Metal Recycling Giant Eswari Global Files IPO, Targeting Rs 500 Crore for Major Expansion Push
Eswari Global Metal Industries, a prominent metal recycling and manufacturing company based in Karnataka, has officially filed its preliminary papers for an Initial Public Offering (IPO). The filing details the company's plan to raise significant capital through the public market.The draft document, submitted on June 28, outlines the fundraising targets for Eswari Global Metal Industries. The company proposes raising Rs 500 crore by issuing fresh shares. Furthermore, promoters intend to sell 1.32 crore equity shares via an offer-for-sale component of the IPO.
Operational Scope and Business Structure
Eswari Global Metal Industries operates nine manufacturing facilities across Karnataka and Tamil Nadu. The company specializes in creating value-added non-ferrous metal products. These include lead, tin, aluminium, copper, plastics, and various other products derived from recycling scrap.The company possesses an installed production capacity of 1.65 lakh metric tonnes per annum (MTPA). Lead and related products currently contribute approximately 90 percent to the business revenue. Aluminium alloys, copper ingots, tin products, and plastic granules form the remaining component of its revenue streams.
IPO Proceeds Allocation and Future Plans
The funds generated from the fresh issue are designated for strategic corporate purposes. Rs 150 crore of the proceeds is earmarked specifically for the expansion of Phase 2 of the manufacturing facility located in Mundra, Gujarat. Another significant portion of Rs 250 crore will be utilized for debt repayment.The company noted that it has spent Rs 37.3 crore to date financing the initial phase of the Mundra manufacturing facility. This includes land and shed acquisition, related civil work, and orders placed for plant and machinery. Future expenditures relating to Phase 2 expansion will be funded by internal accruals until net proceeds become available.
Financial Performance Highlights
On the financial front, Eswari Global Metal Industries demonstrated solid performance over recent periods. For the nine-month period ending December 2025, the company reported a revenue of Rs 1,401.5 crore and generated a profit of Rs 83.9 crore.Comparing the last full fiscal year, which ended in March 2025, the company's revenue stood at Rs 1,407.6 crore, representing a 17 percent increase. However, the net profit for that financial year was reported as Rs 30.2 crore, marking a marginal decline of 0.9 percent compared to the previous period.
Merchant Banking and Funding Details
The IPO process is being managed by a panel of merchant bankers. The firms handling Eswari Global Metal Industries' public offering are DAM Capital Advisors, ICICI Securities, and Motilal Oswal Investment Advisors. The company may also consider raising up to Rs 100 crore in a pre-IPO round as part of the fresh issue component.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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