Latest News | Precision Engineering Firm Shivalik Engineering Industries Files Draft Papers to Raise Funds Via IPO
Get latest articles and stories on Latest News at LatestLY. Precision engineering company Shivalik Engineering Industries Ltd has filed draft papers with the market regulator Sebi to raise funds through an initial public offering (IPO).
New Delhi, Jul 1 (PTI) Precision engineering company Shivalik Engineering Industries Ltd has filed draft papers with the market regulator Sebi to raise funds through an initial public offering (IPO).
The IPO is a mix of fresh issue of shares worth Rs 335 crore and an offer for sale of up to 41.3 lakh equity shares by promoters and other shareholders, according to the draft red herring prospectus (DRHP) filed with Sebi.
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The public issue also includes a reservation for a subscription by eligible employees.
The Raipur-based company intends to utilise the net proceeds from the fresh issuance to the extent of Rs 179.24 crore for setting up a solar plant, Rs 50 crore for expansion of existing foundry capacity by setting up a new foundry line, besides a portion of funds will be used for general corporate purpose.
Shivalik Engineering Industries began its operations in 2007 with a focus on manufacturing casting components, including high-quality metal parts for various sectors like automotive, agriculture, railways, and off-highway industries.
The company provides end-to-end solutions, covering the entire value chain through vertically integrated operations -- from design and precision engineering to melting, casting, cleaning, machining, assembly, and reverse engineering services.
It mainly supplies precision engineering components for commercial vehicles, tractors, off-highway vehicles, pipe fittings, and rail components, offering 297 SKUs as of December 31, 2023.
Shivalik Engineering's consolidated revenue from operations during the fiscal 2023 surged 65 per cent to Rs 666.21 crore from Rs 404.39 crore in the previous year.
Its profit after tax surged to Rs 36.97 crore for the financial year 2023 from Rs 6.37 crore for the financial year 2022.
For the nine months ended December 31, 2023, consolidated revenue from operations stood at Rs 521.18 crore and profit after tax stood at Rs 55.64 crore.
Axis Capital and IIFL Securities are the book-running lead managers to the issue.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)