Engineering Versatility: A Deep Dive into the Shayona Engineering Ltd IPO

Shayona Engineering Ltd IPO

As the January 2026 IPO window remains busy, we’re shifting our focus to a diversified player in the industrial manufacturing space: Shayona Engineering Limited.

While many SME listings focus on a single niche, Shayona has built a "one-stop-shop" model that spans from precision casting to the manufacturing of specialized plastic piping systems. Based in Vadodara, Gujarat—one of India's most robust industrial hubs—the company is now seeking to leverage public capital to fuel its next phase of manufacturing expansion.

Company Profile: From Precision Parts to Piping Systems

Founded in 2017 (with roots going back 15+ years), Shayona Engineering operates a multi-vertical business model. They have successfully transitioned from being a small fabrication unit into a multi-faceted engineering firm.

• Precision Engineering: Specializing in CNC and VMC machined components, dies, and moulds.

• Casting & Forging: Capable of producing single-piece castings ranging from a few grams up to 3 metric tons, serving sectors like oil & gas, medical, and defense.

• Shayona Pipes: A recently expanded division focused on HDPE and PVC pipes, targeting the high-growth agriculture and infrastructure sectors.

• Industrial Automation: Providing turnkey solutions and reverse engineering for various heavy industries.

Shayona Engineering IPO: Essential Details

This is a 100% fresh issue, ensuring that the entire ₹14.86 Crore raised will be utilized for the company’s internal growth.

Detail	Information
IPO Dates	January 22, 2026 – January 27, 2026
Price Band	₹140 – ₹144 per share
Lot Size	1,000 Equity Shares
Min. Retail Investment	₹1,44,000 (at upper band)
Issue Size	₹14.86 Crore
Listing Platform	BSE SME
Face Value	₹10 per share

Retail Application Note: Unlike some larger issues this month, the retail ticket size here is approximately ₹1.44 Lakh per lot, allowing broader participation from small-ticket investors in the SME category.

Financial Performance: Growth on the Radar

Shayona has shown a consistent upward trend in its financial metrics, particularly following the commissioning of its new manufacturing unit in Gujarat.

• Revenue: Grew from ₹12.56 Cr in FY23 to ₹23.09 Cr in FY25.

• Profitability (PAT): Witnessed a sharp rise from ₹0.59 Cr in FY23 to ₹2.42 Cr in FY25.

• Margins: EBITDA margins have significantly improved, standing at ~21.6% for FY25, up from ~9.2% in FY23.

• Recent Performance: For the 8 months ended November 2025 (H1-FY26), the company has already recorded a PAT of ₹2.45 Cr, surpassing its entire previous year's profit.

Use of Proceeds: Fueling the Expansion

The company has earmarked the funds for strategic pillars:

1. Machinery Purchase: ~₹3.79 Cr for advanced high-output extrusion lines to scale their pipe manufacturing.

2. Debt Repayment: ₹2.17 Cr to settle secured borrowings, which will improve their debt-to-equity ratio (currently at 1.83).

3. Working Capital: ₹4.00 Cr to support the capital-intensive nature of raw material procurement and production.

Grey Market Premium (GMP) & Sentiment

As of January 24, 2026, the market sentiment for Shayona is currently neutral.

• Current GMP: ₹0 (Nil)

• Subscription Status: The issue has been subscribed ~1.3x overall as of Day 2, with steady interest from the NII (Non-Institutional) category.

• Market Outlook: The flat GMP indicates that the market is waiting for final day subscription figures. There is no significant speculative "pop" expected, so investors should focus on the business fundamentals.

Investment Recommendation: Our Take

Shayona Engineering IPO offers a play on the "diversified industrial" theme. Their ability to serve multiple industries reduces the risk of a downturn in any single sector.

The Bull Case:

The recent surge in profitability and the move into the PVC/HDPE pipe segment (aligned with government infrastructure spends) are strong catalysts. The valuation (P/E of ~15x-23x depending on the annualized earnings base) appears reasonable compared to peers.

The Bear Case:

The company has high debt-to-equity (1.83) and a long debtor cycle (186 days), which means their cash is tied up in the business for a long time. The customer concentration risk is also present, typical for small engineering firms.

Recommendation: Subscribe with a Medium-Term Outlook. This is not a "listing gain" play given the current ₹0 GMP. However, for investors who believe in the growth of the Gujarat industrial corridor and the company's piping expansion, it offers a solid fundamental entry point.

(NOTE: This Post is only for the information purpose and not to be considered as any advice for the investment in any stock. financial and investment advice should be tailored to your situation — consider consulting a licensed financial advisor before investing.)