SAFECURE SERVICES LIMITED IPO Explain

Safecure Services IPO Overview:

Leading security & facility management company raising ₹30.60 cr fresh issue of 30L shares at ₹102. Min lot: 2,400 shares (₹2.45L). Funds for working capital, debt repayment & corporate purposes. Listing: BSE SME Nov 6. Lead: Sun Capital. Serves financial institutions, MNCs, PSUs.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME
IPO Open Date	29 October 2025 (Wednesday)
IPO Close Date	31 October 2025 (Friday)
Issue Type	Fixed Price Issue
Allotment Date	3 November 2025 (Monday) – Expected
Credit to Demat	4 November 2025 (Tuesday) – Expected
Refund Initiation	4 November 2025 (Tuesday) – Expected
Listing Date	6 November 2025 (Thursday) – Tentative
Issue Price	₹102 per share (Fixed Price)
Face Value	₹10 per share
Lot Size	1,200 shares
Min Application	2 lots (2,400 shares)
Min Investment (Retail)	₹2,44,800 (2,400 shares)
Max Investment (Retail)	Multiples of 1,200 shares
Issue Size	₹30.60 crore total
Fresh Issue	₹30.60 crore (100% fresh issue)
Offer for Sale (OFS)	NIL (No OFS component)
Total Shares Offered	30,00,000 equity shares
Listing	BSE SME (Emerge Platform)
Post-Issue Paid-Up Capital	₹10.04 crore

Issue Break-up

Category	Allocation	Details
Retail Individual Investors	50% of Net Issue	For individual investors
Non-Institutional Investors (HNI)	50% of Net Issue	For HNI investors
QIB (Qualified Institutional Buyers)	0%	Not applicable for fixed price issue
Market Maker Reservation	As per SEBI regulations	Separate from above allocations

Note: This is a Fixed Price Issue (not Book Building), hence QIB allocation is 0%.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹30.60 crore) will be used for:

1. Working Capital Requirements – To meet day-to-day operational expenses and business needs
2. Repayment/Prepayment of Borrowings – Debt reduction and deleveraging
3. General Corporate Purposes – Strategic initiatives and business expansion

Strategic Focus:

• Strengthen financial position through debt reduction
• Improve working capital management for smoother operations
• Support business expansion and service diversification
• Enhance technological capabilities
• Expand geographic footprint

Note: This is a 100% fresh issue with no OFS component. All proceeds will be utilized by the company.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

• Sun Capital Advisory Services Private Limited
• Address: 302, 3rd Floor, Kumar Plaza, Near Kalina Market, Kalina Kurla Road, Santacruz East, Mumbai 400029, Maharashtra
• Phone: +91-22-6178 6000
• Email: [email protected]
• Website: www.suncapitalservices.co.in

Registrar:

• Link Intime India Private Limited (MUFG Intime India Pvt. Ltd.)
• Address: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400 083, Maharashtra
• Phone: +91-22-4918 6270 / +91-22-4918 6000
• Email: [email protected]
• Website: www.linkintime.co.in / https://in.mpms.mufg.com/Initial_Offer/public-issues.html

Market Maker:

• To be confirmed

Promoters & Management

Key Promoters & Pre/Post Issue Shareholding:

Promoter Name	Pre-Issue Shares	Pre-Issue %	Post-Issue Shares	Post-Issue %
Shailendra Mahesh Pandey (Chairman & MD)	63,20,000	89.77%	63,20,000	62.95%
Ranju Shailendra Pandey	3,20,000	4.55%	3,20,000	3.19%
Nikit Shailendra Pandey	400	–	400	–
Dinesh Pandey	400	–	400	–

Company Contact:

• Address: Office No. 5, 5th Floor, Building No. 6, Old 9, 12, 14 (PT), News No. 62, 66, 69, Opp Pleasant Park, Mira Bhaynder Road, Behind Jhankar, Mira Road (East), Thane – 401107, Maharashtra
• Phone: +91 99678 81047
• Email: [email protected]
• Website: www.safecure.in

SAFECURE SERVICES LIMITED – OVERVIEW

Establishment & Background:

• Incorporated on October 31, 2012 as Safecure Services Private Limited
• Converted to Public Limited Company on August 2, 2023
• Industry: Private Security, E-Surveillance, Facility Management & Corporate Interior Fit-outs
• Headquarters: Mira Road, Thane, Maharashtra
• Over 13 years of operational experience in integrated security and facility management sector

Business Model:

• Comprehensive security and facility management solutions provider serving diverse sectors
• Four core business verticals:
  1. Security Services – Manned guarding, event management, ATM management, technology-backed security
  2. E-Surveillance – Electronic security and alarm monitoring for ATMs & bank branches through wholly-owned subsidiary Safesense Tech Private Limited
  3. Facility Management – Housekeeping, ATM repair & maintenance, business support services
  4. Corporate Interior Fit-outs – Complete interior solutions for corporate clients
• B2B business model serving financial institutions, MNCs, public and private sector clients

Market Position:

• Leading security and facility management company in India
• Recognized as significant and professional security firm with reputation for excellence
• Operates in the organized private security services market
• ISO certified company (ISO 45001:2018, 27001:2013, 14001:2015, 9001:2015)

Operations:

• Widespread network of 12 offices across India covering 12 districts
• Employs 1,849 personnel on payroll as of August 31, 2025 (5,000+ including contractual staff)
• Operates through wholly-owned subsidiary Safesense Tech (99.99% stake acquired March 28, 2023)
• Pan-India service delivery with focus on customized technology-oriented solutions
• Serves clients across financial institutions, corporate offices, retail, and infrastructure sectors

Company Strengths

1. Diversified Service Portfolio:
   • Four distinct business verticals reducing dependency on single revenue stream
   • Comprehensive end-to-end solutions from basic security to advanced e-surveillance
   • Corporate interior fit-outs providing additional revenue diversification
   • Ability to offer bundled services increasing client retention
2. Technology Integration & E-Surveillance Capabilities:
   • Advanced e-surveillance solutions through subsidiary Safesense Tech
   • Real-time monitoring systems for ATMs and bank branches
   • Monitored intrusion alarm systems with trained professional oversight
   • Integration of technology with manpower providing competitive edge
   • Customized monitoring systems for critical infrastructure
3. Pan-India Presence & Operational Scale:
   • 12 offices across India providing geographic diversification
   • Coverage across 12 districts ensuring local market presence
   • Large workforce of 1,849+ employees enabling scalable operations
   • Ability to serve multi-location clients with single-vendor solution
   • Network effect advantages in security services delivery
4. Multiple ISO Certifications:
   • ISO 45001:2018 for Occupational Health & Safety Management
   • ISO 27001:2013 for Information Security Management
   • ISO 14001:2015 for Environmental Management
   • ISO 9001:2015 for Quality Management
   • Certifications enhance credibility and enable participation in premium tenders
5. Experienced Leadership:
   • Promoter Mr. Shailendra Mahesh Pandey as Chairman & Managing Director
   • Over a decade of industry experience and domain expertise
   • Successfully expanded from basic security to integrated solutions
   • Strong recruitment and training systems ensuring service quality
6. Established Client Relationships:
   • Diversified customer base across financial institutions, MNCs, public and private sectors
   • Long-term service contracts providing revenue visibility
   • Repeat business and client referrals indicating satisfaction
   • Entry into regulated sectors like banking demonstrating trust
7. Proven Financial Performance:
   • Revenue growth of 16% from FY24 to FY25 (₹63.06 cr to ₹73.10 cr)
   • PAT growth of 8% from FY24 to FY25 (₹5.59 cr to ₹6.04 cr)
   • Consistent profitability across financial years
   • Q1 FY26 showing continued momentum (₹18.32 cr revenue, ₹2.02 cr PAT)

Key Risks & Challenges

1. Intense Competition & Low Entry Barriers:
   • Security services industry highly fragmented and intensely competitive
   • Low barriers to entry in certain service segments attract new players
   • Price-based competition from unorganized sector pressuring margins
   • Difficulty in differentiation beyond technology and scale
   • Market share erosion risk from established and emerging competitors
2. High Employee Benefit Expenses:
   • Significant employee costs including wages, staff welfare, PF contributions
   • Labor-intensive business model with 1,849+ employees
   • Minimum wage increases and regulatory changes directly impact profitability
   • Challenge in passing on increased costs to price-sensitive customers
   • Attrition and retention challenges in security services sector
3. Customer Concentration Risk:
   • Major portion of revenue derived from few large customers
   • Loss of one or more key clients could materially impact revenues
   • Financial difficulties or reduced spending by major clients affects business
   • Limited negotiating power with large institutional customers
   • Client switching costs relatively low in facility management
4. Regulatory & Licensing Dependencies:
   • Required to obtain and renew licenses, permits, and approvals regularly
   • Failure to maintain compliance could disrupt operations
   • Changes in security industry regulations increase operational complexity
   • State-specific licensing requirements for interstate operations
   • Firearms handling by employees creates additional regulatory oversight
5. Operational Risks Inherent to Business:
   • On-ground security incidents and service failures can damage reputation
   • Zero-error environment expectations from clients
   • Risk of employee misconduct or security breaches
   • Liability for incidents occurring under company’s watch
   • Service delivery challenges across multiple geographically dispersed locations
6. Technology & Cybersecurity Risks:
   • E-surveillance services dependent on IT systems and data security
   • Disruptions to technology infrastructure can halt monitoring services
   • Data breaches or system failures affecting client confidence
   • Costs associated with maintaining and upgrading technology platforms
   • Cybersecurity threats targeting surveillance and security systems
7. Working Capital Intensity:
   • Need for working capital to manage operations and payroll
   • Delay in client payments affecting cash flow
   • Requirement to maintain adequate liquidity for daily operations
   • Bank borrowings needed for working capital creating interest burden
   • IPO proceeds partly earmarked for working capital needs
8. Security Services Revenue Dependency:
   • Major portion of revenue from security services segment
   • Decrease in demand for security services impacts overall business
   • Economic downturns reduce corporate spending on security
   • Seasonal variations in certain security service categories
   • Client budget cuts typically target facility management and security first
9. Financial Institutions Sector Exposure:
   • Significant business from ATM management and bank branch surveillance
   • Banking sector consolidation and branch closures reduce service demand
   • ATM rationalization programs by banks impact revenues
   • Digital banking growth potentially reducing physical security requirements
   • Sector-specific downturn concentration risk
10. SME Listing Constraints:

• Lower liquidity compared to mainboard listings
• Limited institutional investor participation
• Higher price volatility and discovery challenges
• Smaller investor base affecting trading volumes
• Limited analyst coverage and research reports

Financial Performance Overview (₹ in Crore)

Particulars	FY 2023	FY 2024	FY 2025
Revenue (₹ crore)	47.74	63.06	73.27
Profit (₹ crore)	3.98	5.69	6.16
Total Assets (₹ crore)	30.94	37.48	53.07

Analysis

• Revenue Growth: The company’s revenue has shown consistent growth — ₹47.74 crore in FY23, ₹63.06 crore in FY24, and ₹73.27 crore in FY25. This indicates an annual growth rate of around 30–40%, reflecting strong business expansion.
• Profit Trend: PAT increased from ₹3.98 crore to ₹6.16 crore during the same period. However, the profit growth rate is slightly lower than revenue growth, suggesting some pressure on margins.
• Total Assets: Total assets rose significantly from ₹30.94 crore to ₹53.07 crore, showing that the company is investing in expansion or infrastructure development.
• Profit Margin: In FY25, PAT was about 8.4% of revenue (6.16 / 73.27), which shows stable but moderate profitability.
• Financial Health: The consistent growth in both revenue and assets reflects operational expansion. However, maintaining profit margins and managing operational costs will be crucial for sustaining profitability.
• Outlook: The company shows promising growth momentum, but as an SME IPO, investors should be cautious about factors like competition, contract sustainability, and cost control.