Safe Enterprises Retail Fixtures Limited, a company specializing in designing, manufacturing, and installation of retail fixtures, is set to launch its Initial Public Offering (IPO) on June 20, 2025, with the subscription period ending on June 24, 2025. The issue is a Book Built Fresh Issue worth ₹169.74 Crores, consisting entirely of 123.00 lakh new equity shares.

The IPO price band has been fixed at ₹131 to ₹138 per equity share, and at the upper end, the company’s market capitalisation is estimated at ₹643.14 Crores. The lot size is 1,000 shares, translating to a minimum retail investment of ₹1,38,000. HNIs will have to invest in a minimum of 2 lots (2,000 shares) amounting to ₹2,76,000.

The shares are proposed to be listed on the NSE SME platform, with a tentative listing date set for Friday, June 27, 2025. The allotment of shares is expected to be completed by Wednesday, June 25, 2025. The IPO is being managed by HEM Securities Limited as the Book Running Lead Manager, with Maashitla Securities Private Limited acting as the registrar and Hem Finlease Private Limited as the market maker.

Company Overview

Safe Enterprises Retail Fixtures offers customised in-store retail solutions across segments such as fashion & apparel, electronics, and departmental stores. Its services span from design to manufacturing and installation, making it a one-stop solution provider in the retail display infrastructure domain.

The company is helmed by seasoned professionals —

• Saleem Shabbir Merchant (Chairman & MD) with 48 years of experience,

• Mikdad Saleem Merchant (Whole-time Director & CFO) with 13 years of expertise,

• Huzefa Salim Merchant (Whole-time Director) managing production and operations with 14 years of experience.

Financial Performance

The company has demonstrated robust and consistent financial growth, which is often a positive indicator for IPO investors:

• Revenue from Operations:

  • FY25: ₹13,973.18 Lakh

  • FY24: ₹10,137.59 Lakh

  • FY23: ₹7,735.19 Lakh

• EBITDA:

  • FY25: ₹5,085.64 Lakh

  • FY24: ₹3,199.00 Lakh

  • FY23: ₹1,933.90 Lakh

• Profit After Tax (PAT):

  • FY25: ₹3,918.54 Lakh

  • FY24: ₹2,308.84 Lakh

  • FY23: ₹1,208.90 Lakh

These numbers reflect steadily increasing top and bottom lines, supported by operational efficiency and rising demand in the retail display segment.

Valuation and Key Metrics

Safe Enterprises appears to be fairly priced, considering the sectoral benchmark and its current growth trajectory:

• Pre-issue EPS (FY24): ₹11.42

• Post-issue EPS (FY24): ₹8.41

• Pre-issue P/E ratio: 12.08x

• Post-issue P/E ratio: 16.41x

• Industry average P/E: 21x

• ROCE (FY24): 69.10%

• ROE (FY24): 77.54%

• RoNW: 54.37%

The high Return on Capital Employed (ROCE) and Return on Equity (ROE) suggest that the company has excellent capital efficiency, which makes the IPO attractive from a fundamental perspective.

Grey Market Premium (GMP) and Subscription Trend

The Grey Market Premium (GMP) as of June 18, 2025, stands at ₹15, reflecting a 10.86% expected listing gain, with the expected listing price estimated around ₹153.

While GMP is not a formal market indicator, it gives an idea about market sentiment and investor interest. On Day 1 of subscription (June 20), the IPO was subscribed 0.56 times, indicating moderate initial interest, which could pick up in the following days.

IPO Objectives and Use of Proceeds

The company plans to utilise the net proceeds of the IPO as follows:

1. ₹6,588.59 Lakhs for setting up a new manufacturing unit to expand production capacity

2. ₹699.02 Lakhs as investment in Safe Enterprises Retail Technologies Pvt. Ltd., a subsidiary, to finance capital expenditure

3. ₹3,000.00 Lakhs towards working capital requirements

4. ₹1,000.00 Lakhs for subsidiary’s working capital needs

5. Remaining for general corporate purposes

The planned use of funds reflects the company’s focus on expansion, efficiency, and strategic investments.

Allotment Check Process

The IPO allotment status will be available starting June 25, 2025. Investors can check it via the registrar’s portal by following these steps:

• Visit Maashitla Securities allotment status page

• Select “Safe Enterprises Retail Fixtures Limited IPO”

• Enter Application Number, PAN, or DP Client ID

• Submit to view allotment result

Final Analysis and Recommendation

With a GMP of ₹15 and a 10.86% premium on the upper price band, Safe Enterprises Retail Fixtures IPO holds potential for moderate listing gains, particularly for risk-tolerant investors. The company’s consistent growth, high profitability, and fair valuation make it a reasonably attractive opportunity, especially in the NSE SME space, where interest in quality offerings remains high.

However, investors must also account for illiquidity risk associated with SME stocks and the relatively high investment threshold of ₹1.38 lakhs for retail.

Verdict: Risky Investors May Apply for Listing Gains

Given the healthy financials, reasonable valuation, and decent GMP, the IPO is suitable for risk-taking investors seeking short-term listing gains. Long-term potential will depend on the company’s execution capabilities post-expansion.

Disclaimer:
This article is purely for educational and informational purposes and does not constitute financial advice. Investors are encouraged to consult certified financial advisors and make investment decisions based on their own risk profile. The details provided are as of the date of publication and are subject to change based on market dynamics. Investing in securities is subject to market risks, and past performance is not indicative of future returns.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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