ScaleSauce (Encompass Design India Limited) Makes Strong Debut with 90.00% Premium, Lists at ₹203.30 Against Weak Subscription

Encompass Design India Limited, incorporated in 2010 operating under brand name ScaleSauce building and scaling consumer brands in India focusing on home, living, and food segments manufacturing bed sheets, curtains, comforters, table linens, pillow covers, and sauces while trading agro-based products, cotton, and fabrics plus offering comprehensive digital and e-commerce solutions including marketing, technology, and operational support for direct-to-consumer brands and corporate clients, made a strong debut on NSE SME on December 12, 2025. After closing its IPO bidding between December 5-9, 2025, the company commenced trading with a premium of 90.00% opening at ₹203.30 and touched ₹203.30 (up 90.00%).

ScaleSauce (Encompass Design India Limited) Listing Details

ScaleSauce launched its IPO at ₹107 per share with minimum investment of 2,400 shares costing ₹2,56,800. The IPO received weak response with subscription of 2.19 times - individual investors at 1.69 times, QIB at 1.25 times, NII at 4.60 times.

First-Day Trading Performance

Listing Price: ScaleSauce opened at ₹203.30 representing premium of 90.00% from issue price of ₹107.00, touched high of ₹203.30 (up 90.00% hitting upper circuit) and low of ₹193.15 (up 80.51% hitting lower circuit), with VWAP at ₹203.10.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 37% and PAT surged 57% between FY24 and FY25, exceptional ROE of 50.26%, robust ROCE of 40.49%, RoNW of 33.13%, outstanding PAT margin of 19.75%, impressive EBITDA margin of 30.86% demonstrating operational excellence.

Diversified Business Model: Manufacturing home and lifestyle products plus food items under ScaleSauce brand, trading agro-based products creating multiple revenue streams, comprehensive digital and e-commerce solutions for brands offering marketing, technology, and operational support, agile and scalable business model.

Market Positioning: Strong brand with innovative products catering to modern urban Indian consumers, experienced leadership team, technology and data capabilities, business synergies across manufacturing, trading, and digital services verticals.

Challenges:

Weak Subscription Response: Just 2.19 times subscription with QIB at minimal 1.25 times and retail at 1.69 times indicating pre-listing skepticism, operating in highly competitive and fragmented home and lifestyle products segment.

Financial Concerns: Price-to-book of just 0.13x appears unusual, debt-to-equity of 0.44, ₹11.00 crore of IPO proceeds for debt repayment, company reported loss of ₹1.29 crore in FY23 before turnaround, significant promoter holding at 80.19% limiting free float, extreme listing premium of 90% creating valuation concerns about sustainability.

Utilisation of IPO Proceeds

Infrastructure: ₹11.49 crore for funding capital expenditure towards purchasing office, interior work, and refurbishment enhancing operational infrastructure and brand presence.

Working Capital and Debt: ₹7.29 crore for meeting working capital requirements supporting inventory management and business operations, ₹11.00 crore for repayment and prepayment of certain borrowings strengthening balance sheet, plus general corporate purposes.

Financial Performance

Revenue: ₹55.01 crore for FY25, growth of 37% from ₹40.15 crore in FY24, reflecting expanding sales of home and lifestyle products, food items under ScaleSauce brand, and trading of agro-based products across multiple channels.

Net Profit: ₹10.79 crore in FY25, strong growth of 57% from ₹6.88 crore in FY24, demonstrating operational leverage and improving profitability representing turnaround from loss of ₹1.29 crore in FY23.

Financial Metrics: Exceptional ROE of 50.26%, robust ROCE of 40.49%, debt-to-equity of 0.44, RoNW of 33.13%, outstanding PAT margin of 19.75%, impressive EBITDA margin of 30.86%, price-to-book of 0.13x, post-issue EPS of ₹7.12, P/E of 15.04x, net worth of ₹32.58 crore, and market capitalisation of ₹273.96 crore representing near-tripling from pre-IPO valuation driven by exceptional listing premium.