Savy Infra & Logistics, an Engineering, Procurement, and Construction (EPC) company, has garnered significant attention in the Indian equity markets through its recent IPO offering, which opened on July 21, 2025, and closed on July 23, 2025. The company’s public issue, valued at ₹69.98 crore, was a Book Built Issue comprising a fresh issue of 58.32 lakh equity shares. The price band for the IPO was fixed between ₹114 to ₹120 per share, and based on the upper band price of ₹120, the company’s market capitalisation stands at ₹249.70 crore.

Savy Infra & Logistics IPO saw robust interest from investors across categories and was subscribed 10.78 times by the end of the final day. This strong response highlights rising investor confidence in India's infrastructure and EPC sectors. The listing of shares is expected on July 28, 2025, on the NSE SME platform.

The company initially began its journey by supplying quartzite for infrastructure projects. Over the years, it has expanded into providing excavation, grading, utility work, paving, embankments, road construction, and sub-grade preparation services. Today, it plays a pivotal role in foundation preparation for major infrastructure projects across India.

The IPO garnered ₹19.92 crore from Anchor Investors ahead of the public offering, showing solid institutional confidence. These anchor investments were made at the upper end of the price band—₹120 per share—with 16,60,800 equity shares allocated. The anchor investment was done under the Qualified Institutional Buyers (QIBs) quota, further enhancing the credibility and attractiveness of the offer.

Retail investors were required to subscribe to a minimum of two lots (2,400 shares), resulting in a minimum investment of ₹2,88,000, which shows that the IPO was primarily targeted at high-net-worth individuals and institutional buyers.

UNISTONE CAPITAL PRIVATE LIMITED served as the Book Running Lead Manager, while MAASHITLA SECURITIES PRIVATE LIMITED handled the role of the Registrar. Globalworth Securities Limited is functioning as the Market Maker for the IPO.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium (GMP) for the Savy Infra & Logistics IPO is hovering around ₹18, implying an expected listing price of ₹138—about 15% above the issue price. While grey market trends are not officially regulated and are not always reliable indicators, they still provide an informal gauge of investor sentiment in the run-up to the listing.

It is important to understand that the GMP is based on unofficial market demand and supply, and investors should not rely solely on this metric for investment decisions. However, it does point toward the positive market sentiment surrounding the IPO.

Financial Performance

The company’s financials reflect a sharp growth trajectory:

• Revenue from operations stood at ₹28,376.56 lakh in FY25, a significant increase from ₹10,162.44 lakh in FY24 and ₹619.19 lakh in FY23.

• EBITDA figures rose to ₹3,705.02 lakh in FY25, up from ₹1,609.55 lakh in FY24 and ₹68.17 lakh in FY23.

• Profit After Tax (PAT) increased to ₹2,387.79 lakh in FY25, compared to ₹986.66 lakh in FY24 and just ₹33.76 lakh in FY23.

This exponential rise in revenue and profitability is a testament to the company’s aggressive expansion strategy, efficient project execution, and increasing order book in infrastructure projects.

The pre-issue EPS for FY24 is ₹16.59, while the post-issue EPS drops to ₹11.48 due to equity dilution. Correspondingly, the pre-issue P/E ratio stands at 7.23x, and the post-issue P/E ratio is 10.46x, both of which are considered fairly priced compared to the industry average P/E of 16x.

Key performance indicators for FY24 also include:

• Return on Capital Employed (ROCE): 36.69%

• Return on Equity (ROE): 76.10%

• Return on Net Worth (RoNW): 45.70%

These figures suggest that Savy Infra & Logistics is operating efficiently, offering strong returns for capital invested and indicating robust financial health.

Use of IPO Proceeds

The company intends to utilize the net proceeds from the IPO in the following manner:

1. ₹4,900 lakh will be used for working capital requirements, enabling the company to maintain liquidity and fund ongoing projects more effectively.

2. The balance will be allocated for general corporate purposes, allowing for strategic investments, debt reduction, and infrastructure enhancement.

These objectives are in line with the company’s growth strategy and would help enhance its operational capabilities.

Leadership and Management

The company is led by Tilak Mundhra, who plays a central role in executing projects and developing client relationships. His leadership has been instrumental in scaling operations from a quartzite supplier to a comprehensive EPC service provider. He also oversees site-level coordination, ensuring projects meet industrial standards and deadlines.

Allotment and Listing Details

The IPO allotment is expected to be finalized by July 24, 2025. Investors can check the allotment status online by visiting the registrar’s website and entering their application number, PAN, or DP Client ID. The shares are scheduled to be listed on NSE SME on Monday, July 28, 2025.

Final Thoughts and Review

Given the company’s strong financials, efficient operations, positive GMP, and reasonable valuation metrics, the Savy Infra & Logistics IPO appears to be a fairly attractive proposition for investors. The IPO is particularly suited for those seeking listing gains, though it is also important to note that the investment comes with risks, especially considering the minimum investment threshold of ₹2.88 lakh.

While the financial performance is impressive, investors should also be cautious about market volatility, sector-specific risks, and the unregulated nature of grey market pricing. Overall, this IPO is recommended for risk-taking investors looking to benefit from the listing gains.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Readers are urged to consult their financial advisors before making any investment decisions. Investments in the securities market are subject to market risks, and past performance is not indicative of future returns.

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The Current active IPO are Indiqube Spaces, GNG Electronics, TSC India, Monarch Surveyors & Engineering Consultants, Swastika Castal, Savy Infra.

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