The Oval Projects Engineering Limited IPO has opened for subscription with an issue size of ₹46.74 crore. The issue consists entirely of a fresh issue of 54.99 lakh equity shares and is being offered through the book built issue route. The IPO subscription window runs from 28 August 2025 to 01 September 2025, after which the allotment is expected to be finalized on 02 September 2025. The tentative listing date is set for 04 September 2025 on the BSE SME platform.

The company has fixed the IPO price band between ₹80 and ₹85 per equity share, translating to a market capitalization of ₹176.54 crore at the upper end of the band. The lot size of the IPO is 1,600 shares, and retail investors are required to apply for a minimum of 2 lots (3,200 shares), which amounts to an investment of ₹2,72,000. The issue is being managed by SMC Capitals Limited as the book running lead manager, while MAS Services Limited is serving as the registrar of the issue. SMC Global Securities Limited is the sole market maker for the IPO.

Company Background

Oval Projects Engineering Limited, founded in 2013, has established itself as a key player in infrastructure development services across onshore oil & gas, city gas distribution, urban development, and energy industries. Its service capabilities span upstream, midstream, and downstream operations, positioning it as a comprehensive engineering and infrastructure solutions provider. Originally based in Agartala, the company has significantly expanded its footprint across India.

The company is spearheaded by Promoter Goutam Debnath, who brings over a decade of technical expertise in oil and gas pipeline infrastructure services. His leadership and strategic vision have been instrumental in the company’s expansion, giving Oval Projects a competitive advantage in the infrastructure development sector.

IPO Grey Market Premium (GMP)

The Oval Projects Engineering IPO Grey Market Premium (GMP) currently stands at ₹7 as per market observers. This indicates an expected listing price of around ₹92 per share against the upper price band of ₹85. However, experts caution that GMP is purely indicative, depends on demand and supply in the unofficial market, and should not be relied upon for actual price discovery. The company itself clarifies that no real trading takes place in the grey market and the data is only for informational purposes.

IPO Subscription Status

As of 11:30 AM on 01 September 2025, the final day of bidding, the IPO was subscribed 0.79 times. Investors can check the real-time subscription status on the BSE website. The subscription figure shows a modest demand, which will play a key role in determining the listing performance of the company’s shares.

Anchor Investor Participation

On 27 August 2025, Oval Projects Engineering successfully raised ₹7.96 crore from anchor investors. The company allotted 9.36 lakh equity shares at ₹85 per share in consultation with the book running lead managers. This allotment was carved out from the Qualified Institutional Buyers (QIB) quota. Anchor participation provides early confidence but does not guarantee strong retail demand.

Financial Performance

Oval Projects Engineering has shown steady growth in revenues and profitability over the past three years.

• Revenue from operations stood at ₹10,343.68 lakh in FY 2025, compared to ₹7,898.61 lakh in FY 2024 and ₹6,408.89 lakh in FY 2023.

• EBITDA improved to ₹1,938.93 lakh in FY 2025, against ₹1,094.70 lakh in FY 2024 and ₹856.98 lakh in FY 2023.

• Profit After Tax (PAT) reached ₹933.25 lakh in FY 2025, up from ₹440.11 lakh in FY 2024 and ₹318.50 lakh in FY 2023.

These numbers indicate a consistent upward trend in profitability, supported by expanding operations and efficient project execution.

Key Valuation Metrics

At the IPO price band, Oval Projects presents the following valuation indicators:

• 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: 20.85%

These metrics indicate that the IPO is fully priced, with limited upside compared to industry peers.

Utilisation of IPO Proceeds

The company plans to utilize the net proceeds from the IPO as follows:

1. ₹3,702.60 lakh towards meeting long-term working capital requirements.

2. Balance funds for general corporate purposes.

IPO Allotment and Listing Process

The allotment date is scheduled for 02 September 2025. Investors can check their allotment status online by entering their PAN, application number, or DP Client ID on the registrar’s portal once the allotment is finalized. Post allotment, shares will be credited to the demat accounts before the tentative listing date of 04 September 2025 on BSE SME.

IPO Review and Expert Outlook

Market experts note that Oval Projects Engineering has demonstrated steady financial growth and operates in a critical sector of energy and infrastructure development. However, at the upper price band, the valuation appears fully priced and the grey market premium suggests only marginal listing gains.

With subscription demand below 1x, the IPO does not show strong retail enthusiasm. While long-term investors with an appetite for infrastructure growth stories may consider participation, analysts recommend avoiding the IPO for short-term listing gains.

Conclusion

The Oval Projects Engineering IPO represents an opportunity to invest in a company with a solid track record in infrastructure development, especially in oil & gas and city gas distribution segments. Backed by strong leadership and expanding operations, the company is positioned well for the future.

However, given the modest subscription status, fully priced valuation, and limited grey market signals, cautious investors may prefer to wait and watch the company’s performance post listing. Those seeking long-term exposure in infrastructure and energy industries may evaluate participation with a focus on fundamentals rather than speculative listing gains.

The Upcoming IPOs in this week and coming weeks are Vashishtha Luxury Fashion, Karbonsteel Engineering, Sharvaya Metals, Austere Systems, Optivalue Tek Consulting, Vigor Plast India, Goel Construction Company.

The Current active IPO are Amanta Healthcare, Rachit Prints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Oval Projects.

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