rs 2,929.23 lakh, respectively. These revenues accounted for 80.81%, 86.86%, and 89.08% of its total revenue in these periods. This geographical concentration exposes it to risks related to adverse developments, such as economic shifts, demographic changes, or competitive pressures specific to these regions, which could negatively impact its business prospects, financial condition, and results of operations.

Dependent on a few suppliers for purchases of product/service: Its top 10 suppliers contribute majority of its supplies. In the financial years ended March 31, 2025, 2024, and 2023, the top ten suppliers accounted for around 37.23%, 59.79%, and 69.46% of total purchases, respectively. The loss of any of these large suppliers may affect its business operations. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Outlook

The company provides turnkey and engineering solutions for irrigation systems like Drip, Sprinklers, Rain guns etc. and provide solutions for solar module cleaning systems, drinking water supply, grey water handling and bulk industrial water movement. It is engaged into turnkey EPC (Engineering, Procurement and Construction) projects focusing on two broad segment viz Water-based and Renewable Energy-based. On the concern side, its industry is labour intensive, and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of its suppliers. Moreover, the market in which the company is doing business is highly competitive on account of both the organized and unorganized players, which may adversely affect its business operation and financial condition.

The company is coming out with an IPO of 1,47,96,000 equity shares of face value of Rs 1 each for cash at a fixed price of Rs 21 per equity share to mobilize Rs 31.07 crore. On performance front, the Revenue from Operations comprising of Sale of Products and Sale of Services has increased from Rs 3,056.55 lakh in FY 2023-24 to Rs 5,962.80 lakh in FY 2024-25 i.e. revenue from operation increased by 95.08%. The restated Profit after Tax for FY 2024-25 has been increased to Rs 602.29 lakh as against Rs 60.34 lakh in the FY 2023-24.

As part of its forward-looking strategy, it is focused on integrating automation technology into the water pipeline system sector, recognizing its potential to revolutionize project execution. While this initiative is still in its early stages, it is laying the groundwork for a significant transformation in how it approaches its operations. Automation technology can streamline complex processes, enhance precision, and reduce execution time, enabling it to deliver projects with greater efficiency and consistency. To fast-track this transition, it is exploring opportunities to either acquire companies with established expertise in automation for water pipeline systems or form strategic alliances with industry leaders in this domain. By leveraging the advanced capabilities of such partners, it aims to bridge technological gaps, accelerate its adoption of automation, and position itself as innovators in the field.