Raipur based Shivalik Engineering Industries Limited, one of the leading precision engineering Company in India, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on June 28, 2024.
The IPO, with a face value of Rs 5 per equity share, is a mix of fresh issue of shares up to Rs 335 crore and an offer for sale of up to 4.13 million equity shares by Promoters and Others Selling Shareholder. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The offer for sale consists of sale of equity shares up to 1,204,260 by Giriraj Singhania Promoter, up to 1,204,260 by Raghvendra Singhania, up to 802,760 by Vishal Sharma, up to 211,200 by Mohit Sharma, up to 12,320 by Pankaj Sharma, up to 220,000 by Dhruv Kumar Nagwani, up to 220,000 by Navin Kumar Nagwani, and up to 255,200 by Padam Kumar Nagwani.
The Company intends to utilize the net proceeds from the fresh issuance to the extent of Rs 179.24 crore for funding capital expenditure for setting up of the Solar Plant, Rs 50 crore for expansion of existing units, i.e., expansion of existing foundry capacity by setting up a new foundry line and general corporate purpose.
Shivalik Engineering Industries began its operations in 2007, with a focus on manufacturing casting components, including high-quality metal parts for sectors such as automotive, agriculture, railways, and off-highway industries.
It mainly supplies precision engineering components for commercial vehicles, tractors, off-highway vehicles, pipe fittings, and rail components, offering 297 SKUs as of December 31, 2023.It has capbilites to develop and supply components in fully machined and assembled condition with components weights ranging from 10 kgs to 150 kgs.
The company provides end-to-end solutions, covering the entire value chain through vertically integrated operations—from design and precision engineering to melting, casting, cleaning, machining, assembly, and reverse engineering services.
Shivalik Engineering’s restated consolidated revenue from operations during the fiscal year 2023 increased 64.74% to Rs 666.21 crore from Rs 404.39 crore in the previous year, primarily due to growth in the sale of products that is attributed to an increase in the scale of operations. Profit after tax grew 479.98% from Rs 6.37 crore for the financial year 2022 to Rs 36.97 crore for the financial year 2023.
For the nine months ended December 31, 2023, consolidated revenue from operations stood at Rs 521.18 crore and Profit after tax stood at Rs 55.64 crore.
Axis Capital Limited and IIFL Securities Limited are the book-running lead managers, and Bigshare Services Private Limited is the registrar of the issue.
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