New Delhi, September 12 (HS): Aluminum products manufacturer Sharvaya Metals made a strong debut on the stock market today, cheering its IPO investors at the opening. However, the enthusiasm was short-lived as heavy selling pressure dragged the company’s shares down to the lower circuit immediately after listing.
The IPO was priced at Rs 196 per share. On the BSE SME platform, the stock listed at Rs 219, marking a premium of 11.73 percent. But within hours of trade, profit booking pulled the stock down to its lower circuit at Rs 208.05. As a result, IPO investors’ initial gains were trimmed to 6.15 percent by the close of the day.
Sharvaya Metals’ Rs 58.80 crore IPO, which remained open for subscription from September 4 to 9, received a healthy response with overall subscription at 4.83 times. The Qualified Institutional Buyers’ (QIBs) portion was subscribed 1.28 times, the Non-Institutional Investors’ (NIIs) category drew 6.09 times subscription, while the Retail Investors’ segment was subscribed 6.31 times. The IPO comprised fresh issuance of shares worth Rs 19 crore along with an offer-for-sale (OFS) of 5 lakh shares of face value Rs 10 each. Proceeds from the fresh issue will be used for civil construction and electrification projects, purchase of machinery, meeting working capital requirements, and other general corporate purposes.
Financial Performance
According to the IPO prospectus, the company’s financials have seen fluctuations in recent years. In FY 2022-23, Sharvaya Metals reported a net profit of Rs 1.95 crore, which fell to Rs 1.54 crore in FY 2023-24. However, performance rebounded sharply in FY 2024-25, with profit soaring to Rs 12.51 crore.
Revenue has grown at a compound annual growth rate (CAGR) of over 26 percent, reaching Rs 112.76 crore in FY 2024-25. Debt levels have shown variations as well: the company’s borrowings stood at Rs 14.92 crore at the end of FY 2022-23, reduced to Rs 13.47 crore by March 2024, before rising again to Rs 14.97 crore at the end of FY 2025.
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Hindusthan Samachar / Jun Sarkar
