Shivalik Engineering Industries files draft papers with SEBI to raise funds via IPO

Shivalik Engineering Industries Limited, a precision engineering company, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).

According to the Raipur-based company's draft red herring prospectus (DRHP), the public issue is a combination of a fresh issue of equity shares worth ₹335 crore and an OFS (offer for sale) of up to 41.3 lakh shares. The company has also reserved a portion for eligible employees.

The net proceeds from the IPO will be used by the company to set up a solar plant, expand the existing foundry by setting up a new foundry line, and for general corporate purposes.

About Shivalik Engineering

Starting operations in 2007, Shivalik Engineering manufactures casting components, including high-quality metal components, for various sectors, such as agriculture, railways, automotive, and off-highway industries.

It provides end-to-end solutions, from designing and precision engineering to melting, casting, machining, cleaning, assembly and reverse engineering.

The company's products are used in commercial vehicles, off-highway vehicles, tractors, rail components and pipe fittings.

The company reported a 65% increase in its consolidated revenue from operations to ₹666.2 crore in the financial year 2022-23 as against ₹404.3 crore in the previous fiscal.

Its net profit rose to ₹36.97 crore in FY23, up from ₹6.3 crore in FY22.

For the nine months ending December 31, 2023, revenue stood at ₹521.1 crore, and net profit was ₹55.6 crore.

IIFL Securities and Axis Capital are the book-running lead managers for the public issue.