Mayasheel Ventures Ltd. IPO: Key Details

Mayasheel Ventures

• Mayasheel Ventures is coming out with an initial public offering (IPO) of 58,05,000 equity shares in a price band Rs 44-47 per equity share.
• The issue will open on June 20, 2025 and will close on June 24, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 4.40 times of its face value on the lower side and 4.70 times on the higher side.
• Book running lead manager to the issue is Narnolia Financial Services.
• Compliance Officer for the issue is Neelam Rani.

Profile of the company

Mayasheel Ventures is involved in the business of construction of Roads and Highways for NHIDCL (National Highways and Infrastructure Development Corporation) and other Government Departments. The company transacts the business to construct, build, alter, convert, improve, design, establish, develop, dismantle, reconstruct all types of technically complex constructions and high value projects like Express ways, National Highways, Flyovers, Bridges.

The company is a “Class A” government contractor issued by Uttar Pradesh Public Works Department (U.P.P.W.D.), which means it is qualified to take on large-scale and complex infrastructure projects. Its certification allows it to bid on high-value government contracts and execute them efficiently, ensuring compliance with regulatory standards. As a 'Class A' contractor, it has demonstrated the expertise, financial capability, and technical resources necessary to handle a wide range of projects, from road construction and highways to electrical works and large-scale civil engineering tasks.

Further, the company has also been involved in various electrical works, including the construction of electrical power houses, installation of streetlights, and development of transmission lines. Though the company has not generated any amount of revenue from these projects in three preceding financial years. However, it is actively seeking new opportunities or feasible assignments in this segment also. Currently, the company has three projects in hand with respect to the Electricals work projects.

Proceed is being used for:

• Funding capital expenditure requirements for the purchase of equipment/machineries
• Funding the working capital requirements of the company
• General corporate purposes

Industry Overview

India Roads and Highways Market was valued at $152.16 Billion in 2024 and is expected to reach $266.60 Billion by 2030 with a CAGR of 9.63% during the forecast period. Roads and highways are essential infrastructure that facilitate the movement of people, goods, and services. A road is a paved or unpaved route connecting different locations, typically used by vehicles, pedestrians, and cyclists. Roads vary in size and function, ranging from narrow rural paths to wide urban streets. Highways, on the other hand, are major roads designed for high-speed travel and long-distance transportation. They often have multiple lanes, controlled access points, and higher safety standards to accommodate heavy traffic. Highways can be categorized into expressways, freeways, and motorways, depending on their design and regulations. Both roads and highways are crucial for economic growth, social connectivity, and regional development.

India is witnessing a rapid expansion of expressways and greenfield highway projects to enhance connectivity, reduce congestion, and improve transportation efficiency. Expressways, which are high-speed, access-controlled roads, are becoming a key focus area due to rising vehicular traffic and increasing demand for faster travel. One of the most ambitious projects is the Delhi-Mumbai Expressway, which spans over 1,300 km and aims to reduce travel time between the two major cities from 24 hours to 12 hours. Other major expressway projects include the Bengaluru-Chennai Expressway, Ganga Expressway, and Ahmedabad-Dholera Expressway, among others. These projects are designed with advanced features such as automated toll collection, emergency response systems, and dedicated corridors for electric vehicles.

India’s road and highway sector is attracting massive investments from both domestic and international sources. The government has allocated substantial funds under initiatives like Bharatmala Pariyojana, National Infrastructure Pipeline (NIP), and Pradhan Mantri Gram Sadak Yojana (PMGSY) to develop highways, expressways, and rural roads. Additionally, foreign direct investment (FDI) in India’s roads and highways sector is increasing, with global infrastructure companies and private equity firms showing interest in public-private partnership (PPP) projects. International players are also collaborating with Indian construction firms to build world-class highways and smart road networks. To further attract investment, the government has introduced monetization initiatives such as the National Monetization Pipeline (NMP), which allows private companies to lease existing highway assets and generate revenue. This move not only provides funds for new infrastructure projects but also improves asset utilization and efficiency. 

Pros and strengths

Strong order book of roads, highways and bridges: As on March 31, 2025, the company has an order book of Rs 20,160.19 lakh and it has sufficient resources for their execution. Consistent growth in its order book has happened due to its continued focus on roads and highways and its ability to successfully bid and win new projects. Its experience in execution of roads, highways, bridges and reputation for quality and timely delivery as well as the price competitiveness has enabled it to successfully bid and win projects.

Strong project management and execution capabilities: The company’s goal is to use its project management and execution capabilities to accomplish its projects on schedule while keeping high construction quality. The company places great emphasis on executing each project in strict compliance with the work description outlined in the contracts, while adhering to its high standards of construction quality. Further, the company ensures that the project is completed with the given time or even before the same.

Quality assurance: The company is dedicated towards quality of its products, processes and input raw material. It adheres to quality standards as prescribed by its clients to meet the desired result. It dedicates resources for quality assurance to ensure that quality norms are continually met. It also has quality control checks before any consignment of raw material is accepted since it has a direct impact on the quality of its services. Further, it obtains approval from the concerned department for the source of its raw material purchases and their quality. Additionally, the company is an ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified Company, issued by Paramount Quality Certification accredited by “Scotland Accredited Services Limited”, in compliance with quality management system, Environmental Management System and Occupational Health and Safety Management Systems respectively.

Risks and concerns

Majority of revenues from operations are majorly derived from the northeastern estate: The company’s business operations span various regions across India. Despite this diversified presence, it has a significant dependency on the northeastern region states Assam, Manipur and Nagaland which contributes 95.63%, 93.24%, and 96.59% to its total revenue for the financial years ending on March 31, 2025, March 31, 2024, and March 31, 2023, respectively. Relying heavily on Northeastern region states, i.e., Assam, Manipur and Nagaland, exposes it to regional economic fluctuations, regulatory changes, and local market dynamics. Adverse conditions such as economic downturns, political instability, or natural disasters specific to that region could significantly impact its revenue stream and also any decline in the economic prosperity or changes in regulations within that particular region could negatively affect its financial performance.

Business is subject to monsoon season: The company’s business is subject to environmental factors, particularly monsoon season in each fiscal year can impede its operations and projects. This may lead to reduced activity, continued operating expenses, delays in project-related tasks, and potential damage to project sites or material delivery delays. These fluctuations can negatively impact its liquidity, business, financial condition, and results of operations. However, to mitigate the risk, the company develops pre-monsoon planning, including rescheduling critical tasks, securing proper drainage, and protecting materials, on-site safety measures and other required planning help to minimize delays and damage.

Business requires substantial working capital: The company’s business operations require a significant amount of working capital. In its business, working capital is often required to finance the procurement of raw material, payment of wages and salaries, site operations, and transportation and logistics. In the event, it is unable to source the required amount of working capital, it might not be able to efficiently satisfy the demand of its clients in a timely manner or at all. Even if it is able to source the required amount of funds, it cannot assure that such funds would be sufficient to meet its cost estimates, which could have adverse effect on its financial conditions and results of operations.

Outlook

Mayasheel Ventures constructs roads and highways for NHIDCL and other government departments. The company engages in constructing, altering, and developing complex projects like expressways, highways, flyovers, and bridges. The company has strong order book of roads, highways and bridges. It also has strong project management and execution capabilities. On the concern side, majority of the company’s revenues from operations are majorly derived from the northeastern estate i.e., Assam, Manipur and Nagaland. Any adverse developments affecting its operations in these states could have an adverse impact on its revenue and the results of operations. The company’s business is subject to monsoon season and other environmental factors, that can adversely affect its business and result of operations.

The company is coming out with a maiden IPO of 58,05,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 44-47 per equity share. The aggregate size of the offer is around Rs 25.54 crore to Rs 27.28 crore based on lower and upper price band respectively. On performance front, revenue from operations for the financial year 2024-2025 stood at Rs 17,100.81 lakh whereas for the financial year 2023-24, it stood at Rs 13,032.34 lakh representing an increase of 31.22%. Moreover, the restated profit after tax for the financial year 2024-2025 stood at Rs 1,133.47 lakh whereas for the financial year 2023-24, it stood at Rs 651.35 lakh representing an increase of 74.02%.

The company has successfully completed more than 65 Projects. Currently, the company is focused only certain states in India. It plans to expand its presence in other Indian states for the growth of its business. Currently, it is focusing on the Assam and Nagaland. However, the company has received certain the project under its hand, which are based in the other states also. Further, it is constantly working on identifying new clients based in different states in order to expand its geographical reach. It carefully chooses new locations for expansion, focusing on areas where it can maintain high-quality service without facing major delays or disruptions due to local and site-specific factors.