The Indian SME segment continues to be a vibrant platform for growing businesses looking to access public capital. Among the upcoming listings, the IPO of Encompass Design India Ltd., operating under the brand name ‘ScaleSauce,’ is drawing attention. This public offering on the NSE SME platform presents an opportunity for investors to engage with a company rooted in the consumer brand building space. Let’s dive deep into the specifics of this Book Building Issue to help you make an informed decision.
Understanding ScaleSauce: The Business at a Glance
Incorporated in March 2010, Encompass Design India Limited, or ScaleSauce, focuses on building and scaling consumer brands, primarily targeting modern urban consumers in India. Their operations span manufacturing, trading, and providing digital solutions for e-commerce growth.
Core Business Activities:
- Manufacturing home and lifestyle products (bed sheets, curtains, comforters, linens).
- Producing food items, particularly sauces under their proprietary brands.
- Trading agro-based products, cotton, and fabrics through specialized channels.
- Offering end-to-end digital and e-commerce scaling solutions for D2C and corporate clients.
Key Competitive Advantages:
- Possesses strong brand recognition coupled with innovative product lines.
- Operates with an agile and highly scalable business framework.
- Benefits from experienced leadership and inherent business synergies across segments.
- Leverages robust technology and data-driven capabilities for market reach.
ScaleSauce IPO: The Offer Details
This is a **Book Building Issue** totaling ₹40.21 crores. Importantly, the entire offering is a **Fresh Issue** of equity shares, meaning the capital raised will go directly into the company's coffers for expansion and stated objectives.
| Parameter | Details |
|---|---|
| Issue Type | Bookbuilding (Fresh Issue) |
| Total Issue Size (Value) | ₹40.21 Crores |
| Total Shares Offered | 37,58,400 Shares |
| Listing Platform | NSE SME |
Price Band and Application Sizes:
The price band dictates the range within which investors can place their bids. Given the lot size, the minimum investment for retail participation is significant for an SME IPO.
| Metric | Details |
|---|---|
| Price Band (Per Share) | ₹101.00 to ₹107.00 |
| Lot Size | 1,200 Shares |
| Minimum Investment (Retail, 2 Lots) | ₹2,56,800.00 (Based on Upper Price) |
IPO Timeline and Key Dates
Mark your calendars for the subscription window and subsequent listing events.
| Event | Tentative Date |
|---|---|
| IPO Opens (Subscription Start) | Friday, Dec 5, 2025 |
| IPO Closes (Subscription End) | Tuesday, Dec 9, 2025 |
| Tentative Allotment Finalization | Wednesday, Dec 10, 2025 |
| Shares Credit to Demat / Refund Initiation | Thursday, Dec 11, 2025 |
| Tentative Listing Date (NSE SME) | Friday, Dec 12, 2025 |
Subscription Allocation Breakdown:
The shares are divided among various investor categories. Note the significant allocation to QIBs and the reservation for the Market Maker.
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 17,83,200 | 47.45% |
| Non-Institutional Investors (NII) | 5,36,400 | 14.27% |
| Retail Individual Investors (RII) | 12,50,400 | 33.27% |
| Market Maker Reservation | 1,88,400 | 5.01% |
Financial Health Check: Performance Indicators
Analyzing the restated financials reveals a strong growth trajectory in recent years. Revenue saw a 37% jump, and Profit After Tax (PAT) grew by an impressive 57% between the fiscal years ending March 2024 and March 2025.
Financial Snapshot (All figures in ₹ Crore):
| Metric | Mar 31, 2024 | Mar 31, 2025 | Sep 30, 2025 (Interim) |
|---|---|---|---|
| Total Income | 40.15 | 55.01 | 28.17 |
| Profit After Tax (PAT) | 6.88 | 10.79 | 5.05 |
| Net Worth | 10.37 | 32.58 | 37.62 |
Key Performance Ratios (KPIs as of Mar 31, 2025):
| Indicator | Value |
|---|---|
| Return on Equity (ROE) | 50.26% |
| Return on Capital Employed (ROCE) | 40.49% |
| Debt/Equity Ratio | 0.44 |
| PAT Margin | 19.75% |
| Market Capitalization (Post Issue Estimate) | ₹151.76 Cr. |
What Will the Funds Be Used For?
The company has clearly outlined the deployment of the net proceeds from this IPO, focusing on growth, debt management, and infrastructure:
| Object | Expected Amount (₹ Cr) |
|---|---|
| Capital expenditure (Office refurbishment/Interiors) | 11.49 |
| Working Capital Requirements | 7.29 |
| Repayment/Prepayment of Borrowings | 11.00 |
| General Corporate Purposes | (Balance) |
Ownership Structure and Anchor Interest
The existing promoter holding is substantial, indicating confidence from the founders before the public offer.
Promoter Holding:
| Holding Status | Percentage |
|---|---|
| Promoter Holding (Pre Issue) | 80.19% |
| Promoter Holding (Post Issue) | (To be calculated post-dilution) |
Anchor Investor Participation:
ScaleSauce successfully raised ₹11.44 crore from anchor investors ahead of the main subscription period (on December 4, 2025), subscribing to 10,69,200 shares. This early commitment often signals strong institutional interest.
- Anchor Lock-in (50% shares): January 9, 2026 (30 days post-listing).
- Anchor Lock-in (Remaining shares): March 10, 2026 (90 days post-listing).
Investor Due Diligence: SWOT Analysis
A balanced view requires evaluating the inherent strengths and weaknesses against external opportunities and threats.
| Strengths (Internal Positives) | Weaknesses (Internal Negatives) |
|---|---|
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| Opportunities (External Positives) | Threats (External Negatives) |
Essential IPO Contact Information
For official documentation and allotment queries, refer to the designated intermediaries:
| Entity | Registrar | Company Contact |
|---|---|---|
| Name | MUFG Intime India Pvt.Ltd. | Encompass Design India Ltd. |
| Website/Contact | Link provided for issue tracking. | Email: cs@edipl.in / Phone: +91 7738988671 |
How to Participate in the ScaleSauce IPO
Participation in any IPO, including this SME offering, is primarily done through digital means via your registered broker.
Applying via a Discount Broker (Example: UPI Mandate):
For investors using popular discount broker platforms:
- Log in to your broker’s online platform or console.
- Navigate to the designated IPO application section.
- Select the ‘ScaleSauce IPO’ and specify your bid quantity (minimum 2 lots) and price (within the band).
- Confirm the application using your UPI ID.
- Crucially, approve the payment mandate received on your UPI application within the specified cut-off time (5 PM on Dec 9, 2025).
Most retail investors apply under the RII category, utilizing UPI or ASBA (net banking) facilities provided by their respective banks.
Final Thoughts on the Offering
The ScaleSauce IPO presents an opportunity to invest in a consumer-focused SME that exhibits impressive recent financial growth metrics, particularly in profitability and return ratios. The funds raised are earmarked for tangible growth areas like capital expenditure and working capital, alongside debt reduction. As with all SME listings, investors should be mindful of the higher inherent volatility compared to mainboard stocks. Thorough research into the company’s long-term strategy in the competitive consumer segment is paramount before deciding on participation.