Safe Enterprises Limited, an emerging player in the retail distribution of personal protective equipment (PPE) and industrial safety gear, has launched its Initial Public Offering (IPO) on the SME platform, opening for subscription from June 20 to June 24, 2025.

This IPO is a book-built issue with a price band set at ₹33 to ₹35 per equity share, aiming to raise funds primarily through a fresh issue of shares.

IPO Details

• IPO Type: Book Built Issue (SME Platform)

• IPO Opening Date: June 20, 2025

• IPO Closing Date: June 24, 2025

• Price Band: ₹33 to ₹35 per share

• Issue Size: Approximately ₹9.24 crore

• Face Value: ₹10 per equity share

• Lot Size: 4,000 shares

• Minimum Investment: ₹1,40,000 for retail investors

• Listing on: NSE SME

• Registrar: Bigshare Services Pvt Ltd

• Lead Manager: Beeline Capital Advisors Pvt Ltd

• Market Maker: Giriraj Stock Broking Pvt Ltd

The IPO comprises a fresh issue of 26.4 lakh shares, with no offer for sale component. The proceeds from the IPO will be utilised for meeting working capital needs, marketing initiatives, and expanding distribution channels across India.

Company Overview

Safe Enterprises Limited operates primarily in the distribution of safety products and PPE kits, catering to:

• Construction and infrastructure companies

• Manufacturing and engineering industries

• Healthcare and chemical sectors

• Retail consumers via e-commerce platforms

Its product offerings include helmets, gloves, harnesses, safety shoes, masks, goggles, and industrial apparel, under both its own brand and third-party brands. The company has also diversified into corporate supplies and institutional orders.

With a growing client base and a strong network across Gujarat, Maharashtra, and Rajasthan, Safe Enterprises plans to expand further in Tier 2 and Tier 3 cities.

Financial Performance Snapshot

The financials of Safe Enterprises show steady growth over the past few years:

• Revenue (FY24): ₹21.8 crore

• Net Profit (FY24): ₹1.48 crore

• EBITDA Margin: ~10%

• Net Profit Margin: ~6.8%

• ROE: 15.3%

• ROCE: 13.9%

• Debt-to-Equity Ratio: 0.72

The company expects to scale its operations with improved margin performance by leveraging economies of scale post-IPO.

Grey Market Premium (GMP) Update

As of June 20, the Grey Market Premium (GMP) for Safe Enterprises Retail IPO is reported at ₹3–₹4, indicating a possible listing gain of around 10–12% over the upper end of the price band.

While GMP trends should not be the only basis for investment, it reflects moderate demand from retail and HNI investors, particularly in the SME IPO space, which has seen active interest this year.

Peer Comparison

Safe Enterprises competes with both unorganised players and branded PPE distributors. Compared to listed peers like:

• Mallcom India Ltd

• Karam Safety (unlisted, institutional supplier)

• Lords Chloro Alkali (only for certain segments)

Safe Enterprises differentiates itself with a retail-focused, brand-agnostic model, enabling greater reach and flexibility in pricing and inventory.

Objectives of the Issue

The IPO proceeds will be used for:

• Meeting working capital requirements

• Enhancing brand visibility and marketing

• Geographic expansion of distribution network

• Technology upgrades and digitisation

• General corporate purposes

The management plans to invest in inventory management software, warehouse upgrades, and strategic alliances with manufacturers to optimise delivery timelines.

Risks and Investor Outlook

While the business shows promise, investors must be cautious about:

• High dependency on a few product categories

• Competition from low-cost unorganised players

• Modest scale of operations compared to larger PPE brands

However, with the growing awareness of workplace safety, ESG compliance, and industrial safety mandates, Safe Enterprises could benefit from sustained demand growth.

Conclusion

The Safe Enterprises Retail IPO offers investors an opportunity to participate in India’s growing safety and PPE product segment, with a reasonably priced issue and moderate listing gain expectations.

With solid fundamentals, a clear expansion strategy, and growing end-user industries, this SME IPO is likely to attract retail investors looking for long-term value in a defensive sector.

Recommendation: Positive for retail investors with a medium to long-term horizon. Watch subscription levels and QIB participation for final decision.

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 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, ArisInfra Solutions, Influx Healthtech.

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