Shayona Engineering IPO Commences with Strong Investor Interest
The much-anticipated initial public offering (IPO) of Shayona Engineering Limited officially opened for subscription on Thursday, January 22, and will continue through Tuesday, January 27. This marks a significant milestone for the precision engineering firm as it seeks to raise capital from public investors for the first time.
IPO Pricing and Share Structure
The company has set an attractive price band of ₹140 to ₹144 per equity share, with each share carrying a face value of ₹10. This pricing strategy aims to balance investor accessibility with fair valuation for the company's growth prospects. For retail and institutional investors alike, the minimum bid size has been established at 1,000 equity shares, with subsequent bids allowed only in multiples of 1,000 shares thereafter.
Company Profile and Specializations
Shayona Engineering Limited has carved a niche for itself in the competitive engineering sector by offering comprehensive solutions across multiple domains. The company's expertise spans:
- Precision castings in specialized grades
- Machining, dies, and molds for industrial applications
- Industrial automation systems and solutions
- Heavy fabrication and structural components
- Casting and forging operations
- Reverse engineering capabilities
- Turnkey project machinery implementation
What sets Shayona Engineering apart is its ability to deliver tailor-made solutions for precision castings that range dramatically in scale—from components weighing just a few grams to massive single pieces reaching up to 3 metric tons. This versatility allows the company to serve diverse industrial segments with customized engineering solutions.
Operational Footprint and Technological Edge
The company operates from three strategic locations in Vadodara, Gujarat, leveraging advanced, state-of-the-art technology-based equipment to ensure precision and quality in all its deliverables. By consolidating manufacturing, engineering, and after-sales services under one roof, Shayona Engineering provides clients with seamless, integrated solutions and timely support throughout the project lifecycle.
Financial Performance and Growth Trajectory
Shayona Engineering has demonstrated consistent financial growth over recent years, building investor confidence ahead of its public offering. For the eight-month period ending in November 2025, the company reported a profit after tax of ₹2.45 crore against a total income of ₹19.15 crore. Looking at the full fiscal year 2025, the firm achieved a profit of ₹2.42 crore while seeing its net worth climb to ₹9.91 crore as of March 2025. These figures reflect a stable and growing business with sound fundamentals.
IPO Subscription Status and Investor Response
The market response to Shayona Engineering's IPO has been notably positive. As of day three of the subscription period, the issue has been 3.22 times subscribed overall, according to data from chittorgarh.com. Breaking down the subscription figures reveals varied interest across investor categories:
- Retail portion: 2.16 times subscribed
- Non-institutional investors (NII) portion: 5.56 times subscribed
- Qualified institutional buyers (QIB) portion: 3.33 times subscribed
On the first day of bidding alone, investors submitted bids for 31,55,000 shares against the 9,80,000 shares initially offered, indicating robust demand from the outset.
IPO Details and Utilization of Proceeds
The ₹14.86 crore IPO consists entirely of a fresh issue of 10.32 lakh shares, meaning all proceeds will flow directly to the company for strategic initiatives. Management has outlined clear plans for the capital raised, prioritizing:
- Procurement of plant and machinery to enhance current operations
- Settlement of secured loans to strengthen the balance sheet
- Meeting working capital requirements for ongoing projects
- Addressing general corporate purposes and operational expenses
Key Advisors and Market Makers
The IPO process is being managed by experienced financial institutions. Horizon Management Private Limited serves as the book-running lead manager, overseeing the offering's structure and marketing. Kfin Technologies Limited acts as the registrar, handling investor applications and allotments. Additionally, Horizon Financial Consultants Private Limited has been appointed as the designated market maker, ensuring liquidity and orderly trading post-listing.
Grey Market Premium and Investor Sentiment
In the unofficial grey market, where shares often trade before official listing, Shayona Engineering's IPO shares were reportedly trading at ₹0 premium, according to investorgain.com. This means shares were changing hands at the issue price of ₹144 without any premium or discount. The grey market premium typically reflects investor sentiment and willingness to pay above the official issue price, making this neutral indicator worth monitoring as the subscription period progresses.
Disclaimer: The views and recommendations mentioned are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
