Anjali LabTech files updated draft with SEBI for Rs 1,225 crore IPO

The Development

Anjali LabTech Limited, a Surat-based lab-grown diamond manufacturer formerly known as Anjali Diamonds Private Limited, has filed an updated draft red herring prospectus (UDRHP-I) with the Securities and Exchange Board of India for an initial public offering of up to Rs 1,225 crore. The draft abridged prospectus is dated September 24, 2026, and the filing appears on SEBI's public-issues record dated September 25, 2026. The move was surfaced through coverage in The Economic Times, which reported that the company had re-submitted its draft papers.

Per the offer document, the issue combines a fresh issue of up to Rs 925 crore (up to Rs 9,250.00 million) with an offer for sale of up to Rs 300 crore (up to Rs 3,000.00 million). This is a draft filing seeking SEBI's processing, not an approved or launched IPO; the price band, issue dates and final share counts are all yet to be set. The document states the equity shares are proposed to be listed on both the BSE and the NSE, placing this on the mainboard rather than an SME platform.

The Company

Anjali LabTech describes itself in the offer document as "the first and leading vertically integrated Indian player in the lab-grown diamond" industry, citing the Wazir Report. The company manufactures and supplies microwave plasma chemical vapour deposition machines (MPCVD Machines) used to grow rough lab-grown diamonds, installs these machines in-house for captive growing, processes rough diamonds into polished lab-grown diamonds, and manufactures lab-grown-diamond studded jewellery for business and retail sale. As of March 31, 2026, the company reports an estimated 36% global market share in MPCVD machines by volume and roughly 41% in India, per the Wazir Report cited in the document. It operated seven manufacturing facilities on leased premises in Surat, Gujarat, as of the date of the prospectus.

On financials, the company discloses restated consolidated revenue from operations of Rs 615.51 crore (Rs 6,155.13 million) for Fiscal 2026, up from Rs 472.50 crore in Fiscal 2025 and Rs 223.19 crore in Fiscal 2024. Profit after tax was Rs 200.92 crore in Fiscal 2026, Rs 146.79 crore in Fiscal 2025 and Rs 90.06 crore in Fiscal 2024, per the offer document. EBITDA for Fiscal 2026 stood at Rs 264.22 crore, an EBITDA margin of 42.93%, with a debt-to-equity ratio of 0.27. The promoters are named as Rajnikant M Radadiya and Sandipbhai Madhubhai Radadiya.

The Offer Structure

The fresh issue of up to Rs 925 crore is complemented by an offer for sale of up to Rs 300 crore by three promoter-group selling shareholders, per the document: Madhubhai Samajubhai Raddiya (up to Rs 118.75 crore), Shilpaben Rajanibhai Radadiya (up to Rs 106.25 crore) and Nehalben Sandipkumar Radadiya (up to Rs 75.00 crore). The face value is Rs 5 per equity share. The company may also undertake a pre-IPO placement of up to Rs 185 crore (up to Rs 1,850.00 million), which if completed would reduce the fresh issue by the corresponding amount.

The offer document sets out the objects of the fresh issue: Rs 524.56 crore towards capital expenditure for manufacturing and captive installation of MPCVD Machines, Rs 74.27 crore for construction of the Anjali Corporate House in Surat, Rs 75.00 crore for prepayment or repayment of certain borrowings, and the balance for general corporate purposes. The book running lead managers are IIFL Capital Services Limited and Axis Capital Limited, and the registrar is MUFG Intime India Private Limited. The price band, lot size, minimum application amount and issue dates are not yet stated and are marked as pending in the draft. Readers working through allotment arithmetic once terms are announced may find Oquilia's lumpsum calculator and CAGR calculator useful, and prior primary-market coverage sits on the Oquilia news desk.

Risk Factors

The offer document lists ten internal risk factors, of which several bear on the company's concentration and history. The company discloses that it was incorporated only in Fiscal 2022 and accordingly has "a limited operating history", cautioning that past performance should not be taken as an indication of future results. The document also states that the top 10 customers accounted for 59.37%, 60.06% and 69.80% of revenue from operations in Fiscals 2026, 2025 and 2024 respectively, flagging customer concentration.

Among the other risk factors the company discloses, MPCVD Machine sales generated 31.84% of revenue from operations in Fiscal 2026, so any fall in demand for these machines could hurt results. The document warns that lab-grown-diamond demand depends on consumer perception relative to natural diamonds and is subject to seasonal fluctuations. It also flags that imposition of United States tariffs on Indian diamond products could affect the business, that certain past credit ratings were withdrawn or assigned under "Issuer Not Cooperating" status, and that the company has no exact comparable listed peers in India or globally, which may affect valuation comparability for investors. These are disclosures the company itself was required to make, not an assessment by this desk.

What Happens Next

As a draft filing, the UDRHP-I now moves through SEBI's processing before the company can proceed. The standard sequence from here runs from SEBI's processing of the draft to the filing of a red herring prospectus with the Registrar of Companies, followed by the announcement of the price band and issue dates, an anchor-investor book one working day before opening, a three-day public subscription window, finalisation of the basis of allotment, unblocking of application funds and, finally, listing on the exchanges.

None of these dates has been set. The offer document reproduces SEBI's standard position that the equity shares "have not been recommended or approved" by SEBI, and that SEBI does not guarantee the accuracy or adequacy of the prospectus. A draft filing may be revised, delayed or withdrawn, and the terms disclosed above are subject to change in the final documents filed with the exchanges and the Registrar of Companies.

FAQ

Should I apply for this IPO?

Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.

What is the size and structure of the issue?

Per the offer document, the total issue is up to Rs 1,225 crore, comprising a fresh issue of up to Rs 925 crore and an offer for sale of up to Rs 300 crore by three promoter-group selling shareholders. The company may also raise up to Rs 185 crore through a pre-IPO placement, which would reduce the fresh issue accordingly.

What is the price band and lot size?

The draft does not yet state a price band, lot size or minimum application amount; these fields are marked pending. They are set at the red herring prospectus stage, closer to the opening of the issue, and will be filed with the exchanges. The face value is Rs 5 per equity share, per the document.

What does an updated draft filing with SEBI mean?

It means the company has lodged a draft offer document for SEBI's processing. It is not an approved IPO. The document itself states the shares have not been recommended or approved by SEBI, and SEBI does not guarantee the accuracy or adequacy of its contents.

Where can I read the offer document?

The updated draft red herring prospectus and abridged prospectus are hosted on SEBI's public-issues section. The listing entry and the draft abridged prospectus PDF are linked in the source paragraph below.

This report is based on the draft offer document filed with SEBI and the accompanying draft abridged prospectus. It was surfaced via coverage in The Economic Times.