Silver Consumer Electricals files DRHP with Sebi to launch Rs 1,400 crore IPO

Silver Consumer Electricals Ltd (SCEL), based in Rajkot, has filed its Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India (Sebi) for an initial public offering (IPO) valued at Rs 1,400 crore. This includes a Fresh Issue of Rs 1,000 crore and an Offer for Sale (OFS) of Rs 400 crore. The IPO will be managed by Motilal Oswal Investment Advisors Limited, ICICI Securities Limited, JM Financial Limited, and Choice Capital Advisors Private Limited.

SCEL, recognised as a prominent manufacturer of electrical consumer durables, produces items such as pumps and motors, solar pumps and controllers, fans, lighting, and agricultural equipment. The company has seen a remarkable compound annual growth rate (CAGR) of 95.17% in revenue from operations between Fiscal 2023 and Fiscal 2025, making it the fastest-growing company in its sector in India.

The firm has established India's largest single-location, vertically integrated plant for electrical consumer durables and agricultural equipment in Rajkot, Gujarat. Spread over 138,821 square metres, this facility is equipped with advanced infrastructure and robotic automation, which allows SCEL to minimise external dependencies and ensure quality production. As of March 31, 2025, SCEL's installed capacity includes 2.4 million units of pumps and motors, 7.2 million units of fans, and 21.9 million units of lighting products.

SCEL operates under a dual business model, selling its own branded products under "Silver" and "Bediya" while also designing, manufacturing, and supplying products to renowned "OEMs" in India. This diverse approach allows SCEL to reach a wide market segment.

The proceeds from the Fresh Issue will primarily be used to repay or prepay existing borrowings, with Rs 865 crore allocated for this purpose, and Rs 35 crore set aside to clear debts of its subsidiary, BAPL. The remaining funds will cover general corporate expenses.

SCEL's large-scale operations and advanced manufacturing capabilities position it as a leader in the residential and solar pump segments. The company's focus on innovation and quality production ensures its competitive edge in the market.

Key dates for the IPO process, such as the open and close dates, basis of allotment, initiation of refunds, credit of shares to Demat accounts, and listing date are yet to be announced as SCEL moves forward with its public offering.