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Monarch Surveyors and Engineering Consultants

• Monarch Surveyors and Engineering Consultants is coming out with an initial public offering (IPO) of 37,50,000 equity shares in a price band Rs 237-250 per equity share.
• The issue will open on July 22, 2025 and will close on July 24, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 23.70 times of its face value on the lower side and 25.00 times on the higher side.
• Book running lead manager to the issue is Beeline Capital Advisors.
• Compliance Officer for the issue is Naman Kaur Saluja.

Profile of the company

Monarch Surveyors and Engineering Consultants is engaged in the business to provide comprehensive consultancy services under Concept to Commissioning of infrastructure projects which includes survey, design and technical supervision for roads, railways, metros, town planning, geospatial, mapping, land acquisition, water, transmission line, pipelines and other civil engineering sectors. Its objective is to create consistent value for its clients by delivering uncompromising quality of services at optimum cost through continuous improvement in elemental technologies of this field, maintaining integrity and design processes which fosters excellence in all the aspects of its operations.

It is providing comprehensive consultancy services throughout the entire lifecycle of infrastructure projects, from concept to commissioning. Its expertise spans a wide array of sectors, including: Surveying, Design Services, Technical Supervision, Roads and Highways, Railways and Metros, Geospatial and Mapping, Land Acquisition, Water Management and Transmission Lines and Pipeline. In its endeavour to strive towards consistent delivery, it has designed organizational roles and processes to ensure that its deliverables which are in the form of reports, maps, drawings, etc. are conclusive and adds tremendous value to its clients.

It is involved in work that aides in decision making of various engineering departments in Government, captures the attention of the industry and earns awards for engineering excellence. It has been awarded as one of the Top 10 Engineering Consultants in India by Industry Outlook in 2022. For over 25 years, it is dedicated to supporting the needs of its clients by recognizing and addressing issues from their value perspective. It is providing end to end services with a diverse workforce specializing in Detailed Engineering, Project Management, Construction Supervision, Facilities Design, Land Surveying, Land Acquisition Services, Geospatial mapping, Geo-technical Investigation and Special Inspections.

Proceed is being used for:

• Funding capital expenditure requirement for purchase of machinery
• Funding working capital requirement of the company
• General corporate purposes

Industry Overview

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The $1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. Infrastructure support to the nation’s manufacturers also remains one of the top agendas as it will significantly transform goods and exports movement making freight delivery effective and economical.

With a 37% increase in the current fiscal year, capital expenditures (CAPEX) are on the rise, which bolsters ongoing infrastructure development and fits with 2027 goals for India's economic growth to become a $5 trillion economy. In order to anticipate private sector investment and to address employment and consumption in rural India, the budget places a strong emphasis on the development of roads, shipping, and railways. Global investment and partnerships in infrastructure, such as the India-Japan forum for development in the Northeast are also indicative of more investments. These initiatives come at a momentous juncture as the country aims for self-reliance in future ready and sustainable critical infrastructure. India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast growing population. This investment will only be rational as well as sustainable, if it additionally focusses on long-term maintenance and strength of its buildings, bridges, ports, and airports.

The infrastructure sector has become the biggest focus area for the Government of India. India's GDP is expected to grow by 8% over the next three fiscal years, one of the quickest rates among major, developing economies. India and Japan have joined hands for infrastructure development in India's Northeast states and are also setting up an India-Japan Coordination Forum for development of Northeast to undertake strategic infrastructure projects for the region. India being a developing nation is set to take full advantage of the opportunity for the expansion of the infrastructure sector, and it is reasonable to conclude that India's infrastructure has a bright future ahead of it. 

Pros and strengths

Wide range of services: The company has a service portfolio ranging from concept to commissioning in a construction project lifecycle. Basically, it provides end to end service of civil engineering solutions, whether its survey, planning, designing, conducting engineering, social and economic studies and analysis or Management of the whole project by supervising it, the company makes sure that the client meets their project objectives on or before time. In addition to existing sectors, its management continuously experiments with adoption of newer technologies in existing and adjacent sectors with high business potential. Further, the services of the company are explained in detail in this chapter later on.

Wide range of client base: Its client base is not only limited to Government of India but also includes corporates, number of State Governments, Municipalities of many States, and other government authorities and also include projects other than India. It is actively pursuing to add to its footprint new geographies within India and abroad. Its continued technological advances enable it to provide additional value to its existing clients and also increase its potential market. Its endeavour to have multiple engagements with clients over the years which is evident from some of its long-term clients continuing business.

Optimal utilization of resources: The company constantly endeavours to improve its execution process, capabilities, skill up gradation of employees, modernization of plant and machineries to optimize the utilization of resources. It regularly analyses its performance and project execution process to improve the grey areas and take corrective measures for smooth and efficient working thereby putting resources to optimal use.

Risks and concerns

Maximum revenue comes from top 10 customers: The company’s top 10 clients contributed 84.52%, 86.14%, and 82.99% of its revenues for the year on March 31, 2025, March 31, 2024 and March 31, 2023 respectively, based on restated financial statements. In addition, its majority of projects are with Maharashtra state Road Development Corporation Limited who is its major client. Since its business is concentrated among relatively few significant clients, it could experience a reduction in its results of operations, cash flows and liquidity if it loses one or more of these clients or the amount of business, it obtains from them is reduced for any reason, including but not limited on account of any dispute or disqualification.

Maximum revenue is concentrated in Maharashtra: The company’s revenue generation is significantly concentrated in a Maharashtra, which presents both opportunities and risks for its business. While this geographical focus allows it to establish strong relationships with clients and develop a deep understanding of local market dynamics, it also increases its vulnerability to adverse developments in these specific regions. The company garnered 84.02%, 90.17% and 93.68% of its total revenue from Maharashtra in FY25, FY24 and FY23 respectively. This concentration heightens its exposure to various competitive pressures. If competitors in these states enhance their service offerings, reduce pricing, or adopt more effective marketing strategies, it may find it challenging to maintain its market share. 

High working capital requirements: The company is in the business of providing Infrastructure and Real Estate Consultancy, Urban planning, building designing, Structural designing, Services designing, Project Management Consultancy, Geographic Information System (GIS) and Sales & Marketing. The company business requires substantial working capital and financing in the form of fund and non-fund based working capital facilities to meet its requirements. A liquidity crunch may also result in increased working capital borrowings and, consequently, higher finance cost which will adversely impact its profitability. Its inability to maintain sufficient cash flow, credit facility and other sourcing of funding, in a timely manner, or at all, to meet the requirement of working capital or pay out debts, could adversely affect its financial condition and result of its operations.

Outlook

Monarch Surveyors and Engineering Consultants is a civil engineering consultancy firm. The company offers comprehensive services spanning topographic surveys, project management consultancy, design and engineering, geotechnical investigations, land acquisition, GIS mapping, and feasibility studies. The company has wide range of services coupled with wide range of client base. On the concern side, the company’s revenues majorly depend on the projects tendered by the Government Departments. Its performance could be affected in case its competitors participate with lower bid value or projects not awarded to it. Moreover, the company is dependent on few numbers of clients and any loss of top 10 customers will significantly affect its revenues and profitability.

The company is coming out with a maiden IPO of 37,50,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 237-250 per equity share. The aggregate size of the offer is around Rs 88.88 crore to Rs 93.75 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 10.50%, from Rs 13,949.18 lakh in Fiscal 2024 to Rs 15,413.62 lakh in Fiscal 2025. The growth was primarily driven by higher project execution in core service regions and expansion into geographies such as Tamil Nadu and Delhi. Moreover, profit after tax increased by 16.08%, from Rs 3,000.72 lakh in Fiscal 2024 to Rs 3,483.24 lakh in Fiscal 2025, driven by stronger revenues and disciplined expense management.

The company intends to continue its focus in enhancing project execution capabilities so as to derive twin benefits of client satisfaction and improvements in operating margins. It will constantly endeavour to leverage its operating skills through its equipment and project management tools to increase productivity and maximize asset utilization in its ongoing projects. The company has developed a reputation for undertaking challenging projects and completing such projects in a timely manner. It intends to continue its focus on performance and project execution ability in order to maximize its operating margins. To facilitate efficient and cost-effective decision making, it intends to continue to strengthen its internal systems. Its ability to effectively manage projects will be crucial to its continued success.