Sattva Engineering Construction
Book Building issueSMENSE₹35.38 Cr issue
+26.80%
Listing gain over issue price
Issue size
₹35.38 Cr
1 lot at cut-off
₹1,20,000
Lot size
1,600shares
Open
26 Aug 2025
Close
29 Aug 2025
Allotment
01 Sep 2025
Listing
03 Sep 2025
Listing performance
Issue price
₹75
Listed at
₹95.10
Listing-day close
₹99.85
Latest price
₹46.05
Close on 23 Oct 2026
Listing gain
+26.80%
Return since issue
-38.60%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Aug 2025 – 29 Aug 2025
- Listing date
- 03 Sep 2025
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹35.38 Cr
- Market cap at offer price
- ₹131 Cr
- Promoter holding
- 86.18% → 62.91% pre-issue → post-issue
- ISIN
- INE14DW01018
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Vivro Financial Services Pvt.Ltd.
- Registered office
- Greams Dugar, 4th floor, North Wing, Old No.149, New No.64, Greams Road Thousand Lights, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 13,29,600 | — | — |
| Market maker | 2,40,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
13,29,600
Anchor portion
₹9.97 Cr
at ₹75 per share
Valuation and performance
Valuation at offer price
₹75 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.17 | 5.23 |
| P/E (×) | 10.46 | 14.34 |
| Price to book (×) | 2.20 | — |
| Market cap | — | ₹131 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 27.10%
- ROCE
- 28.58%
- Debt / equity
- 0.83
- PAT margin
- 9.64%
- EBITDA margin
- 19.82%
- NAV per share
- ₹34.05
- Price to book
- 2.20
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sattva Engineering Construction
Sattva Engineering Construction Limited (formerly Sattva Engineering Construction Private Limited) is an engineering, procurement and construction (EPC) company incorporated on December 21, 2005, and converted to a public limited company on December 23, 2024. The company provides water resource management solutions including Water Supply Schemes (WSS) with underground and overhead tanks, Underground Sewerage Systems (UGSS), Sewage Treatment Plants (STP), and Water Treatment Plants (WTP) primarily for government authorities and bodies. The company also offers operation and maintenance services for STP projects as part of EPC contracts. As of March 31, 2025, the company has completed more than 50 projects and is executing 13 ongoing projects, primarily in Tamil Nadu. The company has built in-house teams for designing, engineering, and construction, reducing dependence on third parties. Revenue for FY 2025 was ₹9,365.04 lakhs with a net worth of ₹4,342.00 lakhs.
Company Analysis
from RHPSattva Engineering Construction Limited is an ISO-certified EPC company providing water resource management solutions including water supply schemes, underground sewerage systems, sewage treatment plants, and water treatment plants primarily for government authorities across water and wastewater infrastructure sectors.
Sattva Engineering Construction Limited (formerly Sattva Engineering Construction Private Limited) is an engineering, procurement and construction (EPC) company incorporated on December 21, 2005, and converted to a public limited company on December 23, 2024. The company provides water resource management solutions including Water Supply Schemes (WSS) with underground and overhead tanks, Underground Sewerage Systems (UGSS), Sewage Treatment Plants (STP), and Water Treatment Plants (WTP) primarily for government authorities and bodies. The company also offers operation and maintenance services for STP projects as part of EPC contracts. As of March 31, 2025, the company has completed more than 50 projects and is executing 13 ongoing projects, primarily in Tamil Nadu. The company has built in-house teams for designing, engineering, and construction, reducing dependence on third parties. Revenue for FY 2025 was ₹9,365.04 lakhs with a net worth of ₹4,342.00 lakhs.
water supply infrastructurewastewater treatmentsewerage systemsengineering procurement and construction (EPC)public infrastructure
Objects of the Issue
- Funding the working capital requirements of our Company ₹2,750.00 lakhs p.27
- General Corporate Purposes [●] lakhs (not to exceed 15% of Gross Proceeds or ₹1,000.00 lakhs, whichever is lower) p.27
- Objects of the Offer p.77
- To meet long-term working capital requirements ₹2,750.00 lakhs p.114
- General Corporate Purposes p.114
- Working capital management and project funding p.179
- To meet long-term working capital requirements p.308
- General Corporate Purposes p.308
Issue Structure
- Total Issue
- Up to 47,16,800 Equity Shares of face value of ₹10/- each aggregating to ₹[●] lakhs
- Fresh Issue
- Up to 47,16,800 Equity Shares of face value of ₹10/- each at ₹[●] per Equity Share (including premium of ₹[●] per Equity Share) aggregating to ₹[●] lakhs
- Offer for Sale
- NIL
- Price Band
- [●] to [●] per Equity Share (to be finalized)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/- each
Business Model
The company earns revenue through EPC contracts for water and wastewater infrastructure projects awarded by government authorities and bodies, which are partly funded by Central Government schemes like the Jal Jeevan Mission (JJM) and Atal Mission for Rejuvenation and Urban Transformation (AMRUT). The company bids for government tenders, executes awarded projects, and provides operation and maintenance services. Revenue is recognized using the percentage of completion method. In FY 2025, 88.80% of revenue came from tender-based projects with government entities.
Business Segments
Engineering, procurement and construction of water supply schemes with underground and overhead tanks for government authorities/bodies
Design and construction of underground sewerage systems for government authorities/bodies
Design, procurement, construction and operation & maintenance of sewage treatment plants
Design and construction of water treatment plants for government authorities/bodies
Installation and operation of waste stabilization ponds for wastewater treatment
Installation and operation of sewage treatment plants for wastewater treatment
Designing, procuring, constructing, and commissioning water supply schemes incorporating underground and overhead tanks for efficient water distribution and storage. Includes water pipelines and networks, pressurized water supply systems, water treatment and filtration systems, water storage and distribution infrastructure, and urban and rural water supply solutions.
Design and construct large underground and overhead water tanks for storage and supply of potable/drinking water along with pump house, laying pipeline from water tank and achieving house service connections including electromechanical works. Includes water sourcing, treatment, and distribution infrastructure.
Design, construction, and maintenance of underground sewerage schemes delivering efficient and sustainable wastewater management solutions. Services cover development of sewer networks, installation of underground pipelines, construction of pumping stations, and implementation of sewage treatment plants and effluent disposal systems.
Design, engineer, build, commission and operate sewage treatment plants of varying capacities. Typically includes construction of inlet chamber, screen and grit chamber, primary clarifier, sequential batch reactor (SBR) basin, chlorine contact tank, sludge thickener, digestor, bio-gas tank and other civil structures, electromechanical equipments and instrumentation.
Design, engineer, build and commission water treatment plants of varying capacities for treatment of river or lake water. Typically includes construction of raw water pumping station, inlet chamber, screen chamber, clariflocculator, filter press, rapid gravity sand filter beds, chlorinator and other civil structures, electromechanical equipment and instrumentation.
In all recently awarded and executed Sewage Treatment Plants and Water Treatment Plants, Operations & Maintenance service is generally embedded in the contracts. O&M services typically encompass operation, routine maintenance, and the supply of consumables and spare parts, ensuring a steady stream of recurring revenue. As of March 31, 2025, operating and maintaining 2 Sewage Treatment Plants.
Design and construction of large underground and overhead water tanks for storage and supply of potable/drinking water along with pump house, laying pipeline from water tank and achieving house service connections including electromechanical works; sewage drawn through house service connection, laying sewage pipeline connected to machine holes, collection wells and pump house including civil structures, electromechanical equipments and instrumentation.
Design, engineer, build, commission and operate sewage treatment plant of varying capacities which typically includes construction of inlet chamber, screen and grit chamber, primary clarifier, sequential batch reactor, chlorine contact tank, sludge thickener, digestor, bio-gas holder amongst other civil structures, electromechanical equipments and instrumentation.
Design, engineer, build and commission water treatment plant of varying capacities for treatment of river water which typically includes construction of raw water pumping station, inlet chamber, screen chamber, clariflocculator, filter press, rapid gravity sand filter beds, chlorinator amongst other civil structures, electromechanical equipments and instrumentation.
EPC services for industrial and commercial building construction
SWOT Analysis
Strengths
- • ISO certified EPC company with established track record(p.23)
- • Extensive project execution experience in water infrastructure(p.37)
- • In-house technical capabilities reducing third-party dependence(p.42)
- • Strong client relationships with high repeat order rate(p.41)
- • Positioned to capitalize on major government water infrastructure programs(p.23)
- • No litigation or penalties against KMPs/SMPs(p.53)
- • Established engineering and design capabilities with in-house teams(p.58)
- • No bad debts in last three financial years(p.56)
- • No instances of invocation of bank guarantees in the past(p.54)
- • No delays attributed to company in project execution to date(p.57)
- • No industrial accidents adversely affecting operations historically(p.59)
- • Harmonious employee relations with no unionization(p.54)
- • Strong order book from government bodies with repeat orders(p.123)
- • Established track record for project execution(p.123)
- • In-house designing, engineering and execution team(p.123)
- • End-to-end project management and execution capabilities(p.123)
- • Experienced management team with long tenure(p.123)
- • Significant revenue growth from ₹8,806.92 lakhs in FY2022 to ₹9,365.04 lakhs in FY2025(p.115)
- • Strong profit growth with PAT increasing from ₹93.50 lakhs to ₹913.91 lakhs over four years(p.115)
- • Improved debt-equity ratio declining from 1.66 to 0.83 over three years(p.125)
- • Strong execution capabilities with in-house designing, engineering and execution team of 39 engineers(p.177)
- • Use of advanced SCADA and SAP ERP systems for real-time monitoring and project management(p.178)
- • Projects funded by World Bank and Asian Development Bank validate technical and execution capabilities(p.178)
- • Experienced promoters with over 3 decades in water and wastewater treatment industry(p.176)
- • Strong and diverse order book of ₹30,809.84 lakhs across 13 ongoing projects(p.179)
- • High repeat customer ratio of 95.91% indicating strong client relationships(p.188)
- • Very low debt-equity ratio of 0.003 indicating strong financial stability(p.168)
Weaknesses
- • Heavy dependence on limited number of clients exposing to concentration risk(p.40)
- • Working capital intensive business model requiring significant external financing(p.36)
- • High attrition rate in operational workforce affecting project execution(p.42)
- • History of delays in statutory compliance and regulatory filings(p.51)
- • Negative operating cash flows in recent years(p.46)
- • Limited geographical presence restricted to Tamil Nadu(p.37)
- • Dependence on limited suppliers with no long-term agreements(p.49)
- • High contingent liabilities on bank guarantees(p.54)
- • Significant working capital intensity with high trade receivables and inventories(p.56)
- • Long accounts receivable collection cycle(p.56)
- • Declining inventory turnover ratio(p.58)
- • High debt burden with ₹3,617.30 lakhs outstanding borrowings(p.56)
- • Unsecured loans repayable on demand(p.62)
- • Dependence on promoters' personal guarantees for borrowings(p.63)
- • Tax litigation pending with ₹ 20.30 lakhs involving promoters(p.53)
- • High working capital requirements increasing substantially to ₹7,470.21 lakhs in FY2025(p.115)
- • Dependence on government and urban local body contracts(p.123)
- • Limited to water and wastewater infrastructure focusing on specific geographies(p.115)
- • Revenue concentrated in project-based contracts with seasonal variations(p.117)
- • Limited track record with only 3-4 new orders bagged annually recently(p.115)
- • Heavy revenue concentration with top 1 client generating 59.37% of revenue(p.188)
- • Geographic concentration entirely in Tamil Nadu and southern states(p.179)
- • EBITDA margin declined from 43.4% to 34.1% over three years indicating margin compression(p.168)
- • PAT margin declined from 32.0% to 25.0% showing profit compression despite revenue growth(p.168)
- • Return on Assets declined sharply from 63.2% to 27.5% indicating efficiency concerns(p.168)
- • Significant concentration in purchases from top 1 supplier at 41.14% of purchases(p.189)
- • Promoter and promoter group members have pending direct tax proceedings(p.296)
- • Company has significant material creditor concentration with 113 material creditors owed ₹1,243.11 lakhs(p.297)
- • Trademarks are not yet registered and remain pending(p.303)
- • Limited information on promoter group due to SEBI exemption rejection for certain connected persons(p.316)
Opportunities
- • Expansion into other South Indian states beyond Tamil Nadu(p.37)
- • Growing government water supply and sanitation infrastructure investment(p.23)
- • Participation in major national water schemes with significant funding(p.35)
- • Revenue from operations & maintenance of water treatment plants(p.42)
- • Government focus on water treatment and wastewater infrastructure(p.60)
- • Expansion in water reuse and zero liquid discharge technologies(p.61)
- • Long-term O&M contract revenues from existing projects(p.60)
- • Government initiatives driving water infrastructure investment through JJM, AMRUT and National Water Mission(p.146)
- • Large addressable market with EPC industry for water treatment growing at 11.4% CAGR (2021-2024)(p.146)
- • 93% of water treatment plant opportunities being implemented on EPC mode(p.146)
- • Expansion opportunity with receipt of higher-value orders and improved financial qualification post-IPO(p.119)
- • Expected high growth in water management sector driven by government missions like AMRUT and JJM(p.119)
- • Significant untreated wastewater gap of 40,000+ MLD creates infrastructure development opportunities(p.162)
- • Rising private sector participation and PPP models for water infrastructure scaling(p.151)
- • Jal Jeevan Mission allocating ₹701.63 billion for rural water supply expansion(p.171)
- • Water and wastewater market projected to grow at 11.0% CAGR to reach USD 3.7 billion by 2030(p.172)
- • EPC water treatment market projected to grow at 11.4% CAGR to reach USD 3.5 billion by 2030(p.172)
- • Overall EPC industry projected to grow at 6.4% CAGR to reach USD 254.5 billion by 2030(p.172)
- • Opportunity to expand to new geographies with recent Class I contractor registration in Karnataka(p.179)
- • AMRUT 2.0 scheme and Singara Chennai 2.0 scheme providing funding for infrastructure projects(p.176)
- • Stringent effluent regulations and water scarcity driving demand for treatment infrastructure(p.172)
Threats
- • Budgetary allocation reductions by central and state governments affecting project pipeline(p.35)
- • Delays and payment defaults from government entities(p.37)
- • Volatile raw material and labor costs impacting project economics(p.50)
- • Seasonal variations and monsoon-related project delays(p.48)
- • Changes in government policy and political priorities affecting infrastructure spending(p.35)
- • Competition from larger contractors and consortium partners(p.48)
- • Low entry barriers and intense competition in construction sector(p.57)
- • Competition from larger infrastructure companies with greater resources(p.57)
- • Price competition may reduce margins(p.57)
- • Dependency on contracted labour force and labour scarcity risks(p.54)
- • Liquidity risks from project delays and client payment defaults(p.56)
- • Government contracts with unfavorable terms favoring client termination(p.55)
- • Interest rate fluctuations on floating rate borrowings(p.56)
- • Risk of liquidated damages and project penalties for delays(p.57)
- • Rapid technological change in water treatment sector(p.61)
- • Monsoon and weather-related delays affecting projects(p.57)
- • Funding requirements and deployment of net proceeds have not been independently appraised and may require revision(p.114)
- • Severe water scarcity with per capita availability declining to 1,545 m³ and moving toward scarcity threshold(p.148)
- • India's groundwater depletion rate increased by 23% between 2000 and 2010(p.150)
- • Climate change impacting water availability through altered precipitation patterns and extreme weather(p.151)
- • Highly fragmented EPC market with over 180 participants creating intense competition(p.163)
- • Large established players dominate water EPC market with strong financial positions and track records(p.163)
- • Regulatory compliance requirements and environmental standards impose high operational constraints(p.164)
- • Monsoon dependency and seasonal variations affecting project execution and revenue recognition(p.118)
- • Long lead times for procurement of specialized equipment causing project delays(p.169)
- • Global supply chain complexities including regulatory compliance and logistical challenges(p.169)
- • EPC projects susceptible to cost overruns due to material price fluctuations and inflation(p.169)
- • Payment delays from clients, especially public sector, straining financial resources(p.169)
- • Supplier reliability risks including poor quality and delayed deliveries(p.169)
- • Competition from large EPC companies with greater resources(p.197)
- • Coordination challenges across multiple teams and locations causing miscommunication(p.170)
- • Natural disasters and geopolitical tensions disrupting project execution(p.170)
- • Weak regulatory enforcement and absence of well-defined legal frameworks for wastewater management(p.171)
- • Rapid urbanization straining existing wastewater infrastructure(p.171)
- • Inability to register trademarks may adversely affect competitive business position(p.304)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Santhanam Seshadri | Promoter | 43.09% | — |
| R Sekar | Promoter | 32.09% | — |
| Jagachchandarr Sekar Uthra | Promoter | 10.00% | — |
| Uthra Sekar | Promoter Group | 1.00% | — |
| Santhanam Seshadri | Promoter | 43.09% | [●] |
| R Sekar | Promoter | 32.09% | [●] |
| Jagachchandarr Sekar Uthra | Promoter | 10.00% | [●] |
| Uthra Sekar | Promoter Group | 1.00% | [●] |
| Santhanam Seshadri | Promoter | 43.09% | — |
| R Sekar | Promoter | 32.09% | — |
| Santhanam Seshadri | Promoter | 43.09% | — |
| R Sekar | Promoter | 32.09% | — |
| Santhanam Seshadri | Promoter | 43.09% | — |
| R Sekar | Promoter | 32.09% | — |
| Jagachchandarr Sekar Uthra | Promoter | 10.00% | — |
| Santhanam Seshadri | Promoter | — | — |
Leadership
Santhanam Seshadri · Whole-time Director/Promoter
R Sekar · Whole-time Director/Promoter
G Sujatha · Whole-time Director & CFO
Laxmikanth Tangudu · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Sattva Engineering Construction IPO FAQs
What is the lot size of Sattva Engineering Construction IPO?
The minimum lot size of Sattva Engineering Construction IPO is 1,600 shares. One lot costs ₹1,20,000 at the cut-off price.
When does Sattva Engineering Construction IPO open and close?
Sattva Engineering Construction IPO opened for subscription on 26 Aug 2025 and closed on 29 Aug 2025.
What is the listing date of Sattva Engineering Construction IPO?
Sattva Engineering Construction IPO listed on 03 Sep 2025.