Sharvaya Metals, an aluminium products manufacturer and exporter, has made its debut on the BSE SME platform following a successful initial public offering (IPO). The company's Rs 58.80-crore IPO garnered significant interest from investors across various categories.

IPO Details and Subscription

The IPO comprised a fresh issue of Rs 49.00 crore and an offer-for-sale of Rs 9.80 crore. The public offering witnessed strong demand, with an overall subscription of 4.8 times. Here's a breakdown of the subscription rates across investor categories:

• Retail investors: 6.3 times
• Non-institutional investors: 6.1 times
• Qualified institutional buyers: 1.3 times

Additionally, Sharvaya Metals successfully raised Rs 16.70 crore from anchor investors prior to the IPO.

Grey Market Premium

Despite the robust subscription numbers, the grey market premium for Sharvaya Metals stands at 0%, indicating a muted sentiment for immediate listing gains.

Company Overview

Founded in 2014, Sharvaya Metals specializes in manufacturing aluminium products, including:

• Alloyed ingots
• Billets
• Slabs
• Sheets
• EV battery enclosures

The company caters to various industries, including automotive, engineering, defence, consumer appliances, and cookware.

Financial Performance

Sharvaya Metals has demonstrated strong financial growth:

The company reported a significant increase in revenue and a remarkable seven-fold rise in profit after tax from FY24 to FY25.

Utilization of IPO Proceeds

The funds raised through the IPO will be allocated for various purposes:

1. Working capital requirements
2. Capital expenditure for civil construction and electrification
3. Purchase of plant and machinery
4. General corporate purposes

As Sharvaya Metals begins its journey as a publicly listed company on the BSE SME platform, investors and industry observers will be keenly watching its performance and growth trajectory in the coming quarters.

Sharvaya Metals, an aluminium products manufacturer, has successfully raised Rs 17 crore from anchor investors as it prepares to launch its Initial Public Offering (IPO) worth Rs 59 crore. The company's move signals strong interest from institutional investors ahead of its public debut.

Anchor Investment Details

The company allotted over 8.53 lakh equity shares to anchor investors at Rs 196 per share, which is at the upper end of the price band. Notable anchor investors include:

• NAV Capital
• Craft Emerging Market Fund
• PCC-Citadel Capital Fund

IPO Specifics

• Offering Size: Rs 59 crore
• Opening Date: September 4, 2023
• Closing Date: September 9, 2023
• Price Band: Rs 192-196 per share

The IPO comprises a fresh issue of shares worth Rs 49 crore and an offer for sale (OFS) of Rs 9.80 crore.

Utilization of Funds

Sharvaya Metals plans to use the proceeds from the fresh issue for the following purposes:

Company Overview

Sharvaya Metals specializes in manufacturing aluminium products, including:

• Alloyed ingots
• Billets
• EV battery housings

The company reported:

• Total income: Rs 112.76 crore
• Profit after tax: Rs 12.51 crore

Listing Details

Upon completion of the IPO, Sharvaya Metals' shares will be listed on BSE's SME (Small and Medium Enterprises) platform.

The successful raising of funds from anchor investors suggests a positive sentiment towards Sharvaya Metals' public offering. As the company prepares to enter the public market, investors will be watching closely to see how it performs in the competitive aluminium products sector, particularly with its involvement in the growing electric vehicle (EV) industry through battery housing manufacturing.