Coimbatore-based Eswari Global Metal Industries has filed preliminary papers with SEBI for a ₹1,300 crore IPO. The plan includes a ₹500 crore fresh share issue and an offer for sale. The company intends to use a portion of the funds to repay ₹250 crore in debt and expand its manufacturing capacity in Gujarat.
What Happened
Eswari Global Metal Industries, a Coimbatore-based firm in the metal recycling sector, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The company plans to raise between ₹1,100 crore and ₹1,300 crore through its initial public offering (IPO). The offering consists of a fresh issue of shares worth ₹500 crore and an offer for sale (OFS) of 1.33 crore shares by current shareholders and promoters.
The Use of Funds
Investors typically look at how a company plans to use the money raised from an IPO. Eswari Global Metal has specific goals for the ₹500 crore it plans to raise through the fresh issue. A major portion, ₹250 crore, is earmarked to repay existing debt. As of December 31, 2025, the company had total outstanding debt of ₹379.75 crore. By paying down a significant part of this debt, the company aims to reduce its interest burden. Additionally, the company plans to use ₹150 crore to partly fund the second phase of its manufacturing facility in Mundra, Gujarat.
Business Model and Financials
Eswari Global Metal operates in the integrated multi-metal and waste recycling space. The company recycles materials like non-ferrous metals (such as lead, aluminium, and copper) and plastics to produce value-added products like pure lead, lead alloys, and plastic granules. These products are supplied to industries like battery manufacturing, automotive, and other industrial sectors. For the nine-month period ending December 2025, the company reported a revenue of ₹1,401.5 crore and a net profit of ₹83.9 crore.
Sector and Operational Risks
Like many companies in the recycling and metal processing sector, Eswari Global Metal faces specific operational challenges. The business relies heavily on the prices of raw materials, which fluctuate based on global metal markets. If the cost of raw materials increases significantly without the company being able to pass these costs to customers, profit margins may come under pressure. Furthermore, recycling businesses operate under strict environmental and e-waste management regulations. Any changes in government policy regarding waste recycling or environmental compliance could impact operations.
What Investors Should Track
Potential investors may want to track a few key areas following this filing. First, the success of the company’s expansion in Mundra is important, as it will determine future production capacity and revenue growth. Second, the reduction of debt remains a key monitorable, as it directly affects the company’s bottom line by lowering interest expenses. Finally, observers will watch how the company manages the volatility of metal prices, which is a major factor in the profit margins of any metal recycling business.