Icon Facilitators Limited, a technical facilities management services provider primarily operating in North India, has launched its Initial Public Offering (IPO) on the BSE SME platform. The company offers an array of integrated business services including electrical systems operation, HVAC management, building automation (BMS), STP/ETP and water treatment, fire and safety, and elevators & escalators maintenance.

The IPO is a Book Built Issue amounting to ₹18.15 Crores, consisting entirely of a fresh issue of 21.00 lakh shares. The IPO opens on June 24, 2025, and closes on June 26, 2025. The price band is set between ₹85 to ₹91 per share, with the upper end reflecting a market capitalisation of ₹71.52 Crores.

The lot size for the IPO is 1,200 shares, requiring retail investors to invest a minimum of ₹1,09,200, while High-Net-Worth Individuals (HNIs) must invest a minimum of 2 lots (₹2,18,400). The shares will be listed on July 1, 2025, and allotment is expected by June 27, 2025.

KHAMBATTA SECURITIES LIMITED is the Book Running Lead Manager, while MAASHITLA SECURITIES PRIVATE LIMITED is acting as the Registrar. Nikunj Stock Brokers Limited is appointed as the Market Maker.

Company Overview

Icon Facilitators Limited provides end-to-end technical management services for commercial buildings, industrial units, corporate offices, and residential complexes. Their services encompass:

• Electrical system operations and captive power management

• Sewage treatment plant (STP) and effluent treatment plant (ETP) services

• HVAC (Heating, Ventilation, Air Conditioning) systems maintenance

• BMS (Building Management Systems)

• Fire and safety systems upkeep

• Elevators and escalators operations & AMC

The company has built its business around facility efficiency, energy optimization, and safety standards compliance, especially in Northern India, where most of its client base is located.

The promoter, Mr. Dinesh Makhija, is a Mechanical Engineer with over 20 years of industry experience. Under his leadership, the company has developed a solid foundation in operations, technical management, and corporate strategy.

Financial Performance

Over the past three years, Icon Facilitators has shown steady financial growth:

• Revenue from operations:

  • FY23: ₹4,296.30 Lakh

  • FY24: ₹4,984.82 Lakh

  • FY25: ₹5,806.55 Lakh

• EBITDA:

  • FY23: ₹311.56 Lakh

  • FY24: ₹289.96 Lakh

  • FY25: ₹655.08 Lakh

• Profit After Tax (PAT):

  • FY23: ₹192.30 Lakh

  • FY24: ₹176.24 Lakh

  • FY25: ₹447.02 Lakh

This consistent revenue and profitability increase suggests operational efficiency and market expansion. FY25 performance notably shows a leap in EBITDA and PAT, reinforcing investor confidence in business scalability.

Valuation and Key Ratios

Key performance indicators for FY24 include:

• Pre-issue EPS: ₹7.91

• Post-issue EPS: ₹5.69

• Pre-issue P/E Ratio: 11.50x

• Post-issue P/E Ratio: 16.00x

• Industry Average P/E: 16x

• Return on Capital Employed (ROCE): 37.09%

• Return on Equity (ROE): 35.23%

• Return on Net Worth (RoNW): 35.23%

These numbers confirm that the IPO is fairly priced, aligning closely with the industry P/E ratio, but backed by strong return metrics, indicating solid capital efficiency.

IPO GMP and Market Sentiment

As of June 24, 2025, the Grey Market Premium (GMP) for Icon Facilitators IPO is ₹0, suggesting no expected listing gains. This could be attributed to low speculative interest or competing IPOs in the SME segment. However, GMPs are often not reliable indicators of long-term performance, especially in SME issues.

Subscription Status and Investor Response

The IPO subscription stood at 0.25x as of 11:00 AM on June 24, 2025, the first day of the issue. This reflects subdued investor interest, possibly due to:

• High entry price for retail investors (₹1.09 lakhs minimum)

• Absence of GMP-driven hype

• Limited national brand recognition

More momentum may be observed on the final day as institutional and HNI investors step in.

Use of IPO Proceeds

Icon Facilitators intends to utilize the net proceeds of the IPO in the following manner:

1. ₹1,600.00 Lakhs will be allocated towards working capital requirements, ensuring service continuity and support for ongoing projects.

2. Remaining funds will be used for general corporate purposes, providing flexibility for administrative and operational initiatives.

Allotment and Listing Process

The allotment date is scheduled for June 27, 2025, with the listing expected on July 1, 2025. Investors can check their IPO allotment status via the registrar’s portal by entering their PAN, application number, or DP Client ID.

The company's listing on BSE SME is expected to provide liquidity to early investors, though SME stocks tend to have low trading volumes and higher volatility compared to mainboard stocks.

Analyst Verdict: Should You Subscribe?

While Icon Facilitators Limited shows commendable financial growth, efficient capital usage, and strong return ratios, the current market response has been muted, and there is no Grey Market Premium indicating immediate listing gains.

The IPO is fairly priced, and the business model is stable, especially given the ongoing demand for facility management services. However, the high minimum investment and low brand recall in broader markets may deter small retail investors.

Recommendation: For long-term investors with risk appetite and interest in SME stocks, this IPO may offer value. However, for retail investors seeking short-term gains, especially from listing day profits, it is advised to avoid participation at this stage.

Conclusion

Icon Facilitators IPO presents a strong operational foundation with fair valuations and healthy financial metrics. The company has carved out a niche in technical facility services, particularly in Northern India, and its numbers show clear year-on-year growth. Despite this, the current investor sentiment remains cautious, as reflected in subscription numbers and zero GMP.

Investors are advised to watch for final day subscriptions, and those considering investing should do so with a long-term view in mind. The stock may stabilize post-listing and could offer opportunities for gains with operational expansion across India.

Disclaimer: This article is for educational and informational purposes only and should not be treated as investment advice. Investors must consult with certified financial advisors and carefully read offer documents and disclosures before making any financial decision. Investing in securities involves market risks.

The Upcoming IPOs in this week and coming weeks are Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Rama Telecom, Supertech EV, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech, Sambhav Steel Tubes, HDB Financials.

The Current active IPO are  Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru,AJC Jewel, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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