Sattva Engineering Construction Limited (SECL), one of the leading EPC contracting companies in India, has opened its Initial Public Offering (IPO) for subscription. The company is widely recognized for its expertise in the Water sector, Waste Water sector, and Industrial Building sector, executing critical projects such as distribution systems, pumping mains, networks, overhead tanks, underground tanks, treatment plants, and pumping stations. With a rich history of executing noteworthy projects, SECL has built its reputation by delivering technically sound, sustainable, and large-scale infrastructure projects under the guidance of an experienced team of professionals.

The Sattva Engineering Construction IPO is a Book Built Issue worth ₹35.38 Crores, comprising a Fresh Issue of 47.16 Lakh Equity Shares. The subscription window opened on August 26, 2025, and will close on August 29, 2025. The allotment date is expected on September 1, 2025, and the shares are proposed to be listed on the NSE SME platform with a tentative listing date of September 3, 2025.

The IPO price band has been set at ₹70 to ₹75 per equity share, with an expected market capitalisation of ₹131.01 Crores at the upper price band. The lot size is fixed at 1,600 shares, meaning retail investors are required to apply for a minimum of 2 lots (3,200 shares), which amounts to an investment of ₹2,40,000. Vivro Financial Services Private Limited is acting as the Book Running Lead Manager (BRLM), while MUFG Intime India Private Limited is the registrar for the issue. Rikhav Securities Limited has been appointed as the Market Maker.

Grey Market Premium (GMP) and Listing Sentiment

The Grey Market Premium (GMP) for Sattva Engineering Construction IPO has been reported at ₹13, suggesting a possible listing gain of around 17.33% over the issue price. However, GMP is an informal market indicator, largely driven by demand and supply forces in unregulated channels. It should only be seen as a reference for investor sentiment and not as a guaranteed price discovery mechanism.

Live Subscription Status – Day 1

According to the live subscription status update at 12:30 PM on August 26, 2025, the IPO was subscribed 0.56 times on its first day. This indicates a modest response from investors, especially when compared to some of the other SME IPOs in recent weeks. The coming days of the subscription window will be crucial in determining overall investor participation from retail investors, NIIs, and QIBs.

Anchor Investor Participation

The company successfully raised ₹9.99 Crores from Anchor Investors by allotting 13,29,600 shares at the upper price band of ₹75 per share, in consultation with the BRLM. Anchor investments, drawn from the Qualified Institutional Buyers (QIBs) category, help build confidence in the IPO and establish credibility among retail and non-institutional investors.

Financial Performance of Sattva Engineering Construction

The financials of SECL demonstrate consistent growth across revenues, operating profits, and net profitability over the last three years:

• Revenue from operations stood at ₹9,484.97 Lakh in FY25, compared to ₹7,743.63 Lakh in FY24 and ₹8,393.46 Lakh in FY23.

• EBITDA has grown from ₹757.26 Lakh in FY23 to ₹1,222.71 Lakh in FY24, and further to ₹1,976.20 Lakh in FY25.

• Profit After Tax (PAT) increased from ₹103.84 Lakh in FY23 to ₹456.37 Lakh in FY24, and then to ₹913.91 Lakh in FY25, reflecting a strong improvement in profitability.

The earnings per share (EPS) stands at ₹7.64 pre-issue and is expected to be ₹5.23 post-issue. The pre-issue P/E ratio of 9.82x and post-issue P/E ratio of 14.34x remain below the industry average P/E of 26x, indicating that the IPO is fairly priced. The company has reported a Return on Capital Employed (ROCE) of 28.58%, Return on Equity (ROE) of 27.10%, and Return on Net Worth (RoNW) of 27.10% in FY24, underlining efficient management of resources and strong returns to shareholders.

IPO Objectives

The net proceeds of the IPO will be utilized for the following purposes:

1. ₹2,750.00 Lakh to meet the long-term working capital requirements of the company.

2. Remaining funds for General Corporate Purposes, including business expansion, operational strengthening, and strategic needs.

IPO Allotment Process – Step by Step Guide

Investors can check the IPO allotment status on the registrar’s official website once it goes live on September 1, 2025. The process includes:

• Visiting the IPO allotment page.

• Selecting Sattva Engineering Construction Limited IPO from the dropdown list.

• Entering the application number, PAN, or DP Client ID.

• Submitting the details to view allotment results.

This transparent mechanism ensures investors can verify whether they have been allotted shares.

Leadership and Promoter Background

The company is promoted by industry veterans including Santhanam Seshadri, who has more than three and a half decades of experience in Civil Engineering and Infrastructure; R Sekar, who also brings over 35 years of experience in Wastewater Engineering, Infrastructure, and Procurement; and Jagachchandarr Sekar Uthra, who further strengthens the leadership team. Their collective expertise has been critical in scaling SECL’s business and maintaining its reputation as a trusted EPC contractor.

IPO Review and Recommendation

The IPO of Sattva Engineering Construction Limited combines strong financial growth, experienced promoters, and a steady project execution track record. Despite the modest Day 1 subscription figure, the company’s fundamentals remain solid, and the GMP trend indicates potential listing gains of around 17.33%. Given the fair valuation metrics, this IPO appears attractive for investors with a higher risk appetite who are looking at short-term listing gains and long-term growth potential in India’s water infrastructure and civil engineering sector.

In conclusion, the Sattva Engineering Construction IPO offers a mix of stability and opportunity in the EPC and water infrastructure space. With a fair price band, robust project pipeline, anchor investor backing, and promising financial growth, it presents an opportunity worth considering for investors keen on participating in India’s growing infrastructure development and water management segment.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators.

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 Analyst.