August 25, 2025
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Sattva Engineering IPO Key Dates
| Anchor Investor Subscription | |
| IPO opens on | 26 August 2025 |
| IPO Closes on | 28 August 2025 |
| Allotment on | 1 September 2025 |
| Credit of shares on | 2 September 2025 |
| Tentative Listing on | 3 September 2025 |
Sattva Engineering IPO Condenses Verdict
Sattva Engineering Construction has posted consistent growth in revenues and a sharp rise in net profits over the last three years. FY25 income stood at Rs. 94.85 crore with PAT of Rs. 9.14 crore versus Rs. 1.04 crore in FY23. EBITDA also improved to Rs. 18.56 crore. However, the balance sheet shows very high inventories (Rs. 43.42 crore) and receivables (Rs. 32.35 crore) compared to total revenue of Rs. 93.65 crore, along with borrowings of Rs. 36.17 crore. These raise concerns about working capital and cash flow management. May Avoid.
Final Subscription Tally
| Size Rs. Crore | ||||
| QIB | NII x | RII x | Total x | Applications |
| Subscription Review: |
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About Sattva Engineering
Incorporated in December 2005, Sattva Engineering Construction Limited (SECL) is a Chennai-based EPC company with specialization in water infrastructure, wastewater management and industrial construction projects. With more than four decades of execution experience, it is recognized as a leading Class I contractor, working with government agencies such as Tamil Nadu PWD, Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB), TWAD and Greater Chennai Corporation.
SECL’s business spans across:
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Water & Wastewater Projects: Design and construction of distribution networks, pumping mains, overhead/underground tanks, sewage and water treatment plants, and pumping stations.
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Industrial & Civil Infrastructure: Development of warehouses, factory buildings, container freight stations and commercial complexes.
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Residential Development: Promotion of multi-storey apartments, deluxe flats and independent bungalows contributing to urban housing.
The company counts CMWSSB, TWAD, PWD, Southern Railway, BHEL and Greater Chennai Corporation among its key clients.
Sattva Engineering IPO Details
|
Sector: |
|
| IPO opens on | 26 August 2025 |
| IPO closes on | 28 August 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 47,16,800 Shares / Rs 35.38 Crore |
| * Fresh Issue | – |
| * Offer for Sale – | – |
| Market Maker Portion | 240,000 Shares |
| Net offer to Public | 44,76,800 Shares Rs. 33.58 Crores |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 70-75 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 1600 Shares |
| Listing will at | NSE SME |
How shares are being offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII Shares Offered | Not less than 15% of the Net Issue |
| Application | Lots | Shares | Amount |
| Individual investors (Retail) (Min) | 2 | 3,200 | ₹2,40,000 |
| Individual investors (Retail) (Max) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (Min) | 3 | 4,800 | ₹3,60,000 |
| S-HNI (Max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (Min) | 9 | 14,400 | ₹10,80,000 |
Who are the Promoters of Sattva Engineering IPO?
The promoters hold 86.18% of the pre-IPO capital
What are the Objects of Sattva Engineering IPO?
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects
+Funding capital expenditure requirements for the proposed expansion in existing manufacturing facilities of our Company by constructing additional floor and installation of additional plant and machineries Rs. 13.70 Crore
+Part funding long-term working capital requirements Rs. 21.50 Crore
+General Corporate purposes
Sattva Engineering IPO Lead Managers
Vivro Financial Services Pvt ltd
| Registered Office of the Company |
| Sattva Engineering Construction Ltd. Greams Dugar, 4th floor, North Wing, Old No. 149, New No . 64, Greams Road Thousand Lights Chennai, Tamil Nadu, 600006 |
| Who is the Registrar to the IPO? Mufg Intime India ltd |
Sattva Engineering Financials Snapshot
| Period Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 114.82 | 87.48 | 83.38 |
| Total Income | 94.85 | 77.44 | 83.93 |
| Profit After Tax | 9.14 | 4.56 | 1.04 |
| EBITDA | 18.56 | 11.72 | 7.28 |
| Net Worth | 43.42 | 24.03 | 19.47 |
| Reserves and Surplus | 30.67 | 23.03 | 18.47 |
| Total Borrowing | 36.17 | 32.2 | 32.24 |
| Amount in Rs. Crore | |||
Performance Indicators
| KPI | Values |
| ROE | 27.10% |
| ROCE | 28.58% |
| Debt/Equity | 0.83 |
| RoNW | 27.10% |
| PAT Margin | 9.64% |
| EBITDA Margin | 19.82% |
| Price to Book Value | 2.2 |
| EPS-Pre | 7.17 |
| PER-Pre | 10.46 |
How Sattva Engineering IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Sattva Engineering & Construction | 27.1 | |
| EMS limited | 18.23 | 20.66 |
| Enviro Infra Engineers | 21.5 | 27.58 |
| Va Tech Wabag Limited | 33.4 | 14.86 |
Sattva Engineering IPO Review
by Paresh Gordhandas, CA & Research Analyst
Incorporated in 2005, Sattva Engineering Construction Limited (SECL) is a Chennai-based EPC company specializing in water infrastructure, wastewater management, industrial construction, and residential projects. It has executed several contracts for government bodies including CMWSSB, TWAD, PWD, Southern Railway, BHEL and Greater Chennai Corporation.
On the financial front, SECL has shown strong growth:
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Revenue increased from Rs. 83.93 crore in FY23 to Rs. 77.44 crore in FY24 and Rs. 94.85 crore in FY25.
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PAT rose sharply from Rs. 1.04 crore in FY23 to Rs. 4.56 crore in FY24 and Rs. 9.14 crore in FY25.
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EBITDA expanded to Rs. 18.56 crore in FY25 against Rs. 11.72 crore in FY24 and Rs. 7.28 crore in FY23.
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Net Worth improved to Rs. 43.42 crore in FY25 with reserves of Rs. 30.67 crore.
However, the company’s working capital position raises red flags. As on March 31, 2025, it reported inventories of Rs. 43.42 crore, receivables of Rs. 32.35 crore and other assets of Rs. 17.38 crore – all very high compared to annual revenues of Rs. 93.65 crore (monthly ~Rs. 7.8 crore). Borrowings stood at Rs. 36.17 crore, indicating reliance on debt.
Chanakya View: Though the company’s financial growth looks impressive with rising margins and profitability, its heavy receivables, large inventory and significant borrowings indicate high working capital stress. Investors are advised to avoid this IPO.
The IPO size is Rs. 35.38 crore, comprising a fresh issue of 0.47 crore shares. The IPO opens on August 26, 2025 and closes on August 29, 2025. Allotment is expected on September 1, 2025, and listing on NSE SME is scheduled for September 3, 2025.
The price band is Rs. 70 to Rs. 75 per share. Minimum application is 1,600 shares, requiring Rs. 2,24,000 (3,200 shares) for retail investors. HNIs must apply for a minimum of 3 lots (4,800 shares), amounting to Rs. 3,60,000.
Revenue was Rs. 94.85 crore in FY25 with PAT of Rs. 9.14 crore, compared to Rs. 83.93 crore revenue and Rs. 1.04 crore PAT in FY23. EBITDA improved to Rs. 18.56 crore.
Yes. Receivables of Rs. 32.35 crore, inventories of Rs. 43.42 crore and other assets of Rs. 17.38 crore are abnormally high against total annual revenues. Borrowings of Rs. 36.17 crore add to the risk.
Despite growth, high working capital stress and leverage make this IPO unattractive. Chanakya recommends avoiding this issue.
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