Aarvee Engineering gears up for IPO, submits draft papers with Sebi

Upcoming IPO: Infrastructure consultancy company Aarvee Engineering Consultants is inching closer to going public as the company has submitted its draft red herring prospectus for the initial public offering (IPO). Through its maiden share sale, the Hyderabad-based company aims to raise ₹202.5 crore from the fresh issue of equity shares. The offering also comprises an offer for sale (OFS) with promoter Venkatachala Chakrapani Redla divesting up to 6,750,000 equity shares of face value ₹10 each.

 

Aarvee Engineering Consultants has further said that the price band and the minimum bid lot will be decided by the company in consultation with the book running lead managers. The company's shares proposed through the DRHP will be listed on both exchanges, BSE and NSE.

 

KFin Technologies serves as the registrar for the issue, while Centrum Capital, and Ambit are the book running lead managers (BRLM).

Use of proceeds

Aarvee Engineering Consultants will not receive any proceeds from the offer for sale (OFS). "The promoter selling shareholder will be entitled to proceeds from the offer for sale to the extent of the offered shares, after deducting their proportion of offer-related expenses and relevant taxes thereon," said the company in its DRHP.

 

The company, however, proposes to utilise the proceeds from the fresh issue for repayment and/or pre-payment, in full or in part, of certain borrowings availed, as well as for investment in its subsidiary in India, viz., SRA OSS India Private Limited (SRA OSS), towards further developing geospatial solutions and digital engineering technologies. The company will further deploy the proceeds for investment in overseas subsidiaries (i.e., Aarvee Engineering Consultants Pty Ltd (Australian subsidiary) and Aarvee Associates Limited (UK subsidiary)). The remaining proceeds, the company said, will be used for general corporate purposes.

 

About Aarvee Engineering Consultants

Aarvee Engineering Consultants is an infrastructure consultancy company providing a comprehensive range of services tailored to meet the diverse needs of its clients, including public-private partnership (PPP) and build-operate-transfer (BOT) projects. Our expertise spans the entire project lifecycle, from initial feasibility studies to construction supervision and quality assurance. As an infrastructure consultancy company with multi-sectoral expertise, we operate across various sectors. Our multidisciplinary approach, combined with advanced technology and industry best practices, enables us to deliver innovative and sustainable solutions for complex infrastructure projects.

 

The company, in FY25, reported revenue from operations of ₹567 crore with a profit after tax (PAT) of ₹51 crore.