Shayona Engineering IPO Makes Flat Debut, Lists at ₹144 Against Moderate 5.43x Subscription

Shayona Engineering Ltd, a Vadodara-based company incorporated in 2017 engaged in business of precision castings, machining, dies and moulds, industrial automation, heavy fabrication, casting, forging, reverse engineering, and turnkey project machinery offering customized solutions for precision castings in special grades with weights ranging from few grams to 3 metric tons in single piece, with products including tubular conveying systems, die head trolleys and mixing machines, CNC and VMC machined components, heavy metal fabrication solutions, and process automation equipment, made a flat debut on BSE SME on Friday, January 30, 2026. After closing its IPO bidding between January 22-27, 2026, the company commenced trading flat at issue price of ₹144.00 before slipping to touch low of ₹137.40 (down 4.58%) and trading around ₹143.00 (down 0.69% from issue price).

Shayona Engineering Listing Details

Shayona Engineering launched its IPO at ₹144 per share with minimum investment of 2,000 shares costing ₹2,88,000. The IPO received moderate response with subscription of 5.43 times - individual investors at 3.73 times, NII at 9.30 times, QIB at 3.33 times.

First-Day Trading Performance

Listing Price: Shayona Engineering opened at ₹144.00 representing flat listing at issue price of ₹144.00, touched low of ₹137.40 (down 4.58%) before recovering to trade around ₹143.00 (down 0.69%), with VWAP at ₹143.71, reflecting neutral market sentiment with initial selling pressure followed by price stabilization near issue price with turnover of ₹8.76 crore, traded volume of 6.10 lakh shares, and market capitalisation of ₹55.66 crore against pre IPO market cap of ₹56.05 crore.

Growth Drivers and Challenges

Growth Drivers:

Comprehensive Engineering Solutions: Providing precision castings, machining, dies and moulds, industrial automation, heavy fabrication, forging, reverse engineering, and turnkey project machinery all under one roof enabling end-to-end customer service.

Consistent Financial Growth: Revenue growing from ₹12.63 crore in FY23 to ₹23.18 crore in FY25, PAT growing from ₹0.61 crore to ₹2.42 crore in same period, healthy PAT margin of 12.80%, EBITDA margin of 21.33%.

Diversified Product Portfolio: Wide range of products including tubular conveying systems, die head trolleys and mixing machines, CNC and VMC machined components, heavy metal fabrication solutions, and process automation equipment serving varied industries.

Challenges:

High Leverage: Debt-to-equity ratio of 1.83 with total borrowings of ₹22.61 crore against net worth of ₹12.36 crore raising concerns over financial stability, higher net debt/EBITDA ratio noted by analyst as concern area.

Fully Priced Issue: Analyst states IPO appears fully priced recommending only well-informed/cash surplus investors to park funds for medium to long term.

Small Scale Operations: Tiny issue size of only ₹14.86 crore with modest revenue base of ₹23.18 crore annually, small post-IPO equity capital.

Utilisation of IPO Proceeds

Working Capital: ₹4.00 crore for funding working capital requirements supporting precision castings and engineering operations.

Plant and Machinery: ₹3.79 crore for purchase of plant and machinery for existing line of business enhancing manufacturing capabilities.

Loan Repayment: ₹2.17 crore for repayment of secured loan availed from financial institution strengthening balance sheet.

General Corporate Purposes: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹19.15 crore for 8 months ended November 2025, ₹23.18 crore for FY25, growth from ₹15.28 crore in FY24 and ₹12.63 crore in FY23.

Net Profit: ₹2.45 crore for 8 months FY26, ₹2.42 crore in FY25, growth from ₹1.71 crore in FY24 and ₹0.61 crore in FY23, demonstrating improving profitability with post-IPO EPS of ₹9.44 and P/E of 15.25x.