Barring Asset Reconstruction Company, which is a pure Offer For Sale (OFS), the rest are a combination of a fresh issue of equity and an Offer For Sale by existing investors.
Here’s a look at the top risk factors highlighted by each company in their Red Herring Prospectus (RHP) filed with the regulator:
Asset Reconstruction Company
Asset Reconstruction Company deals in acquiring and managing stressed and distressed loan portfolios. The company’s ₹733 crore IPO has been priced between ₹132 – ₹139 per share.
One of the key risks highlighted by the company in its RHP is that its revenue model depends on its Assets Under Management as it earns management and trusteeship fees on the same. These, along with the investment income make up for the entire revenue. Interestingly, 34% of the company’s AUM is more than eight years old, which is past the window where management fees are usually charged.
Another risk highlighted by the company is that as an RBI-regulated ARC, non-compliance with norms, inspections, observations made by the regulator could expose the company to penalties, restrictions or reputational damage.
An inability to source and win assets at attractive prices could constrain the company’s growth and competitive position, as highlighted in the RHP as a risk factor.
A core business risk is the inability to recover outstanding amounts from acquired stressed assets in a timely manner, which will directly affect the company’s operational, financial and cash flow conditions.
As of March 31, 2026, stressed assets in the corporate loan vertical represented 68.75% of the total AUM, compared to 75.48% in 2025 and 78.51% in 2024. Although the decline in the trend is a positive, the business still largely depends on this one segment and any adverse developments here could impact the financial results.
Rentomojo
The furniture, appliance and consumer durable rental and subscription platform is the biggest among the six IPOs that open for subscription on Wednesday. Sized at ₹1,256 crore, Rentomojo plans on selling shares between ₹384 to ₹404 apiece.
Almost all the company’s business comes from renting furniture, appliances and consumer durables. Any decline in rental demand could hurt the entire business.
The company’s growth is directly tied to the ability to keep growing and retaining subscirbers on the platform. Rising churn or slow adoption is a threat to the business model.
Most of Rentomojo’s revenue comes from tier-1 Metro townships and therefore, any adverse development could impact the operational performance.
The company has already witnessed a fire at one of its warehouses and its physical storage-and-logistics model therefore, is under threat to any such incidents. Additionally, statutory auditors have flagged certain observations in their audit report for FY24-26 that warrant investor attention.
LCC Projects
The infrastructure and EPC contractor is involved in irrigation and water supply projects. It plans on selling shares for its ₹427 crore issue in a price band of ₹139 to ₹146 apiece.
A key risk factor highlighted in the company’s RHP is that its trade receivables jumped to ₹455.8 crore or 12.66% of its overall revenue in financial year 2026, which is double of the 6.42% of the topline in financial year 2024. Any delay or failure in collection directly impacts the company’s cash flow and working capital.
Material contingent liabilities are disclosed in the restated financials, and if they crystalize, they could impact financial conditions.
The company also carries a significantly higher level of indebtedness and leverage compared to peers, thereby constraining competitive positioning.
Between 79% to 88% of the company’s topline between financial year 2024-2026 came from irrigation and water supply projects awarded by the state and central government departments. The company also depends on orders from the Jal Jeevan Mission.
The company’s operations are mostly concentrated in Gujarat and Madhya Pradesh and the project-bid success rate was only 13.53% in financial year 2026, compared to the previous years rate of 21% to 23%.
Karamtara Engineering
The company is a manufacturer of solar and wind energy hardware, along with transmission line fittings and fasteners. The ₹875 crore issue is priced between ₹241 to ₹254 per share.
A major risk factor for the company is that it depends heavily on facilities that are based in Maharashtra. Nearly 91% of its financial year 2026 topline came from the state, compared to 98.61% in financial year 2025 and 99.18% in financial year 2024. Any untoward incident here could impact business operations.
79% to 82% of the company’s revenue comes from solar industry products and any sectoral downturn or adverse policy shift could hurt operations.
The company’s top 10 customers contributed to 48.63% of its financial year 2026 revenue. The numbers are volatile as the figure stood at 40.4% in financial year 2025 and 63.47% in financial year 2024. Losing a few large accounts could post a material risk.
Majority of the company’s revenue (between 40% to 60%) comes from the export market, exposing it to forex, geopolitical and regulatory risks. The RHP has specifically flagged West Asia conflict as a risk as it is setting up a facility in Saudi Arabia.
Manipal Payments and Identity Solutions
Formerly known as MCT Cards & Technology, the company is a payment cards, personalization and identity solutions manufacturer.
The company’s top 10 customers accounted for 58.67% of the overall topline in financial year 2026, compared to 60.98% and 62.51% respectively in the previous two years. Top 10 suppliers also make up for 56% to 62% of raw material purchases, thereby exposing it to concentration risk on both client and supplier side.
A significant portion of the company’s topline comes only from card manufacturing and any downturn here could impact operations.
Promoter Tonse Gautham Pai and group company Primacy Industries have extended personal and corporate guarantees for financing raised by another group entity. If called, it could impact the financial standing of the company and the promoter as well.
There have been past instances of the company being in non-compliance with RBI regulations.
Steamhouse India
The company is involved in industrial steam and gas generation and distribution such as nitrogen and coal-fired boilers. The ₹414 crore IPO has been priced at ₹77 to ₹81 per share.
48% of the company’s revenue in financial year 2026 came from its top 10 customers and 90.7% of that came from repeat orders. Therefore, a loss of a few large accounts could lead to a hit to its financial performance.
Coal made up for 77% to 92% of raw material cost across financial year 2024-2026 and any trade restriction, tariffs, or supply disruption can have an impact. Additionally, since imports as US Dollar dominated, the forex exposure is an added risk.
99.27% of all Related Party Transactions in financial year 2026 came with Group companies.