Sattva Engineering Construction IPO Opens Today: ₹35 Crore Issue, Key Dates, and Risks

Chennai, August 26, 2025 – The SME IPO of Sattva Engineering Construction Limited (NSE: SATTVAENGG) has opened for subscription today on the NSE Emerge platform. Sattva Engineering Construction is a Chennai-based EPC contractor that is seeking to raise ₹35 crore through a fresh issue of 47.16 lakh equity shares. Sattva Engineering Construction IPO offer will close on Friday, August 29, 2025.

IPO Key Details

The upcoming IPO will open for subscription between August 26 and August 29, 2025, with shares priced in the band of ₹70 to ₹75. The company plans to raise about ₹35 crore through the issue of over 47 lakh shares. With a face value of ₹10, investors will need to apply for a minimum lot of 1,600 shares, which translates to an investment of around ₹1.20 lakh at the upper price band.

Once the bidding closes, the basis of allotment will be finalized on September 1, 2025, followed by refunds and share credit to demat accounts on September 2, 2025. The stock is set to make its debut on September 3, 2025, on NSE Emerge, the SME platform designed to help small and medium enterprises tap into public markets for growth funding. This gives retail investors an opportunity to participate in a growing business at an early stage.

Anchor Investor Allocation

Before the company opened its IPO, it raised ₹9.97 crore from anchor investors on August 25, 2025. The anchor investors were allotted 13,29,600 shares at ₹75 each. Key participants include Mavira Growth Opportunities Fund with 2,67,000 shares, Mavira Growth Opportunities Fund with 2,86,400, Mavira Growth Opportunities Fund with 1,60,000, followed by 31 Degrees North Fund II, Abundanta Capital VCC – Abundanta Capital III, and Abundanta Capital VCC – Abundanta Capital III, with 1,60,000, 2,15,000, and 2,41,000 shares respectively. It is key to note here that there were no mutual funds that participated in the anchor round.

Day 1 Performance

As of August 26, 2025, 11:54 AM, the first day of bidding, the Sattva Engineering Construction IPO has been subscribed to 0.39 times overall. The individual investor category received decent interest with subscriptions at 0.54 times, while the non-institutional investors (NII) category stood at 0.56 times, led mostly by bids above ₹10 lakh. However, the QIB (excluding anchor investors) portion did not receive any bids, reflecting a cautious start from institutional participants.

Risk Factors to Watch

According to the Red Herring Prospectus, here are the key risk factors to have watch out for:

• Dependency on government projects: Most contracts are from state and municipal bodies under schemes like Jal Jeevan Mission (JJM) and AMRUT. Policy or budget changes could affect revenue.
• Working capital intensive operations: Project execution requires significant upfront funding; delays in payments could strain liquidity.
• Concentration risks: Operations are largely limited to Tamil Nadu, exposing the company to regional challenges.
• SME market risks: Listing on NSE Emerge may result in lower liquidity and higher volatility compared to mainboard IPOs.

Sattva Engineering Construction Limited, headquartered in Chennai, is an EPC contractor focused on water resource management and residential infrastructure projects. Incorporated in 2005 and converted to a public company in 2024, it undertakes projects like sewerage systems, treatment plants, and storage tanks, largely under government schemes. The company holds multiple ISO certifications and Class I contractor status, reflecting its technical expertise and strong execution capabilities.

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