Sharvaya Metals Limited will convene its first Extraordinary General Meeting (EGM) of FY27 on November 6, 2026, to seek shareholder approval for a significant capital restructuring. The agenda includes increasing authorised share capital and approving a preferential allotment of equity shares and convertible warrants aggregating ₹41.92 crore.

Acquisition via Share Swap

The company proposes to acquire 100% of the paid-up equity share capital of Success Electronics Private Limited (SEPL) through a non-cash equity share swap. Sharvaya will issue up to 21,00,000 fully paid-up equity shares at an issue price of ₹144 per share, valuing the transaction at ₹30.24 crore. The swap ratio is set at 2:21, meaning shareholders of SEPL will receive 21 equity shares of Sharvaya for every 2 equity shares of SEPL held.

The acquisition is intended to integrate SEPL’s high-pressure die casting capabilities with Sharvaya’s existing aluminium extrusion and precision machining operations. SEPL, which reported revenue of approximately ₹10.36 crore and profit after tax of ₹1.01 crore for FY26, is currently free from bank debt. The deal involves seven individual sellers, primarily from the promoter and promoter group categories.

Convertible Warrants for Cash

Separately, the board has approved the issuance of up to 8,11,000 fully convertible warrants at an issue price of ₹144 per warrant, aggregating ₹11.67 crore. These warrants will be allotted on a preferential basis for cash consideration. Each warrant entitles the holder to subscribe to one equity share of face value ₹10 within 18 months from the date of allotment.

The proceeds from the warrant issue are earmarked for meeting working capital requirements related to business expansion, including inventory and receivables, with up to 25% allocated for general corporate purposes. The proposed allottees include the Managing Director, Mr. Shreyans Ravindra Katariya, and other promoter group members.

Capital Structure Changes

To accommodate these issuances, the company seeks approval to increase its authorised share capital from ₹11.10 crore to ₹15.00 crore. The current issued and subscribed capital stands at ₹10.03 crore. The preferential issue will result in dilution of public shareholding, though the company states there will be no change in control or management.

Key Transaction Details

What the Numbers Show

The combined capital raise of ₹41.92 crore represents a substantial expansion relative to Sharvaya’s current paid-up capital of ₹10.03 crore. The acquisition of Success Electronics brings a profitable, debt-free entity into the fold, with FY26 PAT of ₹1.01 crore providing immediate bottom-line accretion. However, the issuance of convertible warrants introduces potential future dilution, as these instruments can convert into equity over the next 18 months, potentially increasing the total outstanding share count by nearly 30% when combined with the swap shares.

Sharvaya Metals Limited commissioned a new 10-inch aluminium extrusion press at its Ahilyanagar facility on October 5, 2026. This development completes the company's integrated value chain from alloy to finished component.

The new facility enables Sharvaya to serve high-value sectors including Defence, Aerospace, Railways, Electric Vehicles, and Engineering. By controlling the entire manufacturing process, the company aims to improve speed, quality, and economics for demanding customer programmes.

Facility capabilities

The newly installed line features a modern billet extrusion press with an integrated setup. Key components include advanced billet heating, online quenching, puller and stretcher systems, and ageing facilities. The infrastructure is designed for stringent process control, dimensional consistency, and metallurgical performance.

This addition complements existing strengths such as CNC/VMC machining centres, precision inspection equipment, and in-house die manufacturing. The facility focuses on producing high-strength and precision aluminium extrusions across various alloys.

Strategic expansion

The commissioning marks a significant milestone in the company's growth strategy. It allows the firm to cater to sophisticated requirements in construction, automotive, and industrial applications. Management emphasised a disciplined ramp-up and rapid customer qualification to convert this capability into profitable growth.

About the company

Established in 2014, the company manufactures aluminium products for domestic and international markets. Its portfolio includes alloyed ingots, billets, slabs, sheets, circles, and EV battery housings. The firm serves industries ranging from aviation and defence to cookware and consumer appliances.