The fixed-price issue comprises a fresh issue of 15 lakh equity shares at a price of Rs 114 per share, entirely from new capital. Investors can apply for a minimum of 2,400 shares, requiring an investment of Rs 2.73 lakh at the issue price. The grey market premium (GMP) for the IPO currently stands at zero, indicating muted listing expectations so far.
About the company
Shining Tools designs and manufactures high-performance solid carbide cutting tools under the brand “Tixna”. Its tools, including end mills, thread mills, drills, and reamers, are used for precision metal cutting in industries such as automotive, aerospace, defense, agriculture, power, engineering, and medical.The company also provides reconditioning services to extend tool life and enhance performance. Its manufacturing facility is located in Rajkot, Gujarat, equipped with advanced machinery for producing customized and high-precision cutting tools.
Strong growth in recent years
The company has reported healthy growth across key financial parameters. Revenue rose 39% year-on-year to Rs 14.77 crore in FY25, while net profit jumped 86% to Rs 2.93 crore, reflecting operational efficiency and growing demand.EBITDA surged to Rs 6.23 crore, translating into an EBITDA margin of nearly 47% and a PAT margin of 27%, among the highest in its segment.
IPO objectives
Funds raised from the IPO will primarily go toward purchasing and installing new machinery to expand manufacturing capacity for carbide precision tools at its existing premises. The company has earmarked Rs 9.07 crore for this purpose, Rs 3.85 crore for working capital, and Rs 2.48 crore for general corporate purposes.
Outlook
With demand rising across sectors like automotive manufacturing, defense engineering, and industrial automation, Shining Tools is looking to strengthen its market position in precision carbide tooling. The IPO proceeds will help the company scale operations and improve efficiency at a time when India’s manufacturing ecosystem is expanding rapidly under the “Make in India” initiative.
The IPO’s allotment is expected on November 12, shares will be credited by November 13, and the listing is scheduled for November 14.
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