Source: mint
HYDERABAD, August 26, 2025. Hyderabad-based Ardee Engineering Ltd has received final approval from the market regulator, the Securities and Exchange Board of India (SEBI), to raise ₹580 crore via an initial public offering (IPO). The company’s draft red herring prospectus (DRHP) was filed in March 2025, and the final clearance came from SEBI last week.
An IPO consists of two components. The first is a fresh issue of ₹500 crore worth of shares. The second is an offer-for-sale (OFS) of ₹80 crore worth of shares by promoter Chandra Sekhar Moturu. The fresh issue proceeds will be used primarily for expansion and debt repayment. Specifically, ₹279.6 crore will be used to set up two new manufacturing units in Seetharampur, Telangana. Another ₹44.8 crore will be for building an integrated manufacturing facility in Parawada, Andhra Pradesh. The company plans to repay or prepay loans of ₹65 crore, and the remaining amount will be for general corporate purposes.
IIFL Capital Services Limited and JM Financial Limited, the book-running lead managers for the IPO, will also manage the IPO. Upon launch, the shares will be listed on the BSE and the NSE.
Background of the Company
Ardee Engineering was set up in 2008 as a partnership firm, which has now evolved into an integrated design, engineering, and manufacturing company. It has three core areas of focus:
- Pre-engineered buildings (PEB)
- Material handling systems (MHS)
- Engineering services
The business serves many industries, which include e-commerce and logistics, electronics manufacturing, defense, aerospace, steel, construction, power generation, and mining. It has users from some of the best Bollywood and Hollywood stars in India, which includes customers such as ArcelorMittal Nippon Steel India Ltd (AM/NS), JK Cement, Navayuga Engineering, and Udaipur Cement Works.
Financial Results
Ardee Engineering reported revenue of ₹620 crore with a net profit of ₹29 crore for the Financial Year (FY) 2023-24 (FY24). Though the profit isn’t substantial, Ardee is relying on its expansion plans to increase growth and more than likely, earnings in the next few years.
Looking Forward
With SEBI’s approval, Ardee Engineering will enter the capital markets to support its growth journey. The IPO is expected to enable Ardee Engineering to expand its manufacturing footprint, pay down debt, and enhance its financial position. Not all eyes will be glued on the IPO date, price band, and subscription details in the coming weeks.
