Oval Projects Engineering files DRHP for IPO

Agartala, June 23, 2025: Oval Projects Engineering Limited, an infrastructure services company based in Tripura, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The company plans to launch an Initial Public Offering (IPO) consisting entirely of a fresh issue of up to 55,00,000 equity shares. This IPO will be listed on the BSE SME platform, a dedicated exchange for small and medium-sized enterprises to raise capital.

The IPO is structured as a book-built offer, meaning the price will be determined based on investor demand during a bidding process. Furthermore, there will be no “Offer for Sale” (OFS) component, indicating that existing shareholders are not selling their shares, and the company will retain all proceeds. SMC Capitals Limited is serving as the Book Running Lead Manager, while MAS Services Limited is the Registrar to the Issue.

IPO Snapshot

Company Background

Founded in 2013, Oval Projects Engineering Ltd. is engaged in engineering, procurement, and construction (EPC) services, with a strong focus on the oil and gas infrastructure segment. The company also provides operations and maintenance (O&M) services across upstream, midstream, and downstream installations.

The company has executed over 30 projects across India and currently has an order book of approximately ₹452.99 crore as of April 2025. Its clientele is heavily weighted towards public sector undertakings and government-controlled entities.

Oval Projects Financial Performance (Consolidated)

The company has shown strong financial growth, with net profit more than doubling in FY25 and Return on Equity (ROE) exceeding 20%. However, it reported a negative operating cash flow of ₹16.07 crore in FY25, mainly due to higher trade receivables and increased working capital deployment.

Promoter & Offer Details

• Promoter: Goutam Debnath holds a 72.19% pre-issue stake.
• Post-issue shareholding: Will be diluted as fresh capital is raised.
• Use of Proceeds: ₹37.02 crore will be deployed for working capital; the remaining funds are earmarked for general corporate purposes.

Lead Manager & Registrar

• Book Running Lead Manager: SMC Capitals Ltd
• Registrar: MAS Services Ltd

What to Watch

• High concentration of clients in government-controlled entities (over 90% of FY25 revenue)
• Negative operating cash flow in FY25 despite profit growth
• Pending finalisation of the IPO price band and market lot
• Aggressive order book but vulnerable to project delays and payment cycles

What’s Next?

Oval Projects Engineering, with its focus on the essential oil and gas EPC segment and a strong project pipeline, views this SME listing as a crucial step for its future expansion. The company is awaiting SEBI clearance and will soon announce the IPO price band and subscription dates.

REF: https://www.bsesme.com/download/349114/SME_IPO InPrinciple/Oval_Projects_Engineering_Limited_20052025_20250620170739.pdf

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