Shining Tools Limited is all set to launch its SME IPO on November 7, 2025, to be listed on the BSE SME platform. The company aims to raise funds to expand its manufacturing capabilities and strengthen its working capital base. The issue will remain open till November 11, 2025.

About Shining Tools Limited

Shining Tools Limited is a Rajkot-based precision cutting tool manufacturer, engaged in designing and producing solid carbide cutting tools for various industries across India. The company’s product range includes end mills, thread mills, drills, and reamers, catering to CNC machining applications such as Horizontal Machining Centers (HMCs), Vertical Machining Centers (VMCs), and turn-mill centers.

These tools operate at high speeds and feed rates, efficiently machining materials like solid carbide, cast iron, steel, aluminium, and forgings. The company also provides regrinding, re-sharpening, and coating services to enhance tool performance and longevity.

Key Strengths

• Comprehensive product range across multiple tool geometries and grades (standard to ultrafine).
• Customized tool solutions accounting for 73.19% of total revenue in FY25.
• Use of advanced design software such as Walter Helitronic Tool Studio and Siemens Powershape.
• Implementation of ERP software “NATIVEBIT” for end-to-end inventory, billing, and production management.
• A 50 KW rooftop solar plant supporting continuous manufacturing operations and sustainable energy use.

Managing Director Vipulbhai Laljibhai Ghonia commented, “Our SME IPO marks a significant milestone as we strengthen our capabilities and scale new heights in tool manufacturing.”

Objects of the Issue

The IPO proceeds will be used for:

• Purchase and installation of plant and machinery for Carbide Precision Tools at the existing facility in Rajkot, Gujarat.
• Working capital requirements to support business growth.
• General corporate purposes, enhancing operational efficiency and market reach.

Issue Structure

• Total Issue Size: 15,00,000 equity shares
• Retail Quota: 7,12,200 equity shares
• Non-Retail Quota: 7,12,200 equity shares
• Market Maker Portion: 75,600 equity shares
• Pre-Issue Capital: 41,58,400 equity shares
• Post-Issue Capital: 56,58,400 equity shares

Sobhagya Capital Options Pvt. Ltd. is the Lead Manager, and Maashitla Securities Pvt. Ltd. is the Registrar to the Issue.

Financial Performance

Shining Tools has shown consistent growth in revenue and profitability over the last three years:

• Revenue: ₹1,032.15 lakh (FY23) → ₹1,472.88 lakh (FY25)
• EBITDA: ₹188.59 lakh (FY23) → ₹622.78 lakh (FY25)
• PAT: ₹-7.93 lakh (FY23) → ₹293.01 lakh (FY25)
• PAT Margin: Improved from -0.77% to 19.89% over two years.
• Net Worth: Rose from ₹202.13 lakh in FY23 to ₹800.55 lakh in FY25.
• ROE: 49.59% in FY25
• ROCE: 29.61% in FY25

For the period ending July 31, 2025, revenue stood at ₹539.64 lakh with a PAT of ₹146.72 lakh, reflecting strong momentum heading into FY26.

Industry Outlook

India’s precision manufacturing and tooling sector is witnessing strong demand driven by the automotive, aerospace, and engineering industries. The government’s “Make in India” and production-linked incentive (PLI) schemes have further accelerated investments in high-performance manufacturing tools.

As companies shift toward automation and high-speed machining, demand for solid carbide tools like those offered by Shining Tools is expected to grow steadily.

Conclusion

The Shining Tools Limited SME IPO presents an opportunity to invest in a high-growth manufacturing company with strong fundamentals and robust profitability. With rising demand for precision tooling, advanced technology adoption, and consistent financial performance, the company is well-positioned for expansion in India’s evolving industrial landscape.