Shivalaya Construction files draft paper with Sebi to launch IPO; check details

New Delhi-based Shivalaya Construction. has initiated steps to launch its initial public offering (IPO) by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The IPO will comprise a fresh issue of shares aggregating up to Rs 450 crore alongside an offer-for-sale of up to 24,861,900 equity shares by existing promoters.

The IPO aims to raise funds primarily for the pre-payment or repayment of borrowings amounting to Rs 340 crore and to meet general corporate purposes. The offer, with a face value of Rs 2 per share, is structured to include a reservation for eligible employees, who will receive a discount when bidding in this segment.

Potential investors should note that the offer is being conducted through a book-building process, with allocations planned as follows: up to 50% for qualified institutional buyers, up to 15% for non-institutional investors, and up to 35% for retail individual investors. The company may also consider a pre-IPO placement that could reduce the size of the fresh issue by up to Rs 90 crore.

Shivalaya Construction, incorporated as a private limited entity in 1997, transitioned to a public limited company earlier this year. It specialises in infrastructure engineering and construction, with a focus on roads, highways, and bridges. The company has successfully executed 41 projects across 19 states and union territories as of July 2025.

The company operates using both engineering, procurement and construction (EPC) and hybrid annuity model (HAM) frameworks. In the EPC domain, Shivalaya undertakes projects such as highways, bridges, buildings, and civil infrastructure like waterworks, while the HAM model is mainly used for road and highway development.

Shivalaya has an impressive track record, having constructed over 2,700 lane kilometres of roads and highways, with ongoing projects covering over 1,500 lane kilometres. The company has 14 active projects across various states, including five EPC and nine HAM projects.

Financially, the company has demonstrated significant growth, with consolidated revenue from operations rising from Rs 2,731.5 crore in Fiscal 2023 to Rs 3,124.5 crore in Fiscal 2025. This growth is largely attributed to the company's HAM projects, which saw revenue increase from Rs 1,709.8 crore to Rs 2,613 crore over the same period.

The order book of Shivalaya stood at Rs 3,626.9 crore as of July 2025, while its project bid book comprised 19 projects worth Rs 6,969.8 crore, indicating robust future prospects. The company is also venturing into new sectors and has placed bids for railway projects worth Rs 1,341 crore.

IIFL Capital, Axis Capital, and JM Financial are acting as the book-running lead managers for this IPO, while MUFG Intime India Private Limited serves as the registrar. Equity shares from this offer are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The IPO is expected to attract considerable interest given Shivalaya's extensive experience and robust financial performance. The precise dates for the opening and closing of the IPO, along with the allotment and listing schedule, will be announced in due course.