Sattva Engineering Construction Launches Rs 35.38 Crore IPO on NSE SME
Sattva Engineering Construction, a Chennai-based EPC company specializing in water infrastructure, has opened its IPO to raise Rs 35.38 crore. The issue price band is set at Rs 70-75 per share, with a minimum bid of 3,200 shares. The subscription window closes on August 29, with listing expected on September 3 on NSE SME. The company reported strong financial growth, with FY25 revenue at Rs 94.85 crore and profit after tax at Rs 9.14 crore. IPO proceeds will primarily be used for long-term working capital and general corporate purposes.
*this image is generated using AI for illustrative purposes only.
Sattva Engineering Construction, a Chennai-based EPC company specializing in water infrastructure and wastewater management projects, has opened its Initial Public Offering (IPO) for subscription. The company aims to raise Rs 35.38 crore through this book-building issue on the NSE SME platform.
IPO Details
- Issue Size: Rs 35.38 crore
- Price Band: Rs 70 - Rs 75 per share
- Minimum Bid: 3,200 shares
- Subscription Window: Open until August 29
- Expected Allotment Date: September 1
- Listing Date: September 3 (on NSE SME)
- Grey Market Premium: 23% (Rs 17-18 over the upper price band)
Company Overview
Sattva Engineering Construction primarily focuses on executing water infrastructure and wastewater management projects for government agencies. The company has demonstrated strong financial performance in recent years.
Financial Highlights
| Fiscal Year | Revenue (in crore) | Profit After Tax (in crore) |
|---|---|---|
| FY23 | 94.85 | 9.14 |
| FY22 | 77.75 | 4.56 |
The company reported a significant 22% year-on-year revenue growth in FY23, reaching Rs 94.85 crore. More impressively, its profit after tax doubled from Rs 4.56 crore in FY22 to Rs 9.14 crore in FY23.
Use of IPO Proceeds
The company plans to utilize the funds raised through the IPO as follows:
- Long-term Working Capital: Rs 27.5 crore
- General Corporate Purposes: The remaining balance
This capital infusion is expected to support Sattva Engineering Construction's ongoing projects and future growth initiatives in the water infrastructure sector.
Investors interested in the infrastructure and water management sectors may find this IPO an opportunity to participate in India's growing focus on water-related projects. However, as with all investments, it is advisable to carefully review the company's prospectus and consult with financial advisors before making any investment decisions.
17
