Safe Enterprises Retail Fixtures Limited, a player in the retail infrastructure space, is launching its Initial Public Offering (IPO) worth ₹169.74 crore. The IPO will be open for subscription from June 20 to June 24, 2025, with shares scheduled for listing on the NSE SME platform around June 27, 2025.

The company is offering a Book Built Issue consisting entirely of a fresh issue of 1.23 crore equity shares, without any offer for sale.

About the Company

Safe Enterprises Retail Fixtures is engaged in the designing, manufacturing, supply, and installation of customised retail fixtures and shop fittings. The firm serves multiple retail segments such as:

• Fashion and Apparel

• Electronics

• Departmental Stores

• Hypermarkets and Supermarkets

The company’s USP lies in its end-to-end in-store solutions, customised for each client’s specific display and retail space requirements.

The business has a strong in-house manufacturing capability, ensuring quality and timely delivery of tailored fixtures.

IPO Details

• Issue Size: ₹169.74 crore (Fresh Issue only)

• Number of Shares: 1.23 crore equity shares

• Price Band: ₹131 – ₹138 per share

• Lot Size: 1,000 shares

• Minimum Retail Investment: ₹1,38,000

• Minimum HNI Investment: ₹2,76,000 (2 lots = 2,000 shares)

• Post-Issue Market Cap: ₹643.14 crore (at ₹138 upper band)

The lead manager is HEM Securities Limited, while the registrar is Maashitla Securities Pvt Ltd. Hem Finlease Pvt Ltd is the market maker.

IPO Timeline

Leadership and Promoter Background

The company is led by:

• Saleem Shabbir Merchant (Chairman & Managing Director): Over 48 years of experience in retail infrastructure

• Mikdad Saleem Merchant (Whole-Time Director & CFO): 13 years of experience in finance and operations

• Huzefa Salim Merchant (Whole-Time Director): 14 years in production, marketing, and after-sales service

The promoter group has played a pivotal role in business growth and operational execution.

Financial Performance

Revenue from Operations (₹ in Lakh):

• FY2025: ₹13,973.18

• FY2024: ₹10,137.59

• FY2023: ₹7,735.19

EBITDA (₹ in Lakh):

• FY2025: ₹5,085.64

• FY2024: ₹3,199.00

• FY2023: ₹1,933.90

Profit After Tax (₹ in Lakh):

• FY2025: ₹3,918.54

• FY2024: ₹2,308.84

• FY2023: ₹1,208.90

The company has shown consistent and strong growth in revenue, EBITDA, and net profit over three fiscal years.

Key Performance Indicators

These metrics highlight strong profitability, efficient capital use, and a competitive valuation.

Grey Market Premium (GMP)

As of June 19, the Grey Market Premium is ₹0, indicating:

• No significant demand in the unlisted space

• Flat sentiment despite strong financials

Analysts believe the lack of GMP may stem from:

• Uncertainty in SME IPO performance

• Limited brand recognition

• High ticket size for retail participants (₹1.38 lakh minimum)

Use of Proceeds

The company plans to utilise the IPO proceeds for:

• Expansion of manufacturing facilities

• Purchase of new machinery and tools

• Working capital requirements

• General corporate purposes

This will help Safe Enterprises scale capacity and strengthen supply capabilities across India.

Strengths

• Robust order book from reputed retail chains

• In-house production capacity allows better quality control

• End-to-end service offering (design, supply, install) gives a competitive edge

• Experienced promoter team with strong sectoral understanding

• Consistent financial performance across revenue and profit margins

• Low post-issue valuation compared to peers

Risks

• Flat GMP suggests weak retail sentiment

• SME IPOs are illiquid post-listing, especially for large investment lots

• High capital investment required from retail investors (₹1.38 lakh)

• Highly competitive market with no clear entry barrier

• Dependency on cyclical retail capex of client companies

Analyst Verdict

Despite:

• Strong revenue and PAT growth

• Excellent ROCE and ROE

• Attractive pre-issue P/E

the lack of grey market interest, high investment threshold, and SME market volatility reduce its listing appeal.

Final Recommendation: Avoid

Given the ₹0 GMP, the large investment requirement for retail, and limited short-term listing potential, we recommend investors to avoid the Safe Enterprises Retail Fixtures IPO for listing gain.

For long-term investors, the stock may be re-evaluated post-listing based on quarterly results and price action.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, Mayasheel Ventures.

The Current active IPO are  ArisInfra Solutions, Influx Healthtech, Eppeltone Engineers.

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 Analys