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Sattva Engineering IPO
Sattva Engineering Construction Ltd
₹1,12,000 /1600 sharesMinimum Investment
Sattva Engineering IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹75.00 | ₹95.10 | ₹20.10 (26.80%) |
Sattva Engineering IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 26 Aug ‘25 - 29 Aug ‘25 | ₹2,24,000 | 1,600 | ₹70 - ₹75 |
| Issue Size | IPO Doc |
|---|---|
| 35.38Cr | RHP PDF |
Subscription rate
As of 29 Aug'25, 04:01 PM
| Qualified Institutional Buyers | 95.63x |
| Non-Institutional Investor | 312.90x |
| Retail Individual Investor | 143.85x |
| Total | 153.85x |
About Sattva Engineering
Founded in
2005
Managing director
Mr Santhanam Seshadri, Mr R Sekar, and Mr G Sujatha
Parent organisation
Sattva Engineering Construction Ltd
Strengths & Financials of Sattva Engineering
Strengths
Risks
Sattva Engineering Construction claims to have a dedicated in-house team of 39 permanent employees with expertise in design, engineering, and project execution. This internal capability reduces reliance on third-party consultants and enables the company to carry out complex tasks such as hydraulic calculations, structural designs, and instrumentation planning with greater control and efficiency.
The company claims to use SCADA systems for real-time monitoring of operational parameters in its water supply, sewage treatment, and water treatment projects. It has also implemented SAP Business One (SAP B1) for project management and internal controls, which supports timely execution and quality monitoring.
The company states that several of its projects are funded by multilateral organisations such as the World Bank and the Asian Development Bank, alongside schemes like Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Jal Jeevan Mission (JJM). Funding from such agencies is viewed as an endorsement of the company’s technical standards and provides financial stability, reducing risks of payment delays and litigation.
As of FY25, Sattva Engineering Construction had 13 ongoing projects with an aggregate value of Rs 308.10 crore across nine locations.
The company is ISO 9001:2015 certified for its quality management systems, ISO 14001:2015 certified for environmental management systems, and ISO 45001:2018 certified for occupational health and safety.
The company has witnessed a consistent increase in profit after tax (PAT). It increased from Rs 1.04 crore in FY23 to Rs 4.56 crore in FY24 and Rs 9.14 crore in FY25.
A significant portion of Sattva Engineering Construction’s revenue is derived from projects awarded by government or government-funded entities, primarily in water supply schemes, underground sewerage schemes, sewage treatment plants, and water treatment plants. Any adverse change in government policies, budget allocations, administrative approvals, or delays in awarding and executing contracts can negatively impact the company’s order book, cash flows, and overall business.
Sattva Engineering Construction currently operates only within Tamil Nadu, having completed more than 50 projects and executing 13 ongoing projects as of FY25. The company intends to expand to other parts of South India, which exposes it to risks such as unfamiliar legal systems, regulatory requirements, cultural and language barriers, and differing business practices. Any failure to manage these challenges or obtain necessary approvals from state authorities could adversely impact its ability to execute projects, compete effectively, and maintain business growth.
The top client alone accounted for Rs 55.60 crore (59.37 percent) of the company’s total revenue in FY25, Rs 49.36 crore (64.16 percent) in FY24, and Rs 58.74 crore (70.24 percent) in FY23. Any failure to retain this key customer, expand the customer base, or loss of business from this client can adversely affect the company’s business and financial standing.
The company derives a significant portion of its revenue from repeat clients. They accounted for Rs 89.82 crore (95.91 percent) of the company’s revenue in FY25, Rs 74.49 crore (96.83 percent) in FY24, and Rs 70.66 crore (84.48 percent) in FY23. Since the company does not have long-term contracts with these clients, any loss or reduction in business from them due to competition, disputes, policy changes, or budget cuts could adversely impact its business, financial condition, and cash flows.
A significant portion of the company’s revenues is derived from contracts secured through competitive bidding and tender processes. They accounted for Rs 83.16 crore (88.80 percent) of the company’s revenue in FY25, Rs 73.48 crore (95.52 percent) in FY24, and Rs 70.80 crore (84.65 percent) in FY23. Any adverse changes in qualification criteria, failure to win tenders, litigation delays, or inability to secure new projects could materially impact the company’s order book, business operations, and financial condition.
The company reported negative cash flow from operating activities amounting to Rs 5.63 crore in FY25. Additionally, negative cash flow from investing activities amounted to Rs 0.05 crore in FY25 and Rs 1.91 crore in FY24. Furthermore, the company reported negative cash flow from financing activities amounting to Rs 6.11 crore in FY24 and Rs 4.37 crore in FY23. If cash outflows continue to exceed inflows in the future, the company may face liquidity challenges.
The company’s business is subject to seasonal variations, with slower project progress during the monsoon season and labour shortages during the festival period from September to November. These seasonal factors make revenue and operating results across periods less comparable and may affect cash flow forecasting. Any inability to accurately estimate project schedules could result in delays or halts in project completion, adversely impacting the company’s operations and financial condition.
The top supplier alone accounted for Rs 22.40 crore (41.14 percent) of the company’s revenue in FY25, Rs 11.15 crore (26.32 percent) in FY24, and Rs 3.94 crore (11.57 percent) in FY23. Since the company does not have any long-term supply arrangement with this supplier, any disruption in supplies from them could adversely affect the company’s business and finances.
The cost of material consumed accounted for Rs 51.15 crore (54.62 percent) of the company’s revenue in FY25, Rs 38.39 crore (49.91 percent) in FY24, and Rs 37.59 crore (44.94 percent) in FY23. Any sudden increase in the price of such construction materials could adversely affect the company’s business, operational results, and financial condition.
The company is involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of FY25, the company had contingent liabilities amounting to Rs 41.72 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.
As of FY25, the company’s trade receivables and inventories amounted to Rs 75.78 crore, representing 68.92 percent of its total current assets. This is a sharp increase from Rs 56.50 crore (67.93 percent) in FY24 and Rs 48.88 crore (61.80 percent) in FY23. Inaccurate estimation of project timelines and customer demand may result in material shortages or excess inventory, while delays in project execution may increase work-in-progress levels, affecting cash flows. Further, failure to properly assess customer creditworthiness could lead to bad debts, delayed recoveries, or write-offs, resulting in higher working capital borrowings and increased finance costs, which could adversely impact the company’s business, financial condition, and results of operations.
The company has been witnessing a declining inventory turnover ratio of 1.82 in FY25, 2.29 in FY24, and 3.68 in FY23. This indicates a slower movement of inventory, which could increase storage costs, lead to deterioration of materials, reduce margins, and result in inventory write-offs, thereby materially impacting the company’s operations and cash flows.
As of FY25, the company had outstanding financial indebtedness of Rs 77.89 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.
Sattva Engineering Financials
*All values are in Rs. Cr
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Application Details of Sattva Engineering IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Individual investor | ₹70 - 75 | ₹2 - 5 Lakh |
For Sattva Engineering IPO, eligible investors can apply as Individual investor.