McNally Bharat Engineering Company Limited has disclosed receiving a significant order from the Employees Provident Fund (EPF) Authority regarding recovery of dues amounting to ₹3.96 crores. The company informed stock exchanges on January 21, 2026, about this regulatory development affecting its Kumardhubi establishment.

EPF Authority Order Details

The Regional Provident Fund Commissioner-I, Regional Office, Ranchi issued the order on January 14, 2026, which was received by the company on January 20, 2026. The order pertains to the company's establishment situated at Kumardhubi, Dhanbad, Ranchi.

Nature of Recovery Action

The EPF Authority has passed the order under section 8F of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, for recovery of provident fund dues and damages under section 7Q of the Act. The recovery action specifically targets dues from February 17, 2024, onwards for the Kumardhubi establishment.

Company's Legal Response

McNally Bharat has taken proactive legal measures to contest the EPF demand. The company had previously challenged the demand notice from the EPF Authority before the Central Government Industrial Tribunal (CGIT), Dhanbad. The case has been registered as EPFA 20/2025, and subsequently, a writ petition has been filed at the appropriate forum.

Financial Impact Assessment

Regarding the financial implications, McNally Bharat has stated that there will be no material financial impact on the company except to the extent of the amount mentioned in the EPF order. The company quantified the potential impact at ₹3.96 crores, representing the total recovery amount specified by the EPF Authority.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, demonstrating the company's commitment to transparency with stakeholders. This communication serves as a continuation of the company's earlier letter dated December 12, 2025, regarding the same matter.

The company's proactive legal challenge through the tribunal system indicates its intention to contest the EPF Authority's demand while maintaining full regulatory compliance through timely disclosures to stock exchanges.

Shayona Engineering Limited, a diversified manufacturing company established in 2017, is set to launch its initial public offering worth ₹9.96 crores. The Vadodara-based company operates through two strategic manufacturing units, specializing in precision engineering services and PVC/HDPE pipes manufacturing. With operations targeting agriculture and infrastructure sectors, the company has positioned itself as a reliable manufacturing partner across multiple industries.

IPO Timeline and Structure

The public issue is scheduled to open on January 22, 2026, and will close on January 27, 2026. The allotment process is expected to be completed by January 28, 2026, with listing planned for January 30, 2026.

Business Operations and Capabilities

Shayona Engineering operates two main business verticals from its Vadodara facilities. The precision engineering division provides casting, forging, machined parts, structural engineering, and industrial automation services. The company's pipe manufacturing division operates through its newly commissioned Menpura facility with a capacity of 250 MT per month, focusing on PVC and HDPE pipes and fittings for agriculture and infrastructure applications.

The company's corporate headquarters are located at Shed No. 113/1, GIDC, Makarpura, M.I. Estate, Vadodara-390010, Gujarat, positioning it strategically within one of India's key industrial hubs.

Use of IPO Proceeds

The company has outlined a clear deployment strategy for the ₹9.96 crore proceeds across three primary areas:

Machinery and Equipment Expansion

The largest allocation of ₹3.79 crores will fund the purchase of advanced manufacturing equipment, including:

• TD-32 type High Speed PVC Four Outlet Pipe Extrusion Line
• KOLSITE BATTENFELD High Output Extrusion Line for uPVC Pipes
• Equipment for expanding into HDPE and PVC pipes and fittings product range

This investment aims to enhance production capacity, improve operational efficiency, and expand the company's product portfolio in the growing pipes segment.

Debt Optimization and Working Capital

₹2.17 crores will be directed toward full or partial repayment of secured loans to Electronica Finance Limited. This debt reduction strategy is expected to lower debt servicing costs, improve the debt-to-equity ratio, and enable better utilization of internal accruals for business growth.

The remaining ₹4.00 crores will address working capital requirements, supporting the company's working capital-intensive business model and funding future growth initiatives.

Management and Leadership

The company's leadership team includes key executives across operational and financial functions:

• Vipul Bhikhabhai Solanki serves as Managing Director
• Gaurav Ratukumar Parekh holds the position of Chief Executive Officer
• Kinnariben Vipulbhai Solanki functions as Chief Operating Officer
• Financial oversight is managed by Arpita Tejaskumar Shah and Geetaben Parvenchandra Parekh as Chief Financial Officers

Competitive Strengths

Shayona Engineering has identified five core competitive advantages that differentiate its market position:

Operational Excellence

The company has built a proven track record in large-scale operations, delivering high-quality products and services across industries while earning client trust through operational excellence.

Supply Chain Management

Robust procurement networks and diverse client relationships enable effective management of supply chain fluctuations and market demand changes, ensuring stable production capabilities.

Technology Investment

Continuous investment in cutting-edge technology, including planned expansion with modern CNC and VMC machines, enhances precision manufacturing and production flexibility for handling larger, more complex components.

Manufacturing Infrastructure

The Shayona Pipe Plant features modern HDPE/PVC pipe extrusion machinery and advanced injection molding systems, delivering premium pipe solutions to target markets.

Automation Focus

Commitment to implementing advanced automation systems and technology-driven machinery aims to boost operational efficiency, reduce production time, and minimize errors while maintaining competitive advantages.

Investment Considerations

The IPO presents opportunities for investors seeking exposure to India's diversified manufacturing sector, particularly in precision engineering and pipe manufacturing segments. The company's strategic location in Gujarat's industrial hub, combined with planned capacity expansion and technology upgrades, positions it to capitalize on growth in agriculture and infrastructure sectors.

However, potential investors should consider that Shayona Engineering was established in 2017, representing a relatively short operating history. The company's acknowledgment of working capital intensity and existing debt burden requiring repayment are additional factors for evaluation.

The investment opportunity targets investors comfortable with small-cap, growth-stage companies and those bullish on infrastructure and agriculture sector growth in India. Risk-tolerant investors may find the diversified business model and expansion plans attractive, though comprehensive financial analysis and risk assessment remain essential for informed investment decisions.