Sharvaya Metals Ltd. IPO
IPO Timeline & Structure
Sharvaya Metals’ Initial Public Offering (IPO) was open from September 4 to 9, 2025, with allotment finalized by September 10, refunds and share credit on September 11, and the listing on September 12, 2025.
Issue Size: ₹58.8 crores, comprising a fresh issue of ₹49 crores and an offer-for-sale (OFS) of ₹9.8 crores by the promoter.
Price Band: ₹192 to ₹196 per share (face value ₹10).
Lot Size: Minimum of 600 shares (approximately ₹117,600).
Shares are listed under the BSE SME platform.
Company Profile & Use of IPO Proceeds
Sharvaya Metals, incorporated in 2014 and based in Ahmednagar, Maharashtra, manufactures a broad range of aluminum alloy products—ingots, billets, slabs, sheets, circles, and EV battery housings. Its clientele spans cookware, consumer appliances, LED lighting, automotive, EV, aviation, defense, extrusions, and construction sectors.
IPO Objectives included funding:
Capital expenditure (around ₹24.97 crore; 50.95%)
Working capital (₹10 crore; 20.4%)
General corporate purposes (₹12.25 crore; 25%)
Miscellaneous expenses (₹1.78 crore; 3.65%).
Financial Snapshot & Growth Trajectory
Sharvaya Metals has delivered remarkable growth in FY 2025 vs. previous years:
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue (₹ Cr) | ~40.8 | ~71.5 | ~71.45 | ~112.52 |
| Net Profit (₹ Cr) | ~0.40 | ~1.95 | ~1.8 | ~12.51 |
| Net Worth (₹ Cr) | ~4.14 | ~6.09 | ~7.63 | ~22.78 |
| ROE (%) | ~9.54% | ~32% | ~20.13% | ~54.92% |
This shows exponential revenue and profitability uptick in FY25, likely driven by strong demand in EV-related verticals and improved capacity utilization.
Strengths & Risks
Strengths:
Diversified product portfolio spanning traditional aluminum alloys to EV battery housings.
Robust in-house manufacturing capabilities including automated melting and rolling infrastructure.
Rapid financial growth with strong return ratios (notably high ROE).
An established client base, including reputed OEMs across sectors.
Risks:
Historically low profit margins compared to industry peers.
High leverage, which could strain financial flexibility.
Relatively small workforce may limit scalability.
Business is vulnerable to cyclicality in metals industry and EV sector demand.
Listing Performance & Market Reception
As of now (September 3, 2025), listing has not yet occurred and trading data is unavailable—including listing price, grey market premium (GMP), or post-listing moves.
Listing Performance & Market Reception
As of now (September 3, 2025), listing has not yet occurred and trading data is unavailable—including listing price, grey market premium (GMP), or post-listing moves.
Should You Invest?
Prospective Advantages:
Strong revenue & profit surge in FY 2025.
Positive signs of leadership in supplying to EV and aluminum sectors.
Balanced use of IPO funds focused on growth (CAPEX + working capital).
Concerns:
Financial leverage and narrow margins pose risks.
SME listing liquidity tends to be lower and more volatile.
Post-listing dynamics unknown—market sentiment will determine traction.
Investor Suitability:
Long-term believers in EV and infrastructure growth may find this IPO promising, given the underlying safeguards and growth orientation.
Short-term traders should be cautious, awaiting listing-day performance and initial subscription numbers.
Risk-averse or liquidity-constrained investors might prefer observing initial post-listing behavior before committing.
Final Thoughts
Sharvaya Metals’ IPO offers exposure to a mid-cap manufacturing business riding high on a favorable macro trend—especially in EV battery components and diversified aluminum products. Their FY25 financials highlight a remarkable turnaround that justifies investor interest.
However, uncertainties remain—especially about leverage, margin sustainability, and SME-listed liquidity. Without the benefit of post-listing data, any decision should be calibrated to one’s risk tolerance and investment horizon. For aggressive growth seekers with an appetite for volatility, this IPO may be compelling. For conservative investors, waiting to assess listing outcomes could be a prudent approach.
Summary Table
| Aspect | Highlights |
|---|---|
| IPO Period | Sep 4–9, 2025; Listed Sep 12, 2025 |
| Size & Structure | ₹58.8 Cr; ₹49 Cr fresh issue + ₹9.8 Cr OFS |
| Price & Lot | ₹192–196; 600 shares (~₹117.6k) |
| Growth Metrics | Revenue and profit skyrocketed in FY25; ROE ~55% |
| Strengths | EV exposure, manufacturing capability, client diversity |
| Risks | Leverage, margin pressure, SME liquidity caveat |
| Investment Outlook | High potential, moderate-to-high risk perspective |
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