Ardee Engineering IPO

About Ardee Engineering IPO

Ardee Engineering Limited is launching an IPO comprising a fresh issue and an offer for sale. The fresh issue consists of equity shares with a face value of ₹5 each, aggregating up to ₹500 crores. The offer for sale includes equity shares with a face value of ₹5 each, aggregating up to ₹80 crores. The total offer size is ₹580 crores, with Chandra Moturu being the promoter selling shareholder.

Objectives of Ardee Engineering IPO

• Funding capital expenditure requirements towards setting up two new manufacturing facilities in Telangana
• Funding capital expenditure requirements towards setting up an integrated manufacturing facility in Andhra Pradesh
• Prepayment or repayment, in full or in part, of the company’s outstanding borrowings
• General corporate purposes

Industry Outlook

As per the CARE Report, India's construction market was valued at USD 288.4 billion in 2023 and is projected to grow at a CAGR of 9% till 2029, driven by urbanisation and infrastructure development. Infrastructure leads with 39% market share, while residential construction is expected to grow the fastest at 11% CAGR. The demand for eco-friendly and energy-efficient designs is also rising.

Company Information

Started in 2008, Ardee Engineering Limited is a fast-growing integrated company specialising in design, engineering, and manufacturing across three key areas: pre-engineered buildings (PEBs), material handling systems (MHS), and engineering services in structural and automation projects. With an annual capacity of 44,144 metric tonnes, the firm has completed projects in 13 states over the last 16 years.

Risks of Ardee Engineering IPO

• The company’s business is highly dependent on a concentrated customer base, with over 60% of its revenue consistently coming from its top five clients. Any loss or reduced business from these key customers could significantly impact its operations and financial performance.

• The firm relies heavily on third-party suppliers for raw materials, particularly steel, with over 50% of its raw material costs tied to its top 10 suppliers. The absence of exclusive contracts increases vulnerability to supply disruptions, cost fluctuations and potential delivery delays.

• A significant portion of the company’s revenue comes from repeat orders or business from related entities. Any decline in these recurring orders could materially affect its growth, profitability and financial stability.

IPO Registrar and Book Running Lead Manager

Registrar: Bigshare Services Private Limited Book Running Lead Managers: IIFL Capital Services Limited, JM Financial Limited

Business Model

Ardee Engineering Limited is an integrated design, engineering, and manufacturing firm whose core strength lies in providing a comprehensive suite of end-to-end solutions across industries and geographies, with a strong focus on Pre-Engineered Buildings (PEB), Material Handling Systems (MHS), and Engineering Services. These three business lines form the backbone of the firm's operations.

In the PEB segment, the company offers comprehensive services—from design and engineering to manufacturing and project execution—of steel structures for warehouses, data centres, logistics facilities, factories, and more.

In the MHS segment, it specialises in solving complex bulk material handling challenges. Its custom-designed systems streamline manufacturing processes for clients across metals, mining, and port sectors. These systems include conveyor belts, crushing and screening equipment, bucket elevators, dust extraction units, and more.

Its engineering services cover heavy structural and precision engineering equipment, as well as electrical instrumentation with automation. This vertical supports both PEB and MHS projects and has also enabled the firm to enter niche industries like defence and aerospace.

The company operates five strategically located manufacturing units across Andhra Pradesh and Telangana, with a combined installed capacity of 44,144 MTPA as of March 2024. Its backward-integrated infrastructure, including a fleet of 67 heavy vehicles, allows it to minimise third-party logistics dependency and shorten project lead times.

Company Growth Trajectory

Over the last few years, Ardee Engineering Limited has demonstrated significant growth in its revenue from operations – increasing from ₹216.86 crores in FY 2022 to ₹620.99 crores in FY 2024. Likewise, EBITDA has also substantially improved – from ₹9.09 crores in FY 2022 to ₹60.64 crores in FY 2024. EBITDA margin has also shown an upward spike, rising from 4.18% in FY 2022 to 9.74% in FY 2024.

How to Check Allotment Status of Ardee Engineering IPO?

Visit the Registrar's Website

To check the IPO allotment status for Ardee Engineering Limited IPO, visit the official website of Bigshare Services Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
• Choose ‘Ardee Engineering Limited’ in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search' Your Ardee Engineering Limited IPO allotment status will be displayed.

Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Ardee Engineering Limited IPO allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN Then click 'Submit'. Your Ardee Engineering IPO bid and allotment details will be displayed.

How to Apply for Ardee Engineering IPO?

• Step 1: Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.