IPO by Shivalik Engineering Industries comprises a fresh issue of Rs 335 crore
IPO News: Shivalik Engineering Industries, one of India’s prominent foundries, has set its sights on the capital markets with an ambitious plan to raise funds through an initial public offering (IPO). The company, known for its robust manufacturing capabilities in casting products, has filed a draft red herring prospectus with the Securities Exchange Board of India (SEBI) to initiate this strategic move.
Overview of the IPO
The proposed IPO by Shivalik Engineering Industries comprises a fresh issue of Rs 335 crore. Additionally, existing shareholders and promoters intend to offer up to 4.13 million shares for sale through this IPO.
Offer for Sale Details
The Offer for Sale (OFS) component includes:
Giriraj Singhania and Raghvendra Singhania: Up to 1.20 million shares each.
Vishal Sharma: Up to 8.03 lakh shares.
Mohit Sharma: Up to 2.11 lakh shares.
This mix of fresh issuance and share sale by existing stakeholders aims to leverage market demand while providing liquidity to current investors.
Lead Managers
Axis Capital and IIFL Securities have been appointed as the lead managers to oversee the IPO process. Their role includes structuring the offering, coordinating with regulatory bodies, and managing investor relations to ensure a successful market entry for Shivalik Engineering Industries.
Business Focus: Casting Excellence for Automotive and Railway Sectors
Shivalik Engineering Industries specializes in manufacturing a diverse range of casting products, primarily catering to the automotive and railway industries. With a strong focus on precision engineering and quality standards, the company has carved a niche for itself in supplying critical components that meet stringent industry requirements.
Market Position and Growth Prospects
As one of India’s largest foundries, Shivalik Engineering Industries stands poised to capitalize on growth opportunities within the manufacturing sector. The IPO proceeds are earmarked to bolster the company’s expansion plans, enhance production capacities, and invest in technology and infrastructure upgrades. This strategic approach not only aims to fortify its market presence but also to explore new avenues for business development domestically and internationally.
The upcoming IPO by Shivalik Engineering Industries signifies a significant milestone in its journey of growth and expansion. By tapping into the equity markets, the company seeks to strengthen its financial foundation, enhance operational efficiencies, and unlock value for its stakeholders. With Axis Capital and IIFL Securities at the helm of the IPO, investor confidence is expected to be high, underscoring the potential for Shivalik Engineering Industries to emerge as a leader in the global foundry industry.
As the IPO progresses through regulatory approvals and market reception, industry observers will keenly watch how Shivalik Engineering Industries navigates the next phase of its evolution, driven by innovation, resilience, and a commitment to excellence in manufacturing.
