Safety Controls & Devices IPO Sees 7% Subscription on First Bidding Day Amid Market Vigilance

Safety Controls & Devices IPO Sees 7% Subscription on Day 1

The initial public offering (IPO) of Safety Controls & Devices, which began on Monday, April 6, is set to conclude on Wednesday, April 8. The IPO price band has been established at ₹75 to ₹80 per equity share, with each share having a face value of ₹10. Investors can place bids for a minimum of 1,600 equity shares, with additional shares to be bid in multiples of 1,600.

Safety Controls and Devices operates as an EPC (engineering, procurement, and construction) firm, specializing in substations, solar initiatives, firefighting systems, and healthcare infrastructure projects under the Ministry of Ayush. The company primarily serves government agencies and utilities, with operations covering both power infrastructure and renewable energy sectors. Prior to the offering, the firm secured approximately ₹13 crore from anchor investors, with a significant portion allocated to institutional investors.

The net offering consists of nearly 49% for qualified institutional buyers, approximately 15% for non-institutional investors, and roughly 36% for retail investors. For retail participants, a minimum investment of ₹2.56 lakh is required to purchase 3,200 shares. The company has indicated consistent profitability, reporting a profit after tax of ₹8.5 crore for the period ending January 2026, down from ₹9 crore in FY25. Revenue experienced a decline to ₹68 crore from ₹103 crore in the prior financial year, indicating some fluctuations in execution cycles that are common in EPC businesses.

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The IPO consists of 60 lakh shares, with the funds raised from the IPO primarily allocated for working capital needs totaling ₹31.5 crore, an additional ₹6 crore designated for debt repayment, and the remaining amount for general corporate uses. Sobhagya Capital Options Pvt Ltd serves as the lead manager for the book, while Maashitla Securities Pvt Ltd acts as the registrar for this offering.

As of the first bidding day, the subscription status stands at 7%, with the company receiving bids for 2,94,400 shares against 41,12,000 shares on offer at 11:34 IST, according to data on chittorgarh.com. The grey market premium, which indicates investors' readiness to pay more than the issue price, was ₹0, meaning shares were trading at their issue price of ₹80 with no premium or discount in the grey market, according to investorgain.com.