Telge Projects Makes Modest Debut with 3.43% Premium, Lists at ₹108.60 Against Moderate Subscription

Telge Projects Limited, the engineering design services provider specialising in BIM, structural engineering, and 2D drafting for global EPC firms, made a modest debut on BSE SME on October 3, 2025. After closing its IPO bidding between September 25-29, 2025, the company commenced trading with a 2.95% premium, opening at ₹108.10 and rising to ₹108.60 with gains of 3.43%.

Telge Projects Listing Details

Telge Projects Limited launched its IPO at ₹105 per share, with a minimum investment of 2,400 shares, costing ₹ 252,000. The IPO received a moderate response with a subscription of 2.99 times - individual investors at 1.72 times, NII at 2.75 times, and QIB at 5.41 times.

First-Day Trading Performance Outlook

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• Listing Price: Telge Projects share price opened at ₹108.10, representing a premium of 2.95% from the issue price of ₹105, and rose to ₹108.60, delivering gains of 3.43% for investors, reflecting cautious market sentiment toward the engineering services sector.

Growth Drivers and Challenges

Growth Drivers:

• Global Project Execution Capability: Executed projects across 11 countries, including Australia, Canada, Ireland, Malaysia, Singapore, the UK, and the USA, with established subsidiary Telge Projects Inc. in the USA, ensuring diversified geographic revenue streams.
• Comprehensive Service Portfolio: Wide-ranging offerings spanning BIM services, structural engineering design, material take-offs, 2D drafting, and architectural services with deep domain expertise and software capabilities serving EPC firms globally.
• Exceptional Financial Performance: Outstanding PAT growth of 103% to ₹5.38 crore and revenue growth of 105% to ₹25.65 crore in FY25, exceptional ROE of 67.29%, impressive ROCE of 56.22%, and strong margins with PAT margin of 21.45% and EBITDA margin of 32.97%.

Challenges:

• Aggressive Valuation Concerns: Post-issue P/E of 19.10x and elevated price-to-book value of 6.56x reflecting premium valuation in the highly competitive and fragmented engineering design services segment, requiring a sustained high growth trajectory.
• Small Scale Operations: Small paid-up equity post-IPO, indicating a longer gestation period for migration to the mainboard, limited operational scale with ₹25.65 crore revenue, and 166 employees raising scalability concerns.

Utilisation of IPO Proceeds

• Office Infrastructure: ₹8.73 crore for the purchase of additional office premises in Pune, Maharashtra, expanding operational capacity and establishing a stronger physical presence in key markets.
• Technology and Human Resources: ₹2.44 crore for computers, laptops, and software subscriptions, ₹4.18 crore for hiring manpower in India, and ₹4.86 crore for subsidiary investment in hiring manpower at Telge Projects Inc. in the USA.
• General Corporate Purposes: Supporting business operations, strategic initiatives, and expansion activities for sustained growth in the competitive engineering design services segment.

Financial Performance of Telge Projects

• Revenue: ₹25.65 crore for FY25, showing exceptional growth of 105% from ₹12.50 crore in FY24, reflecting strong market demand and successful business scaling in engineering design services.
• Net Profit: ₹5.38 crore in FY25, representing outstanding growth of 103% from ₹2.66 crore in FY24, indicating substantial operational leverage and margin strength in the engineering services business.
• Financial Metrics: Exceptional ROE of 67.29%, impressive ROCE of 56.22%, moderate debt-to-equity ratio of 0.83, outstanding PAT margin of 21.45%, impressive EBITDA margin of 32.97%, and estimated market capitalisation of ₹106.32 crore.