Ravita Engg. NSE SME IPO Review
Issue Details / Capital History
The company is coming out with its maiden book building route IPO of 10362000 equity shares of Rs. 5 each to mobilize Rs 116.05 cr. at the upper cap. The company has announced a price band of Rs. 105 – Rs. 112 per share. The minimum application 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 will close on October 15, 2026. The IPO constitute 27.50% of the post-IPO paid-up capital of the company. The shares will be listed on NSE SME Emerge. From the net proceeds, it will utilize Rs. 70.00 cr. for working capital, Rs. 25.53 cr. for capex on purchase of certain heavy equipments, and the rest for general corporate purposes.
The IPO is solely lead managed by Vivro Financial Services Pvt. Ltd., while MUFG Intime India Pvt. Ltd., is the registrar to the issue. Pace Stock Broking Pvt. Ltd. is the market maker. Vivro Financial Services Ltd. is also a syndicate member.
The company has issued initial equity capital at par value, and issued further equity shares at a fixed price of Rs. 8000.00 per share (on the basis of Rs. 5 FV) in between June 2025, and August 2025. It has also issued bonus shares in the ratio of 100 for 1 in February 2026. The average cost of acquisition of shares by the promoters is Rs. 3.42, and Rs. 77.68 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 13.66 cr. (27318682 equity shares) will stand enhanced to Rs. 18.84 cr. (37680682 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 422.02 cr.
On the financial performance front, for the last three fiscals, the company has reported a total income/net profit 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 net profit of Rs. 10.13 cr. on a total income of Rs. 97.45 cr. Spectacular performances from FY25 onwards raise eyebrows and concern over its sustainability. Its trade receivables of Rs. 100.56 cr. as of June 30, 2026 raise alarm as it crosses its top line for the said period. Its trade receivables stood at Rs. 73.26 cr. as of March 31, 2026. Its contingent liabilities were at Rs. 4.47 cr. as of June 30, 2026.
For the last three fiscals, the company has reported an average EPS of Rs. 7.60, and an average RoNW of 77.07%. The issue is priced at a P/BV of 2.79 based on its NAV of Rs. 40.15 per share as of June 30, 2026, and at a P/BV of 1.87 based on its post-IPO NAV of Rs. 59.91 per share (at the upper cap).
If we attribute FY27 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 10.42, and based on FY26 earnings, the P/E stands at 15.05. The issue appears fully priced, based on its average earnings.
For the reported periods, the company 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 periods.
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its future prospects, and financial performance.
Comparison with Listed Peers
As per the offer document, the company has no listed peers to compare with.
Ravita Engineering Services Ltd. (RESL) is an engineering solutions company engaged in Engineering, Procurement, Installation and Commissioning (“EPIC”) of heating, ventilation and air-conditioning (“HVAC”) systems, central air-conditioning solutions, air flow systems, chiller plants, industrial compressors, cooling equipment and other related electromechanical equipment on a turnkey basis for diverse commercial and industrial establishments including offshore rigs, platforms and other installations. It also provides comprehensive operation and maintenance (“O&M”) services for both projects executed by it and systems installed by third-party solution providers.
RESL is also currently engaged in execution of a specialized niche engineering project viz., laying of sub-sea discharge pipelines for an effluent treatment plant (“ETP”) at a crude oil import terminal operated by Numaligarh Refinery Limited in Paradip, Odisha. It classifies its business operations under three areas of expertise, viz., (i) Onshore; (ii) Offshore; and (iii) Data Center. Its Onshore operations are carried out at commercial establishments, hospitality units, corporate parks and industrial facilities, amongst others. The company has undertaken its Onshore operations in states like Gujarat,Maharashtra, Odisha and Karnataka. Its order book for Onshore operations as on June 30, 2026 were Rs. 143.49 cr. for EPIC projects, Rs. 8.29 cr. for O&M services and Rs. 91.65 cr. for Hybrid projects.
Its Offshore operations are carried out at rigs, platforms and other offshore marine installations, including in the territorial waters of India. In last three fiscal years and three months period ended June 30, 2026, it has undertaken operations at 6 rigs and 16 associated offshore oil and gas platforms located in territorial waters of India. Its order book for Offshore operations as on June 30, 2026, were Rs. 45.18 cr. for EPIC projects and Rs. 24.95 cr. for O&M services. Its Data Center operations comprise of operations and maintenance of cooling systems, chiller plants, HVAC equipment and mechanical utilities to support the uptime, reliability and temperature-control requirements of data center operations.
Currently, RESL provides data center O&M services to Reliance Corporate IT Park Limited at their data center facility at Navi Mumbai. Recently, the Company has further strengthened its presence in the data centre operations by securing work orders aggregating to Rs. 120.00 cr. comprising a work order valued at Rs. 55.00 cr. from the Indian subsidiary of a globally recognized technology and cloud services company and a work order valued at Rs. 65.00 cr. from a leading listed real estate developer for data center infrastructure projects in the state of Maharashtra.
The scope of these work orders includes engineering, procurement, supply, installation, testing and commissioning of cooling systems, chiller plants, HVAC equipment, mechanical utilities and associated electrical and control systems, with the former also covering substation infrastructure and firefighting works. Its order book for Data Center operations as on June 30, 2026 were Rs. 120.00 cr. for EPIC projects and Rs. 57.57 cr. for O&M services. As on June 30, 2026, its operations are supported by a qualified workforce of over 399+ Employees, and additional 246 contract workers in various departments.
Merchant Banker's Track Record
This is the 12th mandate from Vivro Financial Services Pvt. Ltd., in the last three fiscals (including the ongoing one). Out of the last 11 listings, 3 opened at discount, and the rest with a premium ranging from 10.20% to 99.46% on the listing date.
Conclusion
RESL is an engineering solution provider in EPIC for HVAC segment. The company posted spectacular performances from FY25 onwards with boosted top and bottom lines. Its Trade receivable of Rs. 100.56 cr. as on June 30, 2026 against its top line of Rs. 97.54 cr. raises alarm. Its order book stood at Rs. 177.57 cr. as of June 30, 2026. It has long term relationship with may marquee customers. Based on its recent average financial data, the issue appears fully priced. Well-informed investors may park funds for medium to long term.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
