Samay Projects Services Limited (SPSL), a prominent player in India’s engineering, procurement, and construction (EPC) sector, opened its Initial Public Offering (IPO) on June 16, 2025, and closed the subscription period on June 18, 2025. The company, with a 23-year legacy, has positioned itself as a specialist in LP piping systems, hydrocarbon pipelines, fuel handling, tanks and vessels, fabricated structures, and fire protection systems. With extensive industry experience, Samay Projects Services IPO aimed to mobilize ₹14.68 crores through a Book Built Issue consisting entirely of a fresh issue of 43.20 lakh equity shares.

The price band of the IPO was set between ₹32 to ₹34 per share, and at the upper price level, the company’s estimated market capitalization stood at approximately ₹52.18 crores. Investors, particularly retail participants, were required to subscribe for a minimum lot size of 4,000 shares, translating into an investment of ₹1,36,000, while High Net-Worth Individuals (HNIs) had to invest in at least 2 lots (₹2,72,000).

On the final day of bidding, the Samay Projects Services IPO was subscribed 2.71 times, reflecting moderate investor interest. While the subscription figures indicate a decent reception, the absence of a Grey Market Premium (GMP) has raised concerns regarding potential listing gains. As of June 18, 2025, 11:30 AM, the GMP remained flat at ₹0, signaling that there may not be much speculative premium expected before the listing.

The tentative date for share allotment is June 19, 2025, and listing on the NSE SME platform is likely to take place on June 23, 2025. Investors can check their IPO allotment status online using their PAN, application number, or DP Client ID on the registrar’s website, which is Bigshare Services Private Limited.

The IPO is managed by Smart Horizon Capital Advisors Private Limited, while Shreni Shares Limited acts as the market maker, ensuring liquidity on the listing platform.

Financial Performance and Growth Overview

Over the past four financial years, Samay Projects Services Limited has demonstrated consistent financial growth:

• Revenue from Operations:

  • FY2022: ₹1,947.88 lakh

  • FY2023: ₹2,082.05 lakh

  • FY2024: ₹4,095.30 lakh

  • FY2025 (March-ended): ₹3,772.17 lakh

• EBITDA:

  • FY2022: ₹354.20 lakh

  • FY2023: ₹518.21 lakh

  • FY2024: ₹681.42 lakh

  • FY2025: ₹633.65 lakh

• Profit After Tax (PAT):

  • FY2022: ₹190.14 lakh

  • FY2023: ₹343.75 lakh

  • FY2024: ₹461.53 lakh

  • FY2025: ₹419.32 lakh

This sustained financial performance shows that the company has successfully scaled operations while maintaining profitability. Notably, the FY2024 metrics present a Return on Capital Employed (ROCE) of 24.56%, Return on Equity (ROE) of 23.23%, and a Return on Net Worth (RoNW) of 20.73%.

From a valuation perspective, Samay Projects' pre-issue Earnings Per Share (EPS) stands at ₹3.80, and post-issue EPS is projected to be ₹2.73. At the upper band of ₹34, the pre-issue P/E ratio is 8.94x, and the post-issue P/E ratio is 12.45x, which remains below the industry average P/E of 20x, suggesting that the IPO is fairly valued in comparison to its peers.

Promoter Strength and Market Position

The company is promoted by Mr. Anand R and Ms. Santhi Karthikeyan, both bringing over 16 years of experience in mechanical engineering and project management for power plants and industrial systems. Their strong background helps the company in offering customized and scalable engineering solutions that are optimized for operational efficiency.

Samay Projects Services has carved a niche for itself in critical infrastructure sectors with specialization in fire detection systems, hydrocarbon pipeline networks, and fabrication of pressure vessels and tanks. Their clientele spans across public and private sector enterprises, demonstrating trust and delivery capability in high-value projects.

IPO Objectives and Fund Utilization

The company plans to utilize the net proceeds from the IPO for the following purposes:

1. ₹12 crores towards working capital requirements, essential for scaling project capacity and maintaining inventory cycles

2. Balance amount for general corporate purposes, including administrative expenses, technology upgradation, and potential expansion activities

The working capital infusion will likely help in smooth execution of ongoing and upcoming EPC contracts, especially in sectors that demand higher upfront resource allocation.

IPO Grey Market Premium and Investor Sentiment

Despite positive financial metrics, the Samay Projects Services IPO GMP is ₹0, which is an indicator of neutral investor sentiment in the unofficial grey market. It’s worth noting that GMP is not regulated, and it is not a reliable indicator for predicting post-listing performance. However, it is often considered by retail investors to gauge demand and potential listing premium.

Given that the GMP trend has remained unchanged since June 9, 2025, at ₹0, there seems to be minimal speculative trading. This can either be due to neutral market sentiment or investor caution stemming from broader market volatility or SME segment fatigue.

Expert IPO Review and Recommendation

While the company has shown consistent growth and presents a solid operational and financial foundation, the absence of a Grey Market Premium and a moderate subscription level suggest that the IPO may not offer short-term listing gains.

On a long-term basis, however, the company’s profitability ratios, low debt, and promoters’ industry experience reflect potential for steady business growth, especially as infrastructure development accelerates across India.

For investors aiming for quick listing gains, it is advised to avoid this IPO. However, long-term investors with a moderate risk appetite and focus on the SME EPC segment may consider it for potential portfolio diversification.

In conclusion, Samay Projects Services IPO, although backed by 23 years of operational excellence and strong financial growth, is receiving lukewarm market response, as evident from its GMP and subscription trends. Investors must evaluate their investment horizon, risk profile, and expectations before making a 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.

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