Technocraft Ventures Ltd. Share Price

Technocraft Ventures

• Technocraft Ventures is coming out with a 100% book building; initial public offering (IPO) of 1,18,81,000 shares of face value Rs 10 each in a price band Rs 200-212 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 07, 2026 and will close on August 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 20.00 times of its face value on the lower side and 21.20 times on the higher side.
• Book running lead manager to the issue is Khambatta Securities.
• Compliance officer for the issue is Shefali Kesarwani. 

Profile of the company

Technocraft Ventures is a multidisciplinary public infrastructure development company engaged in the execution of turnkey Engineering, Procurement and Construction (EPC) contracts. It operates across various infrastructure segments, including Water & Wastewater Infrastructure such as Water Supply Scheme Projects (WSSPs), Sewerage Networks, Sewerage Treatment Plants (STPs), Wastewater Treatment Plants (WWTPs), Transmission mains, Reservoirs, Trenchless & Micro tunnelling Works, Roads and Highways work, Electrical Transmission work, Urban Infrastructure which includes sector-level planning and execution of residential building projects and Operation and Maintenance (O&M) of public utilities. It executes projects primarily for state governments and government agencies across Northern & Central India, including Uttar Pradesh, Uttarakhand, Rajasthan and the National Capital Territory of Delhi.

Its project execution model is predominantly tender-based, with contracts awarded by state agencies, public works departments, urban local bodies, and other government bodies. It operates across multiple project locations and operates through dedicated site teams aligned with the nature and geography of individual contracts. It has executed projects under key central and state-sponsored schemes including the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Urban Infrastructure Development Scheme in Satellite Towns (UIDSST), Namami Gange Programme (Namami Gange), Jal Jeevan Mission (JJM), and Pradhan Mantri Gram Sadak Yojana (PMGSY). It also has experience in implementing infrastructure project funded Asian Development Bank (ADB), which require compliance with rigorous technical and environmental standards.

Its integrated in-house capabilities span civil project designing, construction, mechanical and electrical integration, and commissioning. These enable it to offer comprehensive infrastructure solutions from concept to delivery. Additionally, it supports long-term asset sustainability through its operations and maintenance (O&M) services across WWTP, STP and road projects, reinforcing its lifecycle approach to public infrastructure.

Proceed is being used for: 

• Funding of working capital requirements of the company
• General corporate purposes

Industry overview

The Engineering, Procurement, and Construction (EPC) industry in India is a vital part of the country’s infrastructure development, encompassing sectors like infrastructure, and industrial projects. India’s infrastructure EPC sector is set for robust growth, with the construction industry projected to grow at a CAGR of 7-9% between FY 2023 and FY 2028, supported by government initiatives like NIP, PM Gati Shakti, and AMRUT 2.0. With Rs 3.2 trillion earmarked for water supply and sanitation under the NIP, demand is rising for EPC players with sectoral expertise, integrated O&M capabilities, and technology-driven execution. The Company, with proven experience in wastewater management, micro tunnelling, and renewable integration, is well-positioned to capitalize on these emerging opportunities.

Over the years, the infrastructure business has seen various contracting methods evolve. Traditional contracting models have been replaced by new approaches as projects have grown more complex. Gradually, the responsibility for project management has moved from the owner or developer to the contractor. This shift is evident in the move from owner-managed projects to EPC contracts. In EPC contracts, the contractor assumes the risks of time and cost overruns, along with the responsibilities for design, material procurement, and construction. These contracts also shield the owner/developer from currency and interest rate fluctuations.

Pros and strengths 

Diversified EPC capabilities across core infrastructure sectors: The company is engaged in the execution of turnkey Engineering, Procurement and Construction (EPC) contracts. It operates across various infrastructure segments, including Water & Wastewater Infrastructure such as Water Supply Scheme Projects (WSSPs), Sewerage Networks, Sewerage Treatment Plants (STPs), Wastewater Treatment Plants (WWTPs), Transmission mains, Reservoirs, Trenchless & Micro tunnelling Works, Roads and Highways work, Electrical Transmission work, Urban Infrastructure which includes sector-level planning and execution of residential building projects and Operation and Maintenance (“O&M”) of public utilities.  It has laid over 1,200 KMs of sewer pipelines across cities such as Kota, Kotputli, Bikaner, Indore, Ghaziabad, Agra, Udaipur, Etah, Pilakhuwa, Jaunpur and Shahjahanpur out of which around 750 KMs had been commissioned. Additionally, it has undertaken integrated water infrastructure projects, including underground reservoirs and water pipelines in Noida.

Execution capabilities demonstrated through high-value government and multilateral projects, with strong financial growth: The company has demonstrated the technical and financial capacity to execute complex, large-scale public infrastructure projects awarded by central government agencies and multilateral institutions. Notably, its sewerage network project in Udaipur, Rajasthan, funded by the Asian Development Bank (ADB) and valued at Rs 828.10 million (as per experience certificate with final payment due, the amount is including unexecuted O&M), involved the design, supply, construction, and commissioning under stringent technical specifications, along with a 10 years O&M obligation. Such mandates require adherence to stringent international procurement norms and performance benchmarks, which it has successfully met. This performance highlights its operational capabilities and efficiency in delivering infrastructure projects at scale across varied funding models. Its proven ability to execute under such frameworks positions it as a competitive participant in upcoming multilateral and centrally-sponsored infrastructure programs.

In-House engineering strength with technological adaptation: Its execution model is supported by a dedicated in-house engineering team comprising 78 professionals across civil, mechanical, electrical, instrumentation, and environmental disciplines led by Vinay KumarShukla, Vice President (Engineering) of the Company. This team enables it to respond to varied project demands and integrate advanced technologies into design and execution workflows. It has successfully deployed micro-tunnelling and trenchless pipeline installation technologies in high-density urban areas to reduce surface disruption while enabling the installation of large-diameter underground pipelines. These technologies have been utilized in various projects across locations including projects in Delhi (Bhagirathi WTP), Shahjahanpur, Jaunpur, Kotputli, Kota, Bikaner, Agra, Ghaziabad, Etah, Pilakhuwa and Udaipur. In addition, it leverages digital tools and engineering software such as Auto CAD for monitoring site execution levels, managing project records, and optimizing resource allocation across construction sites.

Regulatory-approved electrical works capabilities with statewide licenses: It holds ‘Class A’ Electrical Contractor’s Licenses from the Electrical Inspectorate Department, Government of Rajasthan, and the Department of Electrical Safety, Government of Uttarakhand among the highest categories required to execute high-tension (HT) and extra high-tension (EHT) transmission and distribution projects. These certifications authorize it to independently undertake critical electrical infrastructure works, including substation erection, transformer installation, and HT/LT cable laying. These certifications authorize it to undertake high tension (HT) and extra high-tension (EHT) electrical infrastructure projects independently.

Risks and concerns

Dependence on government-funded infrastructure projects: A substantial portion of its revenues is derived from contracts awarded by Central and State Governments, local authorities under Government-led schemes such as the Atal Mission for Rejuvenation and Urban Transformation, Jal Jeevan Mission, Namami Gange and Pradhan Mantri Gram Sadak Yojana. Its order book is therefore highly dependent on Government budgetary allocations and policy priorities. Any reduction or reallocation in public spending, delay in issuance of tenders, change in pre-qualification norms, or cancellation of awarded projects could materially reduce its pipeline of opportunities.

Its operations are geographically concentrated in Uttar Pradesh and Rajasthan: Its project portfolio has historically been concentrated in projects in Uttar Pradesh and Rajasthan. Rajasthan contributed 63.05%, 59.58% and 32.31%, while Uttar Pradesh contributed 25.53%, 27.05% and 61.15% of the Company's total revenue from operations in Fiscals 2026, 2025 and 2024, respectively. The company has not faced any instance of disqualification, cancellation, or blacklisting of any project in these states in past, there can be no assurance that such circumstances will not arise in the future, which could adversely affect its business, financial condition, and results of operations.

Dependence on third-party suppliers for critical materials, equipment, and other inputs: The company depends on external suppliers for critical inputs, and any shortfall in their performance could adversely affect its project delivery timelines and quality. While the core design, engineering, and construction activities across its infrastructure segments including WWTPs, WSSPs, roads, and electrical works are predominantly executed by its in-house teams, it relies on suppliers for the timely provision of key inputs such as raw materials, plant and machinery, and specialized equipment. Any delay or deficiency in the delivery of such inputs whether due to material shortages, logistical disruptions, supply chain constraints, or quality issues may adversely impact its execution timelines, escalate project costs, or affect the quality of deliverables.

Reliance on third-party subcontractors and contract labour: The company executes works using third-party sub-contractors who deploy contract labour for civil construction, electrical works and site operations depending on project scale and location. The availability, skill level and cost of such sub-contractors’ deployed workmen vary across geographies and may be influenced by seasonal factors or competing infrastructure demands. There is no assurance that it or its sub-contractors will always have access to an adequate pool of skilled workmen at competitive rates. Labour shortages or disruptions during peak construction phases may delay execution, inflate costs or compromise workmanship. Additionally, variations in local labour regulations, unionisation risks and site-specific conditions could further affect deployment. Any such event may adversely affect its project timelines, cost efficiency, and overall operations.

Outlook

The company is a multidisciplinary EPC company specializing in public infrastructure projects across northern India, with a focus on water supply, wastewater treatment, sewerage, roads and highways and electrification. Its services span design, construction, and long-term O&M of urban infrastructure including STPs, WWTPs, drainage networks, substations and roadworks. On the concern side, its growth is significantly dependent on leveraging government initiatives in the water and wastewater infrastructure sector and its inability to capitalize on these opportunities could adversely affect its business prospects. Additionally, its operations are working capital intensive, and any shortfall or delay in the availability of working capital may adversely affect its project execution, business, financial condition, cash flows and results of operations.

The issue has been offering 1,18,81,000 shares in a price band of Rs 200-212 per equity share. The aggregate size of the offer is around Rs 237.62 crore to Rs 251.88 crore based on lower and upper price band respectively. Minimum application is to be made for 70 shares and in multiples thereon, thereafter. On performance front, its revenue from operations increased by 23.41% to Rs 3,449.96 million for Fiscal 2026 as compared to Rs 2,795.64 million for Fiscal 2025. Its profit for the year increased by 53.58% to Rs 433.15 million for Fiscal 2026 compared to Rs 282.04 million for Fiscal 2025.

Meanwhile, it intends to expand the scale of its infrastructure projects, with a strategic focus on high-capacity water and wastewater treatment plants. It has demonstrated execution capability across capacities ranging from 3 MLD to 56 MLD for STPs, showcasing its expertise in managing both small and largescale infrastructure works. Further, it is focusing on scaling its operations into higher-capacity projects. This includes entering the Common Effluent Treatment Plant (CETP) sector with a target of reaching 50 MLD for CETPs and 200 MLD for STPs in the coming years.