The Lucknow-based EPC company serving government and power sector clients is raising Rs 48 crore. Issue opens April 6, closes April 8.
Safety Controls and Devices Limited, a Lucknow-based EPC company specialising in substations, solar plants, firefighting systems, and hospital projects for the Ministry of Ayush, is opening its SME IPO next week — April 6 — and closes April 8.
Incorporated in 2015 and promoted by Rajnish Chopra, aged 64, who has over 27 years of experience in fire safety, EPC, and civil construction, the company primarily serves government and power sector clients across Uttar Pradesh and Bihar. It currently operates 19 substations and is expanding into solar and EV charging infrastructure. Listing is expected on April 13 on BSE SME.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | April 6, 2026 |
| Issue Closes | April 8, 2026 |
| Price Band | Rs 75 – Rs 80 per share |
| Issue Size | Rs 48.00 crore (at upper band) |
| Structure | Fresh issue only — no offer for sale |
| Face Value | Rs 10 per share |
| Minimum Application | 3,200 shares (2 lots) |
| Minimum Investment (Retail) | Rs 2,56,000 at upper band |
| QIB / NII / Retail Split | 47% / 15% / 35% |
| Lead Manager | Sobhagya Capital Options Pvt. Ltd. |
| Registrar | Maashitla Securities Pvt. Ltd. |
| Market Maker | NNM Securities Pvt. Ltd. |
| Listing | BSE SME |
| Listing Date | April 13, 2026 |
Promoter shareholding declines from 66.53% pre-issue to 46.40% post-issue.
Objects of the Issue
| Object | Amount (Rs crore) |
|---|---|
| Repayment of borrowings | 6.00 |
| Working capital requirements | 31.50 |
| General corporate purposes | Balance |
| Total Fresh Issue | 48.00 |
The largest allocation — Rs 31.50 crore — goes toward working capital, which reflects the cash-intensive nature of EPC project execution where government contracts typically carry 5–10% retention clauses until completion of a one-year warranty period.
What the Company Does
Safety Controls and Devices operates as an EPC company across four business verticals. Power Projects and Substations together form the backbone of the business — substations contributed Rs 23.65 crore in FY25 and power projects Rs 66.74 crore, while in the stub period ended January 2026, the mix has shifted with substations becoming the dominant contributor at Rs 61.31 crore.
Ayush Projects — hospital and healthcare infrastructure for the Ministry of Ayush — contributed Rs 10.31 crore in FY25. Fire Protection systems contributed Rs 1.86 crore. The company works on a turnkey project basis, covering design, supply, installation, testing, and commissioning. Revenue is entirely domestic and almost entirely concentrated in Uttar Pradesh and Bihar — historically 100% of revenue has come from these two states.
Financials
| Particulars (Rs crore) | FY24 | FY25 | 10M FY26 (to Jan 26) |
|---|---|---|---|
| Revenue from Operations | 44.71 | 102.56 | 67.44 |
| EBITDA | 8.27 | 17.27 | 16.21 |
| EBITDA Margin | 18.50% | 16.84% | 24.04% |
| PAT | 4.01 | 8.99 | 8.52 |
| PAT Margin | 8.96% | 8.77% | 12.64% |
| EPS (Rs) | 4.01 | 6.98 | 6.28 |
| RoE | 26.76% | 30.14% | 21.17% |
| RoCE | 36.35% | 37.39% | 33.73% |
| Debt to Equity | 1.70x | 0.80x | 0.72x |
Revenue grew 129.38% from Rs 44.71 crore in FY24 to Rs 102.56 crore in FY25, driven primarily by power project execution. The 10-month stub period to January 2026 has already generated Rs 67.44 crore in revenue and Rs 8.52 crore in PAT — suggesting an annualised run-rate that exceeds FY25.
EBITDA margins have improved to 24.04% in the stub period. Debt has been declining steadily from 1.70x debt-to-equity in FY24 to 0.72x by January 2026, and will improve further with the Rs 6 crore earmarked for debt repayment from IPO proceeds.
The working capital profile is a significant consideration. Trade receivable days stood at 503 days for the stub period ending January 2026 — an extremely high figure that reflects the nature of government EPC contracts where payment cycles are long and retention clauses further delay cash collection.
Valuation and Peer Comparison
| Company | EPS (Rs) | NAV (Rs) | P/E | RoNW |
|---|---|---|---|---|
| Safety Controls and Devices | 6.28 | 39.39 | 12.74x* | 21.17% |
| Viviana Power Tech | 10.99 | 111.88 | 61.27x | 10.53% |
| Oriana Power | 59.77 | 317.05 | 28.39x | 20.91% |
*pre-issue EPS at upper band
At the upper band of Rs 80, the issue is priced at a pre-issue P/E of 11.46x and a post-issue P/E of approximately 12.74x — a meaningful discount to listed peers in the power EPC space. The P/BV of 2.52x based on a pre-issue NAV of Rs 31.70 is moderate.
The valuation appears fair to slightly premium relative to peers, with the discount to Viviana Power Tech and Oriana Power reflecting the smaller scale, geographic concentration, and governance concerns around the company.
A significant flag in this issue is that a prior attempt to list on the NSE SME Emerge platform was returned due to non-fulfilment of the eligibility criterion of positive Free Cash Flow to Equity in at least two of the three preceding years. This indicates structural constraints in cash flow generation that are inherent to the EPC model — and investors should factor this in when assessing the listing on BSE SME this time around.
Merchant Banker
Sobhagya Capital Options is the lead manager. No recent track record data has been provided in the available material.
Risks to Consider
Extreme customer concentration. The top five customers contributed 97.80% of FY25 revenue, with the single largest customer accounting for 65.07%. The business is essentially dependent on a handful of government clients. Geographic concentration. 100% of historical revenue comes from Uttar Pradesh and Bihar — any policy, budget, or payment cycle disruption in these states directly hits the business. Very high receivable days. Trade receivable days of 503 in the stub period to January 2026 reflect a severe cash flow lag inherent to government EPC contracts. Prior listing attempt was rejected. The company’s earlier NSE SME Emerge filing was returned on free cash flow criteria — a transparency issue investors must weigh. Audit observations. Recent qualified audit opinions on revenue recognition and accounting practices raise concerns about financial reporting reliability. Debt remains elevated. Despite improvement, debt-to-equity stands at 0.72x and working capital requirements are substantial.