Sharvaya Metals IPO Key Dates
| Anchor Investor Subscription | |
| IPO opens on | 4 September 2025 |
| IPO Closes on | 9 September 2025 |
| Allotment on | 10 September 2025 |
| Credit of shares on | 11 September 2025 |
| Tentative Listing on | 12 September 2025 |
Sharvaya Metals IPO Condenses Verdict
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Business: Aluminium alloy ingots, billets, sheets/circles, slabs & EV-battery enclosures; domestic + export; supplies to auto/engineering/EV/LED/defence.
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Financials: FY24 income Rs. 71.58 cr, PAT Rs. 1.80 cr. H1 FY25 income Rs. 41.31 cr, PAT Rs. 4.11 cr—profit jump mainly from sharp drop in material cost ratio to 80.20% (vs 91.74% in FY24).
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Balance sheet: Debt Rs. 16.54 cr; D/E ~1.38x. Inventory Rs. 20.19 cr ≈ 2.9 months of H1 revenue—working-capital heavy.
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Chanakya View: Margin spike pre-IPO looks favourable but may not be sustainable if raw-material costs normalise. Apply only with high-risk appetite; listing gains depend on sentiment and margin hold-up.
Final Subscription Tally
| Size Rs. 55.86 Crore | ||||
| QIB | NII x | RII x | Total x | Applications |
| 1.28 | 6.09 | 6.31 | 4.83 | 5876 |
| Subscription Review: Few NII applications withdrawn, Weak trend on Day 4 |
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About Sharvaya Metals
Sharvaya Metals Ltd. (inc. 2014) is an aluminium products manufacturer engaged in alloyed ingots, billets, slabs, sheets/circles and EV-battery enclosures, catering to domestic and export markets. The company supplies to automotive, engineering, EV, LED lighting, consumer appliances, cookware and defence segments, serving OEMs and Tier-1 vendors.
Manufacturing setup: PLC-controlled 10-ton aluminium melting furnace with downstream slab heating, rolling, cutting and punching lines, enabling customised grades, sizes and finishes to client specifications.
Product suite (key use-cases):
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Aluminium Sheets & Circles: construction, cookware, lighting, electrical appliances (custom sizes/alloys).
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Aluminium Billets: for global extrusion industry—designed for higher extrusion speed/strength and better die life.
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Aluminium Alloyed Ingots: from scrap/bauxite for auto, electronics, machinery and construction; suitable for gravity/sand/pressure die casting.
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Aluminium Extrusion Dies (H13 steel): precision dies for consistent continuous profiles with strong mechanical/thermal performance.
As of 1 October 2024, the company employed 30 personnel across operations, engineering and administration.
Sharvaya Metals IPO Details
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Sector: |
|
| IPO opens on | 4 September 2025 |
| IPO closes on | 9 September 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 30,00,000 Shares / Rs 58.80 Crore |
| * Fresh Issue | – |
| * Offer for Sale – | – |
| Market Maker Portion | 1,50,000 Shares |
| Net offer to Public | 28,50,000 Shares Rs. 55.86 Crores |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 192-196 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 600 Shares |
| Listing will at | BSE SME |
How shares are being offered
| Application | Lots | Shares | Amount Rs. |
| Retail (Min) | 2 | 1,200 | 2,35,200 |
| Retail (Max) | 2 | 1,200 | 2,35,200 |
| S-HNI (Min) | 3 | 1,800 | 3,52,800 |
| S-HNI (Max) | 8 | 4,800 | 9,40,800 |
| B-HNI (Min) | 9 | 5,400 | 10,58,400 |
| Investor Category | Shares Offered |
| QIB | Not more than 50% of the Net Offer |
| Retail | Not less than 35% of the Net Offer |
| NII | Not less than 15% of the Net Offer |
Who are the Promoters of Sharvaya Metals IPO?
The promoters hold 88.29% of the pre-IPO capital
What are the Objects of Sharvaya Metals IPO?
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects
+To meet the working capital requirements Rs.10 Crore
+To fund capital expenditure for purchase of Plant and Machinery Rs. 24.97 Crore
+General Corporate purposes
Sharvaya Metals IPO Lead Managers
Expert Global Consultants Pvt ltd
| Registered Office of the Company |
| Sharvaya Metals Ltd. Gat No. 59, Nagar Kalyan Road, Bhalawani, Tal-Parner, Ahmed Nagar, Parner, Maharashtra, 414302 Email: cs@sharvayametals.com |
| Who is the Registrar to the IPO? Bigshare Services Pvt ltd |
Sharvaya Metals Financials Snapshot
| Period Ended | 30-Sep-24 | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets | 38.44 | 29.55 | 29.23 | 24.6 |
| Total Income | 41.31 | 71.58 | 70.53 | 40.95 |
| Profit After Tax | 4.11 | 1.8 | 1.95 | 0.4 |
| Net Worth | 12 | 7.9 | 6.09 | 4.14 |
| Reserves and Surplus | 4.77 | 0.67 | 3.09 | 1.14 |
| Total Borrowing | 16.54 | 13.47 | 14.92 | 17.87 |
| Amount in Crore | ||||
Performance Indicators
| KPI | Values |
| ROCE | 15.52% |
| Debt/Equity | 1.71 |
| RoNW | 22.83% |
| PAT Margin | 2.52% |
How Sharvaya Metals IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Sharvaya Metals Limited | 34.21 | |
| Maan Aluminium Ltd. | 83.28 | 4.97 |
| Manaksia Aluminium Company Ltd | 76.81 | 1.82 |
| Baheti Recycling Industries Limited | 58.79 | 14.59 |
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Sharvaya Metals IPO Review
by Paresh Gordhandas, CA & Research Analyst
Business & Products
Incorporated in 2014, Sharvaya Metals manufactures and supplies aluminium alloy ingots, billets, slabs, sheets/circles and EV-battery enclosures. Customers include OEMs, Tier-1 vendors and LED/light manufacturers across India and overseas. The plant has a PLC-controlled 10-ton melting furnace with downstream heating, rolling, cutting and punching lines, enabling customised grades and sizes.
Financial Snapshot (Rs. crore)
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Income: FY22 40.95, FY23 70.53, FY24 71.58, H1 FY25 41.31
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PAT: FY22 0.40, FY23 1.95, FY24 1.80, H1 FY25 4.11
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Net Worth: Rs. 12.00 cr (30-Sep-24)
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Total Borrowings: Rs. 16.54 cr (30-Sep-24)
Margin Dynamics
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Material cost / revenue: FY23 92.16%, FY24 91.74%, H1 FY25 80.20%.
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The 20.20% gross spread in H1 FY25 drove a sharp PAT jump before the IPO. Sustainability depends on aluminium prices, product mix (EV enclosures, higher-value sheets/billets), and operating efficiency.
Working Capital & Leverage
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Inventory Rs. 20.19 cr ≈ 2.9 months of H1 FY25 revenue (monthly avg ~Rs. 6.88 cr): high carry → cash-flow sensitivity if demand softens.
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Debt to equity ~1.38x—improved from earlier years but still elevated for a metals SME.
Strengths
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Diversified aluminium portfolio; entry into EV enclosures can lift realisations.
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Improving gross spread in H1 FY25; export capability; customised products.
Key Risks
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Margin sustainability risk if raw-material costs rise or mix normalises.
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High inventory and above-1x leverage → heavier finance/working-capital burden.
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Commodity-cycle exposure; SME listing liquidity.
Chanakya Verdict
Neutral to cautious. Growth optionality exists (EV/engineering), but the pre-IPO profit surge hinges on a one-off improvement in material cost ratio. Suitable only for investors comfortable with commodity & working-capital risk. Others may wait for post-listing results.
Mainly due to lower material cost ratio (80.20%) versus ~92% in FY23–FY24, improving spreads.
Unclear. If aluminium prices or mix revert, margins could normalise. Watch Q3/Q4 results post-listing.
Borrowings are Rs. 16.54 cr; D/E ~1.38x—manageable but high for an SME metals player
Inventory of Rs. 20.19 cr (~2.9 months of sales) indicates cash tied up; any demand slowdown may strain liquidity.
Scaling EV-battery enclosures, higher-value sheets/billets, export orders, and maintaining lower input-cost ratios.
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