Shivganga Drillers, an integrated oilfield services company, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for a proposed initial public offering (IPO) of ₹400 crore.
Structure of the Public Issue
According to the DRHP filed on December 12, the proposed IPO will consist entirely of a fresh issue of equity shares aggregating ₹400 crore, with no offer-for-sale component by existing shareholders. Aryaman Financial Services has been appointed as the book-running lead manager for the issue. The company intends to list its equity shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The company has proposed to allocate 50 percent of the net offer to qualified institutional buyers, 15 percent to non-institutional investors, and the remaining 35 percent to retail individual investors.
Utilisation of Issue Proceeds
Shivganga Drillers plans to deploy the net proceeds from the IPO across multiple areas. Of the total amount raised, ₹285 crore has been earmarked for the acquisition of plant and machinery, while ₹85.5 crore will be used for the repayment of certain borrowings. The balance will be allocated toward general corporate purposes.
The draft papers also indicate that the company may consider a pre-IPO placement of up to ₹80 crore. In the event such a placement is completed, the size of the fresh issue would be reduced accordingly.
Company Profile and Operations
Established in 2005, Shivganga Drillers operates as a fully integrated oilfield services provider catering to upstream oil and gas companies in India. The company offers a wide range of services, including onshore drilling, offshore operations and management, equipment leasing, and comprehensive project management solutions.
Shivganga Drillers functions as an end-to-end drilling services platform, with capabilities covering well planning, drilling execution, rig operations, performance-linked contracts, and specialised air-hammer drilling designed for hard-rock geological formations. The company maintains site offices in Gujarat, Maharashtra, Assam, and Madhya Pradesh, with operational activities spanning up to eight states, including Himachal Pradesh, Uttarakhand, Rajasthan, and Andhra Pradesh.
Financial Performance
The company has reported notable growth in its financial performance over recent years. Revenue from operations increased to ₹3,544.48 million in fiscal 2025 from ₹600.13 million in fiscal 2023. During the same period, EBITDA margins expanded to 33.08 percent, indicating improved operational efficiency. Profit after tax rose to ₹623.15 million in fiscal 2025, compared with ₹39.16 million in fiscal 2023, resulting in a net profit margin of 17.58 percent.
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