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Shayona Engineering IPO: A Deep Dive into the Vadodara-Based Engineering Specialist

Shayona Engineering IPO: A Deep Dive into the Vadodara-Based Engineering Specialist

1. Business Overview: More Than Just Castings

Founded in 2017, Shayona Engineering Limited has evolved from a specialized fabrication unit into a multi-faceted engineering powerhouse. Operating from three manufacturing facilities in Vadodara, Gujarat, the company offers a "one-stop shop" for industrial solutions.

Their Core Verticals Include:

Precision Engineering: CNC and VMC machined components for high-precision industries.

Casting & Forging: Specializing in sand, centrifugal, and investment casting (lost wax) for components ranging from 60g to 3 metric tons.

Shayona Pipes: A strategic expansion into HDPE and PVC pipes and fittings, catering to the growing agriculture and infrastructure sectors.

Industrial Automation: Custom process automation equipment and turnkey machinery projects.

2. Final IPO Timelines & Allotment Updates

The bidding for the Shayona Engineering IPO closed today. If you have applied, here are the key dates to track your allotment:

EventStatus / Date
IPO Price Band₹140 to ₹144 per share
Bidding PeriodJan 22 – Jan 27, 2026
Final Allotment DateWednesday, January 28, 2026
Refund InitiationThursday, January 29, 2026
Listing DateFriday, January 30, 2026
Listing ExchangeBSE SME

3. Subscription Status (Day 3 Update)

The IPO saw a moderate to healthy response from institutional and retail investors. As of the final day:

QIB Category: Subscribed ~3.33x (Leading the demand).

NII Category: Subscribed ~1.67x (Steady interest from high-net-worth individuals).

Retail Category: Subscribed ~1.18x (Fully covered).

Overall Subscription: The issue stands subscribed over 1.4x, indicating a successful closure.

4. Financial Health: Rapid Top-Line Growth

Shayona has demonstrated strong revenue momentum over the last three fiscal years:

Revenue Growth: Revenue surged from ₹12.56 Cr (FY23) to ₹23.09 Cr (FY25), representing a CAGR of over 35%.

Profit After Tax (PAT): Grew from ₹0.61 Cr (FY23) to ₹2.42 Cr (FY25).

H1 FY26 Performance: For the first 8 months (ending Nov 30, 2025), the company reported a PAT of ₹2.45 Cr, already surpassing its entire FY25 profit.

Debt-to-Equity: Currently at 1.4x. While growth is funded by debt, the management plans to use ₹2.17 Cr of the IPO proceeds for repayment to strengthen the balance sheet.

5. Grey Market Premium (GMP) & Listing Expectations

As of January 27, 2026, the Shayona Engineering IPO GMP stands at ₹0.

Interpretation: A "Nil" or flat GMP suggests that the shares are currently trading at their issue price of ₹144 in the unofficial market.

Investor Sentiment: While the subscription is over 1x, the lack of a premium indicates a neutral listing outlook. This IPO is viewed more as a medium-to-long-term industrial play rather than a quick listing-gain opportunity.

6. Risks & Opportunities

Opportunities:

Diversification: The entry into the pipe manufacturing segment allows the company to tap into government-backed irrigation projects.

Automation Focus: Increasing industrial demand for automation gives them a high-margin growth lever.

Risks:

Negative Cash Flow: The company has reported negative operating cash flows in the past due to heavy capital expenditure.

EPCG Obligations: They have outstanding export obligations of ₹4.40 Cr; failure to meet these could lead to penalties.

7. Conclusion

Shayona Engineering presents an interesting case of a small-scale manufacturer rapidly scaling its capabilities. While the current market sentiment (GMP) is muted, the company's valuation at a post-issue P/E of ~15.2x is relatively attractive compared to some of its peers.