Oval Projects Engineering Limited, a company engaged in infrastructure development for Oil & Gas, City Gas Distribution, Urban Development, and Energy industries, is set to launch its Initial Public Offering (IPO) on August 28, 2025. The company, founded in 2013 in Agartala, has expanded across India and works across upstream, midstream, and downstream oil and gas pipeline segments.

The IPO is a Book Built Issue worth ₹46.74 crore, consisting of a Fresh Issue of 54.99 lakh equity shares. The subscription window will remain open from August 28, 2025, to September 1, 2025, and the shares are expected to be listed on the BSE SME platform on or around September 4, 2025.

The price band for the IPO has been fixed at ₹80 to ₹85 per share, with a lot size of 1,600 shares. For retail investors, the minimum application is 2 lots (3,200 shares), requiring an investment of ₹2,72,000. At the upper price band of ₹85, the company’s market capitalisation will be ₹176.54 crore.

The IPO is being managed by SMC Capitals Limited as the Book Running Lead Manager, while MAS Services Limited is the registrar. SMC Global Securities Limited will act as the Market Maker.

Anchor Investors and Allocation

Oval Projects Engineering has already raised ₹7.96 crore from anchor investors at ₹85 per share. The company allotted 9.36 lakh shares to anchor investors on August 27, 2025. These allocations were made from the Qualified Institutional Buyers (QIBs) quota.

Objectives of the IPO

The net proceeds from the IPO will be used for the following:

1. ₹37.02 crore towards long-term working capital requirements.

2. General corporate purposes, including future growth opportunities.

Financial Performance

The company has delivered steady growth over the last three years:

• Revenue: ₹6,408.89 lakh (FY23), ₹7,898.61 lakh (FY24), ₹10,343.68 lakh (FY25).

• EBITDA: ₹856.98 lakh (FY23), ₹1,094.70 lakh (FY24), ₹1,938.93 lakh (FY25).

• PAT: ₹318.50 lakh (FY23), ₹440.11 lakh (FY24), ₹933.25 lakh (FY25).

Key ratios:

• Pre-issue EPS (FY24): ₹6.65 | Post-issue EPS: ₹4.49

• P/E ratio: Pre-issue 12.78x | Post-issue 18.92x (Industry average 17x)

• ROCE (FY24): 21.32% | ROE (FY24): 20.85% | RoNW: 20.85%

This suggests the IPO is fully priced.

Grey Market Premium (GMP)

As of August 23, 2025, the Grey Market Premium (GMP) stands at ₹7, implying an 8.23% listing gain over the upper price band. However, experts caution that GMP is unofficial and unregulated, and should not be the sole factor for investment decisions.

Allotment and Listing

The IPO allotment date is set for September 2, 2025. Investors can check their allotment status online on the registrar’s website by providing their application number, PAN, or DP ID. The shares will be listed on the BSE SME platform on September 4, 2025.

Investment Recommendation

While Oval Projects Engineering has shown consistent revenue and profit growth, its post-issue valuations appear stretched compared to industry averages. The IPO is fully priced, and given the limited GMP movement, experts recommend avoiding the IPO for short-term listing gains. However, long-term investors with confidence in the company’s growth potential in oil & gas infrastructure may consider it for portfolio diversification.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.