Shivalik Engineering Files Draft Prospectus for Ipo plans fresh of Rs.335 crore

The precision engineering company specializes in the manufacturing and supply of high-quality components for a range of industries, including commercial vehicles, tractors, off-highway vehicles, pipe fittings, and rail components. It has built a reputation for excellence and reliability, attracting high-profile clients in various sectors. In the commercial vehicle segment, the company serves notable clients such as Daimler India Commercial Vehicles Pvt. Ltd. and Ashok Leyland Ltd. In the tractor segment, it caters to leading names like Mahindra and Mahindra Ltd., International Tractors Ltd., and Escorts Kubota Ltd.

Shivalik Engineering files draft for IPO

Shivalik Engineering Industries Ltd. has submitted its draft prospectus to the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO). The proposed IPO aims to raise funds through a fresh issue amounting to Rs 335 crore, alongside an offer-for-sale of up to 41.30 lakh equity shares. This filing with the market regulator marks a significant step for Shivalik Engineering Industries Ltd. as it seeks to bolster its financial standing through public investment. Axis Capital Ltd. and IIFL Securities Ltd. will be the book-running lead managers for the issue, the draft paper said.

Promoters Giriraj Singhania and Raghvendra Singhania will be among the selling shareholders under the offer-for-sale component.

Objectives of the Issue

Proceeds from the IPO will allocate Rs 179 crore towards establishing a new solar plant and Rs 50 crore for expanding the existing manufacturing unit. These investments aim to enhance Shivalik Engineering Industries Ltd.’s infrastructure and sustainability efforts.

Conclusion: Shivalik Engineering Industries Ltd.’s planned IPO, featuring a fresh issue of Rs 335 crore and an offer-for-sale of up to 41.30 lakh equity shares, represents a significant financial strategy to fuel growth. The proceeds will fund key projects, including a Rs 179 crore solar plant and a Rs 50 crore expansion of their manufacturing unit. These initiatives are expected to strengthen the company’s infrastructure, support sustainability goals, and enhance its market position.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.