Samay Projects Services Limited (SPSL), incorporated in 2001, is a well-established EPC contractor specializing in design, engineering, supply, fabrication, erection, and commissioning of critical industrial systems. Their portfolio spans LP piping and appurtenances, hydrocarbon pipelines, fuel oil handling, tanks, vessels, fabricated structures, and fire protection and detection systems, catering predominantly to power plants and industrial projects across India for over two decades.

IPO Details

The company has launched a Book Built Issue IPO amounting to ₹ 14.68 Crores, comprising entirely a Fresh Issue of 43.20 lakh equity shares. The IPO opens on June 16, 2025, and closes on June 18, 2025. The allotment is expected to be finalized on or about June 19, 2025 (Thursday), with shares tentatively listing on the NSE SME platform on June 23, 2025 (Monday).

The IPO’s price band is fixed between ₹ 32 to ₹ 34 per equity share, implying a market capitalization of ₹ 52.18 Crores at the upper price band. The lot size is 4,000 shares, with retail investors required to invest a minimum of ₹ 1,36,000, while high-net-worth individuals (HNIs) need to apply for at least 2 lots (8,000 shares), amounting to ₹ 2,72,000.

Management and Promoters

Samay Projects Services Limited is promoted by Mr. Anand R and Ms. Santhi Karthikeyan, who bring over 16 years of industry experience in mechanical systems for power and industrial sectors. Their expertise in delivering optimized and sustainable engineering solutions positions the company well for future growth and market opportunities.

Financial Performance

The company has demonstrated steady growth over recent years:

• Revenue from operations grew from ₹ 1,947.88 Lakh in FY22 to ₹ 3,772.17 Lakh in FY25 (ended March 31, 2025).

• EBITDA increased from ₹ 354.20 Lakh in FY22 to ₹ 633.65 Lakh in FY25.

• Profit after Tax (PAT) rose steadily from ₹ 190.14 Lakh in FY22 to ₹ 419.32 Lakh in FY25.

These figures indicate consistent operational improvement and profitability, underpinning the company’s financial health.

Key Financial Metrics

• Pre-issue EPS (FY24): ₹ 3.80, Post-issue EPS: ₹ 2.73

• Pre-issue P/E ratio: 8.94x, Post-issue P/E ratio: 12.45x, compared to an industry P/E of 20x

• Return on Capital Employed (ROCE) FY24: 24.56%

• Return on Equity (ROE) FY24: 23.23%

• Return on Net Worth (RoNW) FY24: 20.73%

These valuation and return ratios suggest the IPO is priced fairly, albeit on the conservative side compared to the broader industry.

IPO Objectives

The company plans to utilize the net proceeds primarily for:

1. Funding working capital requirements (~₹ 12 Crores).

2. General corporate purposes to support growth and operational efficiency.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium for the IPO is ₹ 0, indicating no anticipated premium or discount on listing, reflecting the fair pricing of the issue. This also suggests limited speculative interest for quick listing gains.

As of the second day of subscription (June 17, 2025), the IPO was subscribed 1.36 times, showing moderate investor interest but no oversubscription frenzy.

IPO Allotment and Listing

The IPO allotment is scheduled for June 19, 2025 and can be checked online through the registrar’s website (BIGSHARE SERVICES PRIVATE LIMITED). Investors will be able to verify their allotment by entering application details such as PAN or Client ID.

The shares are expected to be listed on the NSE SME platform on June 23, 2025, marking the public trading debut of Samay Projects Services Limited.

Expert Recommendation

Given the financial stability, experienced management, and fairly priced issue, investors may consider the IPO for long-term value rather than quick listing gains. The zero GMP and modest subscription indicate that immediate listing profits are unlikely.

Recommendation: Avoid for listing gains; consider for long-term investment based on company fundamentals and steady growth prospects.

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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