Sharvaya Metals IPO

About Sharvaya Metals IPO

Sharvaya Metals Limited IPO is an IPO of up to 40,00,000 equity shares. It consists of an offer for sale of up to 10,00,000 equity shares and a fresh issue of up to 30,00,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Sharvaya Metals IPO

• To meet working capital requirements.
• To fund capital expenditure for the purchase of plant and machinery.
• General corporate purposes.

Industry Outlook

Aluminium has widespread applications throughout the economy and is equally important to both industrial and consumer sectors. In India, aluminium is consumed mainly in the electrical sector (48%), followed by the automobile and transport sector (15%), construction (13%), consumer durables (7%), machinery and equipment (7%), packaging (4%), and others (6%). Indian aluminium demand remained resilient in the financial year 2023–24, with domestic consumption increasing by 12% compared to the financial year 2022–23. The Indian aluminium market was valued at USD 1,128 crores in 2023 and is projected to reach USD 1,976 crores by 2030, with a CAGR of 7.6% from 2024 to 2030. ICRA has estimated that domestic aluminium demand growth will remain healthy at 9% annually through the financial years 2023–24 and 2024–25. This growth is driven by several factors, including the Indian government's massive infrastructure development plans, growing urbanisation, initiatives such as the Housing for All scheme, and investments in the metro rail network and aluminium-bodied Vande Bharat trains. Accordingly, the Government of India envisages the faster adoption and promotion of electric vehicles (EVs) as a means to achieve these objectives. India is targeting 30% overall EV penetration (80% in the two-wheeler and three-wheeler segments) by 2030.

Company Information

Sharvaya Metals Limited is engaged in the business of providing aluminium products to both domestic and international customers. They have been in existence for more than 10 years and commenced their manufacturing operations in 2017. They have an extensive product range, including the manufacturing of aluminium alloyed ingots, aluminium billets, aluminium slabs, aluminium sheets, aluminium circles, and electric vehicle (EV) battery housings, also known as battery cases or battery enclosures, which protect battery cells from damage and provide structural support. Their products find application across various industries including cookware, consumer appliances, electric vehicles, LED, aviation, defence, automotive, extrusions, construction, etc. They work directly with OEMs as well as suppliers to OEMs. The company also provides tailor-made products as per customer requirements. Sharvaya Metals Limited has experience in meeting the critical and stringent requirements of their customers, such as manufacturing aluminium alloyed ingots for high-pressure die casting, billets for the aluminium extrusions industry, and aluminium sheets and circles primarily used in the utensils and cookware industry.

Risks of Sharvaya Metals IPO

• They do not have long-term agreements with their suppliers for raw materials, and an inability to procure the desired quality or quantity of raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on their business, results of operations, financial condition, and cash flows.

• The demand and pricing in the aluminium industry are subject to market dynamics, volatility, and broader economic conditions. Fluctuations in aluminium prices may have a materially adverse impact on their business, results of operations, prospects, and financial condition.

• Their success depends on stable and reliable logistics and transportation infrastructure. Disruptions to logistics and transportation services could impair their suppliers' ability to deliver raw materials or affect their own ability to deliver products to customers and/or increase transportation costs, which may adversely affect their operations.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Expert Global Consultants Private Limited

Registrar for the IPO is Bigshare Services Private Limited

Business Model

The company earns its revenue by providing aluminium products to both domestic and international customers. Its extensive product range includes the manufacture of aluminium alloyed ingots, aluminium billets, aluminium slabs, aluminium sheets, aluminium circles, and electric vehicle (EV) battery housing.

Company Growth Trajectory

Their revenue from operations increased from ₹40.80 crores for fiscal 2022 to ₹71.45 crores for fiscal 2024, at a CAGR of 20.54%. Their net profit, as restated, increased from ₹0.40 crore for fiscal 2022 to ₹1.80 crores for fiscal 2024, at a CAGR of 65.82%.

Company Market Position

The company believes that they are well-positioned to compete with its competitors due to its differentiated strategy, which focuses on meeting unmet product requirements while simultaneously offering a comprehensive range of products in both the Indian and global markets. Most of these companies do not have resources for quality control, providing Sharvaya Metals Limited an upper hand while competing; they also do not have energy-conserving equipment, which saves on costs; this also provides Sharvaya Metals Limited efficiency in operations. The company’s focus on quality control strengthens their position as a trusted manufacturer and reflects their vision of being a leader in the aluminium industry.

How To Check Allotment Status of Sharvaya Metals IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Sharvaya Metals Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Bigshare Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Sharvaya Metals Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Sharvaya Metals IPO?

To apply for this 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.