Monarch Surveyors & Engineering Consultants Ltd. is a leading infrastructure consultancy firm offering comprehensive solutions and services across sectors such as transportation, urban planning, environment, water, and industrial domains. The company collaborates extensively with several Indian Government institutions, Road Authorities, Railways, Municipal bodies, and private enterprises across India. In addition, Monarch has expanded its footprint by providing data-driven engineering solutions to neighboring countries like Sri Lanka and Bhutan.

The company launched a Book Built Issue IPO amounting to ₹93.75 crores, entirely consisting of a fresh issue of 37.50 lakh shares. The subscription period for this IPO was from July 22, 2025, to July 24, 2025, with allotment expected to be finalized by July 25, 2025. The shares will be listed on the BSE SME platform, with a tentative listing date set for Tuesday, July 29, 2025.

The price band for the IPO was fixed between ₹237 to ₹250 per equity share, with the company’s market capitalization pegged at ₹353.9 crores at the upper price band of ₹250. The IPO lot size is 600 shares, with individual investors required to invest in a minimum of 2 lots (1,200 shares), amounting to a minimum investment of ₹3,00,000.

The Book Running Lead Manager for the IPO is BEELINE CAPITAL ADVISORS PRIVATE LIMITED, while BIGSHARE SERVICES PRIVATE LIMITED is appointed as the Registrar. The Market Maker for this issue is Spread X Securities Private Limited.

IPO Subscription and Market Sentiment

As of 11:00 AM on July 23, 2025, the IPO was subscribed 21.83 times on its second day, indicating overwhelming investor interest and demand. The Grey Market Premium (GMP) currently stands at ₹80, reflecting a 32% expected premium over the issue price. While grey market trends are unofficial and based on unorganized demand and supply, this premium suggests strong positive sentiment and the likelihood of healthy listing gains.

Financial Performance Overview

Monarch Surveyors & Engineering Consultants has shown consistent financial growth over the last three fiscal years:

• Revenue from operations increased from ₹7,272.14 lakh in FY23 to ₹15,566.09 lakh in FY25.

• EBITDA grew substantially from ₹1,272.03 lakh in FY23 to ₹5,262.84 lakh in FY25.

• Profit After Tax (PAT) expanded from ₹858.92 lakh in FY23 to ₹3,483.24 lakh in FY25.

This steady growth reflects the company’s strong market position and operational efficiency in the infrastructure consultancy space.

Valuation Metrics

The company’s pre-issue Earnings Per Share (EPS) for FY24 is ₹33.47, with a post-issue EPS of ₹24.61 after factoring in the fresh issue dilution. The pre-issue Price to Earnings (P/E) ratio stands at 7.46x, increasing to 10.16x post-issue, which is significantly lower than the industry average P/E of 20x. This valuation suggests that the IPO is attractively priced relative to industry peers.

Key financial ratios for FY24 include:

• Return on Capital Employed (ROCE): 39.59%

• Return on Equity (ROE): 32.01%

• Return on Net Worth (RoNW): 32.01%

These figures highlight the company’s strong profitability and efficient use of capital.

Use of IPO Proceeds

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹3,198.89 lakh for capital expenditure, primarily for purchase of machinery.

2. ₹3,000 lakh for working capital requirements, to support ongoing projects and business operations.

3. Remaining funds for general corporate purposes, providing flexibility for strategic initiatives.

These investments will support the company’s growth plans and capacity enhancement.

Promoters and Leadership

The company is promoted by experienced industry veterans: Mr. Dattatraya Mohaniraj Karpe, Mr. Sunil Shrikrishna Bhalerao, Mr. Sanjay Bhalchandra Vidwans, and Mr. Bhartesh Rajkumar Shah, each bringing over 25 years of experience in civil engineering consultancy services. Their expertise has earned the company industry recognition and awards for engineering excellence, helping it become a trusted partner for multiple government and private entities.

IPO Allotment and Listing Details

The IPO allotment is expected on July 25, 2025, and investors can check the status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID. The shares will be listed on BSE SME on or about July 29, 2025.

Final Thoughts and Recommendations

Considering the company’s strong financial performance, reasonable valuation, and impressive subscription figures, the Monarch Surveyors and Engineering Consultants IPO looks promising. The high grey market premium of ₹80 further signals potential for good listing gains. Investors seeking exposure to the infrastructure consultancy sector with growth potential may find this IPO attractive.

However, as with all equity investments, investors should carefully assess risks related to market conditions, sector dynamics, and individual investment goals before subscribing.

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice. Readers should seek professional guidance before making investment decisions. Investments in securities are subject to market risks, and past performance does not guarantee future results.

The Upcoming IPOs in this week and coming weeks are Sellowrap Industries, Repono, Shanti Gold International, Brigade Hotel Ventures, Patel Chem Specialities, NSDL.

The Current active IPO are Indiqube Spaces, GNG Electronics, TSC India, Monarch Surveyors & Engineering Consultants, Swastika Castal, Savy Infra.

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