At a Glance
Icon Facilitators, a Delhi-based facilities management company, is raising ₹19.11 crore via a fresh issue IPO on BSE SME. Their services span everything from HVAC to pest control, but investor concerns are less about cockroaches and more about valuations crawling up. With ROE >35% but a post-issue P/E of 16x, is this IPO a clean-up act or a pricing mess?
1. 🧯 What Do They Do? And Why Should You Care?
Icon Facilitators Ltd isn’t installing icons on your desktop — it’s cleaning your office while fixing your AC and saving your fire extinguisher from rusting.
Services Offered:
- Soft Services: Housekeeping, pest control, general maintenance
- Hard Services: HVAC, electricals, STP, diesel generators, fire safety
- Coverage: 127 sites in North India; expansion started in Bengaluru
- Clients: Mostly B2B corporates, which means long contracts, but long payment cycles too
👥 Employee Strength: 1,955 as of May 2025
🧠 Promoters: Dinesh & Pooja Makhija — not your neighborhood plumbers, but close enough.
2. 📦 IPO Details – Is It Worth the Janitor’s Wages?
| Component | Detail |
|---|---|
| 🧹 Total Issue Size | ₹19.11 Cr (100% Fresh) |
| 📦 Shares Offered | 21,00,000 shares |
| 💰 Price Band | ₹85–₹91 |
| 📦 Lot Size | 1,200 shares |
| 💸 Retail Investment | ₹1,09,200 (1 lot) |
| 🏦 Listing | BSE SME (July 1, 2025) |
| 🧾 Lead Manager | Khambatta Securities |
| 🧾 Registrar | Maashitla Securities |
| 🛠️ Market Maker | Nikunj Stock Brokers Ltd. |
⚠️ SME IPO alert: High risk, low liquidity, and allotment’s more elusive than a janitor during fire drills.
3. 📊 Financials – Steady Mop or Slippery Floor?
| FY Ended | FY23 | FY24 | FY25 |
|---|---|---|---|
| 🧾 Revenue | ₹43 Cr | ₹50 Cr | ₹58 Cr |
| 💥 PAT | ₹1.92 Cr | ₹1.76 Cr | ₹4.47 Cr |
| 🧺 EBITDA | ₹3.12 Cr | ₹2.89 Cr | ₹6.55 Cr |
| 🧱 Net Worth | ₹4.19 Cr | ₹5.95 Cr | ₹12.69 Cr |
| 🧼 Borrowing | ₹0.00 | ₹0.00 | ₹0.00 |
Yes, debt-free and squeaky clean. But FY25 profit suddenly jumped +154% — too shiny to be true?
📈 PAT Margin: 7.7%
🧽 EBITDA Margin: 11.28%
4. 🔍 Valuation – Fair Wipe or Overpriced Wipe?
| Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS (₹) | 7.76 | 5.69 |
| P/E Ratio | 11.72x | 16x |
| Market Cap | – | ₹71.52 Cr |
| P/B Ratio | – | 4.05x |
💭 Compare this: peer companies like Updater Services trade around 30x but are mainboard listed, much larger, and institutional-grade.
🧮 Fair Value Range:
- FY25 PAT = ₹4.47 Cr
- Post IPO shares = 78.59 lakh → EPS ~ ₹5.69
- At 10x–14x P/E → FV Range = ₹57–₹79
🚨 At ₹91, it’s already above the ceiling. Too aggressively priced for a microcap cleaner.
5. 🧠 Strengths & Red Flags
✅ Strengths:
- Debt-free operations = no EMI nightmares
- Diverse client base = not dependent on one contract
- ROE of 35% = efficient capital usage
- Expansion to South India = growth story building
❌ Red Flags:
- 🚩 Sudden profit spike pre-IPO = classic “window dressing”?
- 🔥 High P/E vs peers = priced like a luxury maid service
- 🧹 Facilities management is a fragmented & low-moat business
- 💧 Small equity base = migration to mainboard will take years
6. 🛠️ Use of Funds – Cleaning Supplies or Capital Sink?
| Purpose | Amount (₹ Cr) |
|---|---|
| Working Capital | ₹16.00 |
| General Corporate Purpose | Balance |
Basically, they’re raising money to pay salaries, supplies, and maybe buy a couple of vacuum cleaners.
No new offices. No acquisitions. No capex = No serious expansion narrative.
7. 🧠 EduInvestor Verdict – Mop It Up or Skip the Bucket?
Icon Facilitators is a decent B2B operations company. But this IPO is:
- 🚧 SME route → low liquidity
- 🤔 Valuation mismatch → priced at ₹91, fair is ₹57–₹79
- 🧾 Financials decent, but FY25 jump looks like a pre-IPO glow-up
🧻 Final Take:
If you like ROE over 35% and don’t mind illiquidity, maybe apply. But for most investors?
This feels like a mop disguised as a vacuum. High on cleaning, low on clarity.
🏷️ Tags:
Icon Facilitators IPO, SME IPO June 2025, BSE SME IPO, housekeeping IPO, HVAC IPO, IPO under ₹20 crore, Iconf IPO review, EduInvesting IPO reviews
✍️ Written by Prashant | 📅 June 23, 2025
