Allied Engineering Works Eyes IPO to Power Smart Metering Revolution

In a strategic move to expand its footprint in the smart metering sector, Allied Engineering Works has filed for an initial public offering (IPO) with India's markets regulator, Sebi. According to the draft red herring prospectus, the IPO will include a fresh issuance of shares valued at Rs 400 crore, alongside an offer-for-sale of 75 lakh shares by promoter Ashutosh Goel.

The company aims to utilize the proceeds for capital expenditure, including Rs 116.75 crore to advance production of smart gas, water meters, and IoT solutions at its Kundli facility, and Rs 99.71 crore for smart electricity meter production at the Rai facility. Further, Rs 120 crore is earmarked for future working capital requirements, with additional funds set aside for general corporate purposes.

Notably, Allied Engineering Works is considering a pre-IPO fund-raising round of up to Rs 80 crore, potentially affecting the size of the fresh issue. As a key player in the smart metering infrastructure sector in India, the company has delivered 2.92 million smart energy meters to various utilities across six states as of March 2025. To guide its IPO process, Allied Engineering Works has enlisted Axis Capital and IIFL Capital Services as their merchant bankers.

(With inputs from agencies.)