Shayona Engineering IPO Analysis
⚡ LIVE IPO MARKET UPDATE (25 January 2026)
• Shayona Engineering IPO continues to witness selective participation with stronger interest from NII/HNI investors.
• Grey Market Premium (GMP) remains at ₹0, indicating cautious sentiment and absence of aggressive speculative demand.
• Retail subscription is improving gradually but remains moderate due to high minimum investment size.
• SME investors are waiting for final-day momentum before assigning premium valuation.
Market Insight: If overall subscription crosses 4x–7x before closing, listing sentiment may improve. Otherwise, listing gains are likely to remain limited or flat.
🔹 Shayona Engineering IPO Snapshot
| Item | Details |
|---|---|
| Company | Shayona Engineering Limited |
| Issue Type | SME IPO – 100% Fresh Issue |
| Issue Size | ₹14.86 Crore |
| Total Shares Offered | 10,32,000 Shares |
| Price Band | ₹140 – ₹144 per share |
| Lot Size | 1,000 Shares |
| Minimum Investment | ₹2,88,000 (2 Lots) |
| IPO Open | 22 January 2026 |
| IPO Close | 27 January 2026 |
| Expected Listing | 30 January 2026 |
| Exchange | BSE SME |
| Registrar | KFin Technologies Limited |
| Lead Manager | Horizon Management Private Limited |
| Estimated Post-IPO Market Cap | ₹95 – ₹110 Crore |
🔹 Issue Structure & Reservation
| Category | Reservation (%) |
|---|---|
| Retail Investors | ~64.73% |
| NII / HNI | ~29.07% |
| QIB | ~1.16% |
| Market Maker | Balance |
Insight: SME IPOs typically have minimal QIB participation; retail and NII demand drives listing performance.
🔹 Business Overview
Shayona Engineering is a diversified manufacturing company engaged in precision engineering and PVC/HDPE piping solutions, headquartered in Vadodara, Gujarat.
- Precision casting, machining, and fabrication
- PVC and HDPE piping solutions
- Industrial engineering services
Growth Drivers: Infrastructure spending, industrial expansion, and demand for plastic piping in agriculture and real estate.
🔹 Financial Performance (₹ Crore)
| Year | Revenue | EBITDA | PAT | Operating Cash Flow |
|---|---|---|---|---|
| FY23 | 12.63 | 1.15 | 0.61 | -2.60 |
| FY24 | 15.28 | 3.02 | 1.71 | -0.20 |
| FY25 | 23.09 | 5.04 | 2.42 | -2.15 |
Key Insight: Revenue CAGR ~35–40%, but negative operating cash flow indicates working capital pressure and capital-intensive growth.
🔹 Key Valuation & Ratios
| Metric | Value |
|---|---|
| Post-IPO P/E | ~14.5x – 16.5x |
| EPS (FY25) | ₹8.9 – ₹9.8 (Approx) |
| Debt-to-Equity | ~1.6x – 1.9x |
| RONW | ~17% – 20% |
| P/B Ratio | ~1.8x – 2.2x |
| EBITDA Margin | ~21% – 23% |
🔹 Promoter Shareholding
| Stage | Holding |
|---|---|
| Pre-IPO | 87.29% |
| Post-IPO (Estimated) | 64.25% |
🔹 Use of IPO Proceeds
- Purchase of plant and machinery
- Repayment of borrowings
- Working capital requirements
- General corporate purposes
📊 Peer Comparison (Indicative)
| Company | P/E (Approx) | Business Segment |
|---|---|---|
| Shayona Engineering | 14x – 16x | Engineering + Pipes |
| Average SME Engineering Peers | 18x – 25x | Manufacturing |
Conclusion: Valuation appears reasonable compared to SME peers.
🧠 Investor Sentiment Dashboard
| Retail Sentiment | Moderate ⚖️ |
| NII / HNI Interest | Positive ✅ |
| GMP Trend | Neutral ⚖️ |
| Overall Market Mood | Cautious ⚠️ |
📊 IPO Scorecard (Fintech Model)
| Business Quality | 7.2 / 10 |
| Financial Growth | 7.8 / 10 |
| Valuation Comfort | 7.4 / 10 |
| Risk Level | High ⚠️ |
| Overall IPO Score | 6.8 / 10 |
🔹 Strengths vs Risks
✅ Strengths
- Strong revenue growth trajectory
- Diversified engineering and piping business
- Reasonable valuation vs peers
⚠️ Risks
- High leverage and debt levels
- Negative operating cash flow
- SME liquidity risk
- Customer concentration risk
- High working capital dependency
🎯 Apply Strategy (Investor Framework)
- Short-term traders: Apply only if subscription crosses 5x+ and GMP turns positive.
- Medium-term investors: Apply selectively with high risk tolerance.
- Conservative investors: Avoid SME IPO volatility.
🔹 Final IPO Verdict (UPDATED)
Business Quality: Medium
Valuation: Reasonable
Risk Level: High
One-line verdict: Suitable only for high-risk investors. Listing gains may remain limited unless final-day subscription momentum improves significantly.
🔹 Updated Final Takeaway
Shayona Engineering IPO presents a classic SME risk–reward setup. Strong growth and reasonable valuation are positives, but muted GMP, high debt, and weak cash flows keep investor sentiment cautious. Final-day subscription trends will be the key trigger for listing performance.
Disclaimer: This content is for educational and informational purposes only. PositionalCalls does not provide financial advice. Always consult a SEBI-registered advisor before investing.
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