The initial public offering (IPO) of Shayona Engineering Limited commenced for public subscription on Thursday, January 22, marking a significant milestone for this specialized engineering firm. The offer window remains open until January 27, providing investors with a limited timeframe to participate in this small and medium enterprise (SME) listing opportunity.
Shayona Engineering IPO Key Details
Shayona Engineering is seeking to raise approximately ₹14.86 crore through this public offering, which represents a complete fresh issue of 10 lakh equity shares. The company has established a price band ranging from ₹140 to ₹144 per share for this book-built issue, positioning it as an accessible investment option for various market participants.
Investors must apply for the IPO in minimum lots of 1,000 shares, with retail investors specifically required to bid for at least two lots to participate in the offering. This structure ensures broader retail participation while maintaining the integrity of the subscription process.
Utilization of IPO Proceeds
The capital raised through this initial share sale will be strategically allocated across several critical business areas. Shayona Engineering plans to deploy funds toward the acquisition of advanced plant and machinery to enhance its existing production capabilities. Additionally, a portion will be directed toward repaying secured loans previously availed by the company, thereby strengthening its financial position.
The remaining proceeds will support working capital requirements and serve general corporate purposes, providing the company with greater operational flexibility and resources for potential expansion initiatives.
Shayona Engineering IPO Subscription Status
According to subscription data available from Chittorgarh.com, the Shayona Engineering IPO demonstrated moderate interest during its initial trading hours on the first day. As of 1:15 PM on January 22, the overall issue was booked approximately 59%, reflecting cautious but steady investor appetite.
The non-institutional investor (NII) category emerged as the most enthusiastic participant segment, with this quota already fully subscribed at 1.24 times the allocated portion. This strong response from high-net-worth individuals and corporate bodies indicates confidence in the company's specialized business model and growth prospects.
In contrast, the retail investor portion showed more measured interest with 31% subscription, while qualified institutional buyers (QIBs) had not yet placed any bids during the initial observation period. This distribution pattern highlights the varying risk appetites and investment strategies across different investor categories.
Grey Market Premium and Listing Timeline
The grey market premium (GMP) for Shayona Engineering shares remained at nil as of the first trading day, indicating that secondary market expectations align precisely with the official offer price range. With this neutral GMP position, analysts anticipate the potential listing price to settle around ₹144 per share, representing the upper limit of the established price band.
The allotment process for successful bidders is scheduled for completion by January 28, followed by the anticipated listing of Shayona Engineering shares on the BSE SME platform on January 30. This timeline provides investors with clear expectations regarding the settlement and trading commencement procedures.
About Shayona Engineering's Business
Shayona Engineering specializes in providing customized solutions for precision castings manufactured in special grades, serving diverse industrial sectors with technically demanding requirements. The company's expertise spans component weights ranging from mere grams to substantial 3-metric-ton single pieces, demonstrating remarkable manufacturing versatility.
The firm's core competency lies in investment casting capabilities focused on steel, stainless steel, and nickel-based alloys. These specialized processes accommodate casting weights from 60 grams to 70 kilograms per individual piece, allowing for production of complex components with superior surface finishes that meet exacting industry standards.
Shayona Engineering serves multiple critical sectors including pumps and valves, defense applications, medical equipment manufacturing, automotive components, and oil and gas infrastructure. This diversified client base provides revenue stability while exposing the company to growth opportunities across expanding industrial segments.
Important Disclaimer: This content is provided for educational and informational purposes only. We strongly recommend that potential investors consult with certified financial advisors and conduct thorough independent research before making any investment decisions related to IPOs or other securities.
