About Safecure Services
Incorporated in 2012 as ‘Safesecure Services Private Ltd.’, the company provides security and event services, e-surveillance, repair and maintenance, facility management and interior fit-outs. Its core security work includes manned guarding, mobile patrols, CCTV monitoring, alarm response and event security. E-surveillance includes real-time, 24/7 monitored intrusion alarm systems for ATMs, bank branches, retail stores and corporate offices. The company has 11 offices across India and serves business entities, public-sector entities, banks and multinational corporations across several industries.
Safecure Services is certified to ISO 45001:2018, 27001:2013, 14001:2015 and 9001:2015. Its e-surveillance services are provided through wholly-owned subsidiary Safesense Tech Private Limited.
Safecure Services IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 102 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 102.41 |
| Exchange | BSE SME |
| Min. Lot Size (Retail | HNI) | 2,400 | 3,600 |
| Issue Opens on | 29-Oct’25 |
| Issue Closes on | 31-Oct’25 |
| Listing Date | 6-Nov’25 |
| No. of shares pre-issue (#) | 70,40,000 |
| Fresh Issue of Shares (#) | 30,00,000 |
| Offer for Sale (#) | - |
| No. of shares post-issue (#) | 1,00,40,000 |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 30.6 |
| Funds Mobilized: Offer for Sale (INR Cr.) | 0.0 |
Use of Proceeds
- Repayment of company borrowings: INR 4.75 Cr.
- Repayment of subsidiary borrowings: INR 3.5 Cr.
- Working capital: INR 13 Cr.
- General Corporate Purposes: INR 4.5 Cr.
IPO Reservation: Retail shares offered: >=50%; NII (HNI) shares offered: >=50%.
Issue intermediaries: Registrar: MUFG Intime India. Book Running Lead Managers: Sun Capital Advisory.
Strengths
- Broad service offering: Security, e-surveillance, facility management, ATM maintenance and interior fit-outs allow the company to offer multiple services to clients through one provider.
- Pan-India delivery network: The company has 11 offices across India and says it has developed a wide geographical reach for sourcing manpower and serving multi-location customers.
- Mix shift toward e-surveillance: E-Surveillance and Monitoring of ATM & Bank Branches made up 18.71% of revenue mix in FY25, up from 15.26% in FY24. The services use monitored intrusion alarm systems and real-time monitoring.
- Revenue and EBITDA growth: Revenue (excluding other income) increased from 48 INR Cr. in FY23 to 73 INR Cr. in FY25. EBITDA (excluding other income) rose from 8.9 INR Cr. to 12.4 INR Cr. over the same period.
Business Mix
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Security & Event Services | 64.59% | 77.21% | 74.40% |
| E-Surveillance and Monitoring of ATM & Bank Branches | 21.19% | 15.26% | 18.71% |
| Repair & Maintenance of ATMs and Facility Management Services | 6.39% | 3.35% | 2.10% |
| Interior Fit-outs Work | 5.70% | 1.20% | 2.80% |
| Fabrication Work | 2.10% | 2.90% | 1.90% |
Safecure Services Key Financials
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (excl. other inc.) | 48 | 63 | 73 |
| Growth Rate Y-o-Y % | 32.2% | 16.3% | |
| EBITDA (excl. other inc.) | 8.9 | 11.1 | 12.4 |
| EBITDA % (excl. other inc.) | 18.8% | 17.7% | 17% |
| PAT | 4 | 5.8 | 6 |
| PAT % | 8.4% | 9.2% | 8.2% |
| Debt (Short+Long) | 12.2 | 14.3 | 20.9 |
| Debt/Equity | 1.20x | 0.95x | 0.99x |
| ROE % | 42.8% | 38.5% | 28.5% |
| ROCE % | 29.1% | 27.8% | 22.2% |
| CFO / EBITDA % | 88.1% | 23.4% | (2.4%) |
NWC includes Inventory, Receivables & Payables; NWC days is computed as % of rev.
Revenue growth slowed from 32.2% in FY24 to 16.3% in FY25. CFO / EBITDA fell to (2.4%) in FY25, and the report identifies negative cash flows as a risk.
IPO Valuation and Our View
At INR 102 per share, the issue is valued at 17x based on FY25 PAT. The report considers the issue fully priced compared with peers and notes that there is no room left for valuation comfort, despite the company projecting similar growth of around 15% for FY26 in its RHP. Minerva Capital Research Solutions assigns an AVOID rating.
- INR 102 per share
- IPO price
- ~INR 102.41 Cr.
- Implied market capitalisation
- 17x
- P/E based on FY25 PAT
- AVOID
- Recommendation
Key Risks
- Cash flow: The company has experienced negative cash flows in the past; CFO / EBITDA was (2.4%) in FY25.
- Customer concentration: Top 5 customers accounted for 46% of total revenue in FY25.
- Competition and pricing: The report states that unorganized players account for 95% of the industry, contributing to intense competition and pricing pressure. It also identifies low barriers to entry across the company’s verticals.
- Manpower costs and attrition: The business is manpower intensive. Rising recruiting, training and retention costs, together with attrition, are key monitorables.
- Working capital: NWC increased from 14 INR Cr. in FY23 to 30 INR Cr. in FY25, while NWC days rose from 111 to 149 over the same period.
Industry
The report projects the Indian security services market to reach US $16.97 Billion by 2030, growing at a CAGR of 11.3% between 2025 and 2030. It also projects the India Facility Management market to reach US$ 212 Billion by 2029, at a CAGR of 7.4% during 2024-2029. The report notes that formalisation may increase the market share of larger organised players.
Market structure: For security and facility management, the report lists India as 5% organized and 95% unorganized; the US as 15%-20% organized and 80%-85% unorganized; and Australia as 30% organized and 70% unorganized.
Cost and pricing: The report highlights periodic minimum wage revisions across states as a source of rising human resource costs, which it says is accelerating adoption of cost-efficient e-security solutions.
Management
- Mr. Shailendra Mahesh Pandey: Promoter, Chairman and Managing Director, with over 11 years of experience in Security, E-Surveillance and Facility Management.
- Ms. Ranju Shailendra Pandey: Promoter and Executive Director, with over 10 years of experience in administration and human resource activities.
- Mr. Nikit Shailendra Pandey: Promoter and Whole Time Director, with over 4 years of experience in operations, sales and marketing.
Peer Comparison
The RHP names SIS Ltd. and Krystal Integrated Services Ltd. as peers. The report’s comparison lists their P/E ratios at 15.2x and 18.9x, respectively, against Safecure Services at 17x. It states that the 3 years P/E median for this industry hover around 14 to 18.
Our View
Safecure Services combines several service lines, a nationwide office network and a rising e-surveillance contribution. However, the report highlights customer concentration, negative cash flows, competition and manpower-related cost pressures. At 17x FY25 PAT, Minerva Capital Research Solutions rates the IPO AVOID.