Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on September 25, 2025
- The company is engaged in comprehensive range of engineering design services based on latest technology.
• It marked growth in its top and bottom lines for the reported periods.
• It is operating in a highly competitive and fragmented segment.
• Small paid-up equity post-IPO indicates longer gestation for migration.
• Based on its latest financial data, the issue appears aggressively priced.
• Only well-informed/cash surplus/risk seekers may park moderate funds for medium term.
ABOUT COMPANY:
Telge Projects Ltd. (TPL) is presently engaged in comprehensive range of engineering design services, such as building information modelling (BIM), structural engineering design, material take-offs (MTO), 2D drafting and architectural design to ensure seamless project execution. Its services emphasize the use of modern methodologies over traditional approaches. Traditional approach in the AEC (Architecture, Engineering, and Construction) industry is based on manual process which is prone to the errors and potential for miscommunication. It relies on 2D model for visualization and designing of engineering projects.
Hence this method is time consuming and results in delay in completion of projects with compromised quality which negatively impacts project outcome, while modern methodology is based on BIM (Building Information Modelling) digital process used in the architecture, engineering and construction (AEC) industries. BIM utilizes a 3D digital model with integrated data and collaborative workflows. Hence modern methodology is cost effective as it eliminates various layers which are used in traditional method which leads to competition of projects in timely manner. Further it serves to EPC (Engineering, Procurement, and Construction) firms, fabricators, and contractors by delivering accurate, cost-effective engineering services in a timely manner.
TPL’s projects include two types of contracts namely fixed-price contracts and time-and-material (T&M) contracts. Under fixed-price contracts, it determines the prices for services based on various parameters, including market demand, supply and it varies for customer to customer based on various parameter such as size of projects, payment terms, supply schedule etc. In contrast, its time-and-material contracts are based on an agreed hourly or daily rate, where clients are billed for the actual time and resources expended on the project. Once the project is completed, it hands over the finalized designs without participating in the actual construction process. Its renowned project designs include Mangalwar Peth Metro Station in Pune India, Everton Stadium in United Kingdom, Richland Performing Art Centre in Columbia – South America.
It has built significant expertise in an engineering design services and software capabilities. Its team of skilled engineers specializes in engineering design and Building Information Modelling (BIM). The company has a workforce of 166 permanent employees out of which it has a delivery workforce of 148 trained and skilled engineers. TPL’s team operates through a digital platform, leveraging industry-standard software tools such as Tekla Structures, Bluebeam, Enercalc, AutoCAD, SDS2, Autodesk Revit Structure, and Cads RC. To support seamless business operations across departments, it also utilizes Zoho for accounting, GreytHR for HR and payroll, Mitroz for project management, and Whiz-Sales (CRM) for business development. Its clientele includes companies across the commercial, industrial, infrastructure, institutional and residential sectors in both domestic and international market.
ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 2594400 equity shares to mobilize Rs. 27.24 cr. at the upper cap. It has announced a price band of Rs. 95 – Rs. 105 per share of Rs. 10 each. The IPO opens for subscription on September 25, 2025, and will close on September 29, 2025. The minimum application to be made is for 2400 shares and in multiple of 1200 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 26.50% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 8.73 cr. for capex on purchase of additional office premises, Rs. 2.44 cr. capex for purchase of computers, and software subscription, Rs. 4.18 cr. for hiring manpower of the company, Rs. 4.86 cr. for hiring manpower for its subsidiary, and the rest for general corporate purposes.
The IPO is solely lead managed by Smart Horizon Capital Advisors Pvt. Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Shreni group’s Shreni Shares Ltd. is the market maker, as well as a syndicate member.
The company has issued initial equity shares at par, and issued further equity shares at a fixed price of Rs. 536.43 per share in October 2024. It has also issued bonus shares in the ratio of 6 for 1 in January 2025. The average cost of acquisition of shares by the promoters is Rs. 0.71, and Rs. 1.43 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 7.20 cr. will stand enhanced to Rs. 9.79 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 102.80 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit, of Rs. 7.51 cr. / Rs. 0.90 cr. (FY23), Rs. 12.51 cr. / Rs. 2.66 cr. (FY24), Rs. 25.65 cr. / Rs. 5.38 cr. (FY25).
For the last three fiscals, the company has reported an average EPS of Rs. 5.52, and an average RoNW of 49.92%. The issue is priced at a P/BV of 6.56 based on its NAV of Rs. 16.00 as of March 31, 2025, but its post-IPO NAV data is missing from the offer documents.
If we attribute its FY25 super earnings on post-IPO expanded equity base, then the asking price is at a P/E of 19.09, and based on its FY24 earnings, the P/E stands at 38.75. Thus, the issue appears aggressively priced.
The company has posted PAT margins of 12.09% (FY23), 21.40% (FY24), 21.45% (FY25), and RoCE Margins of 30.28%, 89.50%, 56.22%, respectively for the referred periods.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performances and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Mold-Tek Techno as its listed peer. It is currently trading at a P/E of 62.7 (as of September 25, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.
MERCHANT BANKER’S TRACK RECORDS:
This is the 12th mandate from Smart Horizon in the last two fiscals (including the ongoing one). Out of last 10 listings, 1 opened at discount, 1 at par, and the rest opened at premium ranging from 0.81% to 90.00% on the date of listing.
Conclusion / Investment Strategy
TPL is engaged in comprehensive range of engineering design services based on latest technology. It marked growth in its top and bottom lines for the reported periods. It is operating in a highly competitive and fragmented segment. Small paid-up equity post-IPO indicates longer gestation for migration. Based on its latest financial data, the issue appears aggressively priced. Only well-informed/cash surplus/risk seekers may park moderate funds for medium term.
Review By Dilip Davda on September 25, 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/
