Suggs Lloyd's shares were listed on the BSE SME today at ₹119.90, a discount of 2.52%. However, they soon surged to the upper circuit of ₹125.85. The IPO, issued at ₹123, received 3.23 times subscription from investors. The ₹85.66 crore raised will primarily be used for working capital and corporate needs.
Sugs Lloyd IPO Listing: The shares of engineering and construction company Suggs Lloyd were listed on the BSE SME on Friday, September 5, 2025. While shares were issued at ₹123 under the IPO, the listing occurred at a discount of ₹119.90. The shares later recovered and reached an upper circuit of ₹125.85. The ₹85.66 crore IPO received a good response from investors, being subscribed 3.23 times. A major portion of the funds raised will be used for working capital requirements, with the remainder for corporate purposes.
How was the Listing
Suggs Lloyd's IPO was issued at ₹123 per share. On Friday, its entry into the stock market was at ₹119.90. This means investors incurred a loss of approximately 2.5 percent at the time of listing. However, buying interest soon increased, and the stock climbed to ₹125.85, where it hit its upper circuit. Thus, after an initial decline, investors are now in profit of about 2.3 percent.
IPO Received a Good Response
The company's IPO of ₹85.66 crore was open for investors from August 29 to September 2. During this period, it received a good response from investors, achieving an overall subscription of 3.23 times. The situation was also positive across different categories.
- The Qualified Institutional Buyers (QIB) portion was subscribed 2.03 times.
- The Non-Institutional Investors (NII) portion was subscribed 5.30 times.
- The Retail Investors' portion was subscribed 2.12 times.
This clearly indicates market confidence in the company's business model and growth prospects.
Utilisation of Funds Raised from IPO
This IPO involved the issuance of entirely new shares. A total of 69.64 lakh equity shares were issued with a face value of ₹10. The company raised ₹85.66 crore from this issue. Of this, approximately ₹80.65 crore will be allocated to working capital, i.e., for funding day-to-day business expenses and projects. The remaining amount will be used for general corporate purposes.
Company's Business
Suggs Lloyd was established in 2009. The company operates in engineering and construction projects. Its core areas include solar energy, electrical transmission, and civil EPC (Engineering, Procurement, and Construction). The company undertakes power transmission and distribution infrastructure development, builds power substations, and upgrades existing systems. In recent years, the company has also ventured into the renewable energy sector, undertaking infrastructure development for solar and wind energy projects.
The company's financial performance has shown improvement over the past few years. In FY2023, the company's net profit was ₹2.29 crore. This increased to ₹10.48 crore in FY2024 and reached ₹16.78 crore in FY2025. During this period, the company's total income grew at a Compound Annual Growth Rate (CAGR) of over 120%, reaching ₹177.87 crore.
Weak Listing, but Subsequent Rally Seen
Although the company has seen a significant surge in its income and profits, its debt has also increased rapidly during the same period. At the end of FY2023, the company's total debt was ₹8.36 crore. By the end of FY2024, it had risen to ₹18.57 crore. By the end of FY2025, the company's debt had reached ₹74.83 crore. While this increase may be a cause for concern, the company states that this debt has been incurred for expansion plans and investments in large projects.
Despite a weak listing on the stock market, the subsequent rally has sustained investor confidence. The company's focus is on green energy and power infrastructure, sectors poised for rapid growth in the coming years. This is why investors are keeping a close eye on this stock.
