Sharvaya Metals Limited IPO is one of the highly anticipated offerings in the BSE SME segment, opening for subscription on 4th September 2025 and closing on 9th September 2025. The company is raising ₹58.8 crore through this IPO, which includes a fresh issue of 25 lakh shares worth ₹49 crore and an offer for sale (OFS) of 5 lakh shares worth ₹9.8 crore. The company has fixed the price band between ₹192 and ₹196 per equity share, and the IPO will be managed by Expert Global Consultants Private Limited as the Book Running Lead Manager, with Bigshare Services Private Limited as the registrar and Globalworth Securities Limited as the sole Market Maker.

Company Background

Sharvaya Metals has been in business for more than a decade, catering to both domestic and international markets with a wide range of aluminium products. The company established its manufacturing unit in 2017 and has since expanded its product portfolio to include Aluminium Alloyed Ingots, Aluminium Billets, Aluminium Slabs, Aluminium Sheets, Aluminium Circles, and even advanced products like Electric Vehicle (EV) battery housings. These battery enclosures are critical for protecting EV batteries and providing structural support, making Sharvaya Metals a player in the growing EV component manufacturing industry.

The company is led by its Promoter, Chairman, and Managing Director Shreyans Katariy, who brings more than seven years of direct industry experience.

IPO Details and Investor Requirements

The IPO has been structured as a Book Built Issue with a lot size of 600 shares. Retail investors must apply for a minimum of 2 lots (1,200 shares), which amounts to an investment of ₹2,35,200 at the upper price band. At the IPO price of ₹196, the market capitalisation of the company is estimated at ₹196.59 crore.

The IPO is not just about fundraising but also aims to strengthen the company’s operational and production capacities. The objectives of the IPO include:

1. Meeting working capital requirements with an allocation of ₹900 lakh.

2. Funding civil construction and electrification with ₹517.44 lakh.

3. Investing ₹2,040.32 lakh in plant and machinery purchases.

4. Covering general corporate purposes.

Grey Market Premium (GMP) and Listing Prospects

The Grey Market Premium (GMP) of Sharvaya Metals IPO stood at ₹14 as of 29th August 2025, indicating an expected listing gain of around 7.14%. It is important to note that the GMP is based on informal trading activity and should not be considered a reliable price discovery mechanism. It only reflects the market sentiment based on demand and supply of shares in the unregulated space.

Subscription Status and Anchor Investors

By 12:00 PM on 5th September 2025, the IPO was subscribed 1.50 times on the second day of its subscription period. The strong interest indicates good demand among investors.

Before opening to the public, the company successfully raised ₹16.72 crore from Anchor Investors by allotting 8,53,200 shares at ₹196 per share. This early participation by institutional investors provides additional confidence to the market regarding the company’s growth potential.

Financial Performance

Sharvaya Metals has demonstrated consistent revenue growth over the years. The revenues from operations stood at ₹11,275.87 lakh in FY2025, compared to ₹7,157.61 lakh in FY2024 and ₹7,053.04 lakh in FY2023. Similarly, EBITDA rose significantly to ₹1,954.49 lakh in FY2025 from ₹367.93 lakh in FY2024 and ₹374.69 lakh in FY2023.

The Profit After Tax (PAT) showed impressive improvement, reaching ₹1,250.93 lakh in FY2025, compared to ₹153.57 lakh in FY2024 and ₹194.96 lakh in FY2023.

In terms of investor ratios, the company reported a pre-issue EPS of ₹17.08 and a post-issue EPS of ₹12.47 for FY2024. The pre-issue P/E ratio stands at 11.48x, while the post-issue P/E ratio is 15.72x, which is still below the industry average P/E of 36x. Furthermore, ROCE was 49.39%, ROE 54.92%, and RoNW 54.92% in FY2024, indicating strong operational efficiency and profitability.

IPO Allotment and Listing

The IPO allotment is expected to be finalized on 10th September 2025, and the shares will be listed on the BSE SME platform with a tentative date of 12th September 2025. Investors can check their allotment status online using their application number, PAN, or DP Client ID on the registrar’s website.

Conclusion and Review

Given the company’s strong financial performance, strategic presence in both traditional aluminium products and EV component manufacturing, and attractive valuation compared to the industry average, the Sharvaya Metals IPO offers promising potential. The GMP trend indicates listing gains of around 7%, making it appealing to investors seeking short-term returns.

However, considering the high minimum investment requirement of ₹2.35 lakh, the IPO is more suitable for risk-tolerant investors who are either looking for listing gains or have a long-term view on the aluminium and EV industries.

Overall, the Sharvaya Metals IPO is fairly priced, supported by robust financials, growing demand, and a clear expansion strategy, making it a compelling opportunity in the SME IPO space.

The Upcoming IPOs in this week and coming weeks are Airfloa Rail Technology, Dev Accelerator, Taurian MPS, Jay Ambe Supermarkets, Krupalu Metals, Urban Company, Shringar House of Mangalsutra, Karbonsteel Engineering.

The Current active IPO are Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

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