Ardee Engineering IPO Update – SEBI Approval Received

Ardee Engineering Limited, one of the leading engineering solutions providers in India, has received approval from the Securities and Exchange Board of India (SEBI) to launch its ₹580 crore IPO. The IPO will be a book-built issue, combining both a fresh issue and an offer-for-sale (OFS).

Ardee Engineering IPO Details

• IPO Size: ₹580 crore (Fresh Issue: ₹500 crore + OFS: ₹80 crore by promoter Chandra Sekhar Moturu)
• Face Value: ₹5 per equity share
• Pre-IPO Placement: The company may raise ₹100 crore in a pre-IPO round. If this happens, the fresh issue size will be reduced accordingly.
• Investor Quota (as per DRHP):
  • QIB (Qualified Institutional Buyers): 75%
  • NII (High Net-worth Individuals): 15%
  • RII (Retail Individual Investors): 10%
• Listing: Both NSE and BSE
• Book Running Lead Managers (BRLMs): IIFL Capital Services and JM Financial

Utilization of IPO Proceeds

The company intends to deploy the net proceeds from the fresh issue towards the following objectives:

• ₹279.6 crore – Construction of two new manufacturing facilities at Seetharampur, Telangana
• ₹44.8 crore – Setting up a new integrated manufacturing facility at Parawada, Andhra Pradesh
• ₹65 crore – Repayment of existing borrowings (company’s total debt stood at ₹362.2 crore as of Jan 2025)
• Balance funds – General corporate purposes and working capital requirements

About Ardee Engineering

• Incorporated: 2008
• Business: Integrated design, engineering, and manufacturing solutions provider
• Specialization: Customized engineering solutions – from product design to development and execution
• Capabilities: End-to-end services across engineering, fabrication, and manufacturing
• Clients: Serves sectors including infrastructure, power, oil & gas, heavy industries, and process plants
• Employees: Over 1,200 professionals as of March 2025, including engineers, R&D specialists, and project managers

Ardee Engineering Financial Highlights (₹ in Crores)

FY2025 figures are provisional up to January 2025.

• Revenue grew at a CAGR of 18% in the last 3 years
• Net Profit nearly doubled between FY2023 and FY2025
• Strong reduction trend in debt, supporting balance sheet health

Significance of the IPO

• The IPO will fund capacity expansion with two new facilities to boost output and efficiency.
• Strengthens Ardee’s market position as an integrated engineering solutions provider.
• Helps in debt reduction, improving the company’s leverage and credit profile.
• Provides liquidity for the promoter through OFS while enhancing public participation.