Shivganga Drillers Files DRHP To Raise Rs 400 Crore Via IPO
The company is an integrated oilfield services provider offering onshore drilling, offshore operations and management
Shivganga Drillers Ltd. is looking to raise Rs 400 crore via an initial public offering, as per its draft red herring prospectus filed with the SEBI. The IPO will mark the debut of the company on both the NSE and the BSE.
The objects of raising fresh capital has been for two main purposes along with general corporate expenses. Capital expenditure towards purchase of plant and machinery is allocated Rs 285 crore, while the second is the repayment or pre-payment, in full or part, of borrowings is alloted Rs 85.5 crore.
The company is an integrated oilfield services provider offering onshore drilling, offshore operations and management, equipment rental, and integrated project management solutions to upstream operators in India.
It operates as a full-spectrum drilling services platform with capabilities across well planning, drilling execution, rig management, performance-based contracts, and specialized air-hammer drilling in hard-rock formations. The business model is centered on delivering technically advanced, cost-efficient, and outcome-driven solutions that enhance operational efficiency for exploration and production companies.
Drilling services involve exploration, appraisal, development, and production drilling operations, it primarily includes onshore and offshore drilling services. The company offers a full stack of services, comprising turnkey, performance-based drilling solutions, wherein drilling is executed on performance-based parameters such as per-meter progress, enabling clients to achieve lower costs and higher operational efficiency, as well as hire and rental-based delivery models for a wide range of essential equipment and services.
The risks of investing in the IPO include the company's reilance on a limited number of customers for revenue, primarily Sun Petrochemicals and a PSU engaged in the exploration and production of oil and gas. Given this, any slowdown or loss of business from these key clients could materially and adversely affect their business.
Its also derives a substantial portion of their revenue from a single industry and a concentrated base of clients, with the top five customers contributing over 97% of thier revenue.
The lead book running managers of the Shivganga Drillers IPO are Aryaman Financial Services Ltd., and Bigshare Services Private Ltd.
