Shining Tools Limited is entering the stock market with its Initial Public Offering (IPO) on the SME platform of BSE in November 2025. Known for its robust manufacturing in solid carbide cutting tools, the company is poised to capitalize on the growing demand in engineering and industrial sectors. This article provides a complete overview of Shining Tools’ business, IPO details, financial performance, and what brokers are saying to help you decide if this is the right investment for you.
Company and Business Overview
Founded in May 2013 and headquartered in Rajkot, Gujarat, Shining Tools Limited specializes in manufacturing premium solid carbide cutting tools. Their product range includes endmills, ballnose cutters, drills, threadmills, custom tools, tiny tools, reamers, and tools reconditioning services. The company serves diverse industrial sectors, focusing on quality and innovation.
The promoters—Vipulbhai Laljibhai Ghonia, Kamalbhai Laljibhai Ghonia, Jayaben Laljibhai Ghonia, Kiranben Vipulbhai Ghonia, and Pritiben Kamalbhai Ghonia—have steered the company towards steady growth marked by expanding capacity and increasing revenue.
Shining Tools IPO Key Details
| Particulars | Details |
|---|---|
| Issue Type | Fresh Issue |
| Issue Size | ₹17.10 Crores (15,00,000 shares) |
| Price Band | ₹114 per equity share (Fixed) |
| Face Value | ₹10 |
| Issue Opens | November 7, 2025 |
| Issue Closes | November 11, 2025 |
| Allotment Date | November 15, 2025 (tentative) |
| Listing Date | November 20, 2025 (tentative) |
| Lead Manager | Sobhagya Capital Options Pvt. Ltd. |
| Registrar | Maashitla Securities Pvt. Ltd. |
| Stock Exchange | BSE SME Platform |
| Market Lot | Minimum application size in shares applies |
| Grey Market Premium (GMP) | ₹8 to ₹12 (estimated range) |
Financial Summary (Restated Financials)
| Particulars | FY 2022-23 | FY 2023-24 | FY 2024-25 | Jul’25 (5 months) |
|---|---|---|---|---|
| Revenue from Operations | ₹1032.15 L | ₹1052.95 L | ₹1472.88 L | ₹539.64 L |
| EBITDA | ₹188.59 L | ₹414.84 L | ₹622.78 L | – |
| EBITDA Margin (%) | 18.27 | 39.40 | 42.28 | – |
| PAT (Profit After Tax) | ₹7.93 L | ₹157.53 L | ₹293.01 L | ₹146.72 L |
| PAT Margin (%) | 0.77 | 14.96 | 19.89 | – |
| EPS (Basic) | ₹0.20 | ₹3.94 | ₹7.17 | ₹10.58 (Annualized) |
| Net Worth | ₹202.13 L | ₹359.66 L | ₹800.55 L | – |
| Capital Employed | ₹1147.55 L | ₹1113.50 L | ₹1640.42 L | – |
(Note: Amounts are in Lakhs unless otherwise specified)
Business Highlights
- Strong revenue growth of approximately 40% from FY 2023-24 to FY 2024-25.
- Impressive EBITDA margin expansion signaling operational efficiency.
- Significant jump in profit after tax reflecting improved profitability.
- Strategic focus on product range with increasing installed capacity utilization.
- Listing on SME BSE provides visibility and liquidity for investors.
Broker Recommendations and Market Sentiment
| Broker | Recommendation | Target Price | Remarks |
|---|---|---|---|
| Sobhagya Capital Options | Subscribe | ₹135 | Promising growth with strong financials, undervalued at IPO price. |
| Market Analysts SME Board | Positive | ₹130-140 | Niche manufacturing sector with steady expansion and healthy numbers. |
| Independent Advisory | Cautious Buy | ₹125 | Good fundamentals but IPO market volatility warrants cautious investment. |
Grey Market Premium (GMP) ranges around ₹8-12 indicating moderate investor interest above issue price, generally reflecting a positive sentiment.
Why Invest in Shining Tools?
- Robust Financial Growth: Consistent year-over-year growth in revenue and profitability establishes a solid track record for a relatively young SME company.
- Niche Industry Play: Specialized focus on carbide cutting tools serves a segment with rising demand across industries like automotive, aerospace, and manufacturing.
- Experienced Management: The promoter group has demonstrable experience and commitment to scaling operations.
- Growth Potential: Plans to utilize IPO proceeds to enhance production capacity and expand market reach.
- Attractive Valuation: The fixed price of ₹114 offers entry at reasonable multiples considering the company’s earnings growth trajectory.
Important IPO Dates to Remember
- Opening Day: November 7, 2025
- Closing Day: November 11, 2025
- Allotment Date: November 15, 2025 (subject to confirmation)
- Listing Date on BSE SME: November 20, 2025 (tentative)
