Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Sattva Engineering Construction Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Sattva Engineering Construction Ltd
Industry: Water Supply & Management
Listing At: NSE SME
Overview:
SECL is one of the leading EPC contracting company focusing in Water sector, Waste water sector, Industrial building sector and executing projects like Distribution, Pumping Main, Networks, Overhead Tanks, Underground Tanks, Treatment plants, Pumping station. SECL with a rich history of executing noteworthy projects and continues to march towards excellence with vast experience and guided by a team of eminent professionals in the field of Civil Engineering. In addition, we have also been involved in the development, design, and promotion of multi-storeyed residential apartments, deluxe apartments, residential flats, and independent bungalows, enhancing urban infrastructure across the region. Our commitment to excellence is further reflected in our successful collaborations with various government bodies & registered as CLASS – I contractor in Tamil Nadu Public Works Department, Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), TWAD, Municipalities and in Karnataka Public Works Department.
In addition to our civil works expertise, we have also been involved in the development, design, and promotion of multistoried residential apartments, deluxe apartments, residential flats, and independent bungalows, enhancing urban infrastructure across the region.
Our commitment to excellence is further reflected in our successful collaborations with various government bodies, including the State Public Works Department – Special Division, Building Construction, Chennai, and our recognition as a Class I Contractor under the Public Works Department and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB).
Shariah Status
The IPO is Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Tue, Aug 26, 2025 |
| IPO Close Date | Fri, Aug 29, 2025 |
| Tentative Allotment | Mon, Sep 1, 2025 |
| Initiation of Refunds | Tue, Sep 2, 2025 |
| Credit of Shares to Demat | Tue, Sep 2, 2025 |
| Tentative Listing Date | Wed, Sep 3, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 29, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Individual investors (Retail) (Min) | 2 | 3,200 | ₹2,40,000 |
| Individual investors (Retail) (Max) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (Min) | 3 | 4,800 | ₹3,60,000 |
| S-HNI (Max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (Min) | 9 | 14,400 | ₹10,80,000 |
Financials
The financial data for Sattva Engineering Construction Ltd. reveals its performance for the fiscal years ending March 31, 2025, March 31, 2024, and March 31, 2023. Between the fiscal years ending in 2024 and 2025, the company’s revenue increased by 22% and its profit after tax (PAT) saw a significant 100% rise.
An analysis of the key financial metrics over the three-year period shows consistent growth. Assets rose from 83.38 Crore in 2023 to 114.82 Crore in 2025. Total Income grew from 83.93 Crore to 94.85 Crore, and most notably, Profit After Tax surged from 1.04 Crore in 2023 to 9.14 Crore in 2025. Other indicators, such as EBITDA, Net Worth, and Reserves and Surplus, also experienced steady increases, while Total Borrowing remained relatively stable.
KPI
| KPI | Values |
|---|---|
| ROE | 27.10% |
| ROCE | 28.58% |
| Debt/Equity | 0.83 |
| RoNW | 27.10% |
| PAT Margin | 9.64% |
| EBITDA Margin | 19.82% |
| Price to Book Value | 2.20 |
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.