Sharvaya Metals Secures Rs 17 Crore from Anchor Investors Before Public Offering Launch

Sharvaya Metals, known for its aluminium products, has secured Rs 17 crore from anchor investors. This funding was obtained a day before the company's initial public offering (IPO) opened for public subscription on September 4. The anchor investors include NAV Capital, Craft Emerging Market Fund, PCC-Citadel Capital Fund, Krushnam Nexus Capital Scheme I, Pentateam Inventure Capital Scheme I, Beacon Stone Capital VCC, and Lords Multigrowth Fund.

The company allocated over 8.53 lakh equity shares to these entities at Rs 196 each. This transaction amounts to a total of Rs 16.72 crore. The IPO, valued at Rs 59 crore, began on September 4 and will close on September 9. The price range for the shares is set between Rs 192 and Rs 196 per share.

IPO Details and Financial Plans

The IPO includes a fresh issue of 25 lakh equity shares worth Rs 49 crore and an offer for sale of 5 lakh shares amounting to Rs 9.80 crore. Sharvaya Metals plans to use Rs 20.4 crore from the fresh issue for capital expenditure on plant and machinery purchases. Additionally, Rs 9 crore will address working capital needs, while Rs 5.17 crore is earmarked for civil construction and electrification expenses.

The remaining funds will be allocated for general corporate purposes. Shreyans Katariya, the Promoter and Managing Director of Sharvaya Metals, stated, "The proceeds will help us strengthen infrastructure, enhance production capacity, and support working capital requirements as we expand across high-growth segments like electric vehicles and defence."

Company Background and Financial Performance

Sharvaya Metals Ltd specialises in manufacturing aluminium products such as alloyed ingots, billets, slabs, sheets, circles, and EV battery housings. In the financial year FY25, the company reported a total income of Rs 112.76 crore with a profit after tax of Rs 12.51 crore.

The company's shares are set to be listed on the BSE's SME platform. Expert Global Consultants is serving as the sole book-running lead manager for the IPO, while Bigshare Services is acting as the registrar.

With inputs from PTI