IPO Details
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IPO Size
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Schedule of Shayona Engineering IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Shayona Engineering Ltd IPO
The IPO of Shayona Engineering Ltd comprises a fresh issue of up to 10,32,000 equity shares. There’s no offer for sale in this IPO, which is a 100% book-built issue. The IPO opens on TBA and closes on TBA. The shares will be credited on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Shayona Engineering Ltd IPO
- Funding of working capital requirements of the company
- General corporate purposes
Shayona Engineering Ltd IPO Valuation
Shayona Engineering Ltd Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Bidders | Not less than 15% of the net issue |
Retail Individual Bidders | Not less than 35% of the net issue |
Industry Outlook
The Indian precision engineering sector has emerged as a significant player in the global manufacturing landscape, with the market projected to reach USD 180.5 billion by 2027. This growth is driven primarily by advancements in Computer Numerical Control (CNC) manufacturing and Industry 4.0 technologies, with 65% of manufacturers now adopting smart manufacturing technologies.
Also, the Indian process automation and industrial equipment manufacturing sector exhibits substantial growth trajectory, with market valuation at USD 2.07 billion in 2023. Industry projections indicate a doubling of market size by 2030, driven by a robust CAGR of 9.8% through 2025.
Company Information
Shayona Engineering Ltd deals in machining, dies and moulds, industrial automation, heavy fabrication, casting, forging, reverse engineering, and turnkey project machinery. Its core business includes casting and forging, sand casting, machine parts, structural engineering, industrial automation, industrial design etc.
Shayona Engineering Ltd Strengths
Proven Track Record in Large-Scale Operations
Shayona Engineering Ltd. has built a strong reputation for delivering high-quality products and services across industries. Through years of operational excellence and successful large-scale projects, it has earned its clients' trust and satisfaction. Its deep expertise in manufacturing and engineering keeps it competitive in today's dynamic market.
Strategic Supply Chain Management
The company’s robust procurement network and diverse client base enable it to effectively manage supply chain fluctuations and market demand changes. Strong relationships with suppliers and customers ensure stable production and minimal disruptions. Its versatile product portfolio allows it to serve multiple sectors, giving it the flexibility to adapt to shifting market needs.
Advanced Technology Investment
The company maintains its industry leadership by investing in cutting-edge technology. Its planned expansion includes modern CNC (Computer Numerical Control) and VMC (Vertical Machining Center) machines for handling larger, more complex components. These investments will enhance precision, speed, and production flexibility, enabling it to take on more sophisticated projects.
Risks of Shayona Engineering Ltd
- Dependent on Few Customers
Substantial portion of its revenues are dependent on few customers and the loss of, or a significant reduction in purchases by any one or more such customers could adversely affect its financial performance.
- Reliance on Some Suppliers
The company relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet its requirements, its business will be harmed. An inability to procure the desired quality, quantity of its raw materials and components in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations and financial condition.
- Impact of Raw Material Dynamics
The company obtains its raw materials from specialised suppliers of essential metals and steel for its diverse engineering operations. These materials are vital for manufacturing automotive components and engineered parts. It’s affected by the prices, availability, and quality of the raw materials used in its production.
All Financial Information about Shayona Engineering
Peer Comparison
There are no listed peers of the company as on the date of the draft red herring prospectus.
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Horizon Management Pvt Ltd
Business Model
The core business of Shayona Engineering Ltd includes:
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Casting and Forging: The company provides customised solutions for precision castings in special grades, with weights ranging from a few grams to 3 metric tons in a single piece.
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Machined parts: The company manufactures precision metal, rubber and plastic parts, assemblies, and fixtures with exceptional quality.
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Structural Engineering: The company specialises in designing, manufacturing, and installing process equipment structures including columns, tanks, gantries, heat exchangers, and pressure vessels.
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Industrial Automation: The company offers comprehensive turnkey project management services that encompass system design, build, integration, installation, and commissioning, complete with training support.
Company Growth Trajectory
Since its establishment, Shayona Engineering Ltd. has shown remarkable growth, evolving from modest beginnings into a prominent manufacturing sector player through strategic investments in technology, product diversification, and manufacturing capabilities.
Its revenue from operations grew from ₹4.5771 crores in FY 22 to ₹15.2442 crores in FY 24. Its EBITDA margin increased from 3.90% in FY 22 to 17.93% in FY 24, while PAT margin increased from 1.27% in FY 22 to 11.29% in FY 24.
Market Position
Prior to its incorporation as a private limited company in 2017, Shayona Engineering operated as a proprietorship firm established in 2010. By 2016, the growing scale of operations and expanding client base made a formal corporate structure necessary.
This led to the strategic decision to incorporate as a private limited company on February 14, 2017—a significant milestone in the company’s evolution from a small proprietorship to a structured corporate entity focused on becoming the industry leader in machining, dies and moulds, industrial automation, heavy fabrication, casting, forging, reverse engineering, and turnkey project machinery.
Shayona Engineering Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 15.2844 | 12.6322 | 4.5819 |
Profit Before Tax (in ₹ crores) | 2.3205 | 0.8136 | 0.0822 |
Profit After Tax (in ₹ crores) | 1.7217 | 0.5885 | 0.0581 |
EPS in ₹ | 14.15 | 3.35 | 0.41 |
Shayona Engineering Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 2.3205 | 0.8136 | 0.0822 |
Net Cash Flow from / (Used in) Operating Activities (in ₹ crores) | (0.1682) | (2.1024) | 0.4080 |
Net Cash Flow Used in Investing Activities (in ₹ crores) | (1.5167) | (0.3067) | (0.6686) |
Net Cash Flow from Financing Activities (in ₹ crores) | 1.6975 | 2.4122 | 0.0854 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 0.0600 | 0.0474 | 0.0443 |
How to Check Allotment Status of Shayona Engineering Ltd IPO?
1. Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Products’ under ‘Investors’
- Click on any of the links displayed
- Choose the IPO name and enter either application number, PAN or Demat account No
- Enter captcha and click on ‘Submit’ to know the status
2. 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 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Shayona Engineering Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- 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.
Shayona Engineering IPO FAQs
Where can I read more about Shayona Engineering business?
You can read more about Shayona Engineering and its IPO from the company’s red herring prospectus (RHP) here.
What is the Shayona Engineering Ltd IPO?
The IPO of Shayona Engineering Ltd comprises up to 10,32,000 equity shares.
When will the IPO of Shayona Engineering Ltd go live?
The IPO dates are yet to be announced.
From where can I read more about the IPO of Shayona Engineering Ltd?
You can read more about the IPO of Shayona Engineering Ltd from the company’s draft red herring prospectus here.
