Msafe Equipments

• Msafe Equipments is coming out with an initial public offering (IPO) of 54,00,000 shares in a price band of Rs 116-123 per equity share. 
• The issue will open on January 28, 2026 and will close on January 30, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 11.60 times of its face value on the lower side and 12.30 times on the higher side.
• Book running lead manager to the issue is Seren Capital.
• Compliance Officer for the issue is Renuka Uniyal.

Profile of the company

The company is engaged in the business of manufacturing, sales and rental of access and height-safety equipments, primarily used to facilitate safe working at heights. Its product portfolio includes aluminium scaffoldings, mild steel (MS) scaffoldings, aluminium ladders and fibre reinforced plastic (FRP) ladders, which are designed to meet varied operational and safety requirements across construction, maintenance, installation, repair and infrastructure development activities. These products provide safe and stable access for vertical and elevated operations, enabling workers to undertake a wide range of activities such as building exterior works (including facade and cladding installation), painting and plastering, HVAC and MEP works, electrical cabling and fittings, ceiling and interior finishing, fire-fighting works and warehouse stacking and retrieval, among others, while significantly reducing the risk of workplace accidents.

It offers various types of aluminium scaffoldings such as stairway, narrow-width, extra reach, podium, cantilever, and bridge sections. Aluminium scaffoldings are lightweight, modular systems known for rapid assembly and scalability. MS scaffoldings are steel structures used in long-duration construction and infrastructure projects that require higher structural strength and load-bearing capacity. Aluminium and FRP ladders include A-type, straight, platform and cage variants. Aluminium ladders are commonly used where mobility is required, while FRP ladders are non-conductive and suitable for electrical applications.

Its customer base extends across a wide spectrum of industries, including civil construction, infrastructure development, facility management, HVAC solutions, MEP contracting, interior contracting, electrical contracting, warehousing and logistics, firefighting and safety systems, among others. It carries out its manufacturing operations through three facilities located within the Industrial Estate of Greater Noida, Uttar Pradesh. These units are dedicated to specific product lines, with production covering aluminium scaffoldings, ladders (aluminium and FRP) and MS scaffoldings.

Proceed is being used for:

• Funding of Capital expenditure towards setup of a new manufacturing facility
• Funding of Capital expenditure for manufacturing of equipments for rental purpose
• Utilization towards working capital requirements
• General corporate purposes

Industry overview

The infrastructure development initiatives in India are significantly driving the growth of the ladder and scaffolding market. Government-led projects and increased investments in infrastructure are creating substantial demand for these essential construction tools. Government initiatives, such as the National Infrastructure Pipeline (NIP), Smart Cities Mission, and expansions of metro rails, airports, and highways, are driving a surge in demand for ladders and scaffolding. These projects require extensive use of ladders and scaffolding for construction, maintenance, and repair activities.

The India Scaffolding Market was valued at Rs 7208.97 crore in 2024 and is expected to reach Rs 12811.78 crore in 2030, registering a CAGR of 10.06% for the forecast period (2024-2030). This market expansion is anticipated to be driven by a new wave of highway expansions, metro-rail corridors, and industrial-park developments. The India Ladders Market studied was valued at Rs 1358.27 crore in 2024 and is expected to reach Rs 2233.90 crore in 2030, registering a CAGR of 8.65% for the forecast period (2024-2030).

The Indian scaffolding market is witnessing robust growth, propelled by a surging construction sector and heightened government emphasis on infrastructure development. This expansion is closely linked to a series of government initiatives and stringent regulations; all aimed at upholding safety and quality standards. The Indian scaffolding market is experiencing significant growth, driven by large-scale infrastructure projects, rising real estate and industrial activity, and a shift towards advanced modular systems. Stricter safety regulations and sustainability initiatives further support this growth, positioning the market for steady expansion through 2033.

Pros and strengths

Well diversified customer base spread across various industries & geography: Its customer base extends across a wide spectrum of industries, including civil construction, infrastructure development, facility management, HVAC solutions, MEP contracting, interior contracting, electrical contracting, warehousing and logistics, firefighting and safety systems, among others. During FY 2024-25, it served more than 2,500 customers through both sales and rental channels. For the fiscal year ended 2025, the company generated 97.77% of its total revenue from 22 states and 3 union territories in India, with key markets in Maharashtra, Karnataka and Tamil Nadu. During Fiscal 2025, Fiscal 2024, Fiscal 2023 its exports reached markets including UAE, Nigeria, Maldives, Saudi Arabia and Mauritius.

Multi-model source of revenue through product sales and rental services: Its revenues are derived from two primary sources, namely product sales and rental services, providing it with a balanced and recurring stream of income. Over the period, the rental model has consistently contributed to its revenues, accounting for 43.07% for the period ended September 30, 2025, 51.65% in FY 2024-25, 52.30% in FY 2023-24 and 62.97% in FY 2022-23, with the balance derived from sales. While sales contribute to one-time revenue generation, the rental model provides recurring income and revenue predictability. Under the rental model, aluminium scaffoldings, ladders and MS scaffoldings are provided to customers across India on weekly, fortnightly or monthly terms, generally supported by advance payments and security deposits. This multi-model source of revenue enables it to cater to both long-term infrastructure and industrial projects as well as short-term site requirements, thereby diversifying its revenue base.

In-House manufacturing facilities supported by quality certifications: Its manufacturing operations are carried out across three facilities located within the Industrial Estate of Greater Noida, Uttar Pradesh. To support production activities at these facilities, its units are equipped with requisite machineries such as Welding machine, Riveting & Expanding machine, Pneumatic ladder making machine, Pneumatic cutting machine, Mechanical material shifter, 5-station multi head press and Vibro deburring machine. Additionally, it is certified under ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health & Safety Management) and ISO/IEC 27001:2022 (Information Security Management).

Risks and concerns

Reliance on aluminium scaffolding for revenue: It generates a significant portion of its revenue from its key product i.e. Aluminium Scaffolding. Revenue from the rental of aluminium scaffolding accounted for 39.64% for the six months period ended September 2025 and 48.87%, 50.50%, and 59.94% of its revenue from operations in Fiscal 2025, 2024, and 2023, respectively, while revenue from sale contributed 36.68%, 35.94%, 37.34%, and 26.17% during the corresponding periods. Accordingly, the aggregate contribution of aluminium scaffoldings (rental and sales combined) to its revenue from operations was 76.32%, 84.81%, 87.85% and 86.11% for the 6 months period ended September 25, 2025 and Fiscal 2025, 2024 and 2023, respectively. Any decline in the sale or rental services of its key offering could have an adverse effect on its business, results of operations and financial condition.

No long-term agreements with customers: It does not have long-term agreements with its customers, and its revenues are dependent on purchase orders or work orders, which may not be renewed in the future. Its business model for both sales and rental is primarily based on customer purchase orders and work orders, without long-term commitments from its customers. Most of its rental orders are for monthly, fortnightly or weekly tenures with extensions being made on a case-to-case basis, while product sales are also executed against specific purchase orders. Accordingly, it faces the risk that its customers may not continue to place orders with it at historical levels, may reduce the volume of business, or may not renew rental arrangements upon expiry. Any reduction, cancellation, or delay in orders or rental renewals could lead to volatility in its revenue streams and may adversely affect its financial condition and results of operations.

Reliance on limited suppliers for raw materials: It is significantly dependent on a limited number of suppliers for procurement of its raw materials, with which it does not have any long-term agreements and any disruption in supply or volatility in raw material prices may adversely affect its business, financial condition, results of operations and cash flows. Its purchases from its top 10 suppliers for the period ended September 30, 2025 and in Fiscal 2025, 2024 and 2023 aggregated to Rs 1778.10 lakh, Rs 3,935.67 lakh, Rs 2,462.60 lakh and Rs 1,579.28 lakh, respectively, constituting 75.12%, 86.38%, 89.60% and 95.33% of its total purchases for those periods.

Outlook

Msafe Equipments is primarily engaged in the manufacturing, sale, and rental of a comprehensive range of access and height-safety solutions, including aluminum scaffoldings, aluminum and FRP (Fiber Reinforced Plastic) ladders, and MS (Mild steel) scaffoldings designed to meet the diverse operational and safety requirements of various industries. On the concern side, a significant portion of its revenue is derived from its rental business, and any decline in rental demand, changes in customer preferences or adverse developments in its rental operations may adversely affect its business, financial condition, results of operations and cash flows. Further, dependence upon transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.

The company is coming out with a maiden IPO of 54,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 116-123 per equity share. The aggregate size of the offer is around Rs 62.64 crore to Rs 66.42 crore based on lower and upper price band respectively. 

On performance front, the total income for FY 2024-25 stood at Rs 7162.18 lakh, compared to Rs 4833.75 lakh in FY 2023-24, reflecting a growth of 48.17%. Its profit after tax increased by 98.60%, rising from Rs 655.18 lakh in the financial year 2023-24 to Rs 1301.21 lakh in the financial year 2024-25.

As part of its growth strategy, it is focused on addressing the increasing demand from existing and new clients in the scaffolding segment, while also expanding its presence into the hanging scaffolding market and further strengthening its offerings in the ladder segment. The planned entry into hanging scaffolding is intended to cater to specialized requirements in high-rise construction, facade work, and industrial maintenance, where conventional systems may have limitations.