The Oval Projects Engineering Limited IPO is set to open for subscription, offering investors an opportunity to participate in a leading SME company focused on infrastructure development across Oil & Gas, City Gas Distribution, Urban Development, and Energy industries. Established in 2013 in Agartala, the company has expanded its operations to cover the entire nation, providing services across the upstream, midstream, and downstream segments.

IPO Details and Timeline

The Oval Projects Engineering IPO is a Book Built Issue with a total size of ₹46.74 crore, entirely via a fresh issue of 54.99 lakh shares. The IPO subscription window opens on August 28, 2025 and closes on September 1, 2025. The basis of allotment is expected on September 2, 2025, and the tentative listing on BSE SME is scheduled for September 4, 2025.

Price Band, Lot Size, and Investment Requirement

The IPO has a price band of ₹80 to ₹85 per equity share, with a market capitalization of ₹176.54 crore at the upper band of ₹85. The lot size is fixed at 1,600 shares, requiring individual investors to apply for a minimum of 2 lots (3,200 shares), amounting to ₹2,72,000. This structure is typical for SME IPOs, focusing on attracting serious investors and institutional participation.

Lead Manager, Registrar, and Market Maker

The issue is managed by SMC Capitals Limited as the Book Running Lead Manager, with MAS Services Limited as the registrar. SMC Global Securities Limited is the sole Market Maker, ensuring liquidity on the BSE SME post-listing.

Grey Market Premium and Listing Expectations

The Grey Market Premium (GMP) for the IPO is currently reported at ₹7, suggesting a potential listing price of ₹92, or approximately 8.23% listing gains. It is important to note that GMP is unofficial and speculative, reflecting demand and supply in an unorganized market. Investors should primarily base decisions on the company’s fundamentals and financial performance rather than grey market trends.

Anchor Investors

Oval Projects Engineering has raised ₹7.96 crore from Anchor Investors at the upper price band of ₹85 per share, allocating 9,36,000 equity shares to this category. These shares are issued from the Qualified Institutional Buyers (QIBs) quota, ensuring initial institutional confidence in the IPO.

Company Overview

Oval Projects Engineering Limited has carved a niche in infrastructure services for Oil & Gas, City Gas Distribution, and Urban Development projects. Despite its origin in Agartala, the company now serves clients nationwide, delivering high-quality engineering solutions.

The company’s services span the entire project lifecycle, including planning, design, construction, and maintenance. Their projects are recognized for precision, compliance, and technical expertise, making them a reliable partner for both government and private sector contracts.

Leadership and Promoters

The company is led by Goutam Debnath, the visionary promoter with over a decade of technical experience in oil and gas pipeline infrastructure. His industry knowledge, relationships, and strategic vision have been critical in expanding the company’s geographical reach and client base, while positioning the company for future growth in emerging markets.

Financial Performance

The financial performance demonstrates steady growth over the past three fiscal years:

• Revenue from operations:

  • FY25: ₹10,343.68 lakh

  • FY24: ₹7,898.61 lakh

  • FY23: ₹6,408.89 lakh

• EBITDA:

  • FY25: ₹1,938.93 lakh

  • FY24: ₹1,094.70 lakh

  • FY23: ₹856.98 lakh

• Profit After Tax (PAT):

  • FY25: ₹933.25 lakh

  • FY24: ₹440.11 lakh

  • FY23: ₹318.50 lakh

These numbers highlight consistent revenue growth and profitability, reflecting effective project execution and operational efficiency.

Key Ratios and Valuation

• Pre-issue EPS: ₹6.65

• Post-issue EPS: ₹4.49

• Pre-issue P/E ratio: 12.78x

• Post-issue P/E ratio: 18.92x

• Industry P/E ratio: 17x

• ROCE (FY24): 21.32%

• ROE (FY24): 20.85%

• RoNW (FY24): 20.85%

The ratios suggest that the IPO is fairly priced, with a post-issue valuation in line with industry standards. However, potential listing gains appear moderate, aligning with the GMP trend.

Objectives of the IPO

The net proceeds will be utilized for:

1. ₹3,702.60 lakh for long-term working capital requirements, ensuring smooth operational financing.

2. Remaining proceeds for general corporate purposes, supporting strategic growth and flexibility in operations.

Allotment Process for Investors

Investors can check the allotment status on the registrar’s website by:

• Selecting Oval Projects Engineering IPO from the dropdown list.

• Entering Application Number, PAN, or DP Client ID.

• Submitting the details to confirm allotment.

This process provides investors with a quick and convenient way to track their investment before listing.

Expert Review and Recommendation

While Oval Projects Engineering demonstrates strong fundamentals, experienced leadership, and steady financial growth, the IPO is priced fairly with limited potential listing gains. Experts recommend that investors seeking short-term gains may avoid applying, while long-term investors interested in infrastructure and energy sector exposure may consider selectively.

The Oval Projects Engineering IPO offers investors a chance to participate in an expanding SME infrastructure company with nationwide reach. Despite solid financials and a credible promoter team, the limited listing upside suggests cautious participation, making it more suitable for long-term strategic investors rather than those seeking immediate returns.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators.

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.