Swastika Infra IPO

Incorporated in August 2019, Swastika Infra Limited undertakes EPC Power Projects covering procurement, supply, erection, installation, testing, and commissioning of power infrastructure on a turnkey basis. Its scope of work includes underground cabling for high voltage and low voltage power cables, construction of substations including Gas Insulated Substations and Air Insulated Substations, rural and urban electrification projects under government schemes, and installation of street lighting systems. The company also trades electrical products, including power cables, as a secondary business segment.

The company began operations with its first EPC project in Rajasthan in 2012 and has since expanded to Assam, Uttarakhand, West Bengal, Goa, Haryana, Himachal Pradesh, and Gujarat. As of February 28, 2025, the company had a track record spanning 14 years in executing EPC Power Projects, covering 8,519.50 circuit kilometers of distribution lines across 34 completed power distribution infrastructure projects in four Indian states, with a total contract value of ₹604.10 crore.

The company is promoted by Babulal Gupta, Vinay Gupta, Ruchira Gupta, Biren Parnami, Manoj Modi, and Vatsalya Gupta. As of February 28, 2025, the company employed 104 full time staff.

The company's competitive strengths include strong project management and execution capabilities focused on government EPC clients, a scalable business model with strategic growth initiatives, consistent financial performance, an asset light business model, and an experienced leadership and management team.

The Swastika Infra IPO is a bookbuilt mainboard issue aggregating up to ₹160.88 crore, comprising a fresh issue of shares worth up to ₹128.50 crore and an offer for sale of up to ₹32.38 crore across five selling shareholders. The issue is priced in a band of ₹175 to ₹185 per equity share, with a lot size of 81 shares, and will open on September 23, 2026, closing on September 25, 2026, with listing expected on September 30, 2026 on both the BSE and NSE.

Net proceeds from the fresh issue are earmarked for incremental working capital requirements, with the remainder allocated to general corporate purposes. The company has shown strong revenue growth, with total income rising from ₹59.54 crore in FY22 to ₹211.33 crore in FY24, and profit after tax growing from ₹2.95 crore to ₹13.98 crore over the same period.

For FY24, the company reported a Return on Net Worth of 32.84% and a Return on Capital Employed of 25.15%, reflecting strong profitability, though a Debt/Equity ratio of 0.88 indicates moderate leverage after deleveraging significantly from 1.74 in FY22. Key strengths cited include a strong government EPC execution track record and an asset light business model. Key risks include reliance on government infrastructure spending and tender cycles, geographic concentration in a limited number of states, and typical execution risk for power infrastructure projects. Investors may find it useful to benchmark this issue against other listed EPC and power infrastructure companies when evaluating its relative valuation.