Shayona Engineering IPO GMP 2026: Price, Dates & Risks
Shayona Engineering IPO : Complete Review, GMP Updates, Financial Analysis, Risks & Investment Verdict (2026)
The SME IPO market in India continues to remain highly active in 2026, driven by strong government capital expenditure, defense indigenization, and massive infrastructure development. Among the latest offerings, Shayona Engineering Ltd IPO has attracted attention as a high-growth yet high-risk opportunity in the manufacturing segment.
Shayona Engineering Limited, a Gujarat-based company, is entering the capital markets at a critical phase of its business journey. From a small proprietorship founded in 2017, the company has evolved into a public limited manufacturing firm with operations spanning precision engineering and PVC & HDPE pipe manufacturing. The IPO opens for subscription on Thursday, January 22, 2026, and closes on Tuesday, January 27, 2026.
For investors, the Shayona Engineering IPO represents a classic case of strong sector tailwinds combined with balance sheet stress. The company operates in attractive sectors such as defense, aerospace, and infrastructure, but also carries heavy debt and high customer concentration risk. This detailed, SEO-optimized article provides a complete deep dive into the Shayona Engineering Ltd IPO, covering business overview, financials, debt, risks, valuation, Shayona Engineering IPO GMP, subscription strategy, and the final investment verdict.
Shayona Engineering IPO Highlights
About Shayona Engineering Limited – Company Background
Shayona Engineering Limited started operations in 2017 as a small proprietorship engaged in contract engineering and casting work. Over the years, the company expanded its technical capabilities, added new production processes, and gradually transitioned into a public limited company.
Today, Shayona operates through two key verticals:
- Precision Engineering (Core Business)
- PVC & HDPE Pipe Manufacturing (New Growth Segment)
The strategic shift toward infrastructure manufacturing reflects management’s ambition to reduce dependency on contract engineering and participate in India’s long-term water and housing infrastructure boom.
Precision Engineering – Core Strength of Shayona Engineering
The precision engineering division forms the backbone of Shayona Engineering’s operations. The company manufactures high-precision cast components using multiple casting technologies:
- Investment casting
- Sand casting
- Centrifugal casting
One of Shayona’s key advantages is its ability to manufacture components ranging from a few grams to nearly 1,500 kilograms, enabling it to serve diverse industrial requirements.
Key End-User Industries
- Automotive
- Aerospace
- Defense
These sectors require strict quality standards, certifications, and technical expertise. With the Indian government pushing “Make in India” and restricting defense imports, domestic suppliers like Shayona are well positioned to benefit from long-term procurement programs.
PVC & HDPE Pipes – Entry into Infrastructure Manufacturing
To diversify beyond precision engineering, Shayona Engineering has set up a new manufacturing facility (Unit-2) in Menpura, Gujarat, dedicated to PVC and HDPE pipes and fittings.
This expansion directly targets large government programs such as:
- Jal Jeevan Mission – rural tap water connections
- Pradhan Mantri Awas Yojana – affordable housing
- Smart Cities and urban water supply projects
With millions of homes and kilometers of pipelines under development, demand for pipes is expected to remain strong for several years. However, this segment is still in its early ramp-up phase and remains untested at large commercial scale, making execution a critical risk factor.
Financial Performance of Shayona Engineering Limited
The Red Herring Prospectus shows rapid growth in revenue and profitability, supported by aggressive expansion.
Financial Snapshot (₹ Crore)
Key Observations
- Revenue grew nearly 51% between FY24 and FY25.
- EBITDA margins improved sharply to above 21%, reflecting better operational efficiency.
- Net profit more than quadrupled in three years.
Despite strong growth, the balance sheet tells a more concerning story.
Rising Debt – The Biggest Risk Factor
Shayona Engineering’s borrowings increased sharply:
- FY23 borrowings: ₹3.45 crore
- Nov 2025 borrowings: ₹22.60 crore
The Net Debt to EBITDA ratio of 5.52 is very high for an SME manufacturing firm. Most of the borrowing funded the new pipe manufacturing facility.
Why High Debt Matters
- Higher interest burden reduces profitability
- Limited flexibility during downturns
- Greater sensitivity to interest rate hikes
Debt reduction will be critical for long-term stability.
Key Risks in Shayona Engineering IPO
1. Client Concentration Risk
Nearly 92% of revenue comes from the top 10 customers. Loss of even one large client could significantly impact earnings.
2. Weak Operating Cash Flow
Operating cash flows were negative in FY23, FY24, and FY25, indicating profits tied up in receivables and inventory.
3. Execution Risk in New Segment
The pipe manufacturing business is still unproven at scale and may face pricing pressure and intense competition.
4. SME Liquidity & Volatility Risk
BSE SME stocks often face low liquidity and sharp price swings post listing.
Shayona Engineering IPO GMP – Grey Market Premium
As of now, Shayona Engineering IPO GMP is inactive. GMP usually becomes active 3–4 days before the IPO opens and reflects unofficial demand and listing expectations.
How to Use GMP Data
- Rising GMP indicates strong demand and possible listing gains
- Flat GMP signals cautious sentiment
- Combine GMP with subscription data before applying
Industry Outlook – Defense & Infrastructure Tailwinds
India’s defense manufacturing ecosystem is expanding rapidly due to indigenization and rising defense budgets. Precision component suppliers benefit from long-term contracts and technical entry barriers.
Simultaneously, water supply and housing infrastructure programs are driving sustained demand for pipes and fittings. This dual-sector exposure gives Shayona strong long-term growth potential if execution remains strong.
Use of IPO Proceeds
The IPO proceeds will be used for:
- Capital expenditure for pipe manufacturing unit
- Repayment/prepayment of certain borrowings
- Working capital requirements
- General corporate purposes
Debt reduction remains a key objective.
Promoters & Management
Promoters:
- Vipul Bhikhabhai Solanki
- Gaurav Ratukumar Parekh
- Kinnariben Vipulbhai Solanki
The promoters bring experience in manufacturing and engineering, but management depth remains limited compared to larger peers.
Valuation & Listing Expectations
At ₹144 per share, valuation appears moderate but enterprise value is inflated due to high debt. Investors should closely track:
- Final subscription numbers
- GMP trend
- Post-issue P/E and EV/EBITDA multiples
Final Verdict – Should You Apply?
Bull Case
- Exposure to defense and aerospace manufacturing
- Entry into high-growth infrastructure segment
- Strong revenue and margin expansion
Bear Case
- Very high debt and leverage
- Extreme client concentration
- Weak historical cash flows
- SME volatility risk
Conclusion
The Shayona Engineering IPO is suitable only for high-risk investors. Short-term listing gains are possible if pricing and GMP are favorable, but long-term investors should wait for debt reduction and business stabilization.
How to Apply for Shayona Engineering IPO
Investors can apply online through sebi registered brokers using UPI or via ASBA at bank branches. Funds remain blocked until allotment is finalized.
Important Dates
FAQs
1. When does the Shayona Engineering IPO open and close?
The IPO opens on Thursday, January 22, 2026, and closes on Tuesday, January 27, 2026.
2. Who’s handling the registrar duties for this IPO?
KFin Technologies Limited is the registrar.
3. What’s the size of the Fresh Issue?
They’re offering a total of 10,32,000 new equity shares.
4. Where will these shares be listed?
You’ll find them on the BSE SME platform.
5. Who are the promoters behind Shayona Engineering?
The promoters are Vipul Bhikhabhai Solanki, Gaurav Ratukumar Parekh, and Kinnariben Vipulbhai Solanki.
Final Disclaimer
This article is for educational purposes only. SME IPOs involve high risk and volatility. Please consult your financial advisor and carefully read the Red Herring Prospectus before investing.
