Mayasheel Ventures, formerly known as Mayasheel Construction, is entering the public markets with a 100% book-built IPO on NSE Emerge. Originating as a regional EPC contractor with strong footholds in Uttar Pradesh’s civic infra ecosystem, the company is attempting a transformation into a scalable infra platform. Over FY23–FY25, the company has grown its PAT at a 51.4% CAGR, while demonstrating improving capital productivity and operating margins. As part of this Mayasheel Ventures IPO review, it’s clear the offering aims to fuel the company’s next leg of growth — but the key question remains: Can the business evolve beyond localized projects and working capital risk?
🔢 Mayasheel Ventures IPO Snapshot
- Issue Type: Fresh Issue (No OFS)
- Equity Shares Offered: 58,05,000 shares
- Face Value: INR 10 per share
- Price Band: INR 44 – INR 47 (Implied valuation of INR 255 – 273 Cr post-issue)
- Market Maker Reservation: 2,91,000 shares
- Net Public Issue: 55,14,000 shares
- Post-Issue Dilution: ~26.33% of equity
- Use of Proceeds:
- INR 4.00 crore allocated for capital expenditure (purchase of machinery/equipment)
- INR 14.00 crore toward working capital augmentation
- Balance for General Corporate Purposes
- BRLM: Narnolia Financial Services
- Registrar: Maashitla Securities
- Bid Dates: 20 – 24 June 2025
- Listing Platform: NSE Emerge
Mayasheel Ventures IPO Review: Business Model Analysis
Mayasheel Ventures Limited (MVL) specializes in the construction of roads, highways, bridges, and supporting electrical infrastructure—mainly for central and state government clients in India. It holds a “Class A” contractor license from the Uttar Pradesh Public Works Department, authorizing it to undertake large-scale and technically complex government projects.
📦 Business Segments & Revenue Streams
MVL operates primarily under two verticals:
1. Construction Segment (≈99% of revenue in FY25)
- Roads and highways
- Bridges and flyovers
- Sewerage and drainage systems
2. Electrical Works (≈1% of revenue in FY25)
- Powerhouses
- Transmission lines
- Streetlights
- Meter installations
Revenue Model
- EPC (Engineering, Procurement, Construction) model: Turnkey project responsibility
- BOQ (Bill of Quantities) model: Execution based on itemized specifications
The company’s strong focus on EPC contracts allows it to own the full project lifecycle—from design to delivery—improving control and profit margins. However, the electrical segment is underdeveloped and presents an opportunity for future growth and diversification.
📚 Order Book & Project Experience
| Metric | Value (INR Crore) | Insight |
|---|---|---|
| Order Book (Mar 2025) | 201.60 | Signifies robust future revenue pipeline |
| Completed Projects | 829.80 | Demonstrates credibility and experience |
| Ongoing Projects | 4 major road projects across NE & UP | Balanced regional diversification |
A healthy order book is a forward-looking metric showing visibility of cash flows and operational workload. MVL’s project experience strengthens its qualification for larger tenders.
🌐 Geographic Reach
| State | FY25 Revenue (INR Crore) |
|---|---|
| Assam | 92.00 |
| Nagaland | 70.02 |
| Manipur | 1.51 |
| Arunachal Pradesh | 1.48 |
| Uttar Pradesh | 6.00 |
MVL has strategically positioned itself in Northeast India, a region currently receiving heavy infrastructure investments from the central government. This niche geographic specialization can offer sustained business for the medium term.
🏛️ Client Mix and Work Allocation
| Sector | FY25 Revenue (INR Crore) |
|---|---|
| Government (Direct) | 165.47 |
| Subcontract (Private) | 5.54 |
MVL is almost entirely dependent on government projects. While this ensures a steady pipeline backed by national priorities, it also exposes the firm to policy delays, payment cycles, and limited client diversity.
🔩 Operational Capabilities
- Fully integrated EPC contractor
- Owns construction equipment (e.g., graders, crushers, batching plants)
- In-house design, procurement & quality assurance teams
- ISO 9001, ISO 14001, and ISO 45001 certified
These operational strengths allow MVL to reduce reliance on third parties, control quality, and meet tight deadlines—an important differentiator in government infrastructure contracting.
🤝 Joint Ventures & Scalability
- JV with JSP Projects for NH-202K (Nagaland) – now executing 100% of the work solo
- JV with B.P. Construction (Uttar Pradesh) – handling 30% of the project scope
MVL leverages joint ventures to participate in larger or more complex tenders. While this is a smart scalability strategy, full project execution (as achieved in Nagaland) offers higher margins and control.
🧮 Efficiency Metrics
| Metric | Aug 2023 | Mar 2025 | Commentary |
|---|---|---|---|
| Bid Capacity | 203 | 411.78 | Doubled capacity shows financial and technical growth |
| Net Worth | 13.93 | 23.39 | Indicates improved solvency |
| Avg. Annual Turnover (5 yrs) | 72.41 | 99.63 | Rising credibility in large-scale tenders |
Increased bid capacity reflects stronger financial health and higher technical eligibility, which opens the door to more significant and higher-value contracts.
⚠️ Key Risks & Challenges
| Risk Area | Description |
|---|---|
| Payment Delays | Common in public sector projects |
| Land Acquisition Issues | Can stall or delay project timelines |
| Environmental Clearances | Especially critical in ecologically sensitive NE states |
| Overdependence on Govt. | Limits client base and revenue flexibility |
MVL’s challenges are typical of infrastructure firms in India. However, proactive risk management—like design optimization, equipment ownership, and diversification—can mitigate long-term exposure.
📈 Growth Strategy Outlook
- Geographic Expansion: Targeting more contracts in Assam, Nagaland, and other emerging states.
- Electrical Segment Growth: Planning to bid more in EV infra, lighting, and transmission.
- Technology Investment: Focus on machinery modernization and digital bidding tools.
- Profit Margin Enhancement: Through cost efficiencies, better procurement, and JV optimization.
🔍 Mayasheel Ventures IPO SWOT Summary
| Strengths | Weaknesses |
|---|---|
| Government-certified Class A status | Weak private sector/client diversification |
| Strong project execution record | Low revenue from non-core segments |
| High order book visibility | Geographic concentration (NE heavy) |
| Opportunities | Threats |
|---|---|
| Infra push under Gati Shakti/NIP | Land, clearance & environmental delays |
| Green & EV corridor development | Payment risk from public agencies |
| FDI interest in infra partnerships | Tender competition from large players |
📊 Mayasheel Ventures IPO Review: Financial Analysis
Core Financials
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 126.37 | 130.32 | 171.01 |
| EBITDA | 15.43 | 17.30 | 25.67 |
| PAT | 4.75 | 6.51 | 11.33 |
| Net Worth | 18.06 | 24.09 | 28.83 |
Margins & Efficiency Ratios
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| EBITDA Margin | 12.21% | 13.28% | 15.01% |
| PAT Margin | 3.76% | 5.00% | 6.63% |
| ROCE | 19.35% | 20.43% | 28.62% |
| ROE | 29.57% | 30.90% | 42.83% |
Capital Structure & Liquidity
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Debt-Equity | 2.22 | 1.75 | 1.60 |
| Current Ratio | 0.96 | 1.08 | 1.18 |
| Interest Cover | 2.36 | 2.79 | 3.72 |
MVL has maintained healthy and consistent EBITDA margins (~13%), which indicates efficient project execution and cost control. The sharp revenue growth in FY25 (+31%) is a strong indicator of operational scale-up and improved order conversion.
- Healthy Margin Trajectory: PAT margins nearly doubled over three years.
- Strong ROCE Lift: From 19.4% to 28.6%, suggesting capital is being deployed more productively.
- Improved Liquidity: Current ratio >1.0 for the first time in FY25 — reflects better balance sheet hygiene.
- Debt Trending Down: Working capital optimization appears effective, but needs to be sustained.
📉 Mayasheel Ventures Valuation & Peer Comparison
| Metric | Mayasheel | Rachana Infra | AVP Infracon |
|---|---|---|---|
| FY25 Revenue (INR Cr) | 171.01 | 29.73 | 272.45 |
| EBITDA Margin | 15.01% | 8.62% | 21.68% |
| PAT Margin | 6.63% | 1.01% | 12.15% |
| ROCE | 28.62% | 1.43% | 35.17% |
| Debt-Equity | 1.60 | 5.17 | 1.44 |
Valuation Take:
- Implied P/E is ~6.4x FY25 EPS at cap price (EPS: INR 7.23)
- While not as margin-rich as AVP, Mayasheel’s pricing looks attractive relative to its growth, ROCE and financial de-risking.
Mayasheel Ventures IPO Review: Outlook for FY25–FY30
The financial and operational trajectory of Mayasheel Ventures suggests a company entering a critical inflection point. With improving return ratios, declining leverage, and higher project execution velocity, the next five years will determine whether the company cements itself as a mid-tier infrastructure contender or plateaus as a regional contractor. This scenario analysis is based on current performance trends, industry dynamics, and management intent as per the RHP.
🎯 Bull Case: High Execution, Strong Infra Tailwinds
If Mayasheel can replicate its FY25 growth pace while maintaining margin discipline and expanding its project base beyond Uttar Pradesh, the upside potential is significant.
- Revenue CAGR: 20% → Estimated revenue by FY30: INR 425–450 Cr
- EBITDA Margin: Maintained at ~15% → Operating profit of ~INR 65–70 Cr
- PAT: INR 30–32 Cr → At 12–13% net margins
- Return Ratios: ROE/ROCE sustained above 30%, driven by operating leverage
- Balance Sheet: Debt-equity improves to <1.0 as internal accruals support capex
- Growth Drivers: Geographic diversification, pre-qualification for higher-value tenders, improved fund flow cycles in public infra
This scenario assumes efficient working capital management and proactive bid pipeline building.
✏️ Base Case: Steady Growth, Controlled Risks
This is the most probable trajectory assuming modest execution improvements and stable project flow in existing geographies.
- Revenue CAGR: 14–16% → FY30 Revenue: INR 350–375 Cr
- EBITDA Margin: 13–14% → Operating profit: INR 45–52 Cr
- PAT: INR 20–22 Cr
- Return Metrics: ROCE stabilizes around 22–25%, ROE at ~25–28%
- Balance Sheet: Gradual deleveraging; D/E at ~1.0–1.2 by FY30
This path reflects prudent execution but limited breakout unless regional expansion or strategic partnerships materialize.
⚠️ Bear Case: Delays, Margin Compression, Stagnation
A downside scenario stems from delayed payments, commodity price surges, or order book stagnation. It reflects the challenges of a project-based business with high working capital intensity.
- Revenue: Stalls below INR 250 Cr
- EBITDA Margin: Drops below 12% due to cost overruns or delayed execution
- PAT: Falls under INR 10 Cr
- Cash Flow Stress: Negative operating cash flows could force higher borrowing
- Return Ratios: ROCE dips below 15%, ROE compressed to 10–12%
Such a scenario would trigger re-rating risk and undermine investor confidence. It underscores the need for Mayasheel to diversify client base and maintain financial discipline.
In summary, the business exhibits high operating leverage and return potential but is sensitive to execution, government fund flows, and regional dependency. The IPO capital must be used to build resilience — both operationally and financially — to unlock its 5-year upside.
✅ Final Verdict
Mayasheel Ventures is a compelling infra microcap with:
- Clear execution efficiency
- Improving cash flow control
- Sharply rising return metrics
But investors should remember:
- It is not yet diversified geographically or sectorally.
- Government dependency is very high.
- Order book sustainability and receivables turnover are the two key post-IPO variables to track.
This IPO is a calculated bet on operational leverage and infra tailwinds. If managed prudently, Mayasheel could 3–5x investor capital in 5 years — but it demands vigilance, not blind faith.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.