Shera Energy’s Rs.35-crore IPO opens on 7th February. Here’s what you should know

Shera Energy’s Rs.35-crore IPO


A manufacturer of winding wires, copper, and aluminium strips, Shera Energy, is launching its IPO on 7th February 2023. The IPO aims to raise Rs.35 crore to meet the company’s working capital needs and for other corporate general purposes. Let’s assess the company and its IPO details.

About Shera Energy

Shera Energy is in the manufacturing and processing sector. Besides manufacturing activities, the company processes copper and brass wires, tubes and wire rods. Some of the products of the company include the following –

  • Round and rectangular wires
  • Paper, enamel and fibre-covered wires
  • Tubes
  • Strips
  • Rods
  • Bunched wires

The company enjoys ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015 certifications. It has Vendor Approved Validations from multiple clients, including the Power Grid Corporation of India.

Financials of Shera Energy

Here’s how the company has performed over the past couple of years –

Financials of Shera Energy


About Shera Energy IPO

Here are the details of the Shera Energy IPO –

About Shera Energy IPOAbout Shera Energy IPO

Other details of the IPO are as follows –

  • The company's promoters are Mrs Shivani Sheikh, Mr Sheikh Naseem and M/S Isha Infrapower Private Limited.
  • Before the IPO, the promoters hold about 66.57% stake in Shera Energy. Post the IPO, the promoter holding would reduce to 63.51%.

Related - Find out how the IPO valuation is done

Should you invest in Shera Energy IPO?

Shera Energy is engaged in a competitive industrial segment and, thus, has low-profit margins. The company's debt burden is considerable, which might worry some investors. Moreover, more than 80% of the IPO consists of an Offer for Sale, which cannot be ignored.

If these factors are overlooked, Shera Energy has consistently delivered a good performance in revenue and profit after tax. Moreover, the IPO also looks fairly priced.

So, if you want to invest with a long-term perspective and add SME stocks to your portfolio, Shera Energy can be a good choice.

Related - Know how to pick good IPOs without historical data of companies


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