Shayona Engineering IPO: A Diversified Precision Engineering & Piping Play
Shayona Engineering Limited, a Vadodara-based manufacturer specializing in precision castings and the newly launched "Shayona Pipe" vertical, is out with its ₹14.86 crore SME IPO. This post analyzes the company's 52% CAGR revenue growth, its expansion into HDPE/PVC pipes, and the key financial metrics for investors looking to bid before January 27, 2026.
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1. Who is Shayona Engineering?
Founded in 2017, Shayona Engineering Limited has evolved from a specialized fabrication unit into a multi-faceted engineering powerhouse. Based in Vadodara, Gujarat, the company operates across two high-growth verticals:
Precision Engineering: Manufacturing high-grade castings (ranging from a few grams to 3 metric tons), CNC-machined components, and industrial automation equipment.
Piping Infrastructure: Through its newly commissioned Menpura plant, it produces PVC and HDPE pipes and fittings under the "Shayona Pipe" brand, catering to agriculture and infrastructure sectors.
The company follows an integrated "design-to-delivery" model, serving industries like automotive, renewable energy, aerospace, and defense.
2. Key IPO Details & Timeline
The IPO is a Book Built Issue consisting entirely of a Fresh Issue of 10.32 lakh shares.
| Event | Date / Details |
|---|---|
| IPO Open Date | Thursday, January 22, 2026 |
| IPO Close Date | Tuesday, January 27, 2026 |
| Price Band | ₹140 to ₹144 per share |
| Lot Size | 1,000 Shares |
| Minimum Investment (Retail) | ₹2,88,000 (Min 2 Lots / 2,000 shares) |
| Allotment Finalization | Wednesday, January 28, 2026 |
| Listing Date (Tentative) | Friday, January 30, 2026 |
| Listing Platform | BSE SME |
3. Financial Performance: Explosive Scaling
Shayona Engineering has demonstrated significant growth in its top and bottom lines as it expanded its product portfolio:
Revenue (FY25): ₹23.09 Crore (Grew from ₹15.26 Cr in FY24).
Profit After Tax (PAT): ₹2.42 Crore in FY25, marking a 41.5% YoY growth.
EBITDA Margin: A healthy 21.64% (FY25).
Return on Capital Employed (ROCE): 29.03%.
Return on Net Worth (RoNW): 34.81%.
4. Objectives of the Issue
The company plans to deploy the ₹14.86 crore proceeds as follows:
Plant & Machinery (₹3.79 Cr): Purchasing high-speed PVC extrusion lines and advanced CNC/VMC machines.
Working Capital (₹4.00 Cr): Funding the inventory and credit cycles of its capital-intensive engineering business.
Debt Repayment (₹2.17 Cr): Repaying secured loans to reduce interest burdens and improve debt-to-equity ratios.
General Corporate Purposes: General operations and brand building for the "Shayona Pipe" vertical.
5. Investment Analysis: Strengths vs. Risks
Strengths:
Diversified Verticals: The move into piping provides a steady "commodity" style revenue stream to balance the "project-based" precision engineering business.
Strategic Location: Operating from Vadodara gives it proximity to key industrial hubs and raw material suppliers.
High-End Capabilities: Ability to cast single-piece components up to 3 tons is a specialized niche with high entry barriers.
Risks:
Debt Levels: Post-IPO, the debt-to-equity ratio remains a point of watch, though it is expected to improve with the repayment plan.
Cash Flow Issues: The company has seen negative operating cash flows in the past due to high working capital needs.
Customer Concentration: Reliance on a limited pool of industrial clients for large-scale casting projects.
6. Conclusion
Shayona Engineering is a classic "small-to-mid" scale growth story. While the Grey Market Premium (GMP) is currently muted at ₹0, the company's valuation (Post-IPO P/E of ~15.25x) appears reasonable compared to the broader engineering sector. For investors with a medium-to-long-term horizon, the company's aggressive expansion into infrastructure (pipes) and automation could yield steady returns as these facilities reach full capacity.