Image Source: Business Standard
India’s capital markets regulator has officially approved the initial public offering of Ardee Engineering Ltd, clearing the way for the Hyderabad-based engineering solutions provider to raise Rs 580 crore through a combination of fresh equity and promoter stake sale. The Securities and Exchange Board of India (SEBI) issued its final observation on the company’s Draft Red Herring Prospectus in August 2025, paving the way for a listing on both the Bombay Stock Exchange and National Stock Exchange.
Key Highlights From The SEBI Approval
- Total IPO size: Rs 580 crore
- Fresh issue component: Rs 500 crore
- Offer-for-sale by promoter Chandra Sekhar Moturu: Rs 80 crore
- Listing venues: BSE and NSE
- Book-running lead managers: IIFL Capital Services and JM Financial
- Registrar: Bigshare Services Pvt Ltd
IPO Objectives And Capital Allocation
The net proceeds from the IPO will be strategically deployed across four key areas:
- Rs 279.6 crore for setting up two new manufacturing facilities in Seetharampur, Telangana
- Rs 44.8 crore for installing an integrated manufacturing unit in Parawada, Andhra Pradesh
- Rs 65 crore earmarked for repayment of existing debt obligations
- Remaining funds to be used for general corporate purposes and working capital needs
Company Profile And Business Segments
Ardee Engineering Ltd, incorporated in 2020, operates as an integrated design, engineering, and manufacturing firm with three core verticals:
- Pre-Engineered Buildings (PEB): The company has completed over 100 PEB projects, including warehouses, data centers, airports, and commercial buildings
- Material Handling Systems (MHS): Ardee designs and installs customized bulk material handling systems for clients such as ArcelorMittal Nippon Steel India
- Engineering Services: The firm provides heavy structural fabrication, precision equipment, and electrical instrumentation solutions, with recent expansion into defence and aerospace
Promoter Holding And Share Structure
- Pre-issue promoter holding: 89.99 percent, primarily held by founder Chandra Sekhar Moturu and family
- Post-issue shareholding will be diluted to accommodate public investors and institutional participation
- The company may consider a Rs 100 crore pre-IPO placement, which would reduce the fresh issue component accordingly
Market Position And Competitive Landscape
- Ardee Engineering competes with players like Pennar Industries, PSP Projects, ISGEC Heavy Engineering, and Everest Industries
- Its focus on turnkey solutions and customized engineering gives it a niche positioning in industrial infrastructure
- The company has executed projects for JK Cement, Blue Ocean Biotech, SRR Projects, and other large clients across sectors
Financial Snapshot And Debt Profile
- As of January 2025, Ardee Engineering reported outstanding debt of Rs 362.2 crore
- The IPO proceeds will significantly reduce leverage and improve the company’s debt-to-equity ratio
- Revenue growth has been driven by increased demand for industrial warehousing and logistics infrastructure
Outlook And Investor Sentiment
- The IPO is expected to attract strong interest from institutional investors, given the company’s diversified order book and expansion plans
- Retail quota is set at 10 percent, with QIBs allocated 75 percent and HNIs 15 percent, as per the DRHP
- Analysts view the offering as a strategic opportunity to participate in India’s industrial and infrastructure growth story
Conclusion
With SEBI’s approval now in place, Ardee Engineering Ltd is poised to launch its Rs 580 crore IPO in the coming weeks. The offering will not only strengthen its financial foundation but also enable the company to scale operations and enter new verticals. As India’s infrastructure and manufacturing sectors continue to expand, Ardee’s integrated engineering capabilities position it well for long-term growth and value creation.
Sources: SEBI Filings, IPO Watch India, Chittorgarh, Times of India, Business Standard.
Advertisement
Advertisement
