Shivalaya Construction Files for IPO Amid Dip in Profits and Revenue
Mumbai-based Shivalaya Construction, a key player in India’s infrastructure sector, has filed its draft papers with SEBI for a public issue to raise funds. However, the company’s financials show a tough year, with net profit dropping 41.6% in FY25. This comes as the Delhi-headquartered firm gears up for its much-awaited IPO in the competitive construction market.
According to the draft red herring prospectus (DRHP), Shivalaya Construction’s net profit fell to Rs 343.8 crore in the year ended March 31, 2025, down from Rs 588.9 crore in FY24. Revenue also took a hit, slipping 11.7% to Rs 3,124.5 crore from Rs 3,537.5 crore the previous year. Total income stood at Rs 3,200.7 crore for FY25, marking an 11% decline compared to Rs 3,591.6 crore in FY24. On the expense side, total costs eased slightly to Rs 2,715.8 crore from Rs 2,785 crore in FY24.
Despite the financial slowdown, Shivalaya Construction plans to launch its IPO soon. The public issue includes a fresh issue of shares worth Rs 450 crore and an offer-for-sale (OFS) of 2.48 crore shares by promoters. The company might also secure up to Rs 90 crore through a pre-IPO placement as part of the fresh issue. Out of the proceeds, Rs 340 crore will go towards repaying borrowings, with the rest allocated for general corporate purposes. As of July, the firm’s total borrowings amount to Rs 856 crore.
Founded in 1997, Shivalaya Construction specializes in infrastructure engineering, procurement, and construction (EPC) projects, focusing on roads and highways. The company has successfully completed 41 projects so far, including 31 road EPC projects, four hybrid annuity model (HAM) projects, and six other EPC initiatives. It faces stiff competition from established names like Ashoka Buildcon, Dilip Buildcon, KNR Constructions, HG Infra Engineering, and PNC Infratech.
The IPO shares carry a face value of Rs 2 each, and there’s a special reservation for eligible employees, who can buy them at a discount. Leading financial institutions IIFL Capital Services, Axis Capital, and JM Financial will manage the offer.
This move highlights the growing interest in India’s booming infrastructure sector, even as companies like Shivalaya Construction navigate economic challenges. Investors will watch closely how the IPO performs amid the company’s recent profit dip and revenue decline.
