IPO closes on 25 Sep'26
Swastika Infra Limited
Minimum Investment
₹ 14,985 / 81 shares
Our Verdict:
Avoid
- Swastika Infra has scaled fast — revenue grew from ₹211.33cr (FY24) to ₹505.57cr (FY26) and PAT from ₹13.98cr to ₹41.43cr over the same period — with a healthy 8.23% PAT margin and a 14.07% EBITDA margin for an EPC business.
- The order book of ₹2,036.65 crore is roughly 4x FY26 revenue, giving reasonable near-term visibility, though nearly all of the fresh issue proceeds (₹128.09cr of ₹128.50cr) go toward working capital rather than debt reduction or capacity building, meaning the raise plugs a funding gap tied to project execution.
- Revenue is entirely tied to power-distribution EPC contracts with state utilities (WBSEDCL, MGVCL, APDCL, HPSEBL, UHBVN, JVVNL, UPCL, MSEDCL, RRVPNL) across six states — a concentrated client base of government/PSU counterparties with long payment cycles is a structural feature of this business, not a one-off risk.
About the company
Founded in
6 Aug'19
Managing director
Vinay Gupta
- Swastika Infra Limited is a Jaipur, Rajasthan-based infrastructure company engaged in Engineering, Procurement and Construction (EPC) for power distribution and related infrastructure services.
- The company follows an asset-light model with centralized procurement and executes projects for government power utilities across six Indian states, with some projects backed by World Bank funding or the Ministry of Power.
- As of the RHP, the order book stood at ₹2,036.65 crore across 18 ongoing projects, roughly 4x FY26 revenue.
- Promoters: Babulal Gupta (Chairman), Vinay Gupta (Managing Director), Ruchira Gupta, Biren Parnami, Manoj Modi and Vatsalya Gupta
STRENGTHS
- Asset-Light, Centralized Model: Operates an asset-light EPC model with centralized procurement, which can support scalability without proportionate capital intensity.
- Diversified Government Utility Base: Executes projects for nine state power utilities across six states, reducing dependence on any single utility or region within the broader government-client segment.
- Strong Revenue and Profit Growth: Revenue grew from ₹211.33 crore (FY24) to ₹505.57 crore (FY26), while PAT grew from ₹13.98 crore to ₹41.43 crore over the same period.
- Healthy Order Book Coverage: Order book of ₹2,036.65 crore is approximately 4x FY26 revenue, providing revenue visibility for the near term.
- Moderate Leverage: Debt-to-equity of 0.73x and total borrowings of ₹114.64 crore represent a moderate leverage position relative to the scale of operations.
RISK FACTORS
- Government/PSU Client Concentration: Revenue is entirely derived from power-distribution EPC contracts with government utilities, exposing the company to public-sector tendering cycles, budget constraints and long payment cycles typical of such counterparties.
- Working-Capital-Heavy Use of Proceeds: ₹128.09 crore of the ₹128.50 crore fresh issue is earmarked for working capital, meaning the raise addresses funding needs tied to ongoing project execution rather than debt reduction or new capacity.
- Execution and Subcontractor Risk: EPC projects carry execution-delay and cost-overrun risk, and the company's reliance on subcontractors introduces additional quality and scheduling risk across its 18 ongoing projects.
- First Public Issue — No Prior Trading History: This is the company's first public issue, so there is no existing market for the shares and no trading history to gauge post-listing price behavior.
- Promoter Stake Dilution: Promoter holding falls from 76.51% to 57.41% post-IPO, a meaningful reduction in promoter ownership concentration.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 160.88 crore
Fresh Issue
₹ 128.50 crore
OFS
₹ 32.38 crore
Price range
₹ 175 - 185
Lot size
81 shares
Issue Objective
- Net proceeds from the Fresh Issue of ₹128.50 crore are proposed to be used primarily for funding incremental working capital requirements (~₹90 crore of net proceeds), with the balance for general corporate purposes. The Offer for Sale of ₹32.38 crore accrues to the selling shareholder, not the company.
Dates
Bidding open
23 Sep'26
Bidding close
25 Sep'26
Allotment date
28 Sep'26
Refund date
29 Sep'26
Listing
30 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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