Samay Project Services Ltd. IPO: Key Details

Samay Project Services

• Samay Project Services is coming out with an initial public offering (IPO) of 43,20,000 equity shares in a price band Rs 32-34 per equity share.
• The issue will open on June 16, 2025 and will close on June 18, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 3.20 times of its face value on the lower side and 3.40 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Ramaa Krishnakumar.

Profile of the company

Samay Project Services is primarily engaged in Engineering, Procurement and Construction (EPC) Services providing specialized services in design, engineering, supply, fabrication, erection and commissioning of balance of plant (BOP) systems in various industries. The company is involved in EPC projects which consists of (i) Piping System, (ii) Tanks and vessels and fabricated structures; and (iii) fire protection and detection systems / firefighting systems (FFS).

The various systems engineered, procured and constructed by the company finds its application in a diverse range of industries, including power, sugar and distilleries, iron and steel, infrastructure, etc. The system may consist of subsystems, products and raw materials, which are procured directly by the company from the vendors, fabricated, erected at site to provide the complete functionality of the overall system, meeting tender requirements. In case of tanks, carbon steel or stainless steel, as the case may be, is procured as hot rolled sheets with cutting, edge preparation, rolling, erection, fit-up, welding carried out at site as per the approved drawings under the supervision of the company’s engineers.

The company is an ISO 9001:2015 certified organization for quality management system for the activities which includes Engineering, Supply, Fabrication, Erection, Testing and Commissioning of Piping, Appurtenances and Tanks, Fire Protection, Detection and Suppression Systems. The company is committed to provide quality work to its customers that meets the project standards and specifications for materials, workmanship and timely execution. It treats all suppliers as its partners who work with it on a long-term basis. It always has supervisory staff consisting of a project manager, quality assurance engineer and safety engineer at each of the project sites that it executes. The company also provides multiple services in a particular project with a combination of the aforesaid services, wherein combined revenues are generated, the break-up of which is provided below under Revenue break-up tab.

Proceed is being used for:

• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. Prime Minister Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors. The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The $1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway.

In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs 11.11 lakh crore ($133.86 billion), which would be 3.4 % of GDP. As per the Interim Budget 2023-24, a capital outlay of Rs. 2.55 lakh crore ($30.72 billion) has been made for the Railways, an increase of 5.8% over the previous year. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of $1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.

India's Infrastructure forms an integral part of the country's economic ecosystem. There has been a significant shift in the industry that is leading to the development of world-class facilities across the country in the areas of roads, waterways, railways, airports, and ports, among others. The country-wide smart cities programmes have proven to be industry gamechangers. Given its critical role in the growth of the nation, the infrastructure sector has experienced a tremendous boom because of India's necessity and desire for rapid development. The expansion has been aided by urbanisation and an increase in foreign investment in the sector. The infrastructure sector has become the biggest focus area for the Government of India. India's GDP is expected to grow by 8% over the next three fiscal years, one of the quickest rates among major, developing economies. 

Pros and strengths

Strong engineering and technical software and design team: The company has an engineering team divided along product lines. The Company has employed the Auto plant CAD modelling software from the local channel partners. The Company uses this software to design layouts and prepare detailed engineering drawings. The modelling software also helps its engineers understand any routing changes required to prevent fouling during the detailed engineering phase. The Company also uses Canute software for hydraulic calculations in Fire Protection System.

Good presence in multiple EPC Segments: The Company has established strong credibility in timely completion of over Rs 3,714.08 lakh EPC projects as on March 31, 2025 in full financial year spread all over India and abroad. The Company also has carried out installations in Power, Sugar and Distilleries, Infrastructure, Iron and Steel, mining etc. Its endeavour is to provide technical solutions based on the specific needs of individual customer. Most manufacturers are currently vendors for other projects of the Company. The strong relationship established with the suppliers will assist the Company to meet the delivery commitments. EPC is an evergreen field with year-round project implementation requirements.

Quality assurance: Top priority is given to safety and quality at all its installations. The Company has acquired ISO 9001-2015 Certification for EPC of Piping System, Tanks and Vessels and Fire Protection System. The Company is committed to Quality Standards, Occupational Health and Safety Guidelines. The company is committed to Customer Satisfaction through high value engineering, quality execution, delightful customer service, delivered with passion and integrity.

Risks and concerns

Maximum revenue comes from limited customers: The company is dependent on certain key customers for a significant portion of its revenue. It derived 63.06% and 84.26% & 62.34% and 87.14% of its revenue from its top five and top ten customers, respectively, for Fiscal 2025 and Fiscal 2024. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have a material adverse effect on its business, results of operations, financial condition and cash flows.

Dependent on suppliers for raw materials, parts and other materials: The company has a supplier base spanning across 14 states and 1 Union Territory in India and in 4 countries internationally. Any failure by its suppliers to provide raw materials and parts to it on time or at all, or as per its specifications and quality standards for reasons such as capacity limitations, breakdowns, machine failures, industrial relations and safety issues, or any disruption in its suppliers’ manufacturing processes could have an adverse impact on its ability to meet its execution of the projects and delivery schedules, which in turn could adversely affect its sales margin and customer relations. If it is unable to find a suitable replacement in a timely manner, or at all, its business, financial condition, results of operations and cash flows could be materially and adversely affected.

Stiff competition: The company operates in a highly competitive business environment. Most of its orders are received through a competitive bidding process. Some of its competitors may have greater resources than those available to it. About 3 to 5 competitors bid for each project, whether public or private sector tenders. In some cases, such as BHEL tenders, reverse auction is applicable. There are a few ongoing projects with which letter of intent has been executed, such as, Engineering projects (India) Limited, Rungta Mines and Zuari Envien Bioenergy Private Limited. The company competes in both public sector and private sector tenders. As the value of the project goes up, prequalification norms also increase but competition reduces. The company utilizes competition to benchmark performance metrics, identify strong and weak functional areas and in general to keep improving. The company’s competitors may be larger and may have better access to financial resources. Some of its competitors may be better known in regional markets in which it competes. In such a scenario, it may find difficulties in maintaining its position in the market.

Outlook

Samay Project Services offers EPC services, specializing in design, engineering, and the commissioning of balance of plant (BOP) systems across various industries. The company has good presence in multiple EPC Segments. It is also committed to customer satisfaction through high-value engineering, quality execution, and delightful customer service, delivered with passion and integrity. On the concern side, the company derived 63.06% and 84.26% & 62.34% and 87.14% of its revenue from its top five and top ten customers, respectively, for Fiscal 2025 and Fiscal 2024, and any inability to retain its key customers or attract new customers and expand its customer network, could negatively affect its business and results of operations. Moreover, the company derives majority of its revenues from limited number of government entities for the past 3 financial years. Any adverse changes in the central or state government policies may lead to its orders being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

The company is coming out with a maiden IPO of 43,20,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 32-34 per equity share. The aggregate size of the offer is around Rs 13.82 crore to Rs 14.69 crore based on lower and upper price band respectively. On performance front, Revenue from operations had reduced by 8.85% from Rs 4,047.67 lakh in Fiscal 2024 to Rs 3,714.08 lakh in Fiscal 2025. The company reported a net profit of Rs 419.32 lakh in Fiscal 2025 as compared to a net profit of Rs 461.53 lakh in Fiscal 2024.

Over the next few years, the company will continue to focus on the operations and maintenance of its existing projects while seeking opportunities to further expand its business. The company intends to enter the BioCNG EPC segment as well. It also intends to capitalize on its experience and continue to selectively pursue larger projects, both independently and in partnership with other players. It intends to continue its focus on efficient project execution by adopting industry best practices to deliver quality projects to the satisfaction of its customers. It intends to continue to invest in modern equipment to ensure continuous and timely availability of equipment critical to its business, which will help it in exercising better control over the execution of its projects.