Allied Engineering Files DRHP for ₹400 Cr Fresh Issue and 75 Lakh-Share OFS by Promoter Ashutosh Goel
By Shishta Dutta | Published at: Jul 5, 2025 12:54 PM IST
New Delhi, July 5, 2025 — Allied Engineering Works Ltd has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a public issue comprising a ₹400 crore fresh issue and an offer for sale (OFS) of 75,00,000 equity shares by promoter Ashutosh Goel, signaling a major step in the company’s capital markets journey.
The IPO, proposed under Regulation 6(1) of the SEBI ICDR Regulations, is being launched via a 100% book-built route. Axis Capital and IIFL Capital Services are acting as Book Running Lead Managers (BRLMs), with KFin Technologies serving as the registrar to the issue.
IPO Structure
| Component | Details |
|---|---|
| Fresh Issue | Up to ₹400 crore |
| Offer for Sale | Up to 75,00,000 shares by Ashutosh Goel |
| Face Value | ₹5 per share |
| Pre-IPO Placement | Up to ₹80 crore (optional) |
| Employee Reservation | Up to 5% of post-issue capital |
| Listing | BSE and NSE |
If undertaken, the ₹80 crore Pre-IPO Placement will reduce the fresh issue size accordingly.
Shareholding Snapshot (Pre-Offer)
| Shareholder | Equity Shares | Stake (%) |
|---|---|---|
| Ashutosh Goel (Promoter & OFS) | 7,56,41,205 | 68.76% |
| AEW Infratech Pvt Ltd | 2,17,25,800 | 19.75% |
| RP Goel Family Trust | 51,32,940 | 4.67% |
| Nidhi Goel | 11 | Negligible |
| Promoter Group Total | 10,24,99,956 | 93.18% |
Post-issue shareholding will be updated at the time of RHP filing, depending on final offer size and allotments.
Use of Fresh Issue Proceeds
| Purpose | Amount (₹ Cr) |
|---|---|
| Setting up smart gas/water meter & IoT facility at Kundli | ₹116.75 |
| Setting up smart electricity meter unit at Rai | ₹99.71 |
| Working capital | ₹120.00 |
| General corporate purposes | [To be finalized] |
(Source: DRHP, Page 22)
Financial Highlights (Standalone)
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | ₹162.99 Cr | ₹348.48 Cr | ₹717.11 Cr |
| Profit After Tax | ₹1.02 Cr | ₹47.41 Cr | ₹140.26 Cr |
| EBITDA (FY25) | – | – | ₹207.00 Cr |
| Net Worth | ₹25.78 Cr | ₹73.25 Cr | ₹213.52 Cr |
| RoNW | 3.94% | 64.72% | 65.69% |
(Source: DRHP, Page 24)
Segment Focus & Market Opportunity
Allied Engineering Works is a technology-driven smart metering and IIoT solutions provider. As of March 31, 2025, it had supplied 2.92 million smart meters across six Indian states including Uttar Pradesh, Punjab, and Gujarat. The company is actively diversifying into smart gas and water meters and planning export-oriented production from its proposed Kundli facility.
According to the CRISIL Report (commissioned by the company):
- India’s smart energy meter market is projected to grow from ₹7,500 crore in FY25 to ₹29,500–30,000 crore by FY30.
- The smart gas and water meter segments are estimated to reach ₹55,000–60,000 crore and ₹1,200–1,300 crore respectively by FY30.
Promoter & OFS Details
Ashutosh Goel, who currently holds 68.76% in the company, is the sole Promoter Selling Shareholder. He has proposed to offload up to 75 lakh equity shares through the OFS. According to the DRHP, his weighted average acquisition cost is ₹0.27 per share (certified by J.C. Bhalla & Co.).
Key Risks Disclosed
- 93.49% of FY25 revenue came from top 10 customers
- 93.17% of FY25 revenue was from smart energy meters alone
- High import dependence (48.30%) for key components
- Pending GST and income tax disputes aggregating ₹66.21 lakh
- A criminal case is pending against promoter Ashutosh Goel related to a workplace accident (Rohini Court)
Management & Governance
- Chairman & MD: Ashutosh Goel
- Executive Director: Vipul Gupta
- CFO: Manish Jain
- Company Secretary: Bhavesh Mehra
- Independent Directors: Pradeep Kumar Pujari, Neelam Sanghi, Marur N. Aravind Kumar
As of filing, the company has no ESOPs or outstanding convertible securities.
Conclusion
With a strong FY25 performance, healthy cash flows, and robust order book, Allied Engineering aims to strengthen its manufacturing capacity and diversify product lines through this IPO. Market observers will closely track the Anchor Book response and pricing range as the offer progresses through regulatory clearances.
Listing is proposed on BSE and NSE.
REF: https://nsearchives.nseindia.com/corporate/Registration_05072025101058_DRHP.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
