IPO Details
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Schedule of Safety Controls & Devices IPO
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Allotment of bids
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About Safety Controls & Devices IPO
Safety Controls & Devices Limited IPO is an IPO of up to 47,55,000 equity shares. The lot size and price range of the IPO are TBA. It consists of a fresh issue of up to 47,55,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA. The listing of shares will take place on TBA.
Objective of Safety Controls & Devices IPO
- Funding the capital expenditure requirements of the company by purchase of equipment and machinery
- Repayment/prepayment, in part or full, of certain of their borrowings
- Funding the Working Capital Requirements of their company
- General Corporate Purpose
Safety Controls & Devices IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | -- |
Fresh Issue | Up to 47,55,000 equity shares |
EPS (₹) For the year ended March 31, 2024 | 4.77 |
Safety Controls & Devices IPO Lot Size
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% |
Non-Institutional Investors (NIIs) | Not less than 15% |
Retail Individual Investors | Not less than 35% |
Industry Outlook
India's energy demand is expected to increase more than any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, most of this new energy demand must be met by low-carbon, renewable sources. India's announcement that they intend to achieve net zero carbon emissions by 2070 and to meet 50% of their electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
India was ranked fourth in wind power capacity and solar power capacity, and fourth in renewable energy installed capacity, as of 2023. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.4% between FY16 and FY23. India had 125.15 GW of renewable energy capacity in FY23. It is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.
India has set a target to reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade, achieve 50% cumulative electric power installed by 2030 from renewables, and achieve net zero carbon emissions by 2070. Low- carbon technologies could create a market worth up to $8,000 crore in India by 2030.
Company Information
Safety Controls & Devices Limited is primarily engaged in the EPC (Engineering, Procurement, and Construction) business, focusing on the installation of substations, construction of solar plants, installation of firefighting equipment, and construction of hospitals for the Ministry of Ayush. Based in Lucknow, Uttar Pradesh, their operations are carried out as an engineering enterprise. They have experience in executing turnkey projects across multiple sectors like transmission and distribution, solar energy, EV charging infrastructure, fire protection systems, and hospital construction. They primarily cater to government entities and undertakings, which constitute a significant portion of their overall customer base. This includes various state and central government power utilities, private power entities, and renewable energy developers. The company commenced operations as a provider of design, installation, and supply services for fire equipment, firefighting systems, and fire alarms. Over time, the company expanded its capabilities and diversified its portfolio to address the growing needs of other industries.
Strengths of Safety Controls & Devices IPO
Technical expertise
They believe that, having experience in executing projects up to 400kV AIS substations, they are positioned to compete for tenders and projects at the highest capacity levels in the industry. This capability distinguishes them from major multinational competitors in the engineering and power sectors, enabling them to capitalise on lower overhead costs to improve their potential for securing high-value contracts. Owing to their technical expertise, they qualify to participate in aggregate tenders of considerable financial value at any given time.
Well-established association with government entities
They cater to a varied clientele, including public sector undertakings. Their relationship with these clients is established based on their competitive strength, service offerings, and successfully executed projects. A significant portion of their revenue is generated from government-awarded contracts, and they intend to continue pursuing such projects through the tendering process to further expand their business operations.
Good relationship with Original Equipment Manufacturers (OEMs) and suppliers
They maintain established relationships with suppliers, dealers, and certain OEMs. These relationships have enabled the procurement of quality products at competitive rates, allowing them to submit competitive bids and secure contracts. These advantages have proven beneficial thus far, with the expectation of continued benefits as they pursue larger opportunities moving forward.
Risks of Safety Controls & Devices IPO
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Their reliance on key sectors, such as power and healthcare, for a significant portion of their sales, combined with the challenges of managing a diversified portfolio across multiple industries, could adversely impact their revenue, operational efficiency, and overall business performance. Their reliance on specific sectors, such as power (including substations and solar plants) and healthcare (hospital construction), makes them vulnerable to downturns or reduced government spending in these industries, which could negatively affect their revenue. Additionally, their transition from a fire protection services provider to a broader EPC contractor—expanding into transmission, distribution, solar energy, and other infrastructure sectors—introduces risks related to managing multiple industries.
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Their reliance on government contracts exposes them to substantial risks, as any regulatory or policy changes could significantly impact project timelines, funding, and their ability to secure future contracts. These changes could adversely affect their business operations and financial performance. Their operations rely on government entities and undertakings. Any delays in project approvals, changes in government policies, budget constraints, or shifts in political or administrative priorities may affect their revenue stream. Overreliance on government contracts exposes them to fluctuations in public sector spending priorities, impacting project volumes.
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Their 100% revenue came from three states for the stub period ended 30 June 2024 and the financial years that ended 31 March 2024, 2023, and 2022. Any loss of business from one or more of these states may adversely affect their revenues and profitability. These states (Uttar Pradesh, Bihar, and Uttarakhand) contribute a substantial portion of their revenues for the period that ended 30 June 2024 and the financial years that ended 31 March 2024, 2023, and 2022. Any factors relating to political and geographical changes, growing competition, and/or any change in demand may adversely affect their business.
Safety Controls & Devices IPO Financials
Peers Comparison
| Parameter | Safety Controls & Devices Limited (Standalone) | VivianaPower Tech Limited (Standalone) | Oriana Power Limited (Consolidated) |
|---|---|---|---|
Revenue from operations for the year ended March 31, 2024(₹ in crores) | 44.711 | 65.53 | 382.87 |
P/E | --- | 70.71 | 61.95 |
EPS (Diluted) (₹) | 4.77 | 10.96 | 33.41 |
Return on Net Worth (%) | 21.50% | 26.73% | 36.56% |
NAV per share (₹) | 21.12 | 39.02 | 73.16 |
IPO Registrar and Book Running Lead Managers
Book running lead managers : Sobhagya Capital Options Private Limited
Registrar for the IPO : Maashitla Securities Private Limited
Business Model
The company earns its revenue through engaging in the EPC (Engineering, Procurement, and Construction) business, focusing on the installation of substations, construction of solar plants, installation of firefighting equipment, and construction of hospitals for the Ministry of Ayush.
Company Growth Trajectory
During the period ended 30 June 2024, the net revenue from the operations of the company was ₹61.55 crores from Engineering, Procurement, and Construction. They reported restated profit after tax for the period ended 30 June 2024 of ₹4.50 crores, and saw a considerable increase from FY 2023 to FY 2024 as 1.774 crores to 4.767 crores respectively.
Company Market Position
They have successfully commissioned transmission substations up to 400 kV and firefighting systems for substations up to 765 kV. They have placed into operation 19 substations to date for various public and private utilities and are currently expanding into utility-scale solar power projects and electric vehicle charging stations. The company has successfully executed turnkey projects over the last three decades. They believe that they were the first to have developed and energised the first 220kV GIS substation in the state of Uttar Pradesh.
Safety Controls & Devices Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 46.07 | 47.87 | 44.71 |
Profit Before Tax (₹ crores) | 1.63 | 2.40 | 6.40 |
Net profit / (loss) (₹ crores) | 1.19 | 1.77 | 4.76 |
EBITDA (₹ crores ) | 1.40 | 4.45 | 9.27 |
EPS (₹) | 1.26 | 1.87 | 4.77 |
Safety Controls & Devices Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | 1.63 | 2.40 | 6.40 |
Net Cash from Operating Activities (₹ crores) | - 5.27 | - 13.28 | - 8.41 |
Net Cash from Investing Activities (₹ crores) | - 7.82 | 12.63 | - 0.05 |
Net Cash from Financing Activities (₹ crores) | 12.87 | 0.57 | 8.55 |
Cash and Cash Equivalents (₹ crores) | 0.12 | 0.05 | 0.14 |
How To Check Allotment Status of Safety Controls & Devices Limited IPO?
You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Maashitla Securities Private Limited. To check the status on the NSE website:
- Visit the NSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Safety Controls & Devices Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Maashitla Securities Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Safety Controls & Devices Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Safety Controls & Devices IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Safety Controls & Devices IPO FAQs
Where can I read more about Safety Controls & Devices business?
You can read more about Safety Controls & Devices and its IPO from the company’s red herring prospectus (RHP) here.
What is the Safety Controls & Devices IPO
The Safety Controls & Devices Limited IPO has an issue size of up to 47,55,000 equity shares. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Safety Controls & Devices IPO?
Maashitla Securities Private Limited is the registrar for this IPO.
