Shivganga Drillers Limited IPO

01At a glance

What the company does: onshore drilling, offshore operations and maintenance, equipment rental and integrated project management for oil and gas producers in India, including air-hammer drilling in hard rock (DRHP p.27). It owned five rigs at June 2025 (DRHP p.121, DRHP p.225).

Who pays it: exploration and production companies: Sun Petrochemicals was 53.98% of revenue in the June 2025 quarter and 66.00% in FY25, and the top five customers 97.98% and 99.57% (DRHP p.31, DRHP p.40). A public-sector producer provided 35.34% of FY23 revenue and none in the June quarter (DRHP p.40).

Why it is raising money: ₹2,850.00 million for plant and machinery, ₹855.00 million to repay borrowings, and the rest for general purposes (DRHP p.28).

How fast it has grown: revenue from ₹600 million in FY23 to ₹1,930 million in FY24 and ₹3,544 million in FY25, and ₹977 million in the three months to June 2025 (DRHP p.30).

The one thing to understand: a small fleet working for very few clients. The company has five rigs, completed 16 wells in FY25, and depends on one private producer for most of its revenue; its growth came as rigs were added and that client's share rose (DRHP p.40, DRHP p.121).

02The business, in plain words

A drilling contractor owns rigs and crews and hires them out to oil and gas producers, usually on multi-year rate contracts, to drill wells to a target depth, and bills under those contracts.

An oil producer in Gujarat needs development wells drilled → it contracts Shivganga for a rig and crew → the rig drills the wells to depth → Shivganga bills the producer under the rate contract.

In FY25 the company drilled 22,380 metres and completed 16 wells (DRHP p.121).

Earnings equation: Profit ≈ rigs working × contract rate − crew, fuel and maintenance cost − depreciation and interest. EBITDA margin was 32.20% in the June quarter (DRHP p.121).

03Where the money comes from

Source: DRHP p.31, DRHP p.40. Q1 FY26 is three months.

Source: DRHP p.121.

04The growth record

Source: DRHP p.30, DRHP p.121, DRHP p.353. Q1 FY26 is three months.

05What the growth is made of

More rigs and higher revenue per rig. Revenue per rig from onshore drilling rose from ₹198 million in FY23 to ₹713 million in FY25 (DRHP p.121). The company spent ₹602 million on capex in FY24 and ₹559 million in FY25 (DRHP p.121). Metres drilled more than doubled over the two years (DRHP p.121).

06Earnings quality

Cash lagged profit in FY24 and the June quarter: operating cash flow was ₹63.59 million against ₹274.64 million of profit in FY24, and ₹43.93 million against ₹207.79 million in the quarter, which the document attributes to receivables, payables and other working capital (DRHP p.30, DRHP p.353). FY25 cash flow matched profit (DRHP p.353). There are no auditor qualifications not given effect in the restated accounts (DRHP p.30).

Other income was ₹54.50 million in FY25, 6.4% of profit before tax of ₹846.56 million (our arithmetic, DRHP p.70).

07The balance sheet

Source: DRHP p.30, DRHP p.121.

RoCE was 54.50% in FY25 (DRHP p.121). Contingent liabilities at June 30, 2025 were ₹831.99 million: bank guarantees of ₹58.54 million and corporate guarantees of ₹162.80 million to Aditi Enterprises Pvt Ltd. and ₹610.65 million to Amrit Papers Pvt Ltd. (our arithmetic, DRHP p.32).

08What the money is for

Source: DRHP p.28.

09Who is selling

Nobody. The issue is a fresh issue only, of up to ₹4,000 million (DRHP p.27).

10Promoters

The promoters are Bhanwar Lal Rathi, Manoj Bahety, Mukul Bahety, Anuj Rathi, Shreyas Bahety, Sunita Bahety and Priyanka Rathi (DRHP p.27). No proceedings are listed by or against the promoters (DRHP p.31). Shiva Drillers (India) Private Limited, a promoter-group company, is authorised to carry on the same business; the document says it has no operations and does not compete (DRHP p.56).

Director remuneration and salary paid to the promoters came to ₹32.96 million in FY23 and ₹160.10 million in FY25 (our arithmetic, DRHP p.32).

11Who already owns it

Source: DRHP p.28. The fourth row is our arithmetic. Promoters and promoter group hold 98.70% (DRHP p.28).

12What changed just before the IPO

• Fifth rig: a Nabors 1,000 HP rig newly acquired (DRHP p.225).
• Client mix: no revenue from the public-sector producer in the June quarter (DRHP p.40).
• Margins: EBITDA margin above 30% since FY25 (DRHP p.121).

The company issued bonus shares at ten for every one held on October 03, 2025 (DRHP p.86). It became a public company, with a fresh certificate of incorporation dated September 26, 2025 (DRHP p.73). The statutory auditor changed on September 30, 2025, from S.P. Moondra & Co to Milind Nyati & Co. LLP (DRHP p.76).

13Capacity and expansion

Five rigs: a Foremost DR24 of 525 HP, an Atlas Copco Predator of 950 HP overhauled in FY25, an S&S of 1,000 HP, a Honghua of 1,000 HP and the new Nabors of 1,000 HP (DRHP p.225). The proceeds fund ₹2,850 million of plant and machinery (DRHP p.28).

14Market size and industry structure

The CareEdge report cited in the offer document puts India's drilling services market at USD 2,214 million in 2024 and projects USD 2,856 million by 2030, with onshore drilling over 85% of it (DRHP p.27). Those projections are CareEdge's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Long client relationships: over a decade with Sun Petrochemicals and GNRL Oil & Gas (DRHP p.226).
• Air-hammer drilling for hard-rock wells, including an ONGC contract for 14 wells in frontier basins from FY22 to FY25 (DRHP p.225).

Against that: dependence on one private client, contract expiry, a small fleet that may need costly upgrades, and competition from Indian and foreign drillers (DRHP p.31, DRHP p.32).

16Peers the company named

The document names Asian Energy Services and Deep Industries as listed peers and gives an average peer P/E of 13.68 (DRHP p.120). The full peer table was not read for this study.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• One client. Sun Petrochemicals was 54 to 72% of revenue in the latest three periods (DRHP p.40).
• Five customers. Nearly all revenue (DRHP p.31).
• Oil activity. Demand for rigs follows exploration spending (DRHP p.31).
• Contracts. Expiry or termination (DRHP p.31).
• Technology. Rigs may need expensive upgrades (DRHP p.31).

18Litigation and regulatory matters

Source: DRHP p.30. No proceedings are listed against the promoters or directors (DRHP p.31).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• When the Sun Petrochemicals contracts expire, or their remaining value, in the pages read.
• What equipment the ₹2,850 million pays for and how many rigs it adds, in the pages read.
• Why the public-sector producer's revenue fell to nil, in the pages read.
• What the ₹46.42 million claim against the company concerns, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. How long do the Sun Petrochemicals contracts run, and at what rates?
2. How many rigs will the ₹2,850 million pay for, and are contracts lined up for them?
3. Why did work for the public-sector producer end?
4. What was the revenue per rig in the June quarter, annualised, and why is it lower than FY25?
5. Will Shiva Drillers (India) be wound up or restricted from competing?

1Sources and cited facts

This study was read from 1 document the company filed. The 56 figures it cites are listed under the document each came from, with the page and the sentence as printed.