Savy Infra IPO: Unpacking a New Opportunity in India's Growth Story
The Indian stock market continues to buzz with activity, offering a dynamic landscape for both seasoned and new investors. Initial Public Offerings (IPOs), especially in the SME (Small and Medium-sized Enterprises) segment, are increasingly becoming a focal point for those seeking growth opportunities. These offerings allow promising smaller companies to raise capital and grow, simultaneously providing investors a chance to participate in their journey from an early stage.
Today, we delve into one such upcoming offering: the Savy Infra & Logistics Ltd. IPO. This company, operating in the crucial infrastructure and logistics sectors, is poised to make its debut on the NSE SME platform. Let's explore what Savy Infra brings to the table and what potential investors should consider.
Understanding Savy Infra & Logistics Ltd.: A Business Snapshot
Savy Infra & Logistics Ltd. is an established EPC (Engineering, Procurement, and Construction) company with a focus on earthwork and foundation preparation for large-scale infrastructure projects. Their expertise spans various critical areas:
- Road construction and embankment development
- Sub-grade preparation and surface paving
- Specialized demolition services for new project sites
- Providing advanced machinery like rock breakers and heavy excavators on rent
- Offering comprehensive services including shoring, strutting, side protection, and waste disposal
Operating on an 'asset-light' model, the company leverages rented trucks, drivers, and machinery to manage project execution, allowing for operational flexibility and cost efficiency. Savy Infra has successfully completed projects across multiple Indian states, demonstrating a wide geographical reach and robust operational capabilities.
Decoding the Savy Infra Public Offering
The Savy Infra IPO is a book-built issue designed to raise significant capital for the company's future endeavors. Here's a quick look at the key details:
| Detail | Specification |
|---|---|
| IPO Type | SME IPO (Book Building) |
| Issue Size | ₹69.98 Crores |
| Share Count | 58,32,000 Equity Shares |
| Face Value | ₹10 per share |
| Price Band | ₹114 to ₹120 per share |
| Listing Exchange | NSE SME |
| Issue Structure | Entirely a Fresh Issue |
Allocation Strategy: Understanding Investor Categories
The IPO is structured to ensure participation from various investor segments:
- Qualified Institutional Buyers (QIBs): Not more than 50.00% of the Net Issue
- Retail Individual Investors (RIIs): Not less than 35.00% of the Issue
- Non-Institutional Investors (NIIs): Not less than 15.00% of the Issue
- Market Maker Reservation: 2,92,800 shares (aggregating up to ₹4 Cr) reserved for Globalworth Securities Limited
The Investment Gateway: Lot Sizes & Financial Commitments
For potential investors, understanding the minimum and maximum investment requirements is crucial. The Savy Infra IPO has a fixed lot size, impacting the capital required for application.
| Application Category | Minimum Lots | Shares per Lot | Minimum Investment (₹) | Maximum Investment (₹) |
|---|---|---|---|---|
| Individual Investors (Retail) | 2 | 1,200 | ₹2,88,000 (2 lots) | ₹2,88,000 (2 lots) |
| Small HNI (sNII) | 3 | 1,200 | ₹4,32,000 (3 lots) | ₹8,64,000 (6 lots) |
| Big HNI (bNII) | 7 | 1,200 | ₹10,08,000 (7 lots) | No Upper Limit Specified |
Note: Bidding at cut-off price is not permitted for any category in this issue.
Financial Health Check: Savy Infra's Performance
A look at the company's financial performance provides insight into its growth trajectory and operational efficiency. Savy Infra has demonstrated commendable growth in recent years.
Restated Financial Highlights (Amount in ₹ Crore)
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 185.81 | 41.70 | 10.10 |
| Revenue | 283.77 | 101.62 | 6.19 |
| Profit After Tax (PAT) | 23.88 | 9.87 | 0.34 |
| EBITDA | 35.62 | 14.95 | 0.57 |
| Net Worth | 52.25 | 10.51 | 0.64 |
| Total Borrowing | 44.84 | 8.49 | 3.12 |
Key Performance Indicators (KPIs) (as of March 31, 2025)
| Indicator | Value |
|---|---|
| Return on Equity (ROE) | 76.10% |
| Return on Capital Employed (ROCE) | 36.69% |
| Debt/Equity Ratio | 0.86 |
| Return on Net Worth (RoNW) | 45.70% |
| PAT Margin | 8.43% |
| EBITDA Margin | 12.57% |
| Price to Book Value | 3.44 |
The company's revenue witnessed a significant increase of 179% and PAT rose by 142% between the financial year ending March 31, 2024, and March 31, 2025, reflecting strong operational growth.
Earnings Per Share (EPS) & Price-to-Earnings (P/E) Ratio
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 15.94 | 11.48 |
| P/E (x) | 7.53 | 10.46 |
The pre-IPO EPS is calculated based on pre-issue shareholding and the latest FY earnings (March 31, 2025). The post-IPO EPS is calculated based on post-issue shareholding and annualized FY earnings for March 31, 2025.
Strategic Vision: Objectives of the IPO
Savy Infra intends to utilize the net proceeds from this issue primarily for two key objectives:
- Funding working capital requirements of the company (approximately ₹49.00 Crores)
- General corporate purposes to support overall business growth and expansion
Leadership and Ownership: Promoters & Their Stake
The Promoters of Savy Infra & Logistics Ltd. are Mr. Tilak Mundhra and Mr. Liladhar Mundhra, who have been instrumental in guiding the company's trajectory.
| Holding Stage | Percentage Stake |
|---|---|
| Pre-Issue Share Holding | 85.87% |
| Post-Issue Share Holding | (To be calculated based on equity dilution) |
SWOT Analysis: A Holistic View
Understanding a company's strengths, weaknesses, opportunities, and threats is vital for any investment decision. Here's a brief SWOT analysis for Savy Infra & Logistics Ltd.:
Strengths
- Asset-Light Business Model: Reduces capital expenditure and offers operational flexibility.
- Integrated Business Operations: Provides comprehensive services, reducing reliance on third parties for certain functions.
- Strong Financial Performance: Consistent growth in revenue and profitability demonstrates robust business operations.
- Experienced Management Team: Promoters and management bring valuable industry knowledge and strategic direction.
Weaknesses
- Dependency on Rentals: While asset-light, it means less control over equipment availability and pricing compared to owned assets.
- Project-Specific Risks: Revenue generation is tied to securing and completing large infrastructure projects, which can be subject to delays or cancellations.
- Competitive Landscape: The infrastructure and logistics sector in India is highly competitive with both large and small players.
Opportunities
- Growing Infrastructure Sector: Government push for infrastructure development (roads, railways, smart cities) provides a strong growth pipeline.
- Expansion into New Geographies: Potential to expand operations beyond current states into new, emerging markets.
- Technological Adoption: Implementing advanced construction techniques and digital tools can enhance efficiency and competitiveness.
Threats
- Economic Downturns: A slowdown in economic growth can negatively impact infrastructure spending and project awards.
- Regulatory Changes: Changes in government policies or environmental regulations could affect project execution and costs.
- Raw Material Price Volatility: Fluctuations in prices of materials like steel, cement, or fuel can impact project profitability.
- Labor Availability and Costs: Shortages of skilled labor or rising labor costs could pose challenges.
Navigating the IPO Journey: Key Dates
Your timeline for the Savy Infra IPO application process:
Making an Informed Decision: An Overview of the Opportunity
Savy Infra & Logistics Ltd. presents an interesting proposition in the SME segment. The company's business model, strong financial performance, and confirmed orders worth approximately ₹430 Crores indicate a robust foundation.
Market analysts often suggest that the issue appears to be priced to reflect its current performance. Companies with an asset-light model and strong cost management, like Savy Infra, can often demonstrate impressive profit surges. Investors considering this IPO might look at it as a potential medium to long-term investment opportunity, aligning with the growth potential of India's infrastructure sector.
As with any investment, it's crucial to conduct your own due diligence and consider your personal financial goals and risk tolerance before applying.
Essential Contacts for Investors
Savy Infra & Logistics Ltd. Contact Details
- Address: Office No. 718, Seventh Floor, Sharan Circle Business Hub, Nr Sharan Circle Zunda Cross, Zundal, Gandhinagar, Gujarat, 382421
- Phone: +91 9227027522
- Email: compliance@savyinfra.com
- Website: https://www.savyinfra.com/
Registrar Information for Applicants
The registrar for the Savy Infra IPO, responsible for allotment and refunds, is:
- Registrar Name: Maashitla Securities Private Limited
- Phone: +91-11-45121795-96
- Email: ipo@mashitla.com
- Website: https://maashitla.com/allotment-status/public-issues
Frequently Asked Questions (FAQs)
What is the Savy Infra IPO?
The Savy Infra IPO is an SME IPO by Savy Infra & Logistics Ltd. It involves the issuance of 58,32,000 new equity shares, aiming to raise ₹69.98 Crores. The shares are priced in a band of ₹114 to ₹120 per share and will list on the NSE SME exchange.
When does the Savy Infra IPO open and close?
The IPO subscription window is from July 21, 2025 (Monday) to July 23, 2025 (Wednesday).
What is the lot size for Savy Infra IPO?
The minimum lot size for the Savy Infra IPO is 1,200 shares. Retail individual investors need to apply for a minimum of 2 lots (2,400 shares), amounting to ₹2,88,000.
How can I apply for the Savy Infra IPO?
You can apply for the Savy Infra IPO online using either the UPI (Unified Payments Interface) or ASBA (Applications Supported by Blocked Amount) payment methods. Many brokerage platforms offer UPI-based IPO applications, while ASBA is available through your bank's net banking portal.
When is the Savy Infra IPO allotment expected?
The finalization of the Basis of Allotment for Savy Infra IPO is tentatively scheduled for Thursday, July 24, 2025. Shares are expected to be credited to successful applicants' demat accounts by Friday, July 25, 2025.
What is the tentative listing date for Savy Infra IPO?
The tentative listing date for Savy Infra IPO on NSE SME is Monday, July 28, 2025.
Conclusion
The Savy Infra & Logistics Ltd. IPO offers a glimpse into the growth potential within India's dynamic infrastructure and logistics sectors. With a strong track record of financial performance and an asset-light operational model, Savy Infra is positioning itself for further expansion.
As you evaluate this opportunity, consider the company's fundamentals, the market outlook for its sector, and align it with your personal investment strategy. Engaging with a qualified financial advisor can provide tailored insights to help you make well-informed decisions in the vibrant IPO market.