Oval Projects IPO Overview
Oval Projects Engineering Ltd. IPO opens on August 28, 2025, and closes on September 1, 2025. The book-built issue comprises a fresh issue of 5,499,200 equity shares (face value ₹10 each), raising approximately ₹46.74 crore at a price band of ₹80–₹85 per share. Proceeds will fund long-term working capital (₹37.03 crore) and general corporate purposes. Listing is scheduled on BSE-SME on September 4, 2025.
Oval Projects Subscription and GMP Status
| Category | Subscription (x) |
| QIBs | 6.21 |
| NIIs | 1.00 |
| Retails | 0.76 |
| Total | 1.27 |
| Last Updated: 01 Sep 2025 6 PM Source: NSE/BSE | |
| GMP (₹) (grey market premium) | IPO Price (₹) |
| 80-85 | |
| Last Updated: 01 Sep 2025 6 PM | |
| 📌 Note: The above GMP data is unofficial and has been collected from multiple sources including grey market dealers and market observers. It is provided purely for informational and educational purposes. Please consult your financial advisor before making any investment decisions. | |
IPO Key Date
Core Business & Overview
Oval Projects Engineering Limited (established in 2013) is an infrastructure services company offering end-to-end EPC (Engineering, Procurement, and Construction) and O&M (Operations & Maintenance) solutions. Its primary focus areas include the oil & gas sector (spanning upstream, midstream, and downstream), city gas distribution (CGD), midstream pipelines, and urban/energy infrastructure such as smart city works and civil projects.
Services include: laying pipelines (over 900 km completed), constructing processing plants, station development, horizontal directional drilling, methanol storage tank systems, CNG station construction, PNG network operations, turnkey project management, and even civil projects like school buildings and malls.
Strengths
- Comprehensive EPC + O&M Capabilities
With in-house teams for design, engineering, procurement, and execution, the company can deliver turnkey projects efficiently and cost-effectively. - Proven Track Record & Certifications
Completed 900 km+ of pipelines; over 30 projects (worth about ₹203 crore) done in oil & gas and specialized infrastructure. Certified under ISO 14001, ISO 45001, and ISO 9001 for quality, safety, and environmental management. - Experienced Leadership
Promoter-director Mr. Goutam Debnath brings over 15 years of relevant industry experience. The leadership team is described as technically strong and business-savvy. - Geographical Reach & Clientele
Active across over 10 Indian states, particularly strong in the Northeast, with a credible roster of public-sector and government clients, including those supported by agencies like the World Bank and ADB.
Risks
- Negative Operating Cash Flows
Despite growing revenue, the company reported negative cash flow from operations: ₹1.13 crore in FY24 and ₹16.07 crore in FY25, largely due to rising trade receivables and advances—a potential liquidity concern. - Heavy Reliance on Government/PSU Clients
Over 90% of revenue in FY25 came from government or public-sector clients—high dependence on them exposes the company to risks such as policy shifts, tender delays, cancellations, or payment issues. - Concentration Risks
Expenses are heavily dependent on a handful of suppliers (top 5 suppliers accounted for 43% of material costs), while a few key customers contributed a large portion of revenue. Disruptions in either could hurt operations. - Legal Proceedings & Regulatory Dependencies
Ongoing legal cases involving the company, its promoters, and directors pose reputational and operational risks. Additionally, the business relies on multiple statutory permits and licenses; failure to secure or renew them could impair operations. - Large Order Book Doesn’t Guarantee Future Profitability
Though the ₹45,300 lakh order book is promising, such projects—especially where the company is the lowest bidder—may be modified, delayed, or canceled, which could adversely affect revenue and margins.
Revenue: The company’s revenue grew from ₹59.02 Cr in FY 2023 to ₹102.29 Cr in FY 2025, showing strong top-line growth.
Profit: Net profit improved consistently, rising from ₹3.18 Cr to ₹9.33 Cr, indicating better operational efficiency.
Assets: Total assets increased significantly from ₹82.25 Cr to ₹156.23 Cr, reflecting expansion and stronger balance sheet support.
Disclaimer:
The above IPO analysis and financial data are based on information provided by the company in its official documents. For complete details, please refer to the Red Herring Prospectus (RHP) linked above. Investors are strongly advised to consult their financial advisor before making any investment decisions.
