Icon Facilitators Ltd. IPO: Key Details

Icon Facilitators

• Icon Facilitators is coming out with an initial public offering (IPO) of 21,00,000 equity shares in a price band Rs 85-91 per equity share.
• The issue will open on June 24, 2025 and will close on June 26, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 8.50 times of its face value on the lower side and 9.10 times on the higher side.
• Book running lead manager to the issue is Khambatta Securities.
• Compliance Officer for the issue is Mamzuza Malia.

Profile of the company

Icon Facilitators is a focused and integrated business services platform in India offering technical facilities management services to its customers, primarily concentrated in North India presence. It is engaged in business of providing technical facilities management services. It provides complete bouquet of solutions to all commercial, retail, industrial and residential clients.

The company primarily provides Hard Services to industrial, commercial, retail, and residential clients on B2B model. Typical facility management includes maintaining electrical systems, machinery, operating DG sets during outages, managing STP/ETP plants, and ensuring fire safety operations. It delivers comprehensive technical facility management solutions under one roof, catering to the diverse needs of its clients. However, its role is limited to the Operations and Maintenance of facilities, and it is not involved in the design or installation of machinery or systems.

The company’s operations are mainly concentrated in the Northern part of India, having major presence in Haryana, Uttar Pradesh and Delhi with 68, 34 and 22 sites respectively in Fiscal 2025. The company also has a presence in other regions, including Rajasthan with 4 sites, Punjab, and Himachal Pradesh, with 1 site each. The company opened a new office in Bengaluru on August 06, 2024, as part of its strategic expansion into the southern region of India. It anticipates business growth in this new geography and is eager to capitalize on the opportunities to expand its client base and strengthen its presence in the region.

Proceed is being used for:

• Meeting the working capital requirements of the company
• General corporate purpose

Industry Overview

The Indian facility management industry represents a substantial and rapidly expanding segment within the broader services ecosystem. According to Crisil’s analysis of 35 rated entities-collectively accounting for approximately 20% of the organized facility management market-the organized domestic security and facility management services sector generated revenues estimated at Rs 1.15 lakh crore for the fiscal year 2024. Over the four financial years leading up to March 2025, the industry has exhibited a consistent compound annual growth rate (CAGR) of 13%, reflecting sustained demand growth driven by increasing outsourcing of facility related services by corporates, real estate developers, and institutional clients.

Looking forward, the Indian facility management sector is poised for continued robust growth. The organized FM services market is expected to expand at a healthy 10-12% CAGR during FY2025-26. This positive outlook is supported by multiple underlying factors, including: increasing adoption of integrated facility management solutions by commercial and residential real estate developers; and rising demand from fast-growing sectors such as IT/ITES, healthcare, retail, and hospitality. Despite these growth prospects, operating profitability in the sector is expected to stabilize at around 5% EBITDA margin. The sector’s labor-intensive nature presents challenges such as escalating labor costs, high attrition rates, and workforce shortages.

The Indian Integrated Facility Management (IFM) industry is poised for strong and sustained growth, driven by increased infrastructure development, digitization, and a strategic shift towards integrated outsourcing models across both public and private sectors. The Indian facility management market is expected to grow from $159.61 billion in 2025 to $227.75 billion by 2030, registering a CAGR of 7.37%. This growth trajectory is supported by the expansion of Grade A commercial real estate, increasing formalization of residential and retail asset classes, and the rising demand for professional services in Tier 2 and Tier 3 cities. Globally, the IFM segment is projected to expand from $99.98 billion in 2025 to $133.17 billion by 2029 at a CAGR of 7.4%, with India expected to be one of the fastest-growing markets in the Asia-Pacific region. 

Pros and strengths

One of the strongest players in North India with largest and Premium Portfolios under one belt: It is technical facilities management services provider in the North India with more than 1955 employees as on May 15, 2025. In the Fiscal 2025, 2024 and 2023, it served at 130,128 and 131 sites, respectively, demonstrating its growing presence and commitment to delivering comprehensive facility solutions. The company is proud to have the trust and patronage of many esteemed clients, with a proven track record of fostering long-term partnerships built on reliable service and commitment. The company has strong presence in North India and primarily earns revenue from Northern States in India.

Diverse base of clients with longstanding relationships: The company serves diverse clients across commercial, industrial, residential and retail sectors. The company not only boasts a prestigious client list but also maintains long-lasting relationships, which stand as a testament to its commitment to quality and unwavering focus on delivering excellence.

Quality oriented delivery of services: Quality is an element of assurance that it looks for or strive to deliver to all its clients. In its industry, quality is a vital part of the responsibility that helps it to conform to the highest quality service standards organically and inorganically. It is to create an experience and offer a feeling of delight and comfort for the clients, whether occupants or visitors while providing an ecosystem that makes them feel safe and secure. As facility management company, it strives to provide facilities with well-maintained and high service standards.

Risks and concerns

Maximum revenue comes from limited clients: The company’s revenue from operations is highly dependent upon a limited number of customers, with its largest, top 5 and top 10 customers contributing to more than 49.59%, 73.58% & 87.17%, respectively of its revenue from operations for Fiscal 2025. The loss of any one of its key customers, including its top customer, for any reason (including, due to loss of contracts or failure to negotiate acceptable terms in contract renewal negotiations, disputes with customers, adverse change in the financial condition of such customers, including due to possible bankruptcy or other financial hardship, merger or decline in their operations, reduced or delayed customer requirements, shutdowns, labour strikes or other work stoppages), could have an adverse effect on its business, results of operations and financial condition.

Business is largely concentrated in North India: The company is Technical Facility Management services providers in the North India with more than 1,955 employees as of May 15, 2025. In the Fiscal 2025, 2024 and 2023, it served at 130, 128 and 131 sites, respectively, demonstrating its growing presence and commitment to delivering comprehensive facility solutions. Any decrease in revenues from North India, including due to increased competition or supply, or reduction in demand, in markets in which it operates, may have an adverse effect on its business, cash flows, results of operation and financial condition. Further, any significant disruption, including due to social, political or economic factors or natural calamities or civil disruptions, impacting these geographical regions may adversely affect its business.

Huge working capital requirement: The company proposes to utilize Rs 1,600 lakh of the Net Proceeds for its estimated working capital requirements. It will utilize Rs 1600 lakh in Fiscal 2026 for working capital requirement. The balance portion of the company working capital requirement, if any, shall be met from the working capital facilities availed/ to be availed and internal accruals. If it experiences insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of its operations.

Outlook

Icon Facilitators is a facilities management company offering integrated technical services across India. The company provides a comprehensive range of services, including electrical system management, HVAC operations, water treatment, fire and safety equipment maintenance, and more. It is one of the strongest players in North India with largest and Premium Portfolios under one belt. On the concern side, the company’s revenue from operations is highly dependent upon a limited number of customers. The loss of any one of its key customers could have an adverse effect on its business, results of operations and financial condition. The company’s business is largely concentrated in North India and is affected by various factors associated with these states. Any decrease in revenues from North India may have an adverse effect on its business, cash flows, results of operation and financial condition.

The company is coming out with a maiden IPO of 21,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 85-91 per equity share. The aggregate size of the offer is around Rs 17.85 crore to Rs 19.11 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased 16.50% to Rs 5,806.39 lakh for Fiscal 2025 as compared to Rs 4,984.21 lakh for Fiscal 2024. This increase in revenue from operations was primarily due to addition of new clients. Moreover, profit for the year increased 153.64% to Rs 447.02 lakh for Fiscal 2025 compared to Rs 176.24 lakh for Fiscal 2024.

The company’s goal is to build long-term sustainable business relationships with its clients to generate increasing revenues. It plans to continue to expand the scope and range of current services provided to its existing and new clients by continuing to build its expertise and extending its capabilities. There are significant opportunities for additional growth within its existing client base. The company has successfully added new clients and has shown consistent growth in revenue through addition of new clients.