Ardee Engineering gets final nod from SEBI for Rs 580 crore IPO

Ardee Engineering has received SEBI’s go ahead to raise Rs 580 crore through an initial public offering (IPO), as per an update on the capital markets regulator’s website. As per the update, the company, which filed its DRHP with SEBI in March 2025, obtained its observations during the last week.

The Initial Public Offering of the Hyderabad headquartered company consists of a fresh issue of equity shares worth Rs 500 crore and an Offer for Sale of equity shares aggregating up to Rs 80 crore by the promoter Chandra Sekhar Moturu, according to the draft red herring prospectus (DRHP).

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Ardee proposes to utilise Rs 279.6 crore from the net proceeds of the fresh issue towards capex requirements for setting up two new manufacturing facilities at Seetharampur, Telangana; Rs 44.8 crore for establishing a new integrated manufacturing facility at Parawada, Andhra Pradesh; Rs 65 crore for prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company and rest for general corporate purposes.

IIFL Capital Services Limited and JM Financial Limited are the book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.

Incorporated in 2008 as a partnership firm, Ardee’s key customers include some of the leading globally recognized blue chip brands; ArcelorMittal Nippon Steel India Limited (AM/NS), JK Cement Limited, Navayuga Engineering Company Limited, Udaipur Cement Works Limited to name a few. Ardee, which has a diverse client base spanning multiple sectors like e-commerce and logistics, electronics manufacturing, defense, aerospace, steel production, construction, power generation, and mining, serves its customers through five strategically located manufacturing units in Andhra Pradesh and Telangana.As on March 31, 2024, it had an aggregate installed capacity of 44,144 metric tonnes per annum (MTPA). On the financial front, Ardee reported revenue from operations of Rs 620 crore and a profit after tax (PAT) of Rs 29 crore in FY24.

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The company is an integrated design, engineering and manufacturing company having three primary business lines – pre-engineered buildings (PEB), material handling systems (MHS) and engineering services.

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