IPO Update: Sai Urja Indo Ventures Receives Approval from BSE SME to Raise Funds

Nagpur-based Sai Urja Indo Ventures has secured in-principle approval from the BSE SME Exchange for its initial public offering (IPO).  

The company, specialising in operations and maintenance services, is set to offer a fresh issuance of 30,66,000 equity shares, alongside an offer for sale (OFS) by promoters Santosh Ajay Kumar Mittal and Harsh Ajaykumar Mittal, who will divest up to 3,12,000 shares each. 

Details of the Sai Urja Indo Ventures IPO 

The IPO will comprise a fresh issuance of 30,66,000 equity shares and an OFS by the promoters. The shares, with a face value of ₹10, will be offered through the book-building route. 

The company will not receive any proceeds from the OFS, as these will be directed to the promoters selling their shares. 

According to the Draft Red Herring Prospectus (DRHP), Sai Urja Indo Ventures plans to allocate ₹8 crore from the net IPO proceeds towards its working capital requirements.  

Additionally, ₹6 crore will be used for the prepayment or partial repayment of certain borrowings, including associated charges. The remaining funds will be utilised for general corporate purposes and offer-related expenses. 

Company Profile and Financial Performance 

Sai Urja Indo Ventures provides operations and maintenance services to industrial plants, focusing on sectors such as power generation, iron and steel, and agrochemicals.  

The company's services encompass managing electrical, mechanical, and instrumentation systems, as well as operating coal handling systems in power plants. 

For the financial year 2024-25, the company reported a revenue of ₹65.52 crore from operations, with a profit after tax (PAT) of ₹3.14 crore. This marks an increase from the previous fiscal year, where the revenue was ₹45.62 crore and PAT was ₹1.37 crore. 

Read More: Upcoming IPO: SEBI Approved 8 Companies to Float IPO Including Indira IVF! 

Role of Advisors and Registrars 

Shannon Advisors is acting as the sole book-running lead manager for the IPO, while Maashitla Securities is the registrar to the offer.  

The company is in the process of submitting the Red Herring Prospectus (RHP) to the Registrar of Companies and BSE SME, incorporating updated details. 

Conclusion 

Sai Urja Indo Ventures' upcoming IPO marks a significant step for the company as it seeks to raise funds for working capital and debt repayment. With approval from the BSE SME Exchange, the company is poised to enter the public market, offering investors an opportunity to participate in its growth journey. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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