SEBI clears Eswari Global Metal Industries' Rs 500‑crore IPO plan

⚡ Key Financial Takeaways

SEBI approved Eswari Global Metal Industries' IPO after reviewing its draft red herring prospectus on Oct 13, 2026.

The firm plans to raise Rs 500 crore via a fresh equity issue, with promoters selling 1.32 crore shares through an OFS.

Up to Rs 100 crore may be raised through a pre‑IPO placement, which would reduce the fresh‑issue size.

Proceeds will fund a Rs 150 crore expansion of its Mundra, Gujarat plant, repay Rs 250 crore of debt, and support general corporate needs.

DAM Capital Advisors, ICICI Securities and Motilal Oswal Investment Advisors are appointed as merchant bankers.

💡 Why It Matters

The approval marks a significant step for a company operating in India's recycling ecosystem, a sector poised for growth as environmental standards tighten and demand for sustainable metal sourcing rises. Raising Rs 500 crore will fund capacity expansion, reduce leverage, and position Eswari to capture a larger share of domestic and export markets, while also providing investors with exposure to a high‑growth, ESG‑aligned industry.

SEBI approval and IPO timeline Eswari Global Metal Industries, a Tamil Nadu‑based recycler of non‑ferrous metals and e‑waste, filed its draft red‑herring prospectus (DRHP) with SEBI in June 2026. On 13 October, SEBI issued observations on the document and cleared the company to submit the final red‑herring prospectus (RHP) to the Registrar of Companies. The clearance allows Eswari to launch its IPO within the next twelve months.

Capital raising structure The company intends to raise Rs 500 crore through a fresh issue of equity shares. In parallel, promoters and other existing shareholders will sell 1.32 crore shares under an offer‑for‑sale (OFS). A pre‑IPO placement of up to Rs 100 crore is also being considered; any amount raised this way would be deducted from the Rs 500 crore fresh‑issue target.

Allocation of net proceeds Management has earmarked the funds as follows: - Rs 150 crore for Phase 2 expansion of its manufacturing complex in Mundra, Gujarat, aimed at increasing capacity for lead, aluminium, copper and tin products. - Rs 250 crore to retire existing debt, improving the balance sheet and lowering financing costs. - The balance will be used for general corporate purposes, including working capital and potential strategic investments.

Business profile and market positioning Eswari Global Metal Industries processes scrap metal, plastic and electronic waste at nine plants spread across Karnataka and Tamil Nadu. Its product range—pure lead, lead alloys, aluminium alloys, copper ingots, tin products and plastic granules—serves battery manufacturers, automotive OEMs, and other industrial users both domestically and abroad. By sourcing raw scrap from Indian and overseas suppliers, the firm taps into growing demand for recycled non‑ferrous metals, a sector benefitting from stricter environmental regulations and ESG‑focused procurement.

Advisors and next steps DAM Capital Advisors, ICICI Securities and Motilal Oswal Investment Advisors have been appointed as merchant bankers for the offering. The company will file the RHP with the RoC shortly and, subject to market conditions, commence book‑building in the coming weeks.

Outlook If the IPO is well‑subscribed, the fresh capital will enable Eswari to scale its Mundra facility, potentially increasing its export share in the non‑ferrous metal market. Debt reduction should also strengthen its credit profile, giving it more flexibility for future acquisitions or capacity upgrades.

--- *The information above is based on the company’s filing and SEBI’s observations released in October 2026.*

🏛️ Background & Context

India’s non‑ferrous metal recycling industry has been expanding rapidly, driven by government initiatives to curb waste and promote circular economy practices. Companies that can efficiently convert scrap into high‑quality alloys are increasingly important for battery manufacturers, especially as electric vehicle adoption accelerates. Eswari’s focus on both metal and plastic recycling aligns with these macro trends.

👁️ What To Watch Next

Investors should monitor the final RHP filing date, the size and pricing of any pre‑IPO placement, and the level of investor interest during the book‑building period. Post‑listing, the company’s ability to meet its Phase 2 expansion timeline and debt‑repayment schedule will be key performance indicators.