Msafe Equipments IPO Makes Strong Debut with 17.07% Premium, Lists at ₹144 Against Stellar 166.72x Subscription

Msafe Equipments Ltd, a Greater Noida-based company incorporated in 2019 engaged in manufacturing, sales, and rental of access and height-safety equipment used for safe working at heights with product portfolio including aluminium scaffoldings, mild steel (MS) scaffoldings, aluminium ladders, and fibre reinforced plastic (FRP) ladders catering to operational and safety needs across construction, maintenance, installation, repair, and infrastructure development activities, serving sectors such as construction, HVAC, MEP, electrical works, fire safety, interiors, made a strong debut on BSE SME on Wednesday, February 4, 2026. After closing its IPO bidding between January 28-30, 2026, the company commenced trading with a premium of 17.07% opening at ₹144.00 and touched high of ₹144.95 (up 17.85% from issue price).

Msafe Equipments Listing Details

Msafe Equipments launched its IPO at ₹123 per share with minimum investment of 2,000 shares costing ₹2,46,000. The IPO received exceptional response with subscription of 166.72 times - individual investors at 133.16 times, NII at 308.23 times, QIB at 117.97 times, total applications of 1,53,156.

First-Day Trading Performance

Listing Price: Msafe Equipments opened at ₹144.00 representing premium of 17.07% from issue price of ₹123.00, touched high of ₹144.95 (up 17.85%) before dipping to low of ₹136.80 (up 11.22%), trading around ₹143.30 (up 16.50%), with VWAP at ₹142.95, reflecting positive market sentiment with healthy buying interest delivering solid gains for IPO investors with turnover of ₹37.71 crore, traded volume of 26.38 lakh shares, and market capitalisation of ₹292.33 crore against pre-IPO market cap of ₹250.92 crore.

Growth Drivers and Challenges

Growth Drivers:

Diversified Product Portfolio: Wide range of access and height-safety equipment including aluminium scaffoldings, MS scaffoldings, aluminium ladders, and FRP ladders serving construction, HVAC, MEP, electrical works, fire safety, interiors, and warehousing sectors.

Pan-India Presence: Supplying products across 22 States and 3 Union Territories with established warehouse network in Maharashtra, Karnataka, Tamil Nadu, Gujarat, Punjab, and West Bengal ensuring nationwide reach and customer service.

Strong Financial Performance: Revenue growing from ₹29.71 crore in FY23 to ₹71.62 crore in FY25, exceptional ROE of 33.98%, ROCE of 21.21%, impressive PAT margin of 21.42%, strong EBITDA margin of 39.20%.

Challenges:

Greedy Pricing: Analyst notes issue appears greedily priced with profit margins raising eyebrows and concerns over sustainability going forward as company operates in highly competitive and fragmented segment.

Leverage Position: Total borrowings of ₹37.67 crore against net worth of ₹36.15 crore indicating moderate leverage, significant promoter dilution from 100% to 73.53% post-IPO.

Competitive Segment: Operating in highly competitive and fragmented height-safety equipment segment with multiple established players limiting pricing power.

Margin Sustainability: Exceptional profit margins of 21.42% PAT margin and 39.20% EBITDA margin may face pressure as competition intensifies in growing market.

Utilisation of IPO Proceeds

New Manufacturing Facility: ₹32.26 crore for funding capital expenditure towards setup of new manufacturing facility expanding production capacity.

Rental Equipment: ₹6.00 crore for funding capital expenditure for manufacturing of equipment for rental purpose strengthening rental business segment.

Working Capital: ₹8.00 crore for utilisation towards working capital requirements supporting manufacturing and rental operations.

General Corporate Purposes: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹49.07 crore for H1 FY26, ₹71.62 crore for FY25, significant growth from ₹48.34 crore in FY24 and ₹29.71 crore in FY23.

Net Profit: ₹10.50 crore in H1 FY26, ₹13.01 crore in FY25, growth from ₹6.55 crore in FY24 and ₹3.65 crore in FY23, demonstrating strong profitability improvement with post-IPO EPS of ₹10.29 and P/E of 11.95x.