Tamil Nadu-based Eswari Global Metal Industries, a recycler and manufacturer of value-added non-ferrous metal products, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). According to reports from Moneycontrol, the company filed its draft red herring prospectus (DRHP) with SEBI in June 2026, and on October 13, SEBI issued its observations on the company's draft offer document, allowing it to proceed with filing the red herring prospectus (RHP) with the Registrar of Companies (RoC) and launch its IPO within the next year. This approval comes as SEBI has proposed sweeping changes to SME IPO rules, including reducing the minimum application amount to ₹1 lakh and increasing the minimum number of allottees from 200 to 500.
Eswari Global Metal Industries plans to raise ₹500 crore through a fresh issue of equity shares, while existing shareholders, including the promoters, will sell 1.32 crore equity shares through an offer-for-sale (OFS). As reported by Moneycontrol, the company may also consider raising up to ₹100 crore through a pre-IPO placement. If undertaken, the fresh issue size will be reduced by the amount raised through the pre-IPO placement. The proposed SEBI framework would remove the ₹10 crore ceiling on general corporate purposes, allowing companies greater flexibility in fund utilization.
The company manufactures value-added non-ferrous metal products, including lead, tin, aluminium and copper products, as well as plastic products, by recycling non-ferrous metals, plastic and electronic waste (e-waste) scrap. According to Moneycontrol, its product portfolio includes pure lead and lead alloys, aluminium alloys, copper ingots, tin products and plastic granules. These products cater to the battery manufacturing, automotive, industrial and allied sectors across domestic and international markets. The company sources non-ferrous metals, plastic and e-waste scrap from domestic and international suppliers and processes these materials at its nine manufacturing facilities across Karnataka and Tamil Nadu.
As reported by Moneycontrol, Eswari Global intends to use ₹150 crore of the net proceeds from the fresh issue to fund the expansion of Phase 2 of its manufacturing facility in Mundra, Gujarat. Another ₹250 crore will be used to repay debt, while the remaining proceeds will be allocated for general corporate purposes. The company has appointed DAM Capital Advisors, ICICI Securities and Motilal Oswal Investment Advisors as merchant bankers for the IPO. The proposed SEBI framework would retain the 15% limit on issue proceeds for general corporate purposes, while offering greater flexibility in fund utilization strategies.
