Sattva Engineering Construction Ltd. IPO 2025 – Should You Invest?
Sattva Engineering Construction Ltd. (SECL) is coming up with its SME IPO. Headquartered in Chennai, the company operates as an EPC (Engineering, Procurement & Construction) contractor specializing in Water Infrastructure, Wastewater Management, and Industrial Construction projects.
🏗 IPO Details
- IPO Size: ₹35.38 Cr (entirely Fresh Issue)
- Price Band: ₹70 – ₹75 per share
- Lot Size: 1,600 shares (Retail minimum investment: ₹2,40,000)
- Issue Type: Book-Building IPO
- Listing: NSE SME
- IPO Open Date: August 26, 2025
- IPO Close Date: August 29, 2025
- Tentative Listing: September 3, 2025
👉 Lead Manager: Vivro Financial Services Pvt. Ltd.
👉 Registrar: MUFG Intime India Pvt. Ltd.
👉 Market Maker: Rikhav Securities Ltd.
🔹Sattva Engineering Business Overview
SECL has been working as a Class-I Government Contractor for more than 40 years. Its client portfolio includes:
- Tamil Nadu PWD, CMWSSB, TWAD, Greater Chennai Corporation, Southern Railway, BHEL
- Internationally funded projects from World Bank and Asian Development Bank
Core Segments:
✔ Water & Wastewater Projects – STPs, WTPs, pumping stations, distribution networks
✔ Industrial & Civil Infrastructure – Warehouses, factories, freight stations
✔ Residential Development – Apartments, flats, bungalows
📈 Financial Performance (₹ in Cr)
| Period | Revenue | PAT | EBITDA | Net Worth |
|---|---|---|---|---|
| FY23 | 83.93 | 1.04 | 7.28 | 19.47 |
| FY24 | 77.44 | 4.56 | 11.72 | 24.03 |
| FY25 | 94.85 | 9.14 | 18.56 | 43.42 |
- Revenue Growth (FY24–FY25): +22%
- PAT Growth (FY24–FY25): +100%
- Order Book: ₹308+ Cr (as of March 31, 2025)
📊 Key Ratios (FY25)
- ROE: 27.10%
- ROCE: 28.58%
- Debt/Equity: 0.83
- PAT Margin: 9.64%
- EBITDA Margin: 19.82%
- P/E (Post Issue): 14.34x
- Price/Book: 2.20x
🎯 IPO Objects of the Issue
1️⃣ Long-term Working Capital Requirements – ₹275 Mn
2️⃣ General Corporate Purposes
📌 Subscription Status (Day 1 – Aug 26, 2025)
| Category | Subscription |
|---|---|
| Retail (RII) | 1.95x |
| NII (HNI) | 2.00x |
| bNII | 2.28x |
| sNII | 1.45x |
| QIB | 0.00x |
| Total | 1.41x (Applied by 1,062 investors) |
🔑 Strengths
✔ Strong government clientele
✔ 40+ years of EPC experience
✔ Robust order book worth ₹308+ Cr
✔ Improving margins and ROE
⚠️ Risks
⚠️ High minimum investment of ₹2.4 lakh – may deter small retail investors
⚠️ Heavy dependence on government contracts
⚠️ Moderate leverage (Debt/Equity = 0.83)
📢 Expert View
According to market expert Dilip Davda:
“SECL has shown steady growth in both top line and bottom line. Its order book is strong as well. Although the issue appears fully priced, long-term investors may consider allocating funds.”
📝 Verdict: Invest or Avoid?
💡 If you are looking for a long-term growth story in the EPC sector and are comfortable with the high investment threshold, SECL’s IPO could be a good opportunity.
However, for short-term listing gains, the issue seems slightly expensive.
Sattva Engineering Construction IPO – Timeline (Tentative Schedule)
- IPO Open Date: Tuesday, August 26, 2025
- IPO Close Date: Friday, August 29, 2025
- Basis of Allotment: Monday, September 1, 2025
- Initiation of Refunds: Tuesday, September 2, 2025
- Credit of Shares to Demat: Tuesday, September 2, 2025
- Tentative Listing Date: Wednesday, September 3, 2025
- Cut-off Time for UPI Mandate Confirmation: 5:00 PM, August 29, 2025
📊 Sattva Engineering Construction IPO Lot Size
Investors can bid for a minimum of 3,200 shares and thereafter in multiples of 1,600 shares. The table below highlights the minimum and maximum investment limits for different investor categories:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 2 | 3,200 | ₹2,40,000 |
| Retail (Max) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (Min) | 3 | 4,800 | ₹3,60,000 |
| S-HNI (Max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (Min) | 9 | 14,400 | ₹10,80,000 |
👥 Promoter Holding
The promoters of SECL are Santhanam Seshadri, R Sekar, and Jagachchandarr Sekar Uthra.
- Pre-Issue Promoter Holding: 86.18%
- Post-Issue Promoter Holding: (Exact % to be updated after final issue size & allotment)