Eswari Global Metal Industries Secures SEBI Approval for Rs 500 Crore Fresh Issue IPO

Coimbatore-headquartered Eswari Global Metal Industries Limited has received the observation letter from the Securities and Exchange Board of India (SEBI), granting regulatory approval to raise capital through an initial public offering (IPO).

The proposed issue consists of a fresh issue of equity shares worth up to Rs 500 crore and an offer-for-sale (OFS) of up to 1,32,09,451 equity shares of face value Rs 2 each by promoters and an existing shareholder. According to market estimates, the total issue size is pegged between Rs 1,100 crore and Rs 1,300 crore.

Details of the Offer-for-Sale and Pre-IPO Option

The OFS component will see share sales from members of the promoter group, including C Bharanikumar, Pradeep Chandrasekaran, Prasath Chandrasekaran, Sabarinathan Anbalagan, Hari Sudhan A, Nithin Arumugam, P Anbalagan, and P Arumugam. Other selling shareholders include Palaniappan Ramalingam.

The company, in consultation with its merchant bankers, may evaluate a pre-IPO placement of up to Rs 100 crore. If executed, the fresh issue component will be scaled down proportionately.

The IPO reservation structure allocates:

• Not more than 50% of the net offer to Qualified Institutional Buyers (QIBs)
• Not less than 15% to Non-Institutional Investors (NIIs)
• Not less than 35% to Retail Individual Investors (RIIs)

Utilization of IPO Proceeds

The net proceeds from the fresh issue will be deployed across capacity addition and balance sheet deleveraging:

• Mundra Facility Expansion: Rs 150 crore is earmarked to part-finance the Phase-II capital expenditure for its manufacturing unit located at Mundra, Gujarat.
• Debt Repayment: Rs 250 crore will be utilized for full or partial pre-payment/repayment of outstanding borrowings availed by the company and its subsidiaries.
• General Corporate Purposes: The remaining funds will support routine corporate operations and working capital needs.

Business Profile and Financial Performance

Incorporated in 1987, Eswari Global Metal Industries operates as an integrated multi-metal and waste recycling firm. The company recycles non-ferrous metal scrap, e-waste, and plastics to produce pure lead, lead alloys, aluminium alloys, copper ingots, tin products, and plastic granules.

According to CRISIL data cited in its draft papers, the company stands as the largest exporter of lead alloy products from India and the third-largest exporter of lead and lead alloys overall by value. It is also the only Indian enterprise holding London Metal Exchange (LME) accreditation across two purity levels (99.97% and 99.985%) for lead brands.

The group operates nine manufacturing plants across Tamil Nadu and Karnataka, boasting an aggregate installed capacity of 165,106 metric tonnes per annum (MTPA).

For the nine-month period ended December 31, 2025, the company reported revenue from operations of Rs 1,401.5 crore and a net profit of Rs 83.9 crore.

DAM Capital Advisors, ICICI Securities, and Motilal Oswal Investment Advisors are serving as the book-running lead managers to the issue, while KFin Technologies is the registrar. The equity shares will be listed on both the BSE and the National Stock Exchange of India (NSE).

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