Unlocking Opportunity: A Deep Dive into the Oval Projects Engineering SME IPO

As the Indian infrastructure sector continues its robust expansion, new investment avenues frequently emerge. One such opportunity is the upcoming SME IPO of Oval Projects Engineering Limited. For investors eyeing growth in core infrastructure, understanding the nuances of this offer is crucial. Let's break down what this company brings to the table and what potential investors should consider.

Introducing Oval Projects Engineering Ltd.

Established in 2013, Oval Projects Engineering Limited has carved a niche as an infrastructure development entity with specialized expertise. The company operates across critical sectors in India, including Oil & Gas, City Gas Distribution (CGD), Urban Development, and Energy. Their comprehensive approach encompasses upstream, midstream, and downstream activities within the Oil and Gas sector, ranging from pipeline laying to processing plant operations and maintenance.

With a proven track record, Oval Projects Engineering boasts the successful installation of over 900 km of pipelines. They deliver turnkey solutions and actively engage in diverse projects across various regions nationwide, including significant presence in Agartala, Tripura.

Core Business Areas:

• Oil & Gas Infrastructure: Specializing in designing and executing gas processing plants, storage terminals for oil and petrochemicals, and distribution infrastructure.
• Oil and Gas Operation and Maintenance (O&M): Providing essential O&M services to CGD companies and public sector entities, covering pipeline repairs, scheduled shutdowns, and management of gas genset power plants and CNG stations.
• Special Infrastructure Projects: Leveraging civil infrastructure expertise gained from oil and gas projects to undertake technical infrastructure projects funded by government bodies, the World Bank, and ADB.

Key Details of the Initial Public Offering

The Oval Projects Engineering IPO is a Book Built Issue, aiming to raise ₹46.74 crores entirely through a fresh issue of 54,99,200 equity shares.

IPO Snapshot:

Investment Lot Details:

Investors will need to bid for a minimum of 1,600 shares and in multiples thereafter. The investment amounts vary based on investor categories:

IPO Event Timeline:

Here's a tentative schedule for the Oval Projects Engineering IPO, from opening to listing:

Financial Performance Snapshot

Analyzing a company's financial health is paramount for any investor. Oval Projects Engineering Limited has demonstrated significant growth in its recent financial years.

Consolidated Financial Highlights (₹ Crore):

The company witnessed a 31% increase in revenue and an impressive 112% surge in Profit After Tax (PAT) between FY2024 and FY2025. This demonstrates robust operational efficiency and strong market demand for their services. However, it is advisable to consider the sustainability of such high growth rates in the long term.

Key Performance Indicators (KPIs) and Valuation (as of March 31, 2025):

Purpose of the Fresh Issue

Oval Projects Engineering plans to utilize the net proceeds from this IPO primarily for two key objectives:

• Long-term working capital requirements (₹37.03 Crores): This significant allocation indicates the company's intent to strengthen its operational liquidity and fund future project execution, which is crucial for an infrastructure player.
• General Corporate Purposes: To meet various operational and strategic needs that arise in the normal course of business.

Promoter and Shareholding

Mr. Goutam Debnath is the driving force behind Oval Projects Engineering Ltd., serving as its promoter. Prior to the IPO, the promoter held a substantial 72.19% stake in the company. Post-issue, the shareholding will be adjusted following the equity dilution from the fresh issue.

Subscription Allocation Breakup:

Anchor Investor Participation:

The company successfully raised ₹7.96 crore from anchor investors on August 26, 2025, ahead of the IPO opening. Anchor investors typically instill confidence in an IPO.

• Shares Offered to Anchors: 9,36,000
• Anchor Portion Size: ₹7.96 Crores
• Lock-in Period for 50% shares: Until October 2, 2025 (30 Days)
• Lock-in Period for remaining shares: Until December 1, 2025 (90 Days)

Analyzing the Investment Case: SWOT Perspective

To provide a comprehensive view, here's a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis for Oval Projects Engineering Ltd.:

Strengths:

• Sectoral Expertise: Strong specialization in high-growth infrastructure segments like Oil & Gas and City Gas Distribution.
• Proven Execution: Demonstrated capability with over 900 km of pipeline installations and diverse project experience.
• Experienced Leadership: Guided by an experienced promoter and management team.
• Robust Order Book: A healthy order book of ₹453 crore as of April 9, 2025, signals future revenue visibility.
• Strong Financial Growth: Significant increases in revenue and PAT in recent fiscal years reflect operational efficiency.

Weaknesses:

• Valuation Concerns: The IPO appears to be aggressively priced based on recent financial data, potentially limiting immediate listing gains.
• Sustainability of High Growth: While recent PAT growth is impressive, its sustainability needs careful consideration.
• Increased Borrowings: A noticeable increase in total borrowings from FY24 to FY25.
• SME Segment Risks: Investing in SME IPOs generally carries higher risks related to liquidity and post-listing performance compared to mainboard IPOs.

Opportunities:

• Growing Infrastructure Outlays: India's continuous focus on infrastructure development, especially in energy and urban sectors, provides a fertile ground for growth.
• Expansion of CGD Network: Government initiatives to expand City Gas Distribution networks offer sustained project opportunities.
• Diversification Potential: Ability to leverage existing expertise to expand into adjacent infrastructure segments or new geographies.
• Technological Advancement: Adoption of new technologies can further enhance project efficiency and competitiveness.

Threats:

• Intense Competition: The infrastructure sector is highly competitive, potentially impacting project margins and acquisition.
• Regulatory Changes: Policy shifts in the Oil & Gas and energy sectors could influence project viability and timelines.
• Economic Downturns: Macroeconomic slowdowns can reduce government and private spending on infrastructure projects.
• Project Execution Risks: Inherent risks associated with large-scale projects, including delays, cost overruns, and unforeseen operational challenges.

How to Participate in the IPO

Interested investors can apply for the Oval Projects Engineering IPO through their brokerage accounts using either the UPI (Unified Payments Interface) or ASBA (Application Supported by Blocked Amount) methods. Many online brokers offer a streamlined process to apply for IPOs directly from their platforms.

General Application Steps:

• Log in to your broker's trading platform (e.g., console/back office).
• Navigate to the IPO section.
• Select the "Oval Projects Engineering IPO."
• Enter your UPI ID (for UPI applications), the desired quantity (in multiples of the lot size), and the bid price.
• Confirm and submit your application.
• Approve the mandate request on your UPI payment app within the stipulated time.

Company and Registrar Information

Company Contact Details:

Oval Projects Engineering Ltd.
House No. 451568, Milan Chakra, (Near Prajapita Brahmakumari Center)
Badharghat, P.O. A.D. Nagar
Agartala, Tripura, 799003
Phone: +91 7085049473
Email: cs@ovalprojects.com
Website: https://www.ovalprojects.com/

IPO Registrar:

MAS Services Ltd.
Phone: (011) 2610 4142
Email: ipo@masserv.com
Website: https://www.masserv.com/opt.asp

Final Thoughts for Potential Investors

Oval Projects Engineering Ltd. presents an interesting proposition within the booming Indian infrastructure landscape. The company's established presence, strong order book, and impressive recent financial growth are certainly positive indicators. However, potential investors should carefully weigh the aggressive pricing and the inherent risks associated with SME IPOs and the cyclical nature of the infrastructure sector.

Considering the company's robust project execution capabilities and the government's sustained focus on infrastructure, well-informed investors with a moderate to long-term investment horizon may find value in this offering. Always conduct your own thorough research and consider consulting a financial advisor before making any investment decisions.