S.G. Encon IPO

S.G. Encon Limited IPO is a book build issue of 85.62 lakh equity shares consisting of a fresh issue of up to 71.90 lakh equity shares and an offer for sale of up to 13.71 lakh equity shares.

The equity shares are proposed to be listed on the National Stock Exchange of India and BSE Limited. Marwadi Chandarana Intermediaries Brokers Private Limited is the book running lead manager and MAS Services Limited is the registrar of the issue. Key details like IPO dates, IPO price bands, and lot size are yet to be announced.

About S.G. Encon Limited

S.G. Encon Limited was originally incorporated as HemOnc Infusion Resources Private Limited on February 12, 2008. The company changed its name to S.G. Encon Private Limited in May 2011 to undertake the business of engineers and contractors and was subsequently converted into a public limited company in 2025. It was renamed S.G. Encon Limited following a fresh certificate of incorporation dated May 2, 2025.

The company is an integrated infrastructure services provider primarily engaged in telecommunication infrastructure services, along with construction services and underground utility infrastructure projects. Its telecom service portfolio includes network rollouts, operation and maintenance of telecom towers and cell sites, optical fibre cable deployment and maintenance, FTTx network deployment and maintenance, radio frequency optimisation, and commissioning and integration of telecom equipment and network infrastructure. Its construction services include civil construction, interior fit-out, electrical works, data and information technology infrastructure, firefighting systems, and project management and consultancy services. It also undertakes oil and gas, water and sewerage pipeline installation using horizontal directional drilling technology.

S.G. Encon has developed its telecom infrastructure capabilities over more than 14 years and, as of March 31, 2026, operated across five telecom circles, with 79,445 telecom towers and cell sites under operation and maintenance and approximately 92,003 kilometres of optical fibre cable deployed or maintained. Its technical workforce exceeded 4,081 employees, while its total workforce comprised more than 6,000 employees as of August 31, 2026. The company had an order book of ₹2,789.27 million as of March 31, 2026, of which ₹2,774.18 million, or 99.46%, related to telecommunication services.

The company commenced operations in the telecommunication and construction services segments in Fiscal 2011 following its acquisition by the promoters. It initially focused on telecom operation and maintenance services in one telecom circle and subsequently expanded into fibre network infrastructure, national long-distance fibre and managed services, Smart City optical fibre cable projects, and 5G-related infrastructure and network modernisation. In Fiscal 2024, the company further diversified into oil and gas and sewerage infrastructure and has executed approximately 10,000 metres of water supply and sewerage pipelines in Rajasthan.

S.G. Encon primarily serves national telecom service providers, infrastructure companies, commercial establishments, and public sector entities. Its projects are executed across India, with telecom operations primarily concentrated in North India, while its construction and oil and gas and sewerage projects are undertaken across various regions. The company's revenue from telecommunication services stood at ₹2,830.21 million in Fiscal 2026, representing 98.62% of total revenue from operations, compared with 99.05% in Fiscal 2025 and 98.60% in Fiscal 2024.

Industry Outlook

• India's telecom tower infrastructure is projected to expand from approximately 8.55 lakh towers in Fiscal 2026 to 10.4–10.9 lakh towers by Fiscal 2031, registering a compound annual growth rate (CAGR) of 4–5%, driven by rural connectivity and network densification.
• The Indian telecom tower maintenance market increased from approximately ₹28 billion in Fiscal 2021 to ₹50 billion in Fiscal 2026, registering a CAGR of 11.9%. The market is projected to reach ₹73–76 billion by Fiscal 2031, growing at 8–9% annually.
• India's active telecom infrastructure market, valued at approximately ₹2,700–2,800 billion cumulatively during Fiscal 2021–2026, is projected to reach ₹3,500–3,600 billion cumulatively during Fiscal 2026–2031, supported by network upgrades and technology transitions.
• The passive telecom infrastructure market is projected to reach ₹2,000–2,100 billion cumulatively during Fiscal 2026–2031, compared with ₹1,800–1,900 billion during Fiscal 2021–2026, driven by tower additions and associated infrastructure requirements.
• The telecom tower industry's tenancy ratio is projected to improve from 1.42 times in Fiscal 2025 to 1.46–1.48 times by Fiscal 2028, supported by increased infrastructure sharing and incremental tenant additions on existing towers.
• The Amended BharatNet Programme has an allocated budget of ₹1,39,579 crore to extend optical fibre connectivity to 2.64 lakh gram panchayats and approximately 3.8 lakh other villages on demand, with provisions for network operation and maintenance for 10 years.
• Under National Broadband Mission 2.0, the government targets extending optical fibre connectivity to 2.70 lakh villages by 2030, compared with approximately 50,000 villages, while maintaining a targeted network uptime of 95%.
• Government-backed rural connectivity programmes are supporting telecom infrastructure expansion. As of June 30, 2026, 24,784 towers had been commissioned under the Digital Bharat Nidhi-funded mobile connectivity scheme.
• Rising mobile data consumption, rapid urbanisation, and increasing adoption of data-intensive services are expected to sustain demand for telecom infrastructure, particularly fibre backhaul, small cells, and network optimisation services.
• Telecom infrastructure maintenance is increasingly shifting towards predictive and remote-led monitoring, artificial intelligence-driven fault detection, and energy-efficient solutions, creating demand for specialised operation and maintenance capabilities.
• The initial 5G rollout cycle is expected to mature, moderating the pace of new tower additions compared with the previous five years. Operators are consequently expected to place greater emphasis on maintaining, upgrading, and optimising existing network infrastructure.

S.G. Encon IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Funding of working capital requirements.
• Funding capital expenditure requirements of the company for purchase of machinery or equipment.
• Towards general corporate expenses.

Financial Performance of S.G. Encon Limited

S.G. Encon Limited Peer Details Comparison