Safety Controls Lists at ₹83, Up 1.68%

Safety Controls & Devices Ltd, incorporated in June 2015 specialising in EPC (Engineering, Procurement, and Construction) focusing on substations, solar plants, firefighting equipment, and hospitals for Ministry of Ayush operating as an engineering enterprise with ISO 9001:2015 certification catering primarily to government entities and power utilities into utility-scale solar and EV charging stations with 30 years of turnkey project experience, made a modest debut on BSE SME on Monday, April 13, 2026. The Safety Controls share price opened at ₹83.00 representing premium of 3.75% from issue price of ₹80.00, touched high of ₹84.40 (up 5.50%) before trading around ₹81.34 (up 1.68%).

Safety Controls Listing Details

Safety Controls launched its fresh issue IPO at ₹80 per share with minimum investment of 3,200 shares costing ₹2,56,000 raising ₹48 crore including ₹12.67 crore from anchor investors. The IPO barely scraped through with subscription of only 1.28 times - retail investors undersubscribed at 0.76 times, NII at 2.45 times, QIB at 1.31 times and total applications of merely 636.

First-Day Trading Performance

Listing Price: Safety Controls stock price opened at ₹83.00 representing premium of 3.75% from issue price, touched high of ₹84.40 (up 5.50%) before retracing to ₹81.34 (up 1.68%), with VWAP at ₹82.98. The modest listing delivered marginal gains with turnover of ₹11.92 crore, traded volume of 14.37 lakh shares, delivery of 100%, and market capitalisation of ₹161.27 crore against pre-IPO market cap of ₹158.62 crore.

Growth Drivers and Challenges

Growth Drivers:

Diversified EPC Services: Comprehensive offerings spanning substations, solar plants, firefighting equipment, and hospital construction for Ministry of Ayush with expansion into utility-scale solar and EV charging stations.

Strong Financial Growth: Revenue growing from ₹49.26 crore in FY23 to ₹103.50 crore in FY25 (2x growth), PAT growing from ₹0.43 crore to ₹8.99 crore, healthy ROCE of 33.73%, PAT margin improving to 12.64%, EBITDA margin of 24.04%.

Challenges:

Competitive Segment: Operating in highly competitive and fragmented EPC market with significant promoter dilution from 66.53% to 46.40% post-IPO.

Leverage Position: Debt-to-equity at 0.72 with borrowings of ₹39.18 crore against net worth of ₹54.47 crore requiring continued working capital funding.

Utilisation of IPO Proceeds

Working Capital: ₹31.50 crore for funding working capital requirements representing bulk of proceeds supporting EPC project execution.

Debt Repayment: ₹6.00 crore for repayment/prepayment of certain borrowings.

General Corporate Purposes: ₹5.64 crore for general corporate purposes.

Financial Performance

Revenue: ₹68.51 crore for 10 months ended January 2026, ₹103.50 crore for FY25, significant growth from ₹45.70 crore in FY24 and ₹49.26 crore in FY23, reflecting expanding EPC operations across substations, solar plants, and government infrastructure projects.

Net Profit: ₹8.52 crore for 10 months FY26, ₹8.99 crore in FY25, growth from ₹4.01 crore in FY24 and ₹0.43 crore in FY23, with post-IPO EPS of ₹5.16 and P/E of 15.51x. Investors tracking Safety Controls share price should note strong profitability turnaround with ROE of 21.17% and ROCE of 33.73% despite concerns over fully priced valuation in competitive EPC segment.

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