Mumbai : New Delhi-based Shivalaya Construction, an infrastructure EPC (engineering, procurement, and construction) company, reported a sharp decline in its financial performance for the year ended March 31, FY25, while filing its draft papers with SEBI for an upcoming initial public offering (IPO).
The company’s net profit fell 41.6% to Rs 343.8 crore in FY25, down from Rs 588.9 crore in FY24, according to its draft red herring prospectus (DRHP). Revenue dropped 11.7% to Rs 3,124.5 crore from Rs 3,537.5 crore in the previous fiscal year. Total income for FY25 reached Rs 3,200.7 crore, reflecting a nearly 11% decline from Rs 3,591.6 crore in FY24.
Total expenses slightly decreased to Rs 2,715.8 crore in FY25 from Rs 2,785 crore in FY24. The decline in profit and revenue highlights the challenges the company faced amid competitive market conditions and project execution delays.
Shivalaya Construction plans to raise funds through a fresh issue of Rs 450 crore, along with an offer-for-sale (OFS) of 2.48 crore shares by promoters. Additionally, the company may raise up to Rs 90 crore in a pre-IPO round as part of the fresh issue.
The company will use Rs 340 crore from the fresh issue to repay borrowings and allocate the remaining proceeds for general corporate purposes. As of July, Shivalaya’s total borrowings stood at Rs 856 crore.
The IPO will reserve a portion of shares for eligible employees, offering them shares at a discount. IIFL Capital Services, Axis Capital, and JM Financial will manage the issue.
Founded in 1997, Shivalaya Construction builds and maintains roads and highways. The company has completed 41 projects, including 31 road EPC projects, four HAM projects, and six other EPC assignments.
Shivalaya competes with listed peers such as Ashoka Buildcon, Dilip Buildcon, KNR Constructions, HG Infra Engineering, and PNC Infratech in the infrastructure sector. The IPO offers investors exposure to its ongoing and upcoming projects while helping the company strengthen its balance sheet.
Despite the FY25 performance slump, Shivalaya Construction’s IPO presents an opportunity for investors seeking exposure to the road construction and EPC sector. By focusing on debt reduction and continuing infrastructure projects, the company aims to improve its financial stability in the coming years.
Also Read : ITR Filing: Taxpayers Urged to Submit Before Sept 15 Deadline
