Samay Projects Services Limited (SPSL), a well-established name in the engineering and project contracting space, has launched its Initial Public Offering (IPO) on June 16, 2025, aiming to raise ₹14.68 crore through a fresh issue of 43.20 lakh equity shares. The IPO is available at a price band of ₹32 to ₹34 per share, with a minimum lot size of 4,000 shares, making the minimum retail investment ₹1,36,000.

The shares are set to be listed on the NSE SME platform on or around June 23, 2025, with the allotment date tentatively fixed for June 19, 2025.

Business Overview

Incorporated in 2001, Samay Projects Services Limited has over 23 years of operational experience in design, engineering, supply, fabrication, erection, and commissioning of a wide range of industrial systems including:

• Low-pressure piping and appurtenances

• Hydrocarbon pipelines and fuel oil handling systems

• Tanks, vessels, and fabricated steel structures

• Fire protection and detection systems

The company functions as a turnkey EPC contractor, primarily servicing power plants, industrial infrastructure projects, and energy sector facilities.

It is promoted by Mr. Anand R and Ms. Santhi Karthikeyan, both of whom bring over 16 years of domain experience, offering a strong backbone to the company's leadership.

IPO Structure and Lead Players

This IPO is a completely fresh issue, meaning no offer-for-sale (OFS) component. The issue proceeds will be used for business expansion, working capital, and general corporate purposes.

The key entities involved include:

• Book Running Lead Manager: Smart Horizon Capital Advisors Pvt. Ltd.

• Registrar to the Issue: Bigshare Services Pvt. Ltd.

• Market Maker: Shreni Shares Ltd.

With a post-issue market capitalization projected to be around ₹52.18 crore, the issue seems modest in size compared to large-cap IPOs but significant in the SME segment.

Financial Performance

The company has demonstrated consistent revenue and profit growth over the last four fiscal years:

• Revenue from Operations:

  • FY25 (till March): ₹3,772.17 lakh

  • FY24: ₹4,095.30 lakh

  • FY23: ₹2,082.05 lakh

  • FY22: ₹1,947.88 lakh

• EBITDA:

  • FY25: ₹633.65 lakh

  • FY24: ₹681.42 lakh

  • FY23: ₹518.21 lakh

  • FY22: ₹354.20 lakh

• Profit After Tax (PAT):

  • FY25: ₹419.32 lakh

  • FY24: ₹461.53 lakh

  • FY23: ₹343.75 lakh

  • FY22: ₹190.14 lakh

This reflects a clear upward trend, underscoring the company's operational stability and scalability.

Valuation Metrics

The IPO valuation suggests a fair pricing strategy:

• Pre-issue EPS: ₹3.8

• Post-issue EPS: ₹2.73

• Pre-issue P/E Ratio: 8.94x

• Post-issue P/E Ratio: 12.45x

• Industry Average P/E: 20x

Other strong financial indicators include:

• ROCE (FY24): 24.56%

• ROE (FY24): 23.23%

• Return on Net Worth (RoNW): 20.73%

These ratios indicate that the company is efficiently using its capital and equity base to generate returns.

Grey Market Premium and Market Sentiment

At the time of opening, the Grey Market Premium (GMP) for the Samay Projects Services IPO is ₹0, suggesting no speculative trading interest and lack of premium expectations in the unregulated market.

While GMP is not an official or reliable valuation metric, it often reflects investor sentiment, especially for listing day performance. The absence of a premium may be due to:

• Fair IPO pricing

• SME category limitations

• Lack of aggressive marketing or buzz

As such, investors may not see immediate listing gains, especially if demand remains muted post-allotment.

Risk Factors and Investment Considerations

Despite strong financials, there are several cautionary notes:

• High minimum investment may deter small retail participation

• No anchor investor participation or institutional buzz

• Zero GMP implies that the stock could list at or near issue price, lacking early listing momentum

• Low liquidity risk post-listing in SME segment

Analysts tracking SME IPOs advise investors to be selective, given that many SME stocks face volatility after listing.

Promoter Strength and Strategic Vision

The promoters' deep industry experience, combined with a proven track record, positions the company for long-term growth. Management has indicated plans to:

• Expand service offerings into new industrial sectors

• Invest in automation and digital project management tools

• Pursue strategic partnerships for mega-project contracts

Their ability to navigate the EPC and mechanical systems contracting space amid competition is a key strength.

Conclusion

Samay Projects Services Limited IPO offers a window into a financially stable, experienced EPC contractor looking to scale operations. The company boasts consistent profitability, strong return ratios, and sector relevance.

However, the zero GMP and modest subscription buzz point toward a limited upside on listing day.

For long-term investors seeking value in the SME industrial services segment, this IPO could be worth exploring. But for those eyeing quick listing gains, the lack of premium and tepid market excitement signal a cautious approach.

Recommendation: Avoid for listing gain. Consider only for long-term holding based on individual risk appetite.

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.

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