Mayasheel Ventures Limited, a reputed "A" class government contractor, has successfully concluded its Initial Public Offering (IPO) with a moderate subscription of 7.53 times, signalling investor interest albeit amid muted enthusiasm. The IPO was open from June 20 to June 24, 2025, with an allotment date scheduled for June 25, 2025, and the listing on NSE SME expected around June 27, 2025.

The issue size was ₹27.28 Crores, consisting entirely of a fresh issue of 58.05 lakh shares. The price band was set between ₹44 to ₹47 per equity share, and the lot size was 3,000 shares, translating to a minimum investment of ₹1,41,000 for retail investors and ₹2,82,000 for High-Net-Worth Individuals (HNIs).

Despite a low Grey Market Premium (GMP) of ₹3, indicating a listing gain of only around 6.38%, the IPO managed a respectable response, thanks in part to the company’s track record in road and civil infrastructure construction, and its standing as a government-recognised contractor.

Company Overview

Mayasheel Ventures Limited operates primarily in engineering construction and development, focusing on road building, electrical infrastructure, and civil works. The company acts both as an EPC contractor and on an item-rate basis, often undertaking sub-contracting assignments for larger infrastructure projects. Its clientele includes government bodies, public sector undertakings, and private developers.

Over the years, the company has carved out a niche in the infrastructure development space through its reputation for timely delivery, efficient project management, and technical competency. The Promoter and Managing Director, Mr. Amit Garg, brings over 15 years of industry experience, which has significantly shaped the company's growth and operations.

Financial Performance

Mayasheel Ventures’ financials reveal a consistent upward growth trend across revenue, EBITDA, and profit after tax (PAT) over the last four years:

• Revenue from Operations grew from ₹11,661.21 Lakh in FY22 to ₹17,204.92 Lakh in FY25.

• EBITDA improved from ₹1,471.58 Lakh in FY22 to ₹2,528.61 Lakh in FY25.

• PAT rose from ₹488.56 Lakh in FY22 to ₹1,133.47 Lakh in FY25.

In terms of valuation, the pre-issue EPS stands at ₹7.23 and post-issue EPS at ₹5.14 for FY24. The pre-issue P/E ratio is 6.50x and the post-issue P/E is 9.14x, considerably lower than the industry average of 112x, suggesting the IPO is fairly priced. The ROCE is at 28.62%, while the ROE and RoNW are at 42.83%, pointing to strong return metrics.

IPO Structure and Objectives

The issue was led by NARNOLIA FINANCIAL SERVICES LIMITED as the book running lead manager, with MAASHITLA SECURITIES PRIVATE LIMITED as the registrar and Prabhat Financial Services Limited as the market maker.

Anchor investors subscribed for 16,50,000 equity shares, raising ₹7.75 Crores, which instilled a measure of confidence in the offering. The IPO proceeds are proposed to be used for the following:

1. ₹400.00 Lakhs for capital expenditure towards purchasing construction equipment and machinery.

2. ₹1,400.00 Lakhs to meet working capital requirements.

3. Remaining balance for general corporate purposes.

This capital deployment is aimed at enhancing the company’s operational capacity and infrastructure readiness, enabling it to bid for larger government projects and diversify into new geographies.

Market Sentiment and GMP Analysis

The Grey Market Premium (GMP) for Mayasheel Ventures IPO remained at ₹3, implying marginal listing gains of 6.38%. This subdued GMP, despite the company’s healthy financial performance, highlights the cautious sentiment in the broader SME IPO market, especially when compared to other high-profile SME listings that have seen explosive GMP trends.

This signals that investors remain selective, leaning towards companies with strong competitive moats, unique business models, or exposure to rapidly scaling sectors such as renewable energy, electronics, or fintech.

Subscription Status

On the final day of the IPO, the subscription status was as follows:

• Total subscription: 7.53 times

• Anchor portion: Fully subscribed at upper price band

• Retail and HNI response: Moderate, considering the GMP and sectoral growth prospects

This level of interest is indicative of the company's stable performance and reasonable valuations, even though the market didn’t show excessive exuberance.

Expert Review and Recommendation

Despite the financial robustness and order book visibility, analysts remain neutral to cautious on the listing and long-term investment prospects of Mayasheel Ventures. While the company's growth trajectory and balance sheet strength are commendable, the following concerns temper enthusiasm:

• Low GMP, indicating tepid demand in the unofficial market

• High minimum investment threshold, which limits retail participation

• Concentration in traditional infrastructure contracting, with limited diversification into high-margin or tech-driven areas

Hence, based on the valuation, sector outlook, and market response, many market observers recommend avoiding the IPO for listing gains or long-term investment purposes, particularly for risk-averse investors.

Conclusion

Mayasheel Ventures Limited has established itself as a reliable civil infrastructure contractor, with improving profitability, strong return ratios, and healthy growth in revenues. The IPO, priced attractively on a P/E and RoE basis, has attracted modest but stable investor interest, culminating in a 7.53x subscription.

However, the lacklustre Grey Market Premium and muted enthusiasm from retail participants indicate that the listing pop may be limited, and the IPO may not deliver substantial short-term returns. For long-term investors, unless the company embarks on diversification, technological adoption, or margin expansion, the returns could remain range-bound.

Investors are advised to monitor post-listing performance, especially if the stock opens around the upper GMP estimate of ₹50, and assess business scalability before considering secondary market entry.

The Mayasheel Ventures IPO is a textbook case of a well-managed, stable infrastructure player coming to the public market at a reasonable valuation, but lacking the excitement or disruptive edge that typically drives aggressive investor participation. As such, while it remains a fundamentally sound business, the IPO does not currently offer compelling reasons for investors chasing high returns or rapid growth stories.

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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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