Safety Controls & Devices IPO
Safety Controls & Devices LtdSME
This IPO has listed.
- Open date
- 6 Apr 2026
- Close date
- 8 Apr 2026
- Min. Investment
- ₹2,56,000
- Lot Size
- -
- Fresh Issue
- ₹48.00 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- -
Subscription rate
- Qualified Institutional Buyers1.31x
- Non-Institutional Investors2.07x
- Retail-Individual Investors0.76x
- Total1.26x
Schedule
- Completed: IPO open date6 Apr 2026
- Completed: IPO close date8 Apr 2026
- Completed: Allotment date9 Apr 2026
- Completed: Funds unblock or debit10 Apr 2026
- Completed: Tentative listing date13 Apr 2026
About
Promoter shareholding in Safety Controls & Devices Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Rajnish Chopra | 91,49,305 | 66.17% | 91,49,305 | 46.15% |
| Anjali Chopra | 1,000 | 0.01% | 1,000 | 0.01% |
| Abhishek Chopra | 49,000 | 0.35% | 49,000 | 0.25% |
Safety Controls & Devices IPO Strengths & Risks
- Experienced Promoter and Management Team.
- Scalable Business Model.
- Wide and diverse range of product offerings.
- In-house manufacturing facility with equipped machines and processes. Further having in-house Quality Control and Research & Development facility.
- Risks Relating to the Business: The company's reliance on power sector, for a significant portion of its sales, combined with the challenges of managing a diversified portfolio across multiple industries, could adversely impact the company's revenue, operational efficiency, and overall business performance.
- Risks Relating to the Business: The company's reliance on government contracts exposes the company to substantial risks, as any regulatory or policy changes could significantly impact project timelines, funding, and the company's ability to secure future contracts. These changes could adversely affect its business operations and financial performance.
- Risks Relating to the Business: The Company's current operations extend beyond the safety-focused implication of its name, which may cause confusion or misrepresent the full scope of its diverse activities across sectors such as power transmission, solar energy and infrastructure development
- Risks Relating to the Business: Substantial portion of its revenues has been dependent on few of the company's clients from which the company gets the majority of project on sub-contract basis. The loss of any one or more of the company's major clients would have a material adverse effect on its business operations and profitability.
- Risks Relating to the Business: The company's contracts are primarily with the government entities. As a result, the working capital cycle is extended, with receivables taking more time to be collected from these entities. Intense competition in the EPC sector, driven by aggressive bidding and price sensitivity, can lead to reduced profit margins and the potential loss of critical contracts. Additionally, financial pressures from well-resourced competitors employing predatory pricing strategies may hinder sustainable business growth and profitability.
- Risks Relating to the Business: Company has filed the Draft Red Herring Prospectus dated November 08, 2024 with the SME Exchange of NSE Limited. The proposed listing on EMERGE platform of the Exchange pursuant to Initial Public Offer was returned as per the `Exchange's Guidelines for returning of Draft Offer Documents filed with the Exchange for listing on NSE Emerge Platform.
- Risks Relating to the Business: The company's Top 1, 3, 5 and 10 Suppliers contribute a significant portion of its raw material consumption during the current and previous financial years. Any dispute with one or more of them may adversely affect the company's business operations.
- Risks Relating to the Business: The Company has negative cash flows in the past years from operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business.
- Risks Relating to the Business: The Company requires a significant amount of working capital for a continuing growth. The company's inability to meet its working capital requirements may adversely affect the company's results of operations.
- Risks Relating to the Business: The company's 100% revenues came from one state for the stub period January 31, 2026 and for the year ended March 31, 2025 and the financial year ended 31st March 2024, 2023. Any loss of business from one states may adversely affect its revenues and profitability.
- Risks Relating to the Business: There are certain discrepancies and non-compliances noticed in some of its statutory compliances reporting and/or records relating to filing of returns with the concerned Registrar of Companies.
- Risks Relating to the Business: The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
- Risks Relating to the Business: Challenges in project execution, including unforeseen delays, resource shortages, and complex regulatory requirements, can jeopardize timely delivery and client satisfaction. Failures to meet deadlines may result in financial penalties, damaged reputations, and lost future business opportunities.
- Risks Relating to the Business: The company operates in a competitive industry and as such the company's may not be successful in bidding for and winning bids for various projects to grow its business, which may have a material adverse effect the company's business, financial condition, results of operations and prospects.
- Risks Relating to the Business: Any disruption or shortage in the supply of raw materials or equipment could delay project timelines, increase costs, and negatively affect its ability to meet contractual obligations, ultimately impacting the company's business performance.
- Risks Relating to the Business: For securing certain projects, the company has to provide bank guarantees to its clients. Failing to secure these guarantees
- Risks Relating to the Business: The Company's main source of revenue comes from projects in India that are initiated or approved by government authorities and other organizations funded by the Government of India (GoI) or state governments or Government entities. A significant majority of our income comes from agreements with a small number of government entities. If there are unfavorable changes in the policies of the central or state government, it could result in the closure, termination, restructuring, or renegotiation of its contracts, potentially impacting our business and financial performance significantly.
- Risks Relating to the Business: The company has certain outstanding litigations against the company, an adverse outcome of which may adversely affect its business, reputation and results of operations.
- Risks Relating to the Business: The Company is dependent on third parties for the supply of raw materials required for its projects and is exposed to risks relating to fluctuations in commodity prices and shortage of raw material. Further, the company does not have any long-term supply agreements with the raw material providers.
- Risks Relating to the Business: The company does not own the registered office and other office from where the company carries out its business activities. Any dispute in relation to use of the premises could have a material adverse effect on the company's business and results of operations.
- Risks Relating to the Business: In the EPC sector, obtaining bank guarantees (BG) or corporate guarantees is a standard requirement for participating in government tenders and ensuring the performance of ongoing contracts. The result is a substantial amount of capital being locked away for the duration of the contract, which can strain the company's liquidity and hinder its ability to reinvest in business operations.
- Risks Relating to the Business: The company has total indebtedness of Rs. 3,917.87 lakhs as on period ended January 31, 2026 and Rs.3,384.48 lakhs for the per year ended March 31, 2025. If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of our financing agreements, it may adversely affect its business, credit rating, reputation, prospects, results of operations, cash flows and financial condition.
- Risks Relating to the Business: The company's has in the past entered into related party transactions and the company's may continue to do so in the future.
- Risks Relating to the Business: Risks inherent to power sector projects could materially and adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: The construction, operation and maintenance of its transmission systems involves significant risks that may cause injury to people or property and that may lead to significant disruption to the company's business and consequent decreases in the company's revenues.
- Risks Relating to the Business: Due to the long construction periods of the company's power transmission systems, the operation and maintenance costs of its projects may change significantly after commissioning of the assets. As the terms and conditions, including the fee structure are generally fixed, the company's may not be able to offset increases in costs, including operation and maintenance costs.
- Risks Relating to the Business: The company's Promoters and members of Promoter Group have mortgaged their personal properties and provided personal guarantees for its borrowings to secure its loans. The company's business, financial condition, results of operations, cash flows and prospects may be adversely affected by the revocation of all or any of the personal guarantees provided by its Promoters and members of Promoter Group in connection with the Company's borrowings.
- Risks Relating to the Business: Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 96 of this Red Herring Prospectus, the Company's management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
- Risks Relating to the Business: The company's Promoters, Directors including Independent Directors does not have any prior experience of directorship in the listed company.
- Risks Relating to the Business: The company relies on third-party service providers, vendors and various intermediaries, including logistics providers and port authorities, to facilitate key aspects of its operations. Any unsatisfactory services, disruptions, or failures to maintain strong relationships with these partners could adversely affect the company's operational efficiency and business continuity.
- Risks Relating to the Business: The deployment of funds raised through this Issue shall be monitored by the Monitoring Agency appointed by the Company and shall not be solely dependent on the discretion of the management of the Company..
- Risks Relating to the Business: The Company does not have obtained work completion certificates for most of its completed projects secured from clients. Reliance has been placed on the declarations, information, work orders, invoices and TDS returns available with the company for the completed projects included in this Red Herring Prospectus.
- Risks Relating to the Business: The company's on-going and the company's future projects are exposed to various implementation risks & uncertainties and may be delayed, modified or cancelled for reasons beyond its control which may materially and adversely affect its business, reputation, profitability, financial condition and results of operation.
- Risks Relating to the Business: The company's inability to effectively manage project execution may lead to project delays or their termination which may adversely affect its business and results of operations.
- Risks Relating to the Business: The company's inability to effectively manage its growth or to successfully implement the company's business plan and growth strategy could have an effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The average cost of acquisition of Equity shares by the company's Promoters is lower than the Issue price. The company's promoters average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below.
- Risks Relating to the Business: The company's lenders have charge over its movable properties in respect of finance availed by the company.
- Risks Relating to the Business: The company may be unable to adequately protect its intellectual property and may be subject to risks of infringement Claims.
- Risks Relating to the Business: Bigger Tenders above certain prescribed limit, eligibility to participate is contingent on forming Joint Venture (JV) partnerships rather than sole participation. This requirement introduces several complexities that could significantly affect its business operations and contractual relationships.
- Risks Relating to the Business: Retention of contract value by the Government till the end of warranty period can significantly impact the company's cash flow and revenue collection.
- Risks Relating to the Business: The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, the company may not be able to respond to business opportunities, challenges or unforeseen circumstances.
- Risks Relating to the Business: Impact on Cash Flow and Project Timelines due to delays in Procurement of Transformers and certain selective critical equipment and due to Advance Payments to acquire such equipment necessary for the project.
- Risks Relating to the Business: The company's success largely depends upon the knowledge and experience of its Promoters, Directors, the company's Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company's Promoter, Directors, Key Managerial Personnel, Senior Management or the company's ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: If the company is not able to attract and retain sufficient qualified and trained personnel at the Company which may adversely affect its business.
- Risks Relating to the Business: The Company has not entered into any written agreements or contracts with the company's suppliers for purchase of its raw material at the company's sites.
- Risks Relating to the Business: The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.
- Risks Relating to the Business: The company's proposed schedule of the implementation of the Objects for which funds are being raised in the public issue is subject to risk of unanticipated delays in implementation.
- Risks Relating to the Business: In case of the company's inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company's business.
- Risks Relating to the Business: The company's results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from, or invoice its unbilled services to, or retention money to the company's clients.
- Risks Relating to the Business: The company may be unable to identify or acquire new projects and the company's bids for new projects may not always be successful, which may stunt its business growth.
- Risks Relating to the Business: The company's insurance policy may not be adequate to cover all the losses which a business could incur. Any inability to maintain adequate cover from material adverse incidents may adversely affect its operation and profitability.
- Risks Relating to the Business: The company has to update the name of the company in some of the statutory approvals and certificates due to the Change in the name upon conversion of the Company into Public Limited Company.
- Risks Relating to the Business: Frequent changes in the company's Statutory Auditors may affect the continuity of its audit process and could be perceived adversely by investors.
- Risks Relating to the Business: The Company's auditor has issued a qualified opinion on the financial statements for the fiscal year ended 2023-24 and 2024-25. The qualification pertains to the Company recognizing revenue and purchases gross of GST and writing off of advances which could result in affecting the profit and taxation position of the Company.
- Risks Relating to the Business: Legal proceedings may be pending against the Company and may expose the company to potential liability.
- Risks Relating to the Business: The company's business requires the company to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failures to obtain and renew them in a timely manner may adversely affect its business operations.
- Risks Relating to the Business: In addition to normal remuneration, other benefits and reimbursement of expenses to the company's Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and the company's Group Company / Entities.
- Risks Relating to the Business: If the company is unable to manage its growth effectively and further expand into new markets the company's business, future financial performance and results of operations could be materially and adversely affected.
- Risks Relating to the Business: The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of the company's Equity shares may decline below the issue price.
- Risks Relating to the Business: The company's ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Risks Relating to the Business: Failures or disruption of its information technology systems may adversely affect the company's business, financial condition, results of operations, cash flows and prospects.
- Risks Relating to the Business: Certain information contained in this Red Herring Prospectus is based on management estimates and the company cannots assure you of the completeness or accuracy of the data.
- Risks Relating to the Business: Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Risks Relating to the Business: Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by the company's Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Risks Relating to the Business: The company coulds be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
- Risks Relating to the Business: QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
- Risks Relating to the Business: The company could faces business risk due to poor workmanship of the product or due to material supplied
