IGI Logo

Shining Tools

• Shining Tools is coming out with an initial public offering (IPO) of 15,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 114 per equity share.
• The issue will open on November 7, 2025 and will close on November 11, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 11.40 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Sobhagya Capital Options.
• Compliance Officer for the issue is Sneha Dhaval Shah.

Profile of the company

Shining Tools is engaged in the designing and manufacturing of high-performance solid carbide cutting tools catering to various industries in India. Additionally, it provides reconditioning services for used tools, ensuring their extended usability and performance. With focus on innovation and precision, it specializes in producing a wide range of high-performance cutting tools, including end mills, thread mills, drills, and reamers, offering innovative tooling solutions for modern manufacturing needs. These tools are widely used in commercial metal cutting operations across multiple industries. Its cutting tools are designed for use on CNC machines such as Horizontal Machining Centres (HMCs), Vertical Machining Centres (VMCs) and turn-mill centres. They operate at high speeds and feed rates, efficiently machining a variety of metals, including solid carbide, cast iron, forgings, steel, and aluminium.

The company’s facility at Rajkot manufactures various categories of tools with diverse technical specifications in respect to shapes, geometries, step diameters, sizes, lengths, etc. and of various grades including standard, fine, ultrafine, etc. This position it as a comprehensive solution for all cutting tool requirements, backed by its technical expertise, skilled personnel, and the advanced machinery utilized in its production process. The company’s facility at Rajkot is integrated with each operation thoroughly inspected for quality through its noncontact optical CNC machines to minimise human error and also it is monitored by its experienced professionals, ensuring the product quality to meet the quality standards, precision and the specific requirements of its customers.

Apart from manufacturing standardized tools sets, the company also has capabilities to produce customized tools to its customers for their specific requirements. This is due to the trust bestowed on it by its clients and their confidence on it in getting the required tool designed and manufactured with a particular technical specification and of the desired quality in stipulated time frame. It derives significant revenue (73.19% in FY 24-25 and average around 61.76% in the last 3 financial years) from manufacturing customized tools for its clients. To cater to this segment, the company has trained professionals who use modern software packages like Walter Helitronic Tool Studio, Siemens Powershape, etc to prepare the design. Once the designing is done, tools are manufactured as per the specification and quality desired. Additionally, the company also provides regrinding, re-sharpening, and coating services of the used tools.

Proceed is being used for:

• Purchase and installation of plant and machinery for manufacturing of Carbide Precision Tools at the Existing Premises 
• Funding of working capital requirements
• General corporate purposes

Industry Overview

The Indian cutting tools market produces a wide range of tools such as saw blades, taps, reamers, hobs, chasers, broaches, rolling dies, drills, end mills, cutters, burrs, other gear cutting tools, tool bits, tips/inserts and many more. The market has witnessed an extensive growth in the last two decades. The demanded was driven by industries like construction, automotive, railway network, engineering, and defense. The reasons behind these demands are the overall growth of these secrets and increasing global competition. Among them, the major consumer of the cutting tools is the diamond cutting tool industry. India has almost 1000 manufacturing units of cutting tools. All these include the small, big, as well as medium-sized companies. The local manufacturers contribute around 45% of total production. The India machine tools market size reached $1.5 Billion in 2023. Looking forward, the market is expected to reach $3.2 Billion by 2032, exhibiting a growth rate (CAGR) of 8.2% during 2024-2032.

The demand for cutting tools has also been fueled by the increasing need for efficient and hassle-free production of components. Large manufacturing facilities are adopting cutting tools at an accelerated pace, driven by rapid advancements in production technology and emerging needs for smaller factory footprints. This has contributed to the growth of the market size and the increased adoption of cutting tools in various sectors. However, the cutting tools market faces several challenges. One of the major concerns is the reliance on cutting fluids, which are essential for cooling, lubricating, and removing chips during the cutting process. These fluids can pose health and environmental risks, as they may expose machine operators to potential health hazards. Despite these challenges, ongoing investments in research and development are leading to the creation of safer alternatives and advancements in industrial protective gear for operators. 

One of the key factors contributing to the growth of the cutting tools market in India is the increasing adoption of Computer Numerical Control (CNC) machines. CNC machines have revolutionized manufacturing by offering high efficiency, cost savings, transparency, and time efficiency. As a result, cutting tool companies have been focusing on developing and manufacturing advanced designs to meet the growing customer demands. The future of the cutting tools market in India looks promising, with the continuous growth of the manufacturing sectors across the country. As these sectors expand, the demand for cutting tools is expected to accelerate, driven by the need for efficient equipment in critical and complex machine component requirements. Over the next five years, the market share of cutting tools is projected to increase significantly, catering to the evolving needs of customers and supporting the growth of India's manufacturing industry.

Pros and strengths

Efficiency through machine-based manufacturing tools: Efficiency is at the core of its operations, driven by its advanced machine-based manufacturing tools. By leveraging cutting-edge technology, it optimizes production processes, ensuring precision and consistency in every tool it manufacture. Its machine oriented approach not only reduces human error but also enhances productivity, enabling it to meet growing market demands swiftly and cost-effectively. This efficiency allows the company to deliver high-quality, customized tools while maintaining competitive pricing.

Wide and diverse range of product offerings: The company prides itself on its wide and diverse range of product offerings designed to meet the varying needs of its customers across multiple industries. From precision cutting tools to heavy-duty machinery accessories, its extensive portfolio ensures that clients can find the right tools for any application. Its commitment to quality and innovation drives it to continually expand and enhance its product range, incorporating the latest technological advancements. This diversity not only allows it to cater to specific customer requirements but also positions it as a one-stop solution for all tool manufacturing needs, fostering long-term partnerships and customer loyalty.

Quality assurance: The company ensures each of its tools meets the quality requirements as desired by its clients. Hence to ensure such quality and its standing in the market, it has 2 Zoller make machines to inspect for the quality of each of the tools produced. One is Zoller Genius- 3s machine which does 5- axis checks while the other is Zoller Smart Check 450 machine which does 3-axis check. The more complex tools in terms of geometrics, cuts, fruits, etc undergoes quality check in 5-axis machine while lesser complex tools undergo quality check in 3-axis machine. These machines give report in terms of the technical specification of the tool and forms a major basis for its quality offering.

Risks and concerns

Maximum revenue comes from limited customers: For the period ended March 31, 2023, March 31, 2024, March 31, 2025 and July 31, 2025, its revenue from operations from its top 10 customers contributed to 43.19%, 48.51%, 56.91% and 54.80% respectively of its revenues from operations. The company’s reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Majority portion of domestic sales derived from western zone: A significant portion of its sales come from customers in Gujarat State from the western zone. The company has garnered 97.84%, 95.69% and 94.96% of its total revenue in FY25, FY24 and FY23 respectively. This geographical concentration increases its exposure to competition and potential adverse economic and demographic changes in the region, which could affect its business, financial condition and operations.

Geographical constrain: The company’s Registered office and factory and all the existing contract manufacturers facility are based in Gujrat. Thereby resulting in concentration in a single region, posing a concentration risk. The occurrence of any significant localized social unrest, natural disaster, delay in production at, or shutdown of, or any interruption, including political instability, workforce productivity issues, regulatory compliance challenges, production cost difficulties, or quality assurance concerns, along with unforeseeable events such as natural disasters or pandemics like COVID-19 in or around Gujrat, or any delay or disruption in production at its manufacturing units could significantly impact its business and financial condition. 

Outlook

Shining Tools designs and manufactures high-performance solid carbide cutting tools for various industries in India. The company offers reconditioning services for used tools, enhancing usability and performance. The company has wide and diverse range of product offerings. It also has tailored solutions to customers by offering customised tools. On the concern side, the company’s historical revenues have been largely dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations. Moreover, its manufacturing facility and its registered office is situated in Rajkot, Gujarat, resulting in concentration in a single region. Any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.

The company is coming out with an IPO of 15,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 114 per equity share to mobilize Rs 17.10 crore. On performance front, the company revenue from operations had increased by 39.88%, to Rs 1472.88 lakh in Fiscal 2025 as compared to Rs 1,052.95 lakh in Fiscal 2024. Moreover, the company reported restated profit after tax for the Fiscal year 2025 stood at Rs 293.01 lakh in comparison to net profit of Rs 157.53 lakh in the Fiscal year 2024.

The company aims to broaden and deepen its presence in its existing product portfolio. This involves enhancing its market penetration and reach for the products it currently offers. By leveraging its strengths and understanding market dynamics, it seeks to capture a larger share of the market while also strengthening its relationships with existing customers. Additionally, it will explore opportunities to expand its product offerings within its current portfolio, identifying areas for innovation and differentiation to meet evolving customer needs.