Msafe Equipments IPO

Msafe Equipments Limited, incorporated in 2019, operates in the manufacturing, sales, and rental of access and height-safety equipment. Its product portfolio includes:

• Aluminium scaffoldings

• Mild steel (MS) scaffoldings

• Aluminium ladders

• FRP ladders

These products are used in construction, infrastructure, industrial maintenance, and installation projects.

The company runs multiple manufacturing units in Greater Noida and focuses on in-house design, quality control, and customization. Over the years, it has expanded from trading to full-scale manufacturing, improving margins and operational control.

Key Strengths

• Integrated manufacturing capability

• Strong promoter experience

• Growing rental equipment business

• Focus on safety-compliant products

• Long-term customer relationships in infrastructure and construction sectors

India’s scaffolding and ladders market is witnessing rapid growth driven by infrastructure spending, metro rail projects, highways, and industrial expansion.

Growth Drivers

• Government infrastructure push

• Real estate revival

• Industrial safety regulations

• Growth in rental equipment model

Promoters:

• Pradeep Aggarwal

• Ajay Kumar Kanoi

• Vansh Aggarwal

• Rushil Agarwal

• Gaurav Ajay Kumar Kanoi

• Monika Agarwal

• Rajani Ajay Kanoi

They collectively retain majority ownership post-IPO, ensuring continuity of management and strategy.

Promoter Group Companies

• Mdeck Equipments Pvt Ltd

• MGRV Enterprises Pvt Ltd

• Msafe Construction Equipment Trading LLC (Dubai)

These entities operate in complementary or geographically distinct businesses and do not materially compete with Msafe Equipments.

Management combines industry experience with financial and operational expertise.

• Dependence on infrastructure and construction sector cycles

• High promoter shareholding may limit minority influence

• First public issue – no prior trading history

• Raw material price volatility (aluminium, steel)

• Regulatory and safety compliance risks

• Competitive pressure from unorganized players

Litigation Summary (₹ in lakhs)

No material criminal or tax litigation impacting solvency.

(₹ in Lakhs)

📈 Growth Trend

Revenue
FY23 ███
FY24 █████
FY25 ████████

Strong top-line and bottom-line growth due to manufacturing expansion.

Cash flows are reported using the indirect method.

• Operating cash flow positive due to higher profits

• Investing cash flow used for plant & machinery

• Financing cash flow reflects borrowings and equity infusion

Overall cash management is stable and improving.

Fresh Issue proceeds will be used for:

1. Setting up new manufacturing facility

2. Equipment for rental business

3. Working capital requirements

4. General corporate purposes

No proceeds from OFS go to the company.

Allocation:

• QIB: up to 50%

• Retail: minimum 35%

• NII: minimum 15%

Valuation is based on:

• Peer comparison

• EPS growth

• Industry CAGR

• P/E multiple benchmark

Expected valuation aligns with SME industrial manufacturing peers.

• Equity shares increase significantly

• Promoters retain majority control

• Improved net worth and reduced leverage

Primarily includes:

• Salary and remuneration

• Inter-company material supply

• Rental and support services

All transactions are disclosed and conducted at arm’s length.

Key contracts include:

• Offer Agreement

• Underwriting Agreement

• Market Making Agreement

• Registrar Agreement

• Escrow Agreement

• Monitoring Agency Agreement

• Independent directors appointed

• Audit Committee, NRC, Stakeholders Committee in place

• SEBI LODR compliance framework adopted

• Regular disclosures and internal controls

Management highlights:

• Revenue growth driven by capacity expansion

• Focus on rental segment for recurring income

• Improved margins from in-house manufacturing

• Expansion into MS scaffolding

• Risk mitigation through diversification

Outlook:
Management expects continued growth aligned with infrastructure development and industrial safety norms.