Savy Infra & Logistics Limited, an emerging Engineering, Procurement and Construction (EPC) company, has launched its Initial Public Offering (IPO) on July 21, 2025, aiming to raise ₹69.98 Crores through a Book Built Issue consisting entirely of a Fresh Issue of 58.32 lakh equity shares. The IPO is open for subscription until July 23, 2025, and the shares will be listed on the NSE SME platform on July 28, 2025.

This IPO has already caught investor attention due to the company's rapid financial growth, presence in a capital-intensive infrastructure segment, and a Grey Market Premium (GMP) indicating a potential 15% listing gain.

IPO Structure and Financial Details

The price band for the Savy Infra IPO has been fixed between ₹114 to ₹120 per share, with a minimum investment requirement of 2 lots (2,400 shares) translating to ₹2,88,000 for retail investors. At the upper price band, the company’s market capitalisation will be approximately ₹249.70 Crores.

• Book Running Lead Manager (BRLM): UNISTONE CAPITAL PRIVATE LIMITED

• Registrar to the Issue: MAASHITLA SECURITIES PRIVATE LIMITED

• Market Maker: Globalworth Securities Limited

About Savy Infra & Logistics

Savy Infra & Logistics has established itself as a reliable EPC service provider, particularly in earthwork and foundation preparation for infrastructure projects. The company’s core services include:

• Road construction

• Embankments

• Sub-grade and granular sub-base preparation

• Bituminous and concrete surface laying

• Excavation, grading, utility work, and paving

Starting out as a supplier of quartzite for construction projects, the company gradually expanded its expertise into full-scale infrastructure execution and logistics, making it a versatile player in the segment.

The firm is headed by Promoter Tilak Mundhra, who has played a pivotal role in managing on-ground execution, ensuring project quality, and developing long-term relationships with government and private clients.

Robust Financial Growth

Savy Infra has demonstrated remarkable financial growth over the past three financial years, as indicated by its revenues and profitability:

• Revenue from Operations:

  • FY23: ₹619.19 Lakh

  • FY24: ₹10,162.44 Lakh

  • FY25: ₹28,376.56 Lakh

• EBITDA:

  • FY23: ₹68.17 Lakh

  • FY24: ₹1,609.55 Lakh

  • FY25: ₹3,705.02 Lakh

• Profit After Tax (PAT):

  • FY23: ₹33.76 Lakh

  • FY24: ₹986.66 Lakh

  • FY25: ₹2,387.79 Lakh

This strong growth trajectory indicates successful scaling of operations and expansion into larger infrastructure contracts.

Key Financial Ratios and Valuation Metrics

Savy Infra is offering shares at what is considered a reasonable valuation compared to the industry average:

• Pre-Issue EPS (FY24): ₹16.59

• Post-Issue EPS (FY24): ₹11.48

• Pre-Issue P/E Ratio: 7.23x

• Post-Issue P/E Ratio: 10.46x

• Industry P/E: Approx. 16x

Additional metrics include:

• Return on Capital Employed (ROCE): 36.69%

• Return on Equity (ROE): 76.10%

• Return on Net Worth (RoNW): 45.70%

These numbers suggest that the IPO is fairly priced with significant upside potential, especially for investors looking for growth-oriented SME companies.

Use of IPO Proceeds

The net proceeds from the IPO will be utilised in the following manner:

1. ₹4,900 Lakhs to fund working capital requirements

2. Remaining for general corporate purposes

The focus on working capital infusion suggests that the company is preparing for larger contract executions, aggressive bidding for upcoming projects, and reducing dependence on short-term debt.

Anchor Investor Participation

Ahead of the public offering, Savy Infra raised ₹19.92 Crores from Anchor Investors, allocating 16,60,800 shares at ₹120 each. This institutional backing highlights positive sentiment and trust in the company’s growth potential.

Grey Market Premium (GMP) and Listing Expectations

As of July 15, 2025, the Grey Market Premium stood at ₹18, suggesting a potential listing price of ₹138, representing a 15% premium over the upper price band. While GMP is unofficial and volatile, it is still considered a market sentiment indicator.

Investors should note that GMP is unregulated and should not be the sole factor for investment decisions.

Live Subscription Status

As of 11:30 AM on July 22, 2025, the IPO was subscribed 3.56 times, showing strong investor interest on the second day of the offering.

The enthusiasm is likely driven by:

• Strong financials

• Reasonable valuation

• Positive GMP

• Proven execution capability

Allotment and Listing Guide

The allotment date for the IPO is July 24, 2025, and investors can check their allotment status on the registrar's website by:

• Selecting the IPO from the dropdown

• Entering PAN, Application Number or DP Client ID

• Submitting the form to get real-time status

The shares will list on NSE SME on July 28, 2025.

Conclusion and Recommendation

Savy Infra & Logistics has showcased stellar financial growth, strong industry fundamentals, and a promising order book. Its leadership team has steered the company from material supply to full-scale EPC operations, reflecting strategic foresight.

The valuation is reasonable, and the company’s metrics (ROE, ROCE, PAT growth) outperform industry averages, making it an attractive SME IPO.

Given the:

• Reasonable pricing

• Strong GMP

• High capital efficiency

• Focused IPO proceeds usage

We recommend that investors with moderate risk appetite consider applying to the Savy Infra IPO for potential listing gains and long-term upside.

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 Sellowrap Industries, Repono, Shanti Gold International, Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, Patel Chem Specialities, TSC India, NSDL.

The Current active IPO are Monarch Surveyors & Engineering Consultants, Swastika Castal, Savy Infra.

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