New Delhi, September 4 (HS): Shares of Oval Projects Engineering, engaged in infrastructure development across city gas distribution, urban development, and energy sectors, made a lackluster debut on the stock market today, disappointing its IPO investors. Issued at ₹85 per share, the stock listed on the BSE SME platform at just a 0.29% premium at ₹85.25. However, marginal buying support post-listing pushed the price slightly higher, trading at ₹86 by 11 a.m.

Oval Projects Engineering’s ₹46.47 crore IPO opened for subscription between August 28 and September 1 but received a tepid response overall, subscribing only 1.61 times. While the Qualified Institutional Buyers’ (QIB) portion was oversubscribed 6.21 times, the Non-Institutional Investors (NII) segment saw just 0.82 times subscription, and the retail category received only 0.83 times bids. The IPO comprised 5,499,200 fresh shares with a face value of ₹10 each. Proceeds are earmarked for meeting working capital requirements and general corporate purposes.

Financially, the company projects steady growth. According to its prospectus, net profit rose from ₹3.19 crore in FY23 to ₹4.40 crore in FY24, and further surged to ₹9.33 crore in FY25. Revenue clocked a compound annual growth rate (CAGR) exceeding 27%, reaching ₹103.44 crore. However, rising debt remains a concern: borrowings stood at ₹32.21 crore at the end of FY23, marginally up to ₹32.41 crore in FY24, and jumped significantly to ₹53.70 crore by the close of FY25.

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Hindusthan Samachar / Jun Sarkar