Savy Infra & Logistics Ltd is an EPC company based in India that specializes in earthwork and foundation preparation for large-scale infrastructure projects. The company is entering the capital market with an SME IPO on NSE, raising ₹69.98 Crores through a 100% fresh issue of equity shares.

The IPO opens for subscription on July 21, 2025, offering investors an opportunity to participate in India's fast-growing infrastructure sector.

About the Company

Savy Infra & Logistics Limited was incorporated in January 2006, and has steadily built its reputation as a specialist in earthwork, demolition, and foundation services for infrastructure projects.

Key services include:

• Road construction support: embankments, sub-grade preparation, surface paving

• Demolition: Safe dismantling for redevelopment

• Excavation: Rock breakers, heavy excavators, slush removal, side protection

• Logistics: Asset-light transportation management with rented trucks and drivers

Their asset-light model reduces capital risk while ensuring scalability by renting heavy machinery and transportation assets.

Geographic Presence

Savy Infra has delivered projects across Gujarat, Maharashtra, Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Karnataka, and Odisha, demonstrating its pan-India capability.

As of April 30, 2025, it employed 33 full-time staff at various project sites.

Promoters and Leadership

• Tilak Mundhra

• Liladhar Mundhra

Together, they bring deep industry expertise and operational experience in managing EPC contracts with efficiency and cost control.

IPO Details

Type: Book Building Issue
Total Issue Size: ₹69.98 Crores (58.32 lakh shares) – 100% Fresh Issue

✅ IPO Opens: July 21, 2025
✅ IPO Closes: July 23, 2025
✅ Allotment Date (Tentative): July 24, 2025
✅ Listing Date (Tentative): July 28, 2025
✅ Listing: NSE SME Platform

Price Band: ₹114 – ₹120 per share
Face Value: ₹10 per share
Lot Size: 1,200 shares

✅ Minimum Retail Investment: 2 lots (2,400 shares) = ₹2,73,600
✅ Minimum sHNI Investment: 3 lots (3,600 shares) = ₹4,32,000

IPO Reservation Breakdown

• Market Maker Quota: 2,92,800 shares (~₹3.51 Cr)

  • Globalworth Securities Limited

• Net Offer to Public: 55,39,200 shares (~₹66.47 Cr)

• QIB Portion: Not more than 50% of net offer

• Retail Portion: At least 35%

• NII Portion: At least 15%

Important: Bidding at cut-off price is not allowed for any category.

Lot Size Details

IPO Timeline (Tentative Schedule)

• Open Date: Mon, July 21, 2025

• Close Date: Wed, July 23, 2025

• Allotment Finalization: Thu, July 24, 2025

• Refunds Initiation: Fri, July 25, 2025

• Credit of Shares to Demat: Fri, July 25, 2025

• Listing Date: Mon, July 28, 2025

• UPI Mandate Deadline: 5 PM on July 23, 2025

Objects of the Issue

The Net Proceeds will be used for:

1. Funding Working Capital Requirements: ₹49.00 Crores

2. General Corporate Purposes

By strengthening working capital, the company aims to expand project execution capabilities, meet growing demand, and improve operational liquidity.

IPO Manager and Registrar

• Book Running Lead Manager: Unistone Capital Pvt Ltd

• Registrar: Maashitla Securities Pvt Ltd

• Market Maker: Globalworth Securities Limited

Company Financial Performance

✅ Revenue Growth:

• FY23: ₹6.19 Cr

• FY24: ₹101.62 Cr

• FY25: ₹283.77 Cr

✅ Profit After Tax (PAT):

• FY23: ₹0.34 Cr

• FY24: ₹9.87 Cr

• FY25: ₹23.88 Cr

✅ EBITDA:

• FY23: ₹0.57 Cr

• FY24: ₹14.95 Cr

• FY25: ₹35.62 Cr

✅ Net Worth:

• FY23: ₹0.64 Cr

• FY24: ₹10.51 Cr

• FY25: ₹52.25 Cr

✅ Total Borrowings:

• FY23: ₹3.12 Cr

• FY24: ₹8.49 Cr

• FY25: ₹44.84 Cr

Key Financial Ratios (FY25)

• ROE: 76.10% – Exceptional return on equity

• ROCE: 36.69% – Strong capital efficiency

• Debt/Equity Ratio: 0.86 – Reasonable leverage

• RoNW: 45.70% – Healthy net worth returns

• PAT Margin: 8.43%

• EBITDA Margin: 12.57%

• Price to Book Value: 3.44

✅ EPS (₹):

• Pre-IPO: ₹15.94

• Post-IPO: ₹11.48

✅ P/E Ratio (x):

• Pre-IPO: 7.53x

• Post-IPO: 10.46x

These metrics demonstrate solid profitability, especially impressive given the massive revenue jump between FY24 and FY25.

Competitive Strengths

✅ Asset-Light Business Model
✅ Integrated EPC and Logistics Operations
✅ Strong Financial Growth
✅ Experienced Promoters and Management
✅ Pan-India Project Execution Capability

Their ability to rent specialized equipment and use third-party transport keeps fixed costs low, ensuring high operational flexibility.

Risks and Considerations

⚠️ Highly dependent on infrastructure project demand
⚠️ Working capital-intensive business
⚠️ Competitive EPC sector with pricing pressures
⚠️ Relatively high gearing post-issue (Debt/Equity ~0.86)
⚠️ SME listing entails lower liquidity than mainboard

Verdict: Should You Apply?

✅ Pros:

• Rapid revenue and profit growth

• Exceptional ROE and ROCE

• Asset-light strategy reduces risk

• Well-defined use of IPO proceeds to support growth

✅ Cons:

• SME listing means lower trading volume/liquidity

• Working capital needs require careful management

With a price band of ₹114–₹120, the IPO is reasonably valued (Post-issue P/E ~10.5x) given sector growth prospects and financial performance.

✅ Recommendation:

Apply – For investors comfortable with SME listings and seeking exposure to India's infrastructure growth story with strong financial growth and listing gains potential.

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Savy Infra, Monika Alcobev, NSDL.

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