Sharvaya Metals shares debut at 12% premium over IPO price on BSE SME platform

Shares of Sharvaya Metals, a manufacturer and exporter of aluminium products, made their debut on the BSE SME platform on Friday at Rs 196 per share, reflecting a premium of 11.7% over the IPO price. The Rs 58.8-crore IPO, which included a fresh issue of Rs 49 crore and an offer-for-sale of Rs 9.8 crore, concluded on September 9 with healthy subscription numbers, indicating strong investor interest in the official listing process.

Despite the robust subscription, the grey market premium (GMP) remained flat at 0% ahead of the listing, pointing to muted sentiment in the unofficial market. This suggests that investors were not pricing in immediate listing gains, even though the IPO had attracted substantial attention during the bidding period.

Funds raised from the IPO are earmarked for working capital requirements, capital expenditure requirements for civil construction and electrification, purchase of plant and machinery and also general corporate purposes.

Subscription details

By the close of bidding, the IPO was subscribed 4.8 times overall. The retail investor portion saw the highest interest at 6.3 times, followed closely by the non-institutional investors (NIIs) at 6.1 times. The qualified institutional buyer (QIB) segment, however, saw relatively lower demand at 1.3 times.

The company had also raised Rs 16.7 crore from anchor investors a day before opening, locking in long-term institutional participation.

About the company

Founded in 2014, Sharvaya Metals manufactures a wide range of aluminium products including alloyed ingots, billets, slabs, sheets and EV battery enclosures. Its products are supplied to industries such as automotive, engineering, defence, consumer appliances and cookware.

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The company runs a fully integrated manufacturing facility with PLC-controlled aluminium melting furnaces, slab heating, rolling, cutting and punching machinery. This setup allows it to serve both domestic and international clients, including OEM suppliers and tier-1 vendors.

Financial performance

Sharvaya Metals has shown sharp improvement in its numbers in FY25. Revenue jumped 58% year-on-year to Rs 112.8 crore, while profit after tax rose over seven-fold to Rs 12.5 crore from Rs 1.5 crore in FY24. EBITDA margins improved to 17.2% and PAT margin stood at 11.1%.

Listing outlook

While the IPO garnered fair interest from investors, there are concerns, as with any IPO, about the sustainability of recent financial gains in a highly competitive and fragmented aluminium sector. The post-listing performance will hinge on the company’s ability to maintain growth momentum.

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