Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on November 26, 2025
- The company is engaged in providing wide range of services with speciality in IFM segment.
• The company posted growth in its top lines for the reported periods.
• It marked setback for bottom line in FY25 following one time exception item of Rs. 8.44 cr.
• Based on recent financial data, the issue appears fully priced.
• Well-informed investors may park funds for medium to long term.
ABOUT COMPANY:
Clear Secured Services Ltd. (CSSL) is providing a range of services aimed at improving operational efficiency and supporting business functions across different sectors. It specializes in Integrated Facility Management (IFM), offering both soft services — such as housekeeping, security services, payment management services, and staffing services — and hard services, including electro-mechanical services, repair and maintenance services, facade cleaning and pest control services. These services are tailored to meet the operational needs of commercial and industrial clients, focusing on cleanliness, safety, and reliability.
Under Support Services, CSSL also delivers Total Infrastructure Solutions (TIS), which include interior design, plumbing, fire safety, and office furniture services. These are designed to improve workplace functionality and design. In the agro-food sector, the company assists with the sourcing and trading of millets and wheat. Its Telecom Infrastructure Solutions cover mobile tower installations, while CSSL’s Cash Van service supports the secure transport of cash for ATM operations. Through its service network and domain experience, it helps businesses manage routine operations, allowing them to focus on their primary activities.
Its operations prioritize efficiency, regulatory compliance, and consistent service delivery across regions. The company has established processes for contract management, recruitment, labour compliance, and cost control. Technology and process improvements are used to maintain service quality and address client needs. It also focuses on employee welfare, business development, and managing relationships with stakeholders to support long-term engagement.
As of October 31, 2025, it is serving more than 80 clients through contracts for the provision of various IFM and support services. Its clients are spread across a wide variety of industries, including telecommunications, insurance, real estate, oil and gas, banking, retail, and government. As of October 31, 2025, it had 4025 employees on its payroll.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 6485000 equity shares of Rs. 10 each to mobilize Rs. 85.60 cr. at the upper cap. The company has announced a price band of Rs. 125 – Rs. 132 per share. The issue opens for subscription on December 01, 2025, and will close on December 03, 2025. The shares will be listed on NSE SME Emerge. The minimum application to be made is for 2000 shares and in multiples of 1000 shares thereon, thereafter. The IPO constitutes 26.97% of the post-IPO paid-up capital of the company. From the net proceeds of the IPO, it will utilize Rs. 26.00 cr. for working capital, Rs. 5.25 cr. for investment in wholly owned subsidiary Comfort Techno Services Pvt. Ltd., Rs. 35.50 cr. for repayment/prepayment of borrowings, and the rest for general corporate purposes.
The IPO is solely lead managed by Horizon Management Pvt. Ltd., and Bigshare Services Pvt. Ltd. is the registrar to the issue.
Having issued initial equity capital at par, the company issued further equity shares at fixed price of Rs. 8292 per share in April 2025. It has also issued bonus shares in the ratio of 63 for 1 in May 2025. The average cost of acquisition of shares by the promoters is Rs. NIL, Rs. 11.67 per share.
Post- IPO, company’s current paid-up equity capital of Rs. 17.56 cr. will stand enhanced to Rs. 24.05 cr. Based on the upper cap of the IPO price band, the company is looking for a market cap of Rs. 317.42 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit, of Rs. 311.71 cr. / Rs. 6.85 cr. (FY23), Rs. 350.63 cr. / Rs. 12.08 cr. (FY24), Rs. 482.74 cr. / Rs. 9.92 cr. (FY25). For 5M of FY26 ended on August 31, 2025, it earned a net profit of Rs. 13.90 cr. on a total income of Rs. 231.68 cr. It marked setback for FY25 following an exceptional item provision for Rs. 8.44 cr.
For the last three fiscals, the company has reported an average EPS of Rs. 6.33 and an RoNW of 11.91%. The issue is priced at a P/BV of 1.75 based on its NAV of Rs. 75.41 per share as of August 31, 2025, and at a P/BV of 1.46 based on its post-IPO NAV of Rs. 90.67 per share (at the upper cap).
If we attribute FY26 annualized super earnings to post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 9.52, and based on FY25 earnings, it stands at 31.96% (including exceptional item) and at 17.67% (excluding exceptional item). Thus, the issue appears fully priced. According to the management, few accounting adjustments dragged down the profits for FY25, and sudden jump in bottom lines for 5M-FY26 is due to consolidation of accounting of subsidiaries.
For the reported periods the company has posted PAT Margins of 2.22% (FY23), 3.48% (FY24), 2.08% (FY25), 6.08% (5M-FY26), and RoCE margins of 13.84%, 20.58%, 23.46%, 13.33%, respectively for referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It has adopted a dividend policy in May 2025, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Aarvi Encon, Integrated Personnel, Kapston Services, as its listed peers. They are currently trading at a P/E of 13.6, 26.9, and 26.7 (as of November 26, 2025). However, they are not truly comparable on an apple-to-apple basis.
MERCHANT BANKER’S TRACL RECORD:
This is the 22nd mandate from Horizon Management in the last three fiscals. Out of the last 10 listings, 2 opened at discount, 3 at par and the rest with premium ranging from 3.08% to 90% on the listing date.
Conclusion / Investment Strategy
CSSL is engaged in providing wide range of services with speciality in IFM segment. The company posted growth in its top lines for the reported periods. It marked setback for bottom line in FY25 following one time exception item of Rs. 8.44 cr. Based on recent financial data; the issue appears fully priced. As the company offers major related services under one-roof, it is poised for bright prospects ahead. Well-informed investors may park funds for medium to long term.
Review By Dilip Davda on November 26, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
