Shares of aluminium product manufacturer Sarvaya Metals were listed on BSE SME today. The IPO was priced at ₹196, and it opened at ₹219 on listing, giving investors an initial gain of 11.73%. However, the stock later fell to a lower circuit of ₹208.05. The company will utilize the funds raised from the IPO for its plant, machinery, civil construction, and working capital.
IPO Listing: Shares of Sarvaya Metals, which manufactures aluminium alloy ingots, billets, slabs, sheets, and electric vehicle battery enclosures, were listed on BSE SME today. The shares were issued at an IPO price of ₹196 and opened at ₹219 on listing. However, after some time, the stock fell to a lower circuit of ₹208.05. Out of the ₹49 crore raised from the IPO, ₹20.40 crore will be used for plant and machinery, ₹5.17 crore for civil construction and electrification, and ₹9 crore for working capital.
IPO Entry and Listing Gain
The IPO of Sarvaya Metals was open for subscription from September 4-9. The IPO received a good response from investors and was overall subscribed 4.83 times. New shares were issued at a price of ₹196. Today, the share was listed on BSE SME at ₹219.00, giving investors a listing gain of 11.73%.
However, after the initial surge, the stock fell to a lower circuit of ₹208.05. In this situation, IPO investors are now in a profit of approximately 6.15%. This volatility has further heightened investor attention on Sarvaya Metals' shares in the market.
Utilisation of IPO Funds
Sarvaya Metals raised a total of ₹58.80 crore through this IPO. Of this, ₹49 crore came from the issuance of new shares, while 5 lakh shares were sold under an offer for sale. The money from the offer for sale went to the selling shareholders.
Out of the funds raised from new shares, ₹5.17 crore will be spent on civil construction and electrification. ₹20.40 crore will be allocated for the purchase of plant and machinery. ₹9.00 crore has been earmarked for working capital needs. The remaining funds will be used for general corporate purposes.
Sarvaya Metals Company Profile
Sarvaya Metals was established in 2014. The company manufactures various aluminium products such as alloy ingots, billets, slabs, sheets, and electric vehicle battery enclosures. These products are exported not only in India but also to international markets.
The company's customers include companies in the cookware, consumer appliances, automotive, and defence sectors. The demand for its products is continuously increasing, which strengthens the company's financial health.
Financial Performance
The company's net profit stood at ₹1.95 crore in FY2023. It slightly decreased to ₹1.54 crore in FY2024, but in FY2025, the profit surged to ₹12.51 crore.
During this period, the company's total income grew at a compound annual growth rate (CAGR) of over 26% to reach ₹112.76 crore. The company's debt was ₹14.92 crore at the end of FY2023, ₹13.47 crore in FY2024, and ₹14.97 crore in FY2025.
The position of reserves and surplus has also improved. It reached ₹3.09 crore in FY2023, ₹40 lakh in FY2024, and ₹15.25 crore in FY2025.
Stock Listing Volatility
The volatility in the stock listing on the very first day of the IPO has increased investor curiosity. While the initial surge provided good profits to investors, there was also some disappointment in the market after the lower circuit hit.
Experts suggest that considering the company's b financial performance and continuously growing revenue, Sarvaya Metals could be an attractive option for long-term investors. However, the stock's volatility in the initial days indicates the need for caution in the market.
