SATTVA ENGINEERING CONSTRUCTION IPO

Snapshot of the Offering

Important Dates for Investors

• Opening Date: 26 Aug 2025
• Closing Date: 29 Aug 2025
• UPI Payment Deadline: 29 Aug 2025 (5 PM)
• Allotment Announcement: 01 Sep 2025
• Refund Processing: 02 Sep 2025
• Demat Credit: 02 Sep 2025
• Stock Market Listing: 03 Sep 2025
• Mandate Validity End: 13 Sep 2025
• Anchor Investor Lock-in Release (50%): 01 Oct 2025
• Anchor Investor Lock-in Release (Remaining): 30 Nov 2025

*Dates may be revised as per official updates. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.

Exploring Sattva Engineering Construction

Headquartered in Chennai, Sattva Engineering Construction is a distinguished EPC (Engineering, Procurement, and Construction) contractor specializing in critical water resource management projects. The company’s comprehensive portfolio in this sector includes the development and implementation of essential water supply schemes, intricate sewerage networks, advanced treatment plants, and robust overhead and underground tanks. Beyond its core expertise in water infrastructure, Sattva Engineering Construction also actively undertakes residential infrastructure projects, contributing to the development of modern apartments and bungalows.

The company maintains a strong commitment to quality and operational excellence, evidenced by its ISO 9001:2015 for Quality Management Systems, ISO 45001:2018 for Occupational Health and Safety Management Systems, and ISO 14001:2015 for Environmental Management Systems certifications. These certifications underscore its dedication to international standards across all its operations. Furthermore, Sattva Engineering Construction holds a prestigious Class I contractor status with various government and municipal authorities, highlighting its proven capability and reliability in executing large-scale public sector projects. This dual focus on vital public infrastructure and private residential developments positions the company to capitalize on diverse growth opportunities within the construction sector.

IPO Structure and Capital Generation

The initial public offering of Sattva Engineering Construction aims to raise a total of ₹35.58 crores. Notably, this entire amount comprises a fresh issue of shares, meaning that all proceeds from the IPO will directly flow into the company’s coffers. A fresh issue allows the company to inject new capital into its operations, facilitating expansion, funding strategic initiatives, and strengthening its financial foundation for future growth. There is no Offer for Sale (OFS) component, indicating that existing shareholders are not selling their stakes as part of this IPO, which can be seen as a positive sign of confidence in the company’s future prospects.

Deployment of IPO Proceeds

The capital raised through this IPO is strategically allocated to support Sattva Engineering Construction’s operational and growth objectives. A significant portion, amounting to ₹27.50 crores (77.72% of the total proceeds), is earmarked for meeting the company’s working capital requirements. This allocation is crucial for managing day-to-day operational expenses, funding ongoing projects, and ensuring the smooth execution of new contracts. Adequate working capital is vital for an EPC contractor, enabling timely procurement of materials, payment to subcontractors, and overall project management efficiency.

The remaining ₹7.88 crores (22.28%) will be utilized for general corporate purposes and miscellaneous needs. This provides the company with financial flexibility to address various strategic requirements, including unforeseen expenses, potential investments in new technologies or capabilities, and general administrative needs that support the overall growth trajectory of the business. Such a balanced allocation aims to strengthen the company’s financial health and support its long-term expansion plans within the competitive engineering and construction landscape.

Distinct Advantages of Sattva Engineering Construction

• Consistent Financial Growth: The company has demonstrated a robust track record of year-on-year financial growth coupled with improved profitability, reflecting efficient operations and effective management strategies. This consistent performance provides a solid foundation for future expansion.
• End-to-End Project Execution: Sattva Engineering Construction boasts comprehensive in-house engineering expertise, enabling it to manage and execute projects from conceptualization to completion. This integrated approach enhances efficiency, quality control, and client satisfaction.
• Strong Order Book: A significant portion of the company’s business comes from government and municipal bodies, resulting in a healthy and stable order book. Reliance on public sector contracts often signifies stability and substantial project volumes.
• ISO-Certified Operations: The company adheres to stringent international standards, holding multiple ISO certifications (9001:2015, 45001:2018, and 14001:2015). These certifications underscore its commitment to quality, occupational health and safety, and environmental compliance across all its projects.
• Diversified Portfolio: Sattva Engineering Construction operates across a diversified range of infrastructure segments, including water, waste management, and residential development. This diversification helps mitigate risks associated with over-reliance on a single sector and provides multiple avenues for growth.

Key Considerations and Potential Risks

• SME Scale Limitations: As a Small and Medium Enterprise (SME), the company’s scale of operations might limit its visibility compared to larger, more established competitors. This can sometimes affect its ability to secure very large-scale projects or attract a broad investor base.
• Intense Industry Competition: The engineering and construction sector is highly competitive, with numerous players vying for contracts. Intense competition can put pressure on profit margins and require continuous innovation and cost efficiency to maintain market share.
• Reliance on Government Contracts: A significant portion of the company’s revenue is derived from government and municipal contracts. This reliance exposes the company to risks associated with governmental spending policies, tender cycles, budget allocations, and potential delays in project approvals or payments.
• Regulatory and Environmental Risks: Operations in water resource management and construction are subject to various environmental regulations and permits. Changes in these regulations or non-compliance could lead to operational disruptions, increased costs, or legal challenges.
• Execution and Project Management Risks: Large-scale EPC projects inherently carry risks related to timely execution, cost overruns, availability of skilled labor, and unforeseen technical challenges. Effective project management is crucial to mitigate these risks and ensure project profitability.

Investor Interest and Subscription Status Update

Subscription statistics based on the latest available information as of 5:00 PM on August 29, 2025:

The subscription figures indicate a strong investor interest in Sattva Engineering Construction IPO across all categories. Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) have all shown robust demand, leading to a substantial oversubscription for the total issue. This high level of subscription often reflects market confidence in the company’s business model, growth prospects, and the overall attractiveness of the offering. While unofficial market indicators like Grey Market Premium (GMP) may circulate, it is always recommended to refer to official subscription numbers published by exchanges as more reliable indicators of investor interest.

Participating in the IPO

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes on August 29, 2025. Ensure all application details are accurate and submitted within the specified timeline to be considered for allotment.