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Issue Details / Capital History
The firm is popping out with its maiden guide constructing route IPO of 10362000 fairness shares of Rs. 5 every to mobilize Rs 116.05 cr. on the higher cap. The firm has introduced a value band of Rs. 105 – Rs. 112 per share. The minimal software to be made is for 2400 shares and in multiples of 1200 shares thereon, thereafter. The IPO opens for subscription on October 13, 2026, and can shut on October 15, 2026. The IPO represent 27.50% of the post-IPO paid-up capital of the corporate. The shares shall be listed on NSE SME Emerge. From the online proceeds, it’s going to make the most of Rs. 70.00 cr. for working capital, Rs. 25.53 cr. for capex on buy of sure heavy equipments, and the remaining for common company functions.
The IPO is solely lead managed by Vivro Financial Services Pvt. Ltd., whereas MUFG Intime India Pvt. Ltd., is the registrar to the difficulty. Pace Stock Broking Pvt. Ltd. is the market maker. Vivro Financial Services Ltd. can also be a syndicate member.
The firm has issued preliminary fairness capital at par worth, and issued additional fairness shares at a hard and fast value of Rs. 8000.00 per share (on the premise of Rs. 5 FV) in between June 2025, and August 2025. It has additionally issued bonus shares within the ratio of 100 for 1 in February 2026. The common price of acquisition of shares by the promoters is Rs. 3.42, and Rs. 77.68 per share.
Post-IPO, firm’s present paid-up fairness capital of Rs. 13.66 cr. (27318682 fairness shares) will stand enhanced to Rs. 18.84 cr. (37680682 fairness shares). Based on the higher band of the IPO pricing, the corporate is in search of a market cap of Rs. 422.02 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has reported a complete earnings/web revenue of Rs. 13.53 cr. / Rs. 1.51 cr. (FY24), Rs. 109.30 cr. / Rs. 11.83 cr. (FY25), and Rs. 277.82 cr. / Rs. 28.04 cr. (FY26). For Q1 of FY27ende3d on June 30, 2026, it earned a web revenue of Rs. 10.13 cr. on a complete earnings of Rs. 97.45 cr. Spectacular performances from FY25 onwards elevate eyebrows and concern over its sustainability. Its commerce receivables of Rs. 100.56 cr. as of June 30, 2026 elevate alarm because it crosses its high line for the stated interval. Its commerce receivables stood at Rs. 73.26 cr. as of March 31, 2026. Its contingent liabilities had been at Rs. 4.47 cr. as of June 30, 2026.
For the final three fiscals, the corporate has reported a mean EPS of Rs. 7.60, and a mean RoNW of 77.07%. The subject is priced at a P/BV of two.79 based mostly on its NAV of Rs. 40.15 per share as of June 30, 2026, and at a P/BV of 1.87 based mostly on its post-IPO NAV of Rs. 59.91 per share (on the higher cap).
If we attribute FY27 annualized tremendous earnings to its post-IPO totally diluted paid-up fairness capital, then the asking value is at a P/E of 10.42, and based mostly on FY26 earnings, the P/E stands at 15.05. The subject seems totally priced, based mostly on its common earnings.
For the reported durations, the corporate has posted PAT margins of 11.15% (FY24), 10.82% (FY25), 10.09% (FY26), 10.40% (Q1-FY27), and RoCE margins of 37.05%, 71.71%, 48.65%, 10.60%, respectively, for referred durations.
The firm has not declared any dividends for the reported durations of the provide doc. It will undertake a prudent dividend coverage, based mostly on its future prospects, and monetary efficiency.
Comparison with Listed Peers
As per the provide doc, the corporate has no listed friends to match with.
Ravita Engineering Services Ltd. (RESL) is an engineering options firm engaged in Engineering, Procurement, Installation and Commissioning (“EPIC”) of heating, air flow and air-conditioning (“HVAC”) methods, central air-conditioning options, air circulate methods, chiller crops, industrial compressors, cooling gear and different associated electromechanical gear on a turnkey foundation for various industrial and industrial institutions together with offshore rigs, platforms and different installations. It additionally gives complete operation and upkeep (“O&M”) providers for each tasks executed by it and methods put in by third-party resolution suppliers.
RESL can also be at the moment engaged in execution of a specialised area of interest engineering venture viz., laying of sub-sea discharge pipelines for an effluent therapy plant (“ETP”) at a crude oil import terminal operated by Numaligarh Refinery Limited in Paradip, Odisha. It classifies its enterprise operations beneath three areas of experience, viz., (i) Onshore; (ii) Offshore; and (iii) Data Center. Its Onshore operations are carried out at industrial institutions, hospitality models, company parks and industrial amenities, amongst others. The firm has undertaken its Onshore operations in states like Gujarat,Maharashtra, Odisha and Karnataka. Its order guide for Onshore operations as on June 30, 2026 had been Rs. 143.49 cr. for EPIC tasks, Rs. 8.29 cr. for O&M providers and Rs. 91.65 cr. for Hybrid tasks.
Its Offshore operations are carried out at rigs, platforms and different offshore marine installations, together with within the territorial waters of India. In final three fiscal years and three months interval ended June 30, 2026, it has undertaken operations at 6 rigs and 16 related offshore oil and gasoline platforms positioned in territorial waters of India. Its order guide for Offshore operations as on June 30, 2026, had been Rs. 45.18 cr. for EPIC tasks and Rs. 24.95 cr. for O&M providers. Its Data Center operations comprise of operations and upkeep of cooling methods, chiller crops, HVAC gear and mechanical utilities to assist the uptime, reliability and temperature-control necessities of knowledge heart operations.
Currently, RESL gives knowledge heart O&M providers to Reliance Corporate IT Park Limited at their knowledge heart facility at Navi Mumbai. Recently, the Company has additional strengthened its presence within the knowledge centre operations by securing work orders aggregating to Rs. 120.00 cr. comprising a piece order valued at Rs. 55.00 cr. from the Indian subsidiary of a globally acknowledged know-how and cloud providers firm and a piece order valued at Rs. 65.00 cr. from a number one listed actual property developer for knowledge heart infrastructure tasks within the state of Maharashtra.
The scope of those work orders consists of engineering, procurement, provide, set up, testing and commissioning of cooling methods, chiller crops, HVAC gear, mechanical utilities and related electrical and management methods, with the previous additionally overlaying substation infrastructure and firefighting works. Its order guide for Data Center operations as on June 30, 2026 had been Rs. 120.00 cr. for EPIC tasks and Rs. 57.57 cr. for O&M providers. As on June 30, 2026, its operations are supported by a professional workforce of over 399+ Employees, and extra 246 contract employees in varied departments.
Merchant Banker’s Track Record
This is the twelfth mandate from Vivro Financial Services Pvt. Ltd., within the final three fiscals (together with the continued one). Out of the final 11 listings, 3 opened at low cost, and the remaining with a premium starting from 10.20% to 99.46% on the itemizing date.
Conclusion
RESL is an engineering resolution supplier in EPIC for HVAC section. The firm posted spectacular performances from FY25 onwards with boosted high and backside strains. Its Trade receivable of Rs. 100.56 cr. as on June 30, 2026 in opposition to its high line of Rs. 97.54 cr. raises alarm. Its order guide stood at Rs. 177.57 cr. as of June 30, 2026. It has long run relationship with could marquee prospects. Based on its latest common monetary knowledge, the difficulty seems totally priced. Well-informed buyers could park funds for medium to long run.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is widely known for reviewing public points and non-convertible debentures (NCDs) within the major market. Drawing on over three many years of market expertise and shut interplay with service provider bankers, his opinions deal with detailed basic and monetary evaluation of corporations, with a particular emphasis on SME public points.
Disclaimer: The info offered herein is solely for instructional and informational functions and doesn’t represent a suggestion, solicitation, or suggestion to purchase or promote any securities. Readers are suggested to seek the advice of a professional monetary advisor earlier than making any funding selections. Investments within the securities market are topic to market dangers. The writer doesn’t intend to put money into the securities mentioned.
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