Ardee Engineering, a Hyderabad-headquartered design and engineering solutions provider, has successfully raised INR 15.01 crore through the Ardee Engineering Pre-IPO Round, marking a significant step toward its forthcoming INR 580 crore initial public offering (IPO). The company secured this funding from Delta Innovative Research and Century Flour Mills, reflecting strong institutional confidence in its venture, business model, and expansion plans.
Ardee Engineering Pre-IPO Round Placement Details
According to the public announcement and filings with SEBI, the pre-IPO placement involved the allotment of 3,53,100 equity shares at an issue price of INR 425 per share, including a premium of INR 420 per share. The transaction values Ardee Engineering at approximately INR 1,705.3 crore post-money and results in a 0.88% equity dilution.
The issue was conducted through private placement in compliance with Section 42 of the Companies Act, 2013, and the Companies (Prospectus and Allotment of Securities) Rules, 2014. The board of directors approved the allotment on 10 November 2025, following shareholders’ consent granted on 5 November 2025.
Both allottees—Delta Innovative Research and Century Flour Mills—are external investors with no prior connection to Ardee’s promoters, management, or group entities. In accordance with Regulation 17 of the SEBI (ICDR) Regulations, the shares issued under this placement will remain subject to a mandatory lock-in period.
Ardee Engineering IPO Structure and SEBI Approval
This pre-IPO raise follows Ardee’s DRHP filing dated 27 March 2025, and SEBI’s subsequent approval in August 2025 to proceed with a public issue worth INR 580 crore. The IPO will comprise:
- A fresh issue of equity shares aggregating up to INR 500 crore, and
- An offer for sale (OFS) of up to INR 80 crore by promoter Chandra Sekhar Moturu.
The company plans to utilize the net proceeds from the fresh issue as follows:
- INR 279.6 crore for setting up two new manufacturing facilities in Seetharampur, Telangana
- INR 44.8 crore for developing an integrated facility in Parawada, Andhra Pradesh
- INR 65 crore for prepayment or repayment of outstanding borrowings
- The remainder toward general corporate purposes
IIFL Capital Services and JM Financial are the Book Running Lead Managers (BRLMs) for the issue, while Bigshare Services serves as the registrar.
Company Overview
Ardee Engineering specializes in pre-engineered buildings, material handling systems, and engineering services, catering to prominent clients such as ArcelorMittal Nippon Steel India, JK Cement, Navayuga Engineering, and Udaipur Cement Works. With five manufacturing units across Andhra Pradesh and Telangana and a combined installed capacity of 44,144 metric tonnes per annum, Ardee is a key player in the industrial engineering and infrastructure solutions space.
Financial Performance
As per financials disclosed in its DRHP, Ardee Engineering reported operational revenue of INR 620 crore and a profit after tax (PAT) of INR 29 crore for the financial year ended 31 March 2024. The company’s steady profitability and expanding industrial footprint form a solid foundation as it moves toward public listing.
Conclusion
The successful completion of the Ardee Engineering Pre-IPO Round signals robust investor confidence in the company’s growth prospects ahead of its mainboard listing. With SEBI’s approval secured and a strategic deployment plan for the IPO proceeds focused on capacity expansion and debt reduction, Ardee Engineering is well-positioned to strengthen its leadership in India’s rapidly evolving engineering and infrastructure ecosystem.
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