Shayona Engineering IPO: An In-Depth Analysis for InvestorsDecoding the Shayona Engineering SME IPO: A Deep Dive
The Indian capital market continues to buzz with opportunities, particularly on the SME platform, which offers growth-focused companies a launchpad for public funding. Shayona Engineering Limited is one such entity tapping into the public domain with its upcoming Initial Public Offering (IPO). For astute investors looking beyond the mainboard, understanding the nuances of an SME IPO is crucial. This comprehensive analysis breaks down every vital aspect of the Shayona Engineering IPO, from its business model to the tentative listing dates, ensuring you have the necessary insights.
Understanding Shayona Engineering: Core Business & Strengths
Established in 2017, Shayona Engineering Limited has carved a niche for itself in the manufacturing sector by specializing in comprehensive engineering solutions. They cater to diverse industrial needs, emphasizing precision and customization.
The company’s primary business activities include:
- Precision Castings (from grams up to 3 metric tons in a single piece).
- Machining, Dies, and Moulds manufacturing.
- Industrial Automation solutions.
- Heavy Fabrication and Forging services.
- Turnkey project machinery supply.
Competitive Edge and Market Positioning
Sustained growth in engineering often hinges on capability and technology. Shayona Engineering highlights several competitive strengths:
- **Advanced Technology:** Utilization of cutting-edge equipment across its operations.
- **Operational Scale:** Demonstrated track record in handling large-scale engineering projects.
- **Integration:** Offering end-to-end solutions, including prompt after-sales support.
- **Strategic Sourcing:** Effective management of the supply chain ensures reliable production.
Shayona Engineering IPO Key Subscription Details
This is a Bookbuilding IPO structured entirely as a Fresh Issue, meaning all proceeds go directly to the company for its stated objectives.
| Metric | Detail | Value (₹ Cr.) |
|---|
| Issue Type | Bookbuilding IPO (Fresh Issue) | - |
| Total Issue Size | 10,32,000 Shares | ₹ 14.86 Crores (Approx.) |
| Price Band | ₹140 to ₹144 per Equity Share | - |
| Face Value | ₹10 per Share | - |
| Listing Platform | BSE SME | - |
Lot Size and Application Requirements
Understanding the minimum investment threshold is vital for retail and HNI applicants. The lot size dictates how shares can be applied for in multiples.
| Investor Category | Minimum Lots | Shares Applied | Minimum Investment (Upper Price Band) |
|---|
| Retail Individual Investor (Min) | 2 Lots | 2,000 | ₹ 2,88,000 |
| S-HNI (Small NII) | 3 Lots | 3,000 | ₹ 4,32,000 |
IPO Timeline: From Bidding to Listing
The success of an IPO hinges on adherence to its schedule. Here is the tentative timeline for the Shayona Engineering IPO:
IPO Closes (Jan 27, 2026)
Allotment Finalization (Jan 28, 2026)
Share Credit & Refund Initiation (Jan 29, 2026)
Tentative Listing (Jan 30, 2026)
| Key Event | Tentative Date |
|---|
| IPO Opening Date | Thursday, Jan 22, 2026 |
| IPO Closing Date | Tuesday, Jan 27, 2026 |
| Allotment Date | Wednesday, Jan 28, 2026 |
| Listing Date (BSE SME) | Friday, Jan 30, 2026 |
IPO Reservation Analysis
The allocation structure across different investor categories gives an indication of demand prioritization:
| Investor Category | Shares Offered | Percentage Allocation |
|---|
| Retail Individual Investors (RII) | 6,68,000 | 64.73% |
| Non-Institutional Investors (NII) | 3,00,000 | 29.07% |
| Qualified Institutional Buyers (QIB) | 12,000 | 1.16% |
| Market Maker Reservation | 52,000 | 5.04% |
Company Financial Health and Valuation Snapshot
Evaluating the financial statements provides essential context for the IPO valuation. The figures below are restated amounts (in ₹ Crore).
Financial Performance Trend
| Financial Metric | Nov 30, 2025 (Interim) | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|
| Total Income | 19.15 | 23.18 | 15.28 | 12.63 |
| Profit After Tax (PAT) | 2.45 | 2.42 | 1.71 | 0.61 |
| Total Borrowing | 22.61 | 13.92 | 5.42 | 3.45 |
Key Performance Indicators (KPIs) and Valuation Ratios
These metrics help gauge efficiency and current pricing relative to earnings and book value.
| KPI/Ratio | Nov 30, 2025 | Mar 31, 2025 |
|---|
| Return on Capital Employed (ROCE) | 13.08% | 29.03% |
| Return on Net Worth (RoNW) | 22.01% | 34.81% |
| PAT Margin | 12.80% | 10.44% |
| Debt/Equity Ratio | 1.83 | N/A |
Valuation Snapshot: Pre-IPO Market Capitalization is noted at approximately ₹56.05 Cr. The Price-to-Earnings (P/E) ratio based on trailing earnings suggests the pricing point. Post-IPO Earnings Per Share (EPS) is projected at ₹9.44, leading to a P/E multiple of 15.25x based on recent performance data.
Promoter Holding Structure
The promoters, including Vipul Bhikhabhai Solanki, Kinnariben Vipulbhai Solanki, and Gaurav Ratukumar Parekh, hold a substantial stake, demonstrating confidence in the company's future prospects.
- Promoter Holding (Pre-Issue): 87.29%
IPO Fund Utilization Strategy
The capital raised through this issue is earmarked for specific strategic growth and stability measures:
| Purpose of Fund Utilization | Estimated Amount (₹ Cr.) |
|---|
| Purchase of Plant and Machinery | 3.79 |
| Repayment of Secured Loans | 2.17 |
| Funding Working Capital Requirements | 4.00 |
| General Corporate Purposes | Remaining Amount |
SWOT Analysis of Shayona Engineering
A balanced view requires examining both internal capabilities and external market factors.
Strengths (Internal Positive Factors)
- Strong technological base for precision engineering tasks.
- Diversified product portfolio catering to varied industrial needs.
- High promoter stake indicating strong commitment.
Weaknesses (Internal Negative Factors)
- Relatively high Debt-to-Equity ratio as seen in recent financials, indicating leverage.
- Being an SME listing, it may face liquidity challenges compared to mainboard stocks.
Opportunities (External Positive Factors)
- Growing domestic infrastructure and manufacturing sectors boosting demand for precision components.
- Potential for expansion into new industrial segments based on current capabilities.
Threats (External Negative Factors)
- Fluctuations in raw material costs can impact profitability.
- Intense competition in the specialized engineering component market.
Key Intermediaries for the IPO
The seamless execution of the IPO relies on experienced partners:
- Book Running Lead Manager (BRLM): Horizon Management Pvt.Ltd.
- Registrar & Share Transfer Agent: Kfin Technologies Ltd. (Contact for allotment/refund queries).
- Market Maker: Horizon Financial Consultants Pvt.Ltd.
Registrar Contact Information: For status checks, investors can reach out to Kfin Technologies Ltd. via their contact numbers or through their dedicated allotment status portal.
Final Considerations for Applicants
The Shayona Engineering SME IPO presents an opportunity to invest in a specialized manufacturing entity with clear objectives for utilizing IPO proceeds—namely, capacity enhancement and debt reduction. Given its SME listing, investors should assess their risk appetite for relatively smaller, growth-oriented stocks. The subscription dates (January 22 to January 27, 2026) are the crucial window for action. Prospective applicants should base their decision on thorough due diligence, understanding that SME IPOs carry inherent volatility compared to established mainboard offerings.
