Mayasheel Ventures Limited, a prominent “A” class government contractor specialising in engineering construction and infrastructure development, is set to launch its Initial Public Offering (IPO) on June 20, 2025. The public issue will close on June 24, 2025, and is expected to be listed on the NSE SME platform on or around June 27, 2025.

The company operates extensively in the construction of roads, electrical works, and miscellaneous civil construction contracts, working both as an EPC contractor and on an item-rate basis, and also undertakes sub-contracting assignments.

IPO Details

The Mayasheel Ventures IPO is a Book Built Issue amounting to ₹27.28 crore, entirely a fresh issue comprising 58.05 lakh equity shares. The price band for the issue is fixed between ₹44 and ₹47 per share.

• IPO Lot Size: 3,000 shares

• Minimum investment for retail investors: ₹1,41,000

• Minimum investment for HNIs: 2 lots or ₹2,82,000

The issue is being managed by Narnolia Financial Services Limited as the Book Running Lead Manager (BRLM), with Maashitla Securities Private Limited as the registrar, and Prabhat Financial Services Ltd acting as the Market Maker.

Anchor Investors and GMP

Ahead of the IPO opening, Mayasheel Ventures raised ₹7.75 crore from anchor investors, allotting 16.5 lakh equity shares at the upper end of the price band (₹47). This shows preliminary institutional confidence in the offering.

However, the Grey Market Premium (GMP) currently stands at only ₹3, implying a modest listing gain of approximately 6.38%. It is important to note that GMP is not a regulated indicator, and price discovery can only truly happen on the stock exchange.

Financial Performance and Growth Metrics

Mayasheel Ventures has reported steady financial growth over the past four years, which is evident from the following:

Revenue from Operations (in ₹ Lakh):

• FY2022: ₹11,661.21

• FY2023: ₹12,709.96

• FY2024: ₹13,114.44

• FY2025 (as of Mar 31): ₹17,204.92

EBITDA (in ₹ Lakh):

• FY2022: ₹1,471.58

• FY2023: ₹1,543.14

• FY2024: ₹1,731.11

• FY2025: ₹2,528.61

Profit After Tax (PAT) (in ₹ Lakh):

• FY2022: ₹488.56

• FY2023: ₹475.21

• FY2024: ₹651.35

• FY2025: ₹1,133.47

This consistent upward trend in revenue, EBITDA, and PAT indicates strong operational management and effective execution across infrastructure projects.

Valuation Metrics and Comparisons

The company's pre-issue EPS stands at ₹7.23, while the post-issue EPS drops to ₹5.14 for FY24. The pre-issue P/E ratio is 6.50x, and post-issue P/E is 9.14x, as compared to the industry P/E of 112x.

Additional financial metrics include:

• Return on Capital Employed (ROCE): 28.62% (FY24)

• Return on Equity (ROE): 42.83%

• Return on Net Worth (RoNW): 42.83%

These figures suggest operational efficiency and effective capital deployment, but the valuation appears modest, leaving limited room for listing-day upside.

Use of Proceeds

The funds raised from the IPO are expected to be deployed for:

• Working capital requirements

• General corporate purposes

• Expansion of ongoing infrastructure projects

With increasing focus on roads, electrification, and rural connectivity, the company’s segment holds long-term potential, especially given the government’s thrust on infrastructure development under PM Gati Shakti and National Infrastructure Pipeline (NIP).

Promoter Profile and Experience

Mr. Amit Garg, the Managing Director and Promoter, holds 15 years of experience in road construction and civil engineering contracts, which has been instrumental in Mayasheel Ventures’ consistent growth trajectory.

The company’s future, however, is significantly dependent on the continued involvement of its senior management team, which investors must note as a potential risk.

Risks and Concerns

While Mayasheel Ventures has delivered stable growth, the following concerns should be considered:

• High minimum investment for retail participation (₹1.41 lakh)

• Low GMP, indicating tepid grey market interest

• Dependence on government contracts, which are cyclical and subject to regulatory and payment delays

• Limited clarity on order book and upcoming project pipeline in the DRHP

In addition, the relatively small listing platform (NSE SME) may affect post-listing liquidity and visibility among institutional investors.

Recommendation

Despite solid financials and operational metrics, the IPO valuation leaves limited scope for near-term gains. The current GMP, modest subscription buzz, and market mood suggest investors may prefer to “avoid” this IPO for:

• Short-term listing gains

• Long-term investment, unless further clarity on project backlog or expansion plan emerges

Retail investors may wait for better-priced offerings or post-listing price stability before taking any position.

Conclusion

Mayasheel Ventures Limited’s IPO is a story of steady growth, government-backed infrastructure work, and strong management expertise. However, in a crowded SME IPO market with high investor expectations, the pricing and sentiment mismatch casts a shadow over immediate returns.

Final verdict: Avoid — both for listing gains and long-term investment, unless pricing corrects or project visibility improves.
 

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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