Ardee Engineering gets the last kink from Sebi for RS 580 Crore IPO

Ardee Engineering has received Sebi’s Go to RS 580 Crore via a first public offer (IPO), according to an update on the website of the Capital Markets Regulator. According to the update, the company, which submitted its DRHP to Sebi in March 2025, has obtained its observations in the past week.

The initial public offer of the Hyderabad head office consists of a new issue of shares of shares with a value of RS 500 Crore and an offer for sale of shares that are aggregated up to RS 80 Crore by the promoter Chandra Sekhar Moturu, according to the Draft Red Herring Prospectus (DRHP).

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Ardee proposes to use RS 279.6 Crore from the net yield of the new issue for the Capex requirements for setting up two new production facilities in Seetharampur, Telangana; RS 44.8 Crore for setting up a new integrated production facility in Parawada, Andhra Pradesh; RS 65 Crore for advance payment or reimbursement, fully or partially, of certain outstanding loans used by the company and resting for general business purposes.

IIFL Capital Services Limited and JM Financial Limited are the book that lead managers leads to the issue. The shares are proposed to be mentioned on BSE and NSE.

Recorded as a partnership agency in 2008, the most important customers of Ardee are some of the leading worldwide -recognized Blue Chip brands; ArcelorMittal Nippon Steel India Limited (AM/NS), JK Cement Limited, Navayuga Engineering Company Limited, Udaipur Cement Works Limited to name just a few. Ardee, which has a diverse customer base with multiple sectors such as e-commerce and logistics, electronics production, defense, space travel, steel production, construction, power generation and mining, serves his customers through five strategically located production units in Andhra Pradesh and Telangana. AS on March 31, 2024, it had an aggregate installed capacity of 44.14 Metric Metric Metric (MTPA). On Financial Front, Ardee reported income from the activities of RS 620 Crore and a profit after tax (PAT) of RS 29 Crore in FY24. Also read Lucky 13! Invesco India Midcap Fund and HDFC Small Cap Fund under Equity Investment Funds that produce more than 20% return in 6 months

The company is an integrated design, engineering and production company with three primary business lines- pre-developed buildings (PEB), material treatment systems (MHS) and engineering services.

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