Shivalik Engineering Industries Limited Files DRHP: Know More About Upcoming IPO

Shivalik Engineering Industries Limited filed a DRHP and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 335 Crore of equity shares and an OFS of up to 4,130,000 equity shares. The face value is reported as Rs. 5 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. The exact dates for the IPO's subscription opening and closing, as well as the price band, will be announced soon. Axis Capital Limited and IIFL Securities Limited are serving as book-running lead managers for this IPO, and Bigshare Services Private Limited has been appointed as the registrar for this issue.

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About Shivalik Engineering Industries Limited

Shivalik Engineering Industries Limited is a prominent precision engineering firm in India, specializing in casting components for the automotive, agriculture, railways, and off-highway industries. With 297 SKUs as of December 31, 2023, they provide end-to-end solutions, including designing, precision engineering, melting, casting, cleaning, machining, assembly, and reverse engineering services. Serving leading Indian brands like Daimler India, Ashok Leyland, and Mahindra, they also export to the U.S., including Accuride Corporation and Webb Wheel Products. Founded in 2007, they operate three manufacturing facilities in Chhattisgarh with a capacity of 83,800 MT and are setting up a new machining unit. Expanding internationally, they are developing wheel hubs for a U.S. company and supplying to Indian Railways through registered channel partners.

Shivalik Engineering Industries Limited IPO Objectives

The company said they utilize the Net Proceeds for several key purposes. The primary one is funding capital expenditure for setting up a solar plant. Additionally, the funds will be directed towards expanding existing manufacturing units, specifically by increasing the current foundry capacity through the establishment of a new foundry line. The company also plans to allocate a portion for general corporate purposes. As per DRHP, the amount used for general corporate purposes shall not exceed 25% of the Gross Proceeds.

Financials of the Company

For the year ended March 31, 2023, compared to March 2022, the company's assets increased by 76.57% to Rs 335.67 crore. However, revenue increased by 75.94% to Rs 550.71 crore, and profit after tax showed massive growth of an increase of 666.04% to Rs 26.05 crore for the same period. Total borrowing decreased to Rs 125.22 crore from Rs 154.39 crore as compared to FY23 from FY22. These numbers show how the company's finances have been and where exactly there is a need to make strategic changes.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by Axis Capital Limited and IIFL Securities Limited, which is the book-running lead manager of this public issue. Bigshare Services Private Limited has been appointed as the registrar for the issue, while the company has Giriraj Singhania and Raghvendra Singhania as their promoter(s).

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