IPO Details
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Schedule of Shivalik Engineering Industries IPO
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Allotment of bids
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Listing on exchange
Issue Highlights
Initial public offering of up to [] equity shares of face value of Rs. 5 each (Equity Shares) of Shivalik Engineering Industries Limited (the Company or the Issuer) for cash at a price of Rs. [] per equity share (including a premium of Rs. [] per equity share) (the Offer Price) aggregating up to Rs. [] crores (the Offer) comprising a fresh issue of up to [] equity shares of face value of Rs. 5 each by the company aggregating up to Rs. 335.00 crores (the Fresh Issue) and an offer for sale of up to 4,130,000 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores (the Offer for Sale), comprising up to 1,204,260 equity shares of face value of Rs. 5 each aggregating up to Rs.[] crores by Giriraj Singhania, up to 1,204,260 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Raghvendra Singhania, up to 802,760 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Vishal Sharma, up to 211,200 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Mohit Sharma, up to 12,320 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Pankaj Sharma , up to 220,000 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Dhruv Kumar Nagwani, up to 220,000 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Navin Kumar Nagwani, and up to 255,200 equity shares of face value of Rs. 5 each aggregating up to Rs. [] crores by Padam Kumar Nagwani together the Selling Shareholders, and such equity shares offered by the selling shareholders, the Offered Shares). This offer includes a reservation of up to [] equity shares aggregating up to Rs. [] crores (constituting up to []% of the post-offer paid-up equity share capital of the company) for subscription by eligible employees (the Employee Reservation Portion). The company, in consultation with the book running lead managers, may offer a discount of up to [] % (equivalent of Rs. [] per equity share) to the offer price to eligible employees bidding under the employee reservation portion (Employee Discount). The employee reservation portion shall not exceed 5.00% of the post-offer paid-up equity share capital. The offer less the employee reservation portion is hereinafter referred to as the Net Offer. The offer and the net offer shall constitute []% and []%, respectively of the post-offer paid-up equity share capital of the company. The company in consultation with the book running lead managers, may consider issue of specified securities as may be permitted under applicable law to any person(s), aggregating up to Rs. 67.00 crores, at its discretion, with the roc (pre-ipo placement). If the pre-ipo placement is completed, the size of the fresh issue will be reduced to the extent of such pre-ipo placement, subject to the offer complying with the minimum offer size requirements prescribed under rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended (scrr). The face value of the equity shares is Rs. 5 each and the offer price is [] times the face value of the equity shares. The price band and the minimum bid lot will be determined by the company.
About Shivalik Engineering Industries Limited IPO
Shivalik Engineering Industries Limited IPO is an IPO of TBA. It consists of an offer for sale of 4,130,000 equity shares and a fresh issue of ₹335 crores. 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 Shivalik Engineering Industries Limited IPO
- Funding capital expenditure for setting up of solar power plant at Mouza Village Katalbod, Chhattisgarh.
- Expansion of existing manufacturing units, i.e., expansion of existing foundry capacity by setting up a new foundry line at Unit 2.
- General corporate purposes.
Shivalik Engineering Industries Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | 4,130,000 equity shares |
Fresh Issue | Aggregating up to ₹335 crores |
EPS (₹) | 29.43 |
Shivalik Engineering Industries Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIB Shares Offered | Not more than 50% of the Net Issue |
Retail Shares Offered | Not less than 15% of the Net Issue |
NII Shares Offered | Not less than 35% of the Net Issue |
Industry Outlook
Auto component production increased at 8% CAGR between fiscal 2018-2024 and was aided by recovery in the economy, buoyant demand from OEM and replacement market as well as an increase in exports. CRISIL estimates domestic auto component production revenue to increase by 8-10% in fiscal 2025.
Company Information
Shivalik Engineering Industries Limited is a prominent precision engineering company in India, with a primary focus on manufacturing casting components including high-quality metal components for use in the automotive, agriculture, railways and off-highway industries amongst other industries. They are predominantly a supplier of precision engineering components for commercial vehicles, tractors and off-highway vehicles, pipe fittings and rail components, with 297 SKUs as of December 31, 2023. Their offerings provide comprehensive end-to-end solutions to their customers, encompassing the entire value chain through their vertically integrated operations - from designing, precision engineering, melting, casting, and cleaning to value-added options such as machining, assembly and reverse engineering services.
Strengths of Shivalik Engineering Industries Limited IPO
Shivalik Engineering Industries Limited is a well-established player in a safety-critical industry with high entry barriers.
The company is one of the largest foundries and machine shops in India and produces a wide range of casting products with a production capacity of more than 8000 MT per month. (Source: CRISIL Report)
The company has a diverse customer base with sustained, long-standing relationships.
Key clients include Eicher, Tata Motors, Tata Cummins, Mahindra & Mahindra, TAFE, Escorts, Ashok Leyland, Daimler India, Bharat Benz, Meritor, Gunite, Automotive Axles, Sonalika, Timken, Delhi Metro Rail Corporation, Indian Railways, Navistar, Caterpillar, VE commercial vehicles etc.
Integrated manufacturing capabilities that offer scale, flexibility and locational advantage with certified management systems.
The company enjoys several competitive advantages and capabilities, which, together with its experience in manufacturing capabilities, give it an edge in the operating industry. Some of these factors include their end-to-end manufacturing process, capable of designing, tool development and execution, and supplying parts to customers that can go directly to their assembly lines as per the delivery requirements of customers on a just-in-time basis.
Risks of Shivalik Engineering Industries Limited IPO
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Their manufacturing facilities are concentrated in the state of Chhattisgarh. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Chhattisgarh could have an adverse effect on their business, results of operations, future cash flows and financial condition.
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The company derives a substantial portion of its revenue from the sale of wheel hubs and brake drums and a loss of sales due to a reduction in demand for these products would have a material adverse effect on their business, financial condition, results of operations, and cash flows.
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Their business and profitability are substantially dependent on the availability and cost of raw materials, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact their business, results of operations and financial condition.
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They are dependent on their top five customers who contribute more than 60% of their revenue from operations for the nine months that ended on December 31, 2023, and in each of the last three fiscals. Loss of any of these customers or a reduction in purchases by any of them could adversely affect their business, results of operations and financial condition.
All Financial Information about Shivalik Engineering Industries
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Shivalik Engineering Industries | Bharat Forge Limited | CIE Automotive India Limited |
|---|---|---|---|
Revenue from Operations | 550.708 | 15682.071 | 9280.349 |
P/E | - | 55.28 | 15.54 |
EPS (Basic) | 29.43 | 20.43 | 29.66 |
Return on Net Worth | 23.26 | 12.69 | 13.32 |
NAV per share | 180.06 | 154 | 157.84 |
Anchor Investor Information
The he Anchor Investor Bid/ Offer Period shall be one working Day prior to the Bid/ Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers: Axis Capital Limited IIFL Securities Limited
Registrar for the IPO is Bigshare Services Private Limited
Business Model
Shivalik Engineering Industries has in-house design and engineering capabilities that enable it to deliver a wide range of precision engineering components and solutions with a focus on quality. It has diversified its business in both the automotive and non-automotive sectors.
The company manufactures components, including high-quality components, for use in the automotive, agriculture, railways and off-highway industries.
It also offers machining and assembly solutions for a diversified base of customers.
The company adds value to the business of its customers by offering reverse engineering solutions to support their design requirements.
The company’s offerings encompass various sectors such as the commercial vehicles segment, including brake drums, wheel hubs, carriers, brackets, differential cases and covers, casings, as well as the tractor segment, including trumpets, transmission housings, gearbox housings, clutch housings, front axle support, crankcase and brackets.
Company Growth Trajectory
The company has a comprehensive portfolio of products and as of December 31, 2023, was supplying critical and precision engineering components to over 15 OEMs in India and overseas. Their engagement with certain customers commenced at the early stages of the product life cycle right from the design stage which has led to higher customer stickiness which in turn has resulted in consistent growth in their revenue from operations, across the industries that they cater to.
The revenue from operations grew from ₹188.648 crores as on 31st March, 2021 to ₹550.708 crores as on 31st March, 2023. The PAT also grew from 0.55% to 5.55% in the same period, thus confirming the company’s status as a fast-growing company.
Company Market Position
The company is one of the largest foundries and machine shops in India and produces a wide range of casting products with a production capacity of more than 8000 MT per month. (Source: CRISIL Report) Their manufacturing and machining infrastructure comprises four strategically located facilities (i.e., three manufacturing facilities and one machining facility) spread across Chhattisgarh. The company’s integrated manufacturing facilities are well-positioned to provide designing, engineering, melting, casting and cleaning services, as well as machining and assembly services. The facilities are spread out across a total area of 115,484.78 sq. meters.
Shivalik Engineering Industries Limited Company Profit & Loss
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Total Income (₹ crores) | 188.894 | 313.263 | 552.343 |
Profit Before Tax (₹ crores) | 1.943 | 3.628 | 39.009 |
Net Profit (₹ crores) | 10.27 | 40.76 | 260.53 |
EBITDA (₹ crores) | 30.306 | 39.172 | 86.478 |
EPS (₹) | 0.137 | 0.531 | 2.943 |
Shivalik Engineering Industries Limited Cash Flow Statement
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Profit before tax (₹ crores) | 1.943 | 3.628 | 39.009 |
Net Cash from Operating Activities (₹ crores) | 4.904 | 16.313 | 37.854 |
Net Cash from Investing Activities (₹ crores) | 3.643 | 5.665 | 7.198 |
Net Cash from Financing Activities (₹ crores) | 1.146 | 10.842 | 45.255 |
Cash and Cash Equivalents (₹ crores) | 1.651 | 1.457 | 1.660 |
To Check Allotment Status of Shivalik Engineering Industries Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the Shivalik Engineering Industries website:
- Visit the Shivalik Engineering Industries 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 the Shivalik Engineering Industries 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 Shivalik Engineering Industries Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Shivalik Engineering Industries Ltd IPO?
Here are the steps to apply for Shivalik Engineering Industries Ltd 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 own research and consult with financial professionals before making any investment decisions. The above images were generated using AI. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.
Shivalik Engineering Industries IPO FAQs
What is the Shivalik Engineering Industries Limited IPO?
The Shivalik Engineering Industries Limited IPO has an issue size of ₹335 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Shivalik Engineering Industries Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
