IPO Details
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IPO Size
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Schedule of Ardee Engineering IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Ardee Engineering IPO
Ardee Engineering Limited is launching an IPO comprising a fresh issue and an offer for sale. The fresh issue consists of equity shares with a face value of ₹5 each, aggregating up to ₹500 crores. The offer for sale includes equity shares with a face value of ₹5 each, aggregating up to ₹80 crores. The total offer size is ₹580 crores, with Chandra Moturu being the promoter selling shareholder.
Objectives of Ardee Engineering IPO
- Funding capital expenditure requirements towards setting up two new manufacturing facilities in Telangana
- Funding capital expenditure requirements towards setting up an integrated manufacturing facility in Andhra Pradesh
- Prepayment or repayment, in full or in part, of the company’s outstanding borrowings
- General corporate purposes
Ardee Engineering IPO Valuation
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the offer |
Non-institutional Investors (NIIs) | Not more than 15% of the offer |
Retail-individual investors (RIIs) | Not more than 10% of the offer |
Industry Outlook
As per the CARE Report, India's construction market was valued at USD 288.4 billion in 2023 and is projected to grow at a CAGR of 9% till 2029, driven by urbanisation and infrastructure development. Infrastructure leads with 39% market share, while residential construction is expected to grow the fastest at 11% CAGR. The demand for eco-friendly and energy-efficient designs is also rising.
Company Information
Started in 2008, Ardee Engineering Limited is a fast-growing integrated company specialising in design, engineering, and manufacturing across three key areas: pre-engineered buildings (PEBs), material handling systems (MHS), and engineering services in structural and automation projects. With an annual capacity of 44,144 metric tonnes, the firm has completed projects in 13 states over the last 16 years.
Strengths of Ardee Engineering IPO
Domain expertise and timely execution of complex projects
With a strong engineering team and a ₹8,929.55 million order book, the firm has a proven track record of executing complex, large-scale projects across 13 states. Its innovative solutions and high-quality standards have helped deliver challenging projects on time for its globally recognised clients, even amid disruptions.
Long standing relationships
The firm serves both private and government clients, with successful project execution across 13 states and long-term relationships with major names like AM/NS, JK Cement, and Maharatna PSUs. Its end-to-end engineering solutions and customer-focused approach drive repeat business and cross-selling opportunities. During the six-month period ending September 2024, repeat orders from the same clients accounted for 61.27% of the total revenue from operations.
Strong market presence
The firm has an aggregate installed capacity of 44,144 MTPA. It has delivered key PEB and MHS projects for leading clients across sectors like e-commerce, electronics, metals, mining, and ports—including Maharatna PSUs. Projects include complex conveyor systems, raw material handling, and advanced engineering solutions tailored to client needs.
Risks of Ardee Engineering IPO
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The company’s business is highly dependent on a concentrated customer base, with over 60% of its revenue consistently coming from its top five clients. Any loss or reduced business from these key customers could significantly impact its operations and financial performance.
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The firm relies heavily on third-party suppliers for raw materials, particularly steel, with over 50% of its raw material costs tied to its top 10 suppliers. The absence of exclusive contracts increases vulnerability to supply disruptions, cost fluctuations and potential delivery delays.
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A significant portion of the company’s revenue comes from repeat orders or business from related entities. Any decline in these recurring orders could materially affect its growth, profitability and financial stability.
Ardee Engineering IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of the Company | Revenue from Operations (in ₹ crores) | EPS (Basic) | NAV per Share | P/E |
|---|---|---|---|---|
Ardee Engineering Limited | 620.99 | 7.65 | 21.77 | - |
Pennar Industries Limited | 3,130.57 | 7.29 | 64.73 | 25.12 |
Everest Industries Limited | 1,575.45 | 11.42 | 378.76 | 40.70 |
Capacite Infraprojects Limited | 1,931.63 | 16.09 | 179.23 | 21.95 |
PSP Projects Limited | 2,505.78 | 34.16 | 254.16 | 18.46 |
Ahluwalia Contracts (India) Limited | 3,855.29 | 55.95 | 238.80 | 14.50 |
ISGEC Heavy Engineering Limited | 6,219.33 | 33.14 | 335.44 | 29.71 |
Interarch Building Products Limited | 1,293.30 | 58.68 | 306.11 | 25.32 |
IPO Registrar and Book Running Lead Manager
Registrar: Bigshare Services Private Limited Book Running Lead Managers: IIFL Capital Services Limited, JM Financial Limited
Business Model
Ardee Engineering Limited is an integrated design, engineering, and manufacturing firm whose core strength lies in providing a comprehensive suite of end-to-end solutions across industries and geographies, with a strong focus on Pre-Engineered Buildings (PEB), Material Handling Systems (MHS), and Engineering Services. These three business lines form the backbone of the firm's operations.
In the PEB segment, the company offers comprehensive services—from design and engineering to manufacturing and project execution—of steel structures for warehouses, data centres, logistics facilities, factories, and more.
In the MHS segment, it specialises in solving complex bulk material handling challenges. Its custom-designed systems streamline manufacturing processes for clients across metals, mining, and port sectors. These systems include conveyor belts, crushing and screening equipment, bucket elevators, dust extraction units, and more.
Its engineering services cover heavy structural and precision engineering equipment, as well as electrical instrumentation with automation. This vertical supports both PEB and MHS projects and has also enabled the firm to enter niche industries like defence and aerospace.
The company operates five strategically located manufacturing units across Andhra Pradesh and Telangana, with a combined installed capacity of 44,144 MTPA as of March 2024. Its backward-integrated infrastructure, including a fleet of 67 heavy vehicles, allows it to minimise third-party logistics dependency and shorten project lead times.
Company Growth Trajectory
Over the last few years, Ardee Engineering Limited has demonstrated significant growth in its revenue from operations – increasing from ₹216.86 crores in FY 2022 to ₹620.99 crores in FY 2024. Likewise, EBITDA has also substantially improved – from ₹9.09 crores in FY 2022 to ₹60.64 crores in FY 2024. EBITDA margin has also shown an upward spike, rising from 4.18% in FY 2022 to 9.74% in FY 2024.
Ardee Engineering IPO Profit and Loss
| Parameter (in ₹ crores) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income | 622.83 | 331.72 | 217.66 |
Profit Before Tax | 41.46 | 14.79 | 1.75 |
Profit After Tax | 29.10 | 10.91 | 1.28 |
EPS | 7.65 | 4.70 | 0.71 |
EBITDA | 60.64 | 24.85 | 9.09 |
Ardee Engineering IPO Cash Flow Statement
| Parameter (in ₹ crores) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax | 41.46 | 14.79 | 1.75 |
Net Cash from (used in) Operating Activities | (46.36) | 8.95 | (24.64) |
Net Cash from (used in) Investing Activities | (69.28) | (14.71) | (10.47) |
Net Cash from (used in) Financing Activities | 90.70 | 30.78 | 34.85 |
Net Cash and Cash Equivalents | (24.95) | 25.01 | (0.26) |
How to Check Allotment Status of Ardee Engineering IPO?
Visit the Registrar's Website
To check the IPO allotment status for Ardee Engineering Limited IPO, visit the official website of Bigshare Services Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose ‘Ardee Engineering Limited’ in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search' Your Ardee Engineering Limited IPO allotment status will be displayed.
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Ardee Engineering Limited IPO allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN Then click 'Submit'. Your Ardee Engineering IPO bid and allotment details will be displayed.
How to Apply for Ardee Engineering IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Ardee Engineering IPO FAQs
Where can I read more about Ardee Engineering business?
You can read more about Ardee Engineering and its IPO from the company’s red herring prospectus (RHP) here.
What is the Ardee Engineering IPO?
Ardee Engineering Limited is launching an IPO, with fresh issue and offer for sale components. The fresh issue size is of ₹500 crores while the offer for sale aggregates up to ₹80 crores.
Is Ardee Engineering IPO coming?
Yes, Ardee Engineering Limited is expected to come up with its IPO soon.
Who is the chairman of Ardee Engineering?
Chandra Sekhar Moturu is the chairman and MD of Ardee Engineering Limited.
What is the lot size of shares of Ardee Engineering IPO?
The company hasn’t given any information on the lot size yet.
