1. At a Glance
Welcome to another episode of“How to Raise ₹85.6 Crores Without Losing Your Smile.”Clear Secured Services Ltd (CSSL) – a Mumbai-based facility management jack-of-all-trades – is hitting the SME market with an IPO that smells like a cross between a corporate housekeeping manual and an episode ofThe Office (India Edition).
The company wants ₹85.6 crore through afresh issueof about64.85 lakh shares, priced at ₹125–₹132 apiece. With that, themarket cap balloons to ₹317 crore— not bad for a company that’s still dusting off the cobwebs of FY25.
CSSL’s revenue jumped 38% in FY25 to ₹482.7 crore, but PAT took a chai break,dropping 18%thanks to a one-time ₹8.44 crore expense. EBITDA stands at ₹22.37 crore, showing a margin of 4.7%, which, frankly, is slimmer than a wafer at a Diwali party.
Debt-to-equity? 1.02. ROCE? 23.46%. ROE? 10.74%.In short:decent growth, manageable leverage, thin margins, but thicc ambition.
Retail investors, brace yourselves — theminimum ticket size is ₹2.64 lakhfor 2,000 shares. If you’re a Small-HNI, it’s ₹3.96 lakh. If you’re a Big-HNI, hope your CA’s heart rate is steady.
2. Introduction
India’s facility management business has a weird charm — you never notice them unless something goes wrong. When the guard doesn’t salute, or when the office AC leaks like a gossip column, that’s when you realize these companies exist.
Clear Secured Services Ltd, born out of Mumbai’s endless chaos, promises “integrated facility management,” which basically means they’ll guard your building, clean your washroom, fix your lift, hire your peon, monitor your CCTV, and possibly reboot your WiFi if you ask nicely.
They’ve got a wide client base — telecom, insurance, oil & gas, banking, real estate, retail, and even government contracts. That’s like saying you’re friends with everyone from Ambani to your local sabziwala — impressive, but also exhausting.
From FY23’s ₹311.7 crore to FY25’s ₹482.7 crore, revenue grew 55% in two years — not bad for a company that probably started with clipboards and walkie-talkies. Yet, PAT slipped in FY25 because of an exceptional expense — one of those “accounting adventures” that every SME prospectus hides behind footnotes.
Still, CSSL comes to market with swagger: apost-issue EPS of ₹13.87and aP/E ratio of just 9.52xon that. That’s actually tempting — until you realize margins are thinner than the sanitizer layer left after housekeeping leaves.
3. Business Model – WTF Do They Even Do?
Alright, so what’s their actual job?Think of CSSL as your corporate building’s personal “jugaad” department. The guys who manage your security guards, housekeeping staff, IT support, repairs, interiors, and even HR staffing — all bundled into one bill.
Their offerings are split like this:
- Security Services:From manned guards to CCTV surveillance, basically human firewalls.
- Housekeeping & Cleaning:The unsung heroes behind every “spotless” annual audit visit.
- Repair & Maintenance (RnM):The people who fix what your procurement team broke.
- Infrastructure & Interiors (TIS):The art of charging you 18% GST for fixing your ceiling lights.
- HR & Staffing:Renting humans legally — because permanent hiring is so 2010.
- Telecom & Remote Monitoring:Keeping your network and towers safe from pigeons.
- IT & Software Services:A new-age add-on to sound cool in IPO roadshows.
They operate across15 states and 2 union territories, servicing17 client locations.Now that’s either “pan-India presence” or “logistical chaos with extra steps.”
Their competitive edge? They claim“one-roof solutions.”In reality, it’s more like a single roof under which 5000 people are multitasking while HR emails everyone to update their Aadhar.
Still, in a ₹1 lakh crore IFM (Integrated Facility Management) market growing at 13–15% annually, CSSL’s business model fits right in.
4. Financials Overview
Here’s the spicy part — the numbers.
| Metric | Latest (Aug 2025) | YoY (Mar 2025) | QoQ (est.) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 231.68 | 350.63 | 482.74 | +38% | +37% |
| EBITDA (₹ Cr) | 21.44 | 21.80 | 22.37 | +2.6% | +2.7% |
| PAT (₹ Cr) | 13.90 | 12.08 | 9.92 | +15% | -18% |
| EPS (₹) | 5.65 | 5.22 | 3.80 | +8% | -27% |
Annualised EPS = 5.65 × 2 = ₹11.3 (since Aug 2025 is half-year).
At ₹132,P/E = 11.6x— not bad compared to most SME aspirants that price themselves like luxury brands with no sales.
Commentary:Revenue’s moving like Virat Kohli’s ODI average — consistent, confident, and chasing bigger totals. PAT, however, took a slight stumble in FY25, proving once again that “growth comes with GST and grief.”
5. Valuation Discussion – Fair Value Range Only
Let’s decode the math behind that ₹132 tag.
Method 1: P/E ApproachFY25 EPS = ₹9.92 Cr / 1.75 Cr shares = ₹5.66Annualised Post-Issue EPS (Aug 2025) = ₹13.87Assign P/E band of 10–14x → Fair value range = ₹138.7 – ₹194.1
Method 2: EV/EBITDAEV ≈ Market Cap + Debt – Cash = ₹317.4 + ₹131 – ₹20 (approx.) = ₹428.4 CrEBITDA (FY25) = ₹22.37 Cr → EV/EBITDA = 19.1xIf re-rated to 12–16x → Fair range = ₹250–₹330 Cr market cap → per-share ₹104–₹137
Method 3: DCF (Simplified)Assume 15% CAGR in cash flows for 5 years, terminal growth 3%, discount rate 12%.Intrinsic range = ₹120–₹140
📘Fair Value Range (Educational Only): ₹120–₹190 per share.(This range is for educational purposes only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- Big Borrowing Repayment Plan:₹35.5 crore from IPO proceeds is earmarked to reduce debt. That’s a solid move — fewer EMIs, more smiles.
- Subsidiary Investment:₹5.25 crore going into Comfort Techno Services Pvt Ltd for buying equipment — perhaps vacuum cleaners with AI.
- Working Capital Boost:₹26 crore infusion for operational scale-up — likely to keep the housekeeping staff paid before your CFO delays payments.
- Margin Pressure:PAT slipped due to a one-off ₹8.44 crore expense — translation: “We goofed up once, don’t judge us forever.”
- Promoters still control 99.84% pre-IPO, and after dilution, they’ll still practically run the show.
Upcoming triggers could be expansion in newer states, onboarding of new corporate clients, and perhaps entry into government facility management tenders — aka,“the lottery of Indian bureaucracy.”
7. Balance
