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Shayona Engineering

• Shayona Engineering is coming out with an initial public offering (IPO) of 10,32,000 shares in a price band of Rs 140-144 per equity share. 
• The issue will open on January 22, 2026 and will close on January 27, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 14 times of its face value on the lower side and 14.40 times on the higher side.
• Book running lead manager to the issue is Horizon Management.
• Compliance Officer for the issue is Arti Ankitkumar Singh.

Profile of the company

The company provides customized solutions for precision castings in special grades, with weights ranging from a few grams to 3 metric tons in a single piece. Its investment casting specializes in steel, stainless steel, and nickel-based alloys, with casting weights ranging from 60 grams to 70 kg per piece. It produces complex investment cast parts with superior surface finishes, pumps & valves, defense, medical, automotive, and oil & gas sectors. It manufactures precision metal, rubber and plastic parts, assemblies, and fixtures

Through its strategic business alliances with several companies, it can produce single-piece castings ranging from a few grams (using Lost Wax Investment/Lost Foam Casting) to 1,500 kg (using Sand/Centrifugal Castings). This makes it a one-stop shop for all casting need. To emerge as a global market leader in the foundry industry and become a major player in all market segments by offering world-class products. Its development process focuses on client requirements with a customer-centric strategy. From basic turning and milling to advanced CNC operations, the company has demonstrated its engineering capabilities by producing components for diverse industries. It offers comprehensive turnkey project management services that encompass system design, build, integration, installation, and commissioning, complete with training support. 

In 2025, it established a modern manufacturing facility in Menpura, Gujarat. The unit has an installed capacity of 250 MT/month for PVC and HDPE pipes and fittings, targeting the agriculture and infrastructure sectors. This facility strengthens in-house production and supports the company’s growth and market expansion. It specializes in reverse engineering, professional consultation, and complete turnkey solutions for the PVC pipe and tyre industry.

Proceed is being used for:

• Purchase of plant and machinery for the existing line of its business
• Repayment of secured loan availed by the company from financial institution
• Funding of the working capital requirements of the company
• General corporate purposes

Industry Overview

The Indian manufacturing sector serves as a pivotal engine for economic growth, encompassing diverse industries from heavy machinery to consumer goods. As of 2025, it contributes around 17-18% to India's Gross Domestic Product (GDP), with the government's strategic vision targeting an increase to 25% by the end of the fiscal year through enhanced policy support and investment inflows. This sector's GDP contribution has shown steady progress, with manufacturing output poised to reach Rs 87,57,000 crore ($1 trillion) by FY26, reflecting resilience amid global economic shifts. 

The Indian precision engineering sector has emerged as a significant player in the global manufacturing landscape, with the market projected to reach $180.5 billion by 2027. This growth is driven primarily by advancements in Computer Numerical Control (CNC) manufacturing and Industry 4.0 technologies, with 65% of manufacturers now adopting smart manufacturing technologies. The sector serves multiple industries including automotive (38% market share), aerospace (27% market share), medical devices, electronics, and healthcare, demonstrating its versatile applications and strategic importance. 

The industry's infrastructure is characterized by sophisticated technological integration, particularly in CNC machining for high precision metal components. Key focus areas encompass precision engineering, industrial automation, metal fabrication, forging and casting, and process automation. The metal fabrication sector alone is projected to reach $1 trillion by 2025, representing a sixfold increase from 2023 levels. Both domestic and international players have made substantial investments in advanced CNC technologies and software, with the process automation sector currently valued at $2.07 billion (2023) and expected to double by 2030 at a CAGR of 9.5%. 

Pros and strengths

Proven track record in large-scale operations: Shayona Engineering has built a strong reputation for delivering high-quality products and services across industries. Through years of operational excellence and successful large-scale projects, it has earned its clients' trust and satisfaction. Its deep expertise in manufacturing and engineering keeps it competitive in dynamic market.

Strategic supply chain management: Its robust procurement network and diverse client base enable it to effectively manage supply chain fluctuations and market demand changes. Strong relationships with suppliers and customers ensure stable production and minimal disruptions. its versatile product portfolio allows it to serve multiple sectors, giving it the flexibility to adapt to shifting market needs.

Advanced technology investment: It maintains its industry leadership by investing in cutting-edge technology. Its planned expansion includes modern CNC (Computer Numerical Control) and VMC (Vertical Machining Center) machines for handling larger, more complex components. These investments will enhance precision, speed, and production flexibility, enabling it to take on more sophisticated projects.

Risks and concerns

Revenue concentration risk due to limited customer: It recognizes that its revenue model is heavily reliant on a limited customer base, which accounts for a substantial portion of its income. For the period ended November 30, 2025 and the financial years ended March 31, 2025, 2024, and 2023, revenue from operations generated from its top 10 customers accounted for 91.70%, 73.22%, 84.33%, and 95.71% of its total revenue from operations, respectively. Substantial portion of its revenues are dependent on few customers and the loss of, or a significant reduction in purchases by any one or more such customers could adversely affect its financial performance.

High dependence on Gujarat for majority of domestic revenue: Its revenue from operations is majorly concentrated in the state of Gujarat, which contributes 53.37%, 98.59%, 100.00%, 67.03% of its total domestic revenue for the eight-month period ended on November 30, 2025 and for the FY 2024-25, FY 2023-24 and FY 2022-23 respectively. This significant dependence on a single geographic region exposes it to risks arising from regional economic conditions, changes in government policies, local competition, labor issues, natural calamities, or any adverse social, political, or environmental developments in Gujarat. Any material impact on business activities within this region could adversely affect its revenue, cash flows, and overall financial performance.

Reliance on specialized suppliers for essential metals and steel: It obtains its raw materials from specialized suppliers of essential metals and steel for its diverse engineering operations. These materials are vital for manufacturing automotive components and engineered parts. The company uses high-quality metals that meet strict industry standards and project requirements. It requires metals on the basis of its monthly requirement for its operations across multiple engineering categories, including automotive manufacturing and machining. It relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet its requirements, its business will be harmed. An inability to procure the desired quality, quantity of its raw materials and components in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations and financial condition.

Outlook

Shayona Engineering provides innovative and reliable engineering solutions including machinery, automation, and Pre-Engineered Building (PEB) structures. It delivers quality, precision, and performance across multiple industrial sectors. On the concern side, the business in which it operates is currently new and fragmented in India and there are only a few companies operating in this business. The industry in which it operates, although in its nascent stages with a few players, is highly competitive. It faces strong competition in the Indian market from domestic as well as foreign companies. An inability to compete effectively may lead to a lower market share or reduced operating margins.

The company is coming out with a maiden IPO of 10,32,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 140-144 per equity share. The aggregate size of the offer is around Rs 14.45 crore to Rs 14.86 crore based on lower and upper price band respectively. On performance front, the total income is increased by 51.64%, from Rs 1,528.44 lakh in the fiscal year ended March 31, 2024 to Rs 2,317.68 lakh in the fiscal year ended March 31, 2025. Moreover, the profit after tax have been increased by 41.51% from Rs 170.95 lakh in the fiscal year ended March 31, 2024 to Rs 241.91 lakh in the fiscal year ended March 31, 2025.

Meanwhile, the company is implementing a comprehensive inventory management strategy for its engineering unit. Through these comprehensive inventory management strategies, it aims to enhance overall operational efficiency and profitability. It expects to boost production efficiency, eliminate procurement delays, reduce operational costs, and improve market competitiveness. Its commitment to supply chain excellence and modern manufacturing facilities remains central to achieving these objectives and ensuring long-term success in the industry.