Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Sharvaya Metals Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Sharvaya Metals Ltd
Industry: Aluminium
Listing At: BSE SME
Overview:
Sharvaya Metals Ltd. is a leading manufacturer specializing in EV battery housing solutions and a variety of high-quality aluminum products, including alloyed ingots, billets, slabs, sheets, and circles. The company is committed to accelerating its growth by focusing on producing high-quality, high-precision products with a commitment to timely delivery and customer satisfaction.
With a mission to become a premium aluminum metal company with a global reach, Sharvaya Metals strives for excellence and aims to create value for all stakeholders. The company’s vision is to deliver superior value to its shareholders by exceeding customer expectations. It is also dedicated to fostering a culture of responsible corporate citizenship and empowering its employees.
The company’s management team has extensive experience in the aluminum industry and aims to establish Sharvaya Metals as a well-known brand. They are focused on digitizing operations and adopting lean and modern quality management systems.
Sharvaya Metals differentiates itself through its customer-centric approach, leveraging well-equipped automatic machines and expert technical manpower to ensure quality. The company guarantees damage-free products and provides excellent traceability to avoid any issues with wrong bundles, weight disputes, or other hassles.
The company has five years of experience meeting the stringent requirements of customers across various industries, including cookware, consumer appliances, electric vehicles, LED, aviation, defense, and automotive. They specialize in producing aluminum alloyed ingots for high-pressure die castings, billets for aluminum extrusions, and sheets and circles primarily for the utensils and cookware industry.
Shariah Status
The IPO is Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
- IPO Open Date: Monday, September 4, 2025
- IPO Close Date: Wednesday, September 9, 2025
- Tentative Allotment: Thursday, September 10, 2025
- Initiation of Refunds: Monday, September 11, 2025
- Credit of Shares to Demat: Monday, September 11, 2025
- Tentative Listing Date: Tuesday, September 12, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on September 9, 2025
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 1,200 | ₹2,35,200 |
| Individual investors (Retail) (Max) | 2 | 1,200 | ₹2,35,200 |
| S-HNI (Min) | 3 | 1,800 | ₹3,52,800 |
| S-HNI (Max) | 8 | 4,800 | ₹9,40,800 |
| B-HNI (Min) | 9 | 5,400 | ₹10,58,400 |
Financials
Based on the financial statements for the years ending March 31, 2023, 2024, and 2025, the company has shown significant growth. Revenue from operations increased steadily each year, with a notable jump from 7,145.35 lakhs in 2024 to 11,251.66 lakhs in 2025. Despite rising expenses, the company’s Profit before tax has seen remarkable improvement, soaring from 214.09 lakhs in 2024 to 1,747.16 lakhs in 2025. On the balance sheet, both equity and liabilities and assets have expanded. Shareholder’s Funds grew substantially from 762.84 lakhs in 2024 to 2,277.77 lakhs in 2025, driven by increases in both Share Capital and Reserves and Surplus. The company also significantly increased its Property, Plant and Equipment, indicating investment in its operational capacity. Overall, the company appears to be in a strong growth phase, with healthy revenue and profit growth and a solid financial position.
KPI
| KPI | Value |
| ROE | 54.92% |
| ROCE | 49.39% |
| Debt/Equity | 0.66 |
| RoNW | 54.92% |
| PAT Margin | 11.12% |
| EBITDA Margin | 17.16% |
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.