Safe Enterprises Retail Fixtures Ltd. IPO: Key Details

Safe Enterprises Retail Fixtures

• Safe Enterprises Retail Fixtures is coming out with an initial public offering (IPO) of 1,23,00,000 equity shares in a price band Rs 131-138 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 5 and is priced 26.20 times of its face value on the lower side and 27.60 times on the higher side.
• Book running lead manager to the issue is HEM Securities.
• Compliance Officer for the issue is Mohini Raju Waghade.

Profile of the company

Safe Enterprises Retail Fixtures is engaged in the business of designing, manufacturing, supplying and installation of shop fittings and retail fixtures, offering a wide range of customized in-store solutions across multiple retail segments such as fashion & apparels, electronics, departmental store etc. It is merchandising solution providers addressing challenges that retailers and brand marketers face in the rapidly evolving retail industry for display, placements, storage and safety of the products, thus, providing shop fitting solutions from conceptual design and prototyping to manufacturing and installation, tailored to meet the specific needs of its customers. It also offers the innovative shop fittings solutions including modular, electrified shop fittings that integrate seamlessly with various digital technologies such as LED lighting, digital screens, display stands etc. for retail outlets.

The company is certified with ISO 9001:2015 for Quality Management and ISO-10001:2018 for Quality Management and Customer Satisfaction and has well established manufacturing facilities and design capabilities to create the various different kinds of shop fittings and retail fixtures based on a combination of its standardised engineered components and customer specifications. It has 15 designs registered under the Designs Act 2000. Design and Development is an integral part of its business enabling it to provide innovative and functionally appealing shop fitting components which are used within customised retail fixtures to create unique retail experiences. As of March 31, 2025, it has 15 experienced employees in its design and project team. Its manufacturing units are fully equipped to carry out processes such as prototyping, metal fabrication, wood working, powder coating, painting, assembling, testing, dismantling & packing etc.

Proceed is being used for:

• Funding the capital expenditure requirements towards setting up of a new manufacturing unit
• Investment in its Subsidiary, Safe Enterprises Retail Technologies Private Limited for financing its capital expenditure requirements in relation towards installation of additional plant and machinery
• Meeting working capital requirements of the company
• Investment in its subsidiary Safe Enterprises Retail Technologies Private Limited to meet working capital requirements
• General corporate purpose

Industry Overview

India’s interior design industry has experienced a transformation over the past few decades. Driven by rapid urbanisation, rising disposable incomes and evolving lifestyle preferences, the industry has emerged as a crucial contributor to the country’s economy. The future of the Indian interior design market appears exceptionally promising, with industry experts projecting a market size of $81.2 billion by 2030, translating into a significant CAGR of 14.3%. The commercial interior design segment is the largest market with a share of around 75% as of 2023; it is also the fastest-growing segment in the country. Growth in this segment is driven by India’s booming commercial real estate market. Also, India is experiencing a transition in its work culture, in which the office interior plays an important role. Professional interior design helps make office spaces more comfortable and aligned with the client’s brand philosophy.

India’s expanding middle class with its higher-than-before disposable incomes has played an important role in the development of the interior design industry. The spending power of people has increased, leading to an upsurge in demand for services such as interior design. This has resulted in more opportunities for interior designers and companies, thus driving competition and promoting innovation within the industry. India’s urban population is growing rapidly. Data from the World Bank shows that India’s urban population increased from 31.16% of the overall population in 2011 to 34.03% by 2020 and is estimated to reach 40.0% by 2030. The increase in urban population has fuelled a surge in the need for residential properties while increasing workforce amid a booming economy has compelled companies to invest more in their infrastructure.

India’s real estate market was worth $280 billion in 2023 and is set to rise to $562 billion by 2032. The rise in urban population and growth in real estate market directly links with interior design service requirements as homeowners and businesses always seek attractive and functional workspaces. Property sales in India in CY2023 reached record highs, hitting 26% YoY growth with 271,818 units sold across the top seven cities in the country. As real estate prices soar, effective space management becomes essential. Professional interior designers optimise smaller areas, thus enhancing functionality and aesthetics, making the most of limited space in modern living. 

Pros and strengths

In-house product manufacturing capabilities: Currently, the company operates from its manufacturing units situated in Maharashtra. It has comprehensive in-house manufacturing capabilities. Its operations involve metal fabrication, wood works, carpentry process, painting, powder coating etc. for manufacturing of shop fittings and retail fixtures, ensuring quality of products. All the three manufacturing units are well equipped with required machinery and tools for manufacturing multi material products having a combination of wood and metal. All raw materials procured for its manufacturing activities are sourced from trusted vendors and its quality control team applies quality measurements to ensure low rejection rate such that its finished product confirms to the exact requirement of its customers and successfully passes all validations and quality checks.

Established relationships with customers across various geographical locations: Its product portfolio and quality assurance has helped it to establish strong relationships with its major customers. It has established and will continue to focus on strengthening long-standing relationships with customers across various brands that it caters to. The company has diversified revenue from multiple geographical locations across India and a portion of revenue from outside India such as USA, UAE, Oman etc. Currently, it markets its products to more than 25 states within India and gradually it intends to expand its business operations to other geographical locations as well. Its presence in multiple geographies not only helps it in expanding its customer base but also helps it by keeping itself in tune with the latest technological advancements world-wide.

Consistent focus on quality: Quality is a pre-requisite for a positive consumer experience and long-term brand loyalty. This philosophy has formed the foundation of the expansion and diversification of its product portfolio since its inception. Its focus on quality is maintained right from the sourcing of raw materials to the product manufacturing and installation stage, which is subject to a review and monitoring process undertaken at its manufacturing units. It has a dedicated quality assurance team of 04 employees, as on March 31, 2025, which closely monitors the quality of its products. Further, its manufacturing unit has accreditations such as ISO 9001:2015 for Quality Management and ISO-10001:2018 for Quality Management and Customer Satisfaction. These certifications provide assurance to its customers for the quality and durability of its products.

Risks and concerns

Maximum revenue comes from limited customers: The company is majorly dependent on its one largest customer for sale of its products who has contributed to around 84.44%, 85.86% and 76.37% of its revenue from operations for the Fiscal 2025, 2024 and 2023. Further, during the said periods, revenue generated from its top five customers was Rs 12277.61 lakh, Rs 8973.46 lakh and Rs 6543.88 lakh which represented 92.49%, 94.03% and 89.77% respectively of its revenues from operations. It has not entered into long term agreements with its largest customer and other top customers and the success of its business is accordingly significantly dependent on maintaining good relationship with them. Customers may also cancel their purchase orders for reasons beyond its control, such as changes in their preferences, their perception of the quality of its products and their financial situation. The loss of its significant top customer or customers could have a material adverse effect on its results of operations.

Dependent on limited number of suppliers: The company procures its raw material from various suppliers including its subsidiary company i.e. Safe Enterprises Retail Technologies Private Limited. For the Fiscal 2025, Fiscal 2024 and Fiscal 2023, purchases from its top ten suppliers amounted to Rs 3831.66 lakh, Rs 3374.55 lakh and Rs 3015.01 lakh respectively, which represented 63.86%, 70.88% and 75.65% of its total raw material purchases, respectively, for the said period. It does not have any long-term supply contracts with these suppliers and therefore, it cannot assure that it shall always have a steady supply of raw material at prices favorable to it. Any delay, interruption or reduction in the supply of raw materials required for its products may adversely affect its business, results of operations, cash flows and financial condition.

Geographical constrain: The company carries its entire operations from its manufacturing units located at Thane and Navi Mumbai, Maharashtra. Due to the geographical concentration of its manufacturing units at Maharashtra, its operations are prone to local, regional and environmental factors. Any materially adverse social, political or economic development, civil disruptions, or changes in the policies of the central government or state or local governments, may require a modification of its business strategy, or require it to incur significant capital expenditure or suspend its operations. Any such adverse development affecting continuing operations at its manufacturing units could result in significant loss due to an inability to meet customer orders and production schedules, which could materially affect its business reputation within the industry.

Outlook

Safe Enterprises Retail Fixtures designs, manufactures, supplies, and installs shop fittings and retail fixtures, providing a range of customized solutions across various retail segments such as fashion, electronics, and department stores. The company has in-house product manufacturing capabilities. It also has established relationships with customers across various geographical locations. On the concern side, the company’s business is dependent on the sale of its products to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Moreover, its business is working capital intensive and Inventories and trade receivables form a major part of its current assets. Failure to manage its inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.

The company is coming out with a maiden IPO of 1,23,00,000 equity shares of Rs 5 each. The issue has been offered in a price band of Rs 131-138 per equity share. The aggregate size of the offer is around Rs 161.13 crore to Rs 169.74 crore based on lower and upper price band respectively. On performance front, during the financial year 2024-25, the net revenue from operation of the company increased to Rs 13,831.31 lakh as against Rs 10,091.49 lakh in the Financial Year 2023-24 representing an increase of 37.06%. The main reason for the increase in revenue is due to increase in sale of shop fittings and retail fixtures. Moreover, the company reported restated profit after tax for the financial year 2024-25 of Rs 3,918.54 lakh in comparison to Rs 2,308.84 lakh in the financial year 2023-24.

The company markets its products to more than 25 states and union territories of which majority portion of the revenue comes from the state of Maharashtra followed by Karnataka & Telangana. Going forward, it intends to deepen penetration and strengthen its position in its existing key market areas such as Punjab, Rajasthan, Uttar-Pradesh, Gujarat, Uttarakhand, Delhi etc. Further, it seeks to tap other markets and increase its geographical presence by leveraging its experience in key market areas where it can provide cost advantages to its customers and distinguish itself from other competitors. It intends to cater to the increasing demand of its existing customers and also to increase its existing customer base by enhancing the reach of its products in different parts of the country. It aims to achieve this by adding value to its customers through innovative products, cost effective solutions, quality assurance, timely delivery and reliability.