Sattva Engineering IPO opens with 23% GMP: Should you bid?
What's the story
Sattva Engineering Construction, a Chennai-based engineering, procurement, and construction (EPC) firm, has launched its initial public offering (IPO) today. The book-building issue is valued at ₹35.38 crore with a price band of ₹70-75 per share. The subscription window will remain open till August 29 and allotment is likely to be finalized by September 1.
Investment specifics
Issue details and GMP
Sattva Engineering's IPO comprises a fresh issue of 47.16 lakh equity shares, aggregating to ₹35.38 crore. The net issue of 44.76 lakh shares is open to the public with up to 50% reserved for Qualified Institutional Buyers (QIBs), at least 35% for retail investors, and at least 15% for Non-Institutional Investors (NIIs). The gray market premium (GMP) is currently around 23%, suggesting healthy listing expectations.
Fund allocation
Financials and use of proceeds
The proceeds from the IPO will mainly be used to meet long-term working capital requirements, with ₹27.5 crore earmarked for this purpose. The rest will be used for general corporate purposes. In FY25, Sattva Engineering reported a 22% increase in revenue to ₹94.85 crore from ₹77.44 crore in FY24 while profit after tax doubled to ₹9.14 crore in FY25 from ₹4.56 crore in FY24.