IPO-Bound Shivalaya Construction's Profit Slumps 42 Pc, Revenue Falls 12 Pc In FY25

(MENAFN- IANS) Mumbai, Sep 8 (IANS) New Delhi-based Shivalaya Construction filed its draft papers with market regulator SEBI to raise funds through a public issue has reported a 41.6 per cent fall in its financial performance for the year ended March 31 (FY25).

The company's net profit declined to Rs 343.8 crore in FY25, compared to Rs 588.9 crore in the previous financial year, according to its draft red herring prospectus (DRHP).

Its revenue also slipped 11.7 per cent to Rs 3,124.5 crore from Rs 3,537.5 crore in FY24.

The company's total income for FY25 stood at Rs 3,200.7 crore, lower than Rs 3,591.6 crore recorded a year earlier -- marking a decline of nearly 11 per cent.

Total expenses also dropped slightly to Rs 2,715.8 crore in FY25 from Rs 2,785 crore in FY24, as per its DRHP.

The IPO will consist of a fresh issue of shares worth Rs 450 crore along with an offer-for-sale (OFS) of 2.48 crore shares by promoters.

The company may also raise up to Rs 90 crore in a pre-IPO round as part of the fresh issue.

The infrastructure engineering, procurement and construction (EPC) company has planned to use Rs 340 crore from the fresh issue proceeds for repayment of borrowings, while the remaining funds will be used for general corporate purposes.

As of July, the company's total borrowings stood at Rs 856 crore. Founded in 1997, Shivalaya Construction focuses on building and maintaining roads and highways.

The company has completed 41 projects so far, including 31 road EPC projects, four HAM projects, and six other EPC projects.

It competes with listed peers like Ashoka Buildcon, Dilip Buildcon, KNR Constructions, HG Infra Engineering and PNC Infratech.

The IPO, with a face value of Rs 2 per share, will also have a reserved portion for eligible employees, who will be offered shares at a discount.

The offer will be managed by IIFL Capital Services, Axis Capital, and JM Financial.

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