Aarvee Engineering Consultants Secures SEBI Approval for Major IPO
In a significant development for India's infrastructure sector, Aarvee Engineering Consultants Limited has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its highly anticipated initial public offering (IPO). The Hyderabad-based company, a prominent player in infrastructure design and supervision services, has cleared a crucial regulatory hurdle, paving the way for its market debut.
IPO Structure and Financial Details
The approved IPO comprises two key components: a fresh issue of equity shares aggregating up to Rs 202.5 crore and an offer for sale (OFS) of up to 67.5 lakh equity shares by the promoter, Venkatachala Chakrapani Redla. This dual structure aims to infuse fresh capital into the company while providing an exit opportunity for the promoter.
The company had initially filed its draft red herring prospectus (DRHP) with SEBI in September 2025 and received the regulator's observations just last week, marking a swift progression in the approval process. This regulatory nod underscores the robustness of the company's financials and business model.
Strategic Allocation of Proceeds
As outlined in the DRHP, the proceeds from the fresh issue will be strategically deployed across multiple avenues to fuel growth and strengthen the balance sheet:
- Debt Reduction: A substantial portion, Rs 76 crore, is earmarked for the repayment or prepayment of outstanding borrowings, which will enhance financial stability and reduce interest costs.
- Subsidiary Investments: The company plans to invest Rs 21.9 crore in its Indian subsidiary, SRA OSS Pvt Ltd, to accelerate the development of advanced geospatial solutions and digital engineering technologies, aligning with India's digital transformation goals.
- Global Expansion: Significant investments are planned for overseas subsidiaries, including Rs 34.8 crore in the Australian unit, Aarvee Engineering Consultants Pty Ltd, and Rs 20.8 crore in the UK-based Aarvee Associates Limited, aimed at bolstering international operations.
- General Corporate Purposes: The remaining funds will be utilized for general corporate activities, supporting day-to-day operations and strategic initiatives.
Company Performance and Project Portfolio
Aarvee Engineering has demonstrated strong financial performance, posting a profit after tax of Rs 51 crore on a revenue from operations of Rs 567 crore for the financial year 2024-25. This profitability highlights the company's operational efficiency and market demand for its services.
The company boasts an impressive portfolio of high-profile infrastructure projects, including:
- The Amaravati capital city project
- The high-speed rail initiative
- The dedicated freight rail corridor
- The OKHA-Beyt Dwarka cable-stayed bridge
With a global footprint, Aarvee has executed over 2,750 projects across 20 countries as of June 30, 2025, showcasing its expertise and scalability in the infrastructure domain. This extensive experience positions the company favorably to capitalize on growing infrastructure investments both in India and internationally.
The SEBI approval marks a pivotal moment for Aarvee Engineering, enabling it to access public capital markets and drive its next phase of growth through strategic investments and debt reduction. Market observers are keenly watching this IPO, given the company's strong track record and the ongoing emphasis on infrastructure development in India's economic landscape.
