Chennai-based Sattva Engineering Construction made a strong debut on the SME platform, with its shares commanding a grey market premium of approximately 29%. This impressive start follows the company's highly successful Initial Public Offering (IPO) that raised Rs 35.38 crore and was oversubscribed by a staggering 198 times.

IPO Details and Investor Interest

The IPO, priced at Rs 75 per share, garnered significant interest across all investor categories:

• Non-institutional investors: 351 times oversubscribed
• Retail investors: 173 times oversubscribed
• Qualified Institutional Buyers (QIBs): Over 123 times oversubscribed

This overwhelming response underscores the strong investor confidence in Sattva Engineering's business model and growth prospects.

Company Overview and Expertise

Sattva Engineering Construction, with over four decades of experience, specializes in:

• Water infrastructure
• Wastewater management
• Industrial construction

This extensive experience positions the company well in the rapidly growing infrastructure sector.

Financial Performance

The company has demonstrated strong financial growth:

• Revenue growth: 22% year-over-year
• Net profit: Doubled from FY24 to FY25

IPO Proceeds and Order Book

Sattva Engineering plans to utilize the IPO proceeds to fund long-term working capital needs. This capital infusion will support the execution of its robust order book, valued at over Rs 308 crore as of March 2025.

The successful IPO and strong market debut reflect investor optimism about Sattva Engineering's growth potential in the infrastructure sector. The company's focus on critical areas such as water infrastructure and wastewater management aligns well with India's increasing emphasis on sustainable development and urban infrastructure improvement.

The initial public offering (IPO) of Sattva Engineering Construction has concluded with an extraordinary display of investor interest, marking a significant milestone in the SME segment of the Indian stock market.

Overwhelming Demand

The IPO witnessed an overwhelming response from investors across categories, resulting in a staggering oversubscription of nearly 200 times. The offer received bids for over 62.36 crore shares against the 31.47 lakh shares on offer, reflecting robust demand across investor segments.

Subscription Details

The subscription breakdown across investor categories showcases the widespread appeal of the IPO:

IPO Specifics

• Issue Size: Rs 35.38 crore
• Offer Structure: Entirely fresh issue of 0.47 crore shares
• Price Band: Rs 70-75 per share

Allotment and Listing

• Allotment Status: Expected to be finalized today
• Allotment Check: Investors can check their allotment status on the NSE website or through the registrar, MUFG Intime India
• Listing Date: Scheduled for September 3 on the NSE SME platform
• Important Dates: Share credits and refunds expected on September 2

Grey Market Premium

The grey market is showing strong interest in Sattva Engineering Construction shares:

• Grey Market Premium: Rs 26
• Estimated Listing Price: Rs 101 per share
• Potential Gains: 34.67% over the issue price

The substantial oversubscription and strong grey market premium indicate high investor confidence in Sattva Engineering Construction. However, investors should note that grey market premiums are unofficial and subject to change.

As the company prepares for its debut on the NSE SME platform, all eyes will be on its listing performance. The massive oversubscription suggests a potentially strong market debut, but as always, market conditions and various other factors will play a role in determining the stock's performance post-listing.