SHARVAYA METALS IPO

Key IPO Offer Details

Important Dates for Investors

• Opening Date: 04 Sep 2025
• Closing Date: 09 Sep 2025
• UPI Payment Deadline: 09 Sep 2025 (5 PM)
• Allotment Announcement: 10 Sep 2025
• Refund Processing: 11 Sep 2025
• Demat Credit: 11 Sep 2025
• Stock Market Listing: 12 Sep 2025
• Mandate Validity End: 24 Sep 2025
• Anchor Investor Lock-in Release (50%): 10 Oct 2025
• Anchor Investor Lock-in Release (Remaining): 09 Dec 2025

*Dates may be revised as per official updates.

About Sharvaya Metals: A Deep Dive

Sharvaya Metals, a prominent player in the manufacturing sector, specializes in a diverse range of aluminium alloy products. The company has established a strong foothold through its comprehensive product portfolio, which spans from essential industrial components like ingots, billets, and slabs to finished goods such as sheets and circles. Significantly, Sharvaya Metals also produces critical components for the rapidly expanding electric vehicle (EV) industry, specifically EV battery housings.

The company’s advanced manufacturing facility is strategically located in Ahmednagar, Maharashtra, and is equipped with state-of-the-art infrastructure for melting, casting, and rolling. This enables efficient and high-quality production across its offerings. Sharvaya Metals caters to a wide spectrum of industries including cookware, consumer appliances, LED lighting, automotive, EVs, aviation, defence, extrusions, and construction. This extensive client base highlights the versatility of its products and its ability to meet varied industry demands. Its venture into EV battery housings signifies a forward-looking approach and adaptability to emerging technological trends, particularly in sustainable transportation.

IPO Issue Structure and Capital Inflow

The Sharvaya Metals IPO aims to raise a total of ₹58.80 crores. This issue comprises a blend of new share issuance and an offer for sale by existing shareholders, reflecting a dual objective of infusing fresh capital and offering an exit opportunity for early investors.

The significant fresh issue component of ₹49 crores underscores the company’s intention to fuel its growth initiatives and strengthen its operational capabilities. This capital infusion is crucial for future expansion, technological upgrades, and enhancing its competitive edge in the market. The Offer for Sale (OFS) component, while smaller, allows selling shareholders to monetize part of their holdings, which is a standard practice in many public offerings.

Strategic Deployment of Fresh Capital

The funds generated from the fresh issue component of the IPO are earmarked for several strategic purposes, designed to fortify Sharvaya Metals’ operational base and drive future expansion. This allocation plan demonstrates a clear vision for growth.

A substantial portion, over 50%, is allocated towards capital expenditure. This investment will likely be directed towards enhancing manufacturing capabilities, upgrading technology, or expanding the existing facility. Such capital deployments are vital for improving production efficiency, increasing capacity, and staying competitive in the metals industry. The allocation for working capital requirements will ensure smooth day-to-day operations, covering raw material costs and managing inventory effectively, thus providing financial stability. Furthermore, a considerable portion is reserved for general corporate purposes, offering the company flexibility to address unforeseen operational needs or pursue strategic initiatives. The miscellaneous category accounts for other smaller, yet important, financial outlays.

Core Competitive Advantages

Sharvaya Metals possesses several distinct competitive strengths that underpin its market position and growth potential:

• Wide Product Portfolio and Diversified Applications: The company boasts a comprehensive product range including traditional aluminium alloys and specialized components for the rapidly growing EV sector. This diversification allows Sharvaya Metals to serve a broad spectrum of industries, reducing reliance on a single market and enhancing revenue stability.
• Advanced In-House Manufacturing Capabilities: With automated melting and rolling facilities, Sharvaya Metals maintains advanced in-house manufacturing processes. This enables greater control over product quality, cost efficiency, and timely delivery. Such capabilities are crucial for producing high-precision components and adapting to evolving industry standards.
• Strategic Presence in the Emerging EV Market: By manufacturing EV battery housings, Sharvaya Metals has strategically positioned itself within the burgeoning electric vehicle market. This rapidly growing sector offers significant opportunities for expansion and capturing high-value segments.
• Established and Diverse Customer Base: The company serves a wide array of industries, including cookware, consumer appliances, automotive, aviation, and defence. This broad customer base provides a stable demand foundation for its products, mitigating risks from sector-specific downturns and demonstrating reliability across diverse industrial needs.
• Robust Financial Performance: Sharvaya Metals has demonstrated improving financial performance, characterized by healthy return ratios. This indicates efficient management of capital and assets, generating good returns. A strong financial footing supports sustainable growth.

Considerations and Potential Risks

Prospective investors should also be aware of certain risk factors associated with Sharvaya Metals:

• Comparatively Lower Profit Margins: The company’s profit margins are noted to be lower when compared to some industry peers. This could be influenced by competitive pricing pressures, raw material costs, or operational efficiencies. Lower margins might impact retained earnings for future investments or resilience during adverse market conditions.
• Elevated Leverage Levels: Sharvaya Metals currently operates with a relatively high level of leverage. High debt-to-equity ratios can constrain a company’s financial flexibility, making it harder to secure funding, expand, or respond to downturns, and increasing interest burden.
• Limitations of a Smaller Workforce: A small workforce base could potentially limit the company’s scalability. While a leaner structure can be efficient, rapid expansion could strain existing human resources, impacting operational capacity without significant recruitment.
• Revenue Concentration in Cyclical Sectors: The company’s revenue streams are largely concentrated in cyclical sectors such as the broader metals industry and the EV sector. Cyclical industries are sensitive to economic fluctuations, meaning downturns could directly impact sales and profitability. The metal industry itself can be volatile despite EV growth potential.

Investor Interest: Live Subscription Trends

The subscription figures provide valuable insight into investor sentiment towards the Sharvaya Metals IPO. As of 5:00 PM on September 09, 2025, the overall issue has been well-received across various investor categories, indicating significant interest.

The Qualified Institutional Buyers (QIB) segment saw a subscription of 1.28 times, indicating moderate interest from large institutional investors. The Non-Institutional Investors (NII) category showed robust demand, oversubscribing by 6.09 times, reflecting strong participation from high-net-worth individuals and corporates. Retail Individual Investors (RII) also demonstrated significant enthusiasm, with their reserved portion being subscribed 6.31 times. Overall, the IPO achieved a total subscription of 4.83 times, signifying healthy demand from the investor community for Sharvaya Metals shares. These figures are reliable indicators of market interest.

*GMP figures are unofficial and may vary; exchange data is more reliable.

Participating in the Sharvaya Metals IPO

Investors keen on participating in the Sharvaya Metals Initial Public Offering can do so through the official Dhan Kirti IPO platform. It is crucial to submit your application before the subscription window officially closes on 09th September 2025, to ensure your participation in this investment opportunity. Prospective investors should conduct their own due diligence before investing.