Shining Tools (Tixna) IPO Overview
Rajkot-based precision carbide cutting tools manufacturer raising ₹17.10 cr fresh issue of 15L shares at ₹114 (fixed price). Lot: 2,400 shares (₹2.73L min). Funds for plant/machinery, working capital. Brand: TIXNA. Serves auto, aerospace, defense, engineering. Lead: Maashitla Securities. India 5000 SME Award winner. Competes with Sandvik, Kennametal, Ceratizit.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 7 November 2025 (Friday) |
| IPO Close Date | 11 November 2025 (Tuesday) |
| Issue Type | Fixed Price Issue |
| Allotment Date | 12 November 2025 (Wednesday) – Expected |
| Credit to Demat | 13 November 2025 (Thursday) – Expected |
| Refund Initiation | 13 November 2025 (Thursday) – Expected |
| Listing Date | 14 November 2025 (Friday) – Tentative |
| Price | ₹114 per share (Fixed Price) |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Min Investment (Retail) | ₹2,73,600 (2 lots / 2,400 shares) |
| HNI Investment | ₹4,10,400 (3 lots / 3,600 shares) minimum |
| Issue Size | ₹17.10 crore total |
| Fresh Issue | ₹17.10 crore (100% fresh issue) |
| Offer for Sale (OFS) | NIL |
| Total Shares Offered | 15,00,000 equity shares |
| Listing | BSE SME (Emerge Platform) |
| Post-Issue Market Cap | ₹64.51 crore (at issue price) |
| ROE (FY25) | 49.59% |
| ROCE (FY25) | 29.61% |
| P/E Ratio | 5.8x (FY25 basis) |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | 0% (Fixed Price Issue – No QIB allocation) |
| NII (Non-Institutional Investors) | 50% of Net Offer |
| Retail Individual Investors | 50% of Net Offer |
Note: This is a Fixed Price Issue (not Book Building), hence no QIB allocation. Retail and HNI share equally.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹17.10 crore) will be used for:
- Purchase and Installation of Plant & Machinery – For manufacturing of Carbide Precision Tools at existing premises (Survey no. 63/2, Plot No. 2, Rajkot, Gondal Highway, Pipaliya, Gondal, Rajkot-360 311, Gujarat)
- Advanced CNC grinding machines
- Inspection and quality control equipment
- Automation and production line upgrades
- Funding Working Capital Requirements – To support raw material procurement (carbide rods, powders), inventory management, and operational expenses
- General Corporate Purposes – Strategic business initiatives including R&D, marketing, and business development
Strategic Focus:
- Enhance manufacturing capacity and precision capabilities
- Reduce production cycle times through automation
- Improve quality consistency and tool performance
- Support customized tool development for OEM clients
- Scale operations to meet growing demand from automotive, aerospace, and defense sectors
Note: This is a 100% fresh issue with no OFS. All proceeds go to the company for growth.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Maashitla Securities Private Limited
Registrar:
- Accurate Securities & Registry Private Limited
- Phone: +91-79-48000319
- Email: [email protected]
- Website: https://www.accuratesecurities.com/ipo-details.php
Promoters & Management
Key Promoters:
- Mr. Vipulbhai Laljibhai Ghonia – CEO & Managing Director
- 25+ years of expertise in carbide cutting tools sector
- Specializes in financial strategy, sales, operational management, and product development
- Extensive background in manufacturing, business expansion, and innovative cutting tool solutions
- Mr. Kamalbhai Laljibhai Ghonia – Director
- 20+ years of demonstrated history in manufacturing of carbide cutting tools
- Expertise in design, layout, product & production planning, quality, supply chain, costing
- Focuses on customized cutting tool development and R&D
Company Background:
- Founded in 1998 by visionary entrepreneurs with tool engineering expertise (including IIT Bombay alumni)
- Incorporated as Shining Tools Limited in May 2013
- Family-run business with second-generation leadership
- Winner of India 5000 SME Awards 2024
Company Contact:
- Registered Office: Survey No. 63/2, Plot No. 2, Rajkot, Gondal Highway, Pipaliya, Gondal, Rajkot – 360311, Gujarat
- Phone: +91 9687693344 / +91 97267 44244
- Email: [email protected] / [email protected]
- Website: www.tixnatools.com
COMPANY OVERVIEW
Establishment & Background:
- Founded in 1998, formally incorporated as Shining Tools Limited in May 2013
- Industry: Precision Cutting Tools Manufacturing – Solid Carbide Tools
- Headquarters: Rajkot, Gujarat (near Gondal on Rajkot-Gondal Highway)
- 27 years of legacy (1998-2025) in tool engineering and carbide cutting tools
- Second-generation leadership continuing founder vision
Business Model:
- Designs, manufactures, and supplies high-performance solid carbide precision cutting tools
- Operates under proprietary brand “TIXNA” (synonym for uncompromising quality)
- Product portfolio includes:
- End Mills (flat, ball nose, corner radius, tapered)
- Drills (straight flute, spiral flute, step drills)
- Reamers (straight flute, spiral flute, taper reamers)
- Thread Mills (single form, multi-form)
- Special Purpose Customized Tools (application-specific designs)
- Services: Tool reconditioning/resharpening extending tool life and reducing customer costs
- Technology: Modern CAD/CAM software packages for custom tool design and engineering
- Value proposition: Precision engineering, customized solutions, timely delivery, and comprehensive technical support
Market Position:
- Established niche player in India’s precision carbide cutting tools sector
- Self-certified supplier to leading automobile, engineering, aerospace & defense companies
- Recognized as leader in customized tool development
- Winner of India 5000 SME Awards 2024 for excellence, innovation, and quality
- Positioned in high-growth precision engineering and metal removal tools market
- Global carbide cutting tools market projected at USD 22.2 billion by 2034 (5.4% CAGR 2025-2034)
Operations:
- Single fully-integrated manufacturing facility at Rajkot, Gujarat (Survey No. 63/2, Plot No. 2)
- State-of-the-art infrastructure:
- 5-axis and 6-axis CNC grinding machines
- Non-contact optical CNC inspection machines (quality control)
- Robotic automation for consistent precision
- In-house coating capabilities
- Tool design and engineering center
- R&D laboratory
- Skilled workforce of trained professionals and technical experts
- Quality systems: Every operation inspected to minimize human error and ensure ISO standards
- Customer industries served: Agriculture, Automobiles, Engineering, Medical devices, Casting, Defense, Aerospace, Power generation
- Geographic reach: Pan-India with focus on Gujarat, Maharashtra, North India industrial belts
- Production capacity: Designed to handle batch production and customized orders
Company Strengths
- Niche Specialization in High-Precision Carbide Tools:
- 27 years of focused expertise in solid carbide cutting tools (since 1998)
- Deep technical know-how in carbide metallurgy, tool geometry, and coating technologies
- Capability to design and manufacture complex, application-specific tools
- Reconditioning services extending tool life – value-added differentiation
- Niche positioning insulates from mass-market competition
- Self-Certified Supplier Status with Leading OEMs:
- Self-certified by leading companies in automobile, engineering, aerospace, and defense sectors
- Eliminates need for repeated quality audits – recognition of consistent excellence
- Direct supplier relationships providing stable demand and repeat orders
- Credibility and trust built over decades of reliable performance
- Sticky customer relationships in critical manufacturing applications
- Fully Integrated In-House Manufacturing:
- Complete vertical integration from raw carbide rods to finished precision tools
- In-house capabilities: grinding, inspection, coating, packaging
- 5-axis and 6-axis CNC grinding machines for complex geometries
- Non-contact optical CNC inspection ensuring 3-decimal place accuracy
- Eliminates dependency on outsourcing and ensures quality control
- Faster turnaround times and cost efficiencies
- Customization & Engineering Capabilities:
- Pioneer in developing customized tools for special purpose applications
- Modern CAD/CAM software and skilled engineering team
- Ability to design tools matching unique customer specifications
- R&D-driven approach addressing complex manufacturing challenges
- Higher margins on custom tools vs standard catalog products
- Builds long-term customer partnerships and switching costs
- Exceptional Financial Performance & Profitability:
- Revenue growth: ₹10.60 cr (FY24) to ₹14.77 cr (FY25) – 39% YoY
- PAT growth: ₹1.58 cr (FY24) to ₹2.93 cr (FY25) – 86% YoY
- PAT margin of 27.19% in FY25 – exceptional for manufacturing
- ROE of 49.59% – among highest in manufacturing sectors
- ROCE of 29.61% – demonstrates efficient capital deployment
- Strong profitability indicates pricing power and operational excellence
- Promoter Expertise & Second-Generation Leadership:
- CEO Vipulbhai Ghonia: 25+ years in carbide cutting tools
- Director Kamalbhai Ghonia: 20+ years in manufacturing and R&D
- Founders include IIT Bombay alumni – strong technical pedigree
- Family ownership ensuring long-term vision and operational continuity
- Deep industry relationships and customer trust
- Quality Certifications & Industry Recognition:
- Winner of India 5000 SME Awards 2024
- Self-certified supplier status from marquee clients
- Stringent quality control at every production stage
- Non-contact optical inspection eliminating human error
- Reputation for precision, reliability, and timely delivery
- Industry Tailwinds & Growing Market:
- India’s manufacturing sector expanding (Make in India, PLI schemes)
- Automotive, aerospace, and defense industries growing rapidly
- Global carbide cutting tools market: USD 22.2 billion by 2034 (5.4% CAGR)
- Increasing adoption of precision machining and CNC technologies
- Import substitution opportunities in high-precision tools
- Rising demand for customized and application-specific tooling solutions
- Asset-Light, High-Margin Business Model:
- No significant inventory risk (make-to-order and low obsolescence)
- Carbide tools have long shelf life
- High-value, low-volume products enabling premium pricing
- Capital-efficient operations (ROCE 29.61%)
- Scalable without proportionate capital deployment
- Strategic Location in Gujarat’s Industrial Belt:
- Proximity to automobile and engineering clusters in Gujarat
- Access to skilled labor and technical talent in Rajkot region
- Well-connected logistics for raw material sourcing and product delivery
- Cost-effective operations compared to metro cities
Key Risks & Challenges
- Single Facility Concentration Risk:
- ALL manufacturing operations in one location (Rajkot, Gujarat)
- Any disruption (fire, natural disaster, strike, power outage) can halt entire production
- No backup or alternate manufacturing facility
- Geographic concentration creates vulnerability
- IPO proceeds also allocated to same facility (not diversification)
- Small Scale & Limited Operating History as Listed Entity:
- Revenue of just ₹14.77 crore in FY25 – very small scale
- Market cap of ₹64.51 crore post-IPO – micro-cap company
- Limited financial track record for public company analysis
- SME listing on BSE – lower liquidity and institutional participation
- Scalability and ability to compete with larger players untested
- Customer & Industry Concentration Risks:
- Heavy dependency on automotive, aerospace, and defense sectors
- Economic slowdown in these industries directly impacts demand
- Customer concentration likely high (OEM relationships)
- Loss of major self-certified customers could severely impact revenues
- Cyclicality of automobile and industrial manufacturing sectors
- Intense Competition from Global Giants:
- Competes with international leaders: Sandvik, Kennametal, Ceratizit, Seco Tools, OSG, Guhring
- Large players have superior R&D budgets, global distribution, brand recognition
- Price competition from Chinese and other low-cost manufacturers
- Limited financial resources compared to multinational competitors
- Difficulty in competing for large-volume orders
- Raw Material Dependency & Price Volatility:
- Dependent on imported carbide rods and powders (tungsten carbide)
- Tungsten prices subject to global commodity volatility
- China dominates global tungsten supply – geopolitical risk
- Currency fluctuations (INR-USD, INR-CNY) affecting input costs
- Limited ability to pass on sharp cost increases immediately
- Working capital intensity for raw material procurement
- Technology Obsolescence & Continuous R&D Need:
- Cutting tool technology evolving rapidly (coatings, substrates, geometries)
- Need for continuous investment in CNC machines, software, testing equipment
- Competitors introducing advanced materials (ceramics, CBN, PCD)
- Risk of existing product portfolio becoming outdated
- IPO proceeds for capex addressing this but ongoing requirement exists
- Skilled Labor Dependency:
- Precision tool manufacturing requires highly skilled operators and engineers
- Attrition of key technical personnel can disrupt operations
- Training new workforce time-consuming and costly
- Competition for skilled labor in manufacturing hubs
- Knowledge concentration risk with promoters and senior team
- High Minimum Investment Barrier (₹2.73 lakh):
- Minimum application of ₹2,73,600 (2,400 shares) significantly higher than typical mainboard IPOs
- Limits retail investor participation
- May affect subscription levels and post-listing liquidity
- SME IPO regulations creating barriers to broad-based ownership
- Limited Export Presence:
- Primarily domestic-focused with limited international revenue
- Missing opportunities in global markets
- Competitors with global footprint have diversification advantages
- Export markets require certifications, regulatory approvals, and marketing investments
- Currency risk if expanding exports without hedging
- Working Capital Intensity:
- Carbide raw materials expensive requiring significant working capital
- OEM customers may have extended payment terms (60-90 days)
- Inventory carrying costs for carbide rods and finished goods
- Part of IPO proceeds allocated to working capital indicating ongoing requirement
- Cash flow management critical in small-scale operations
- Economic Sensitivity:
- Cutting tool demand directly tied to manufacturing activity levels
- Industrial recessions, slowdowns reduce capex and production volumes
- Automobile sector facing EV transition uncertainties
- Aerospace and defense government spending-dependent
- No natural hedge against economic downturns
- SME Listing – Liquidity Constraints:
- BSE SME platform has lower trading volumes than mainboard
- Limited institutional investor interest in micro-cap SMEs
- Price discovery challenges and higher volatility
- Difficulty in exiting positions during market downturns
- Limited analyst coverage and research reports
- Promoter Concentration & Corporate Governance:
- Family-run business with concentrated promoter holding
- Post-IPO promoter stake likely remains very high
- Limited independent board oversight typical of small SMEs
- Corporate governance standards may lag larger listed companies
- Related party transactions and conflict of interest risks
- Sudden Profit Surge – Sustainability Concerns:
- PAT increased 86% YoY (FY24 to FY25) – sharp jump
- Revenue grew 39% but profit grew 86% – disproportionate
- Margin expansion from one-time factors or sustainable operational improvements?
- Profitability sustainability needs monitoring post-IPO
- Pre-IPO earnings inflation concerns typical in SME space
Disclaimer: This information is based on publicly available sources including SEBI RHP/DRHP filings and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The company operates in a competitive, technology-intensive sector with single-facility concentration risk. SME investments carry higher risks than mainboard listings. Grey Market Premium is unofficial and may not reflect actual listing performance.
