On March 27, 2025, engineering solutions provider Ardee Engineering submitted its Draft Red Herring Prospectus to SEBI with the aim of raising ₹580 through an Initial Public Offering (IPO).
This public offering comprises a combination of a fresh issue of ₹500 crore and an offer-for-sale of ₹80 crore worth of shares by promoter Chandra Sekhar Moturu.
89.99% of shares in the company are held by its promoter/founder of the company Chandra Sekhar Moturu, whereas the remaining 10% of shares are held by his son, Ragdeep Moturu.
Ardee Engineering may plan to raise funds of ₹100 crore in the pre-IPO placement. If they successfully plan to do so, the fresh issue amount will be deducted by ₹100 crores at the time of the public offering.
Pennar Industries, Everest Industries, PSP Projects, ISGEC Heavy Engineering, and Interarch Building Products are the competitors of Ardee Engineering.
The proceeds raised through the fresh issue will be utilized in the grow of the company. The funds of ₹279.6 crore will be utilized to build the two new manufacturing facilities at Seetharampur, Telangana. The ₹44.8 crore will be used for the installation of a new integrated manufacturing facility at Parawada, Andhra Pradesh. An amount of ₹65 crore will be used for the repayment of the existing debt availed by the company. Lastly, the remaining funds will be used for the company’s general corporate usage. The company has a pending debt of ₹362.2 crore as of January 2025.
Ardee Engineering is one of the leading integrated design, engineering, and manufacturing companies. The company specializes in offering unique and customized engineering solutions for its customers. From the product design, its process, and development to achieve the best possible outcomes, the company collaborates with its customers to offer superior solutions.
The book-running lead managers of the issue are IIFL Capital Services and JM Financial. The equity shares of the public issue will be listed on the stock exchanges, Bombay Stock Exchange Limited and National Stock Exchange Limited.
Ardee Engineering IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Ardee Engineering Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2024 | ₹622.84 | ₹581.52 | ₹29.11 |
| September 2023 | ₹289.41 | ₹269.08 | ₹15.60 |
Ardee Engineering IPO Valuation – FY2024
Ardee Engineering IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹7.65 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 33.42% |
| Net Asset Value (NAV): | ₹21.77 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Pennar Industries Limited | 7.29 | 25.12 | 11.26% | 64.73 | 3,130.57 Cr. |
| Everest Industries Limited | 11.42 | 40.70 | 3.01% | 378.76 | 1,575.45 Cr. |
| Capacite Infraprojects Limited | 16.09 | 21.95 | 7.94% | 179.23 | 1,931.64 Cr. |
| PSP Projects Limited | 34.16 | 18.46 | 13.44% | 254.16 | 2,505.79 Cr. |
| Ahluwalia Contracts (India) Limited | 55.95 | 14.50 | 23.43% | 238.80 | 3,855.30 Cr. |
| ISGEC Heavy Engineering Limited | 33.14 | 29.71 | 10.33% | 335.44 | 6,219.34 Cr. |
| Interarch Building Products Limited | 58.68 | 25.32 | 19.54% | 306.11 | 1,293.30 Cr. |
Objects of the Issue
- funding the capital expenditure requirements of our Company towards setting up two new manufacturing facilities at Seetharampur, Telangana (“Project 1”);
- funding the capital expenditure requirements of our Company towards setting up a new integrated manufacturing facility at Parawada, Andhra Pradesh (“Project 2”);
- prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by our Company; and
- general corporate purposes.
IPO Lead Managers aka Merchant Bankers
- IIFL Capital Services Limited
- JM Financial Limited
