Shining Tools Ltd IPO
Capital Goods-Non Electrical Equipment
Price Band
₹114 – ₹114
Lot Size
1200
Minimum Bid Quantity
2400
Minimum Investment
₹273600
Issue Size
₹17.1Cr
Opens
2025-11-07
Closes
2025-11-11
Listing
14-11-2025
IPO Details
Issue Type
FP
Face Value
₹10
Tick Size
1
ISIN
INE0D8001018
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Shining Tools is engaged in the design and manufacture of high-performance solid carbide cutting tools used in various industries in India. The company produces end mills, thread mills, drills, and reamers designed for CNC machines such as horizontal machining centres (HMCs), vertical machining centres (VMCs), and turn-mill centres. It also provides services such as tool reconditioning, regrinding, re-sharpening, and coating to extend tool life and performance. The company operates a manufacturing facility in Rajkot, Gujarat, where it produces standard and customised cutting tools in different grades and specifications.
Pros
- • The company claims to maintain high operational efficiency through the use of advanced, machine-based manufacturing tools. This approach minimises human error, enhances precision, and improves productivity, enabling the company to meet production targets and customer requirements efficiently.
- • Shining Tools claims to have the capability to design and manufacture customised cutting tools as per client specifications. This allows the company to cater to diverse industrial requirements by producing tools with specific dimensions, materials, or functionalities.
- • The company offers a wide portfolio of solid carbide cutting tools, including end mills, drills, and reamers, designed for use in various industrial applications. This product diversity enables it to serve multiple sectors and provide comprehensive tooling solutions.
Cons
- • The top customer alone accounted for Rs 0.97 crore (17.95 percent) of the company’s revenue for the period ended July 31, 2025; Rs 2.92 crore (19.85 percent) in FY25; Rs 1.16 crore (11.02 percent) in FY24; and Rs 0.77 crore (7.48 percent) in FY23. The company does not have any long-term agreements with these clients. Any inability to retain these key customers, secure favourable terms, or diversify its customer base could adversely affect the company’s business operations, financial condition, and cash flows.
- • The top supplier alone accounted for Rs 0.58 crore (32.32 percent) of the company’s total purchase for the period ended July 31, 2025; Rs 1.47 crore (46.11 percent) in FY25; Rs 0.92 crore (56.02 percent) in FY24; and Rs 1.16 crore (59.29 percent) in FY23. The company does not have long-term supply contracts and acquires materials through purchase orders, making it vulnerable to price volatility, supply disruptions, and fluctuations in global demand and trade conditions. Any delay or failure by this vendor to deliver materials on time, or any sharp increase in raw material costs, could hurt the company’s production schedule, profits, and financial performance.
- • The company reported negative cash flow from operating activities amounting to Rs 0.40 crore for the period ended July 31, 2025. This was primarily due to an increase in inventories, trade receivables, and short-term loans and advances. Additionally, negative cash flow from investing activities amounted to Rs 0.02 crore for the period ended July 31, 2025; Rs 2.97 crore in FY25; Rs 1.40 crore in FY24; and Rs 0.09 crore in FY23. This was mainly on account of machinery acquisitions. Furthermore, the company reported negative cash flow from financing activities amounting to Rs 2.81 crore in FY24 and Rs 2.14 crore in FY23, due to payments of interest and repayment of borrowings. Sustained or significant negative cash flows could adversely affect the company’s liquidity, operations, and ability to implement future expansion plans.
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