VR Infraspace Limited IPO
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VR Infraspace Limited IPO

VR Infraspace Limited’s IPO consists of a fresh issue of 24,00,000 shares aggregating to INR 20.40 crores. The company plans to utilize net proceeds to meet its working capital requirement and invest in its subsidiary M/s. Daxon Realty. 

VR Infraspace IPO – Important Details

VR Infraspace IPO DateMarch 4, 2024 to March 6, 2024
VR Infraspace IPO Listing DateMarch 12, 2024
VR Infraspace IPO PriceINR 85 per share
VR Infraspace IPO Lot Size1600 Shares
VR Infraspace IPO Total Issue SizeINR 20.40 crores
VR Infraspace IPO Basis of AllotmentMarch 7, 2024
VR Infraspace IPO Initiation of RefundsMarch 11, 2024
VR Infraspace IPO Credit of Shares to DematMarch 11, 2024
VR Infraspace IPO Issue TypeFixed Price Issue IPO
VR Infraspace IPO Listing AtNSE SME

VR Infraspace Limited IPO – Company Profile

V R Infraspace Limited is a construction and real estate development company, focused primarily on the construction and development of residential and commercial projects, in and around Vadodara, Gujarat. The company believes it has been serving the people of Vadodara with the best residential and commercial projects. 

The customer-centric business model focuses on designing and developing products to address consumer needs across price points. The company has the capabilities to deliver a project from conceptualization to completion with a fast turnaround time from acquisition to launch to completion, which focuses on de-risking and improving the return on investment.

Mr. Vipul Devchand Rupareliya has 9 years of experience in the Real Estate industry, the vast experience of the Promoter has been instrumental in determining the vision and growth strategies for the Company. 

VR Infraspace IPO  – Fundamental Analysis

VR Infraspace Limited’s financials reveal steady revenue growth, a significant boost in profitability, and improved financial health leading up to its IPO. These indicators suggest a promising investment opportunity in the real estate and infrastructure sector.

Revenue Growth:

The company has seen a consistent increase in revenue, from ₹1,341.80 lakhs in FY2021 to ₹1,836.80 lakhs in FY2023, indicating a growing business operation and market presence.

Equity Growth:

Equity has significantly grown, from ₹869.65 lakhs to ₹1,211.86 lakhs, reflecting investor confidence and possibly successful capital infusion efforts to support expansion.

Profitability:

Profit after tax has more than tripled from ₹72.04 lakhs in FY2021 to ₹262.47 lakhs in FY2023, showcasing the company’s ability to enhance its profitability.

Return on Net Worth (RoNW):

The RoNW has seen a substantial increase to 21.71% in FY2023, demonstrating the company’s efficiency in generating profits from its equity.

Diluted EPS:

The Diluted EPS has significantly improved, indicating an increase in earnings power per share, from ₹1.11 in FY2021 to ₹4.05 in FY2023.

NAV per Equity Share:

The NAV per equity share has steadily increased, indicating an enhancement in the intrinsic value of the company’s shares.

Asset and Liability Management:

Total assets have decreased, which could signal a strategy of divesting non-core assets or a focus on operational efficiency. Meanwhile, liabilities have also reduced, improving the company’s financial stability.

Debt to Equity Ratio:

The debt-to-equity ratio has improved from 1.93 in FY2021 to 0.80 in FY2023, indicating a healthier balance sheet with reduced leverage.

Inventory Turnover Ratio:

The inventory turnover ratio shows a decrease, suggesting a slower pace in inventory management, which is critical in the real estate sector for assessing operational efficiency.

Net Profit Ratio:

The net profit ratio has more than doubled to 14.29% in FY2023, highlighting the company’s growing profitability relative to its revenue.

VR Infraspace Limited IPO Financial Information

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)    1,341.801,374.44  1,836.80
Equity (₹ in lakhs)    869.65949.39  1,211.86   
Expenses (₹ in lakhs)1,268.94      1,310.47    1,619.58
Profit and Loss After Tax (₹ in lakhs)72.04  79.74    262.47
RoNW (%)8.18% 7.98%21.71%
Diluted EPS only (₹)1.111.234.05
NAV per Equity Share (₹)13.3414.3618.22 
Total Assets (in lakhs)5,479.20  4,920.59    4,328.39
Total Liabilities (in lakhs) 4,609.553,971.213,100.54
Debt to Equity Ratio (in times)1.931.090.80
Inventory Turnover Ratio (in times)NA0.310.23
Net Profit Ratio (in %)5.37%5.80%14.29%

VR Infraspace IPO Peer Comparison

VR Infraspace Limited excels in its sector with a RoNW of 21.71% and an EPS of ₹4.04, indicating high profitability. In contrast, Samor Reality and Laxmi Goldorna House show much lower profitability metrics, highlighting VR Infraspace’s strong financial performance among its peers.

CompanyRevenue (₹ in lakhs)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
VR Infraspace limited1790.291021.044.0421.71%18.61
Samor Reality1375.3110135.230.220.46%25.61
Laxmi Goldorna House Limited 6087.5810343.680.191.24%15.26

VR Infraspace Ltd IPO Objective

The main objective of VR Infraspace Limited’s IPO is to meet its working capital requirements and invest in its subsidiary M/s. Daxon Realty and general corporate expenses.

  1. To Meet Working Capital Requirements: The company is planning for new projects in which the inventory of work in progress needs to hold over more than 1 year i.e. until the completion of the project. The business of the company is working capital-intensive and hence the company plans to utilize INR 3.50 crores.
  1. To invest in its subsidiary- M/s. Daxon Technologies: To invest INR 15 crores in its subsidiary for part financing the construction of VR Vivanta. 
  1. General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies. 

VR Infraspace Ltd IPO Risks And Challenges

VR Infraspace faces significant risks in its operations. It generates all its revenue from Vadodara, Gujarat, making it vulnerable to adverse developments in the region. Delays, cost overruns, and supply shortages in ongoing and future projects pose financial risks. Compliance with the recently implemented Real Estate (Regulation and Development) Act (RERA) may lead to additional time and cost burdens, with potential penalties for non-compliance.

  1. The company generates its entire revenue from the region of Vadodara, Gujarat. Any adverse development affecting the operations in these regions could harm the revenue and results of the operation.
  1. The company faces significant risk concerning the length of time needed to complete each project and there could be unscheduled delays and cost overruns with the ongoing and future projects.
  1. Significant increases in prices of, shortages of, or delays or disruption in the supply of labour and key building materials could affect the estimated construction cost and timelines resulting in cost overruns or less profit. 
  1. The business is subject to the RERA, a comparatively recent legislation that may require more time and cost to comply with. The inability to comply with the provisions of RERA may subject us to penal consequences there under. 

VR Infraspace Limited IPO – Industry & Market Potential

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy. 

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru is expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.

VR Infraspace IPO  – Type of Offer

VR Infraspace Limited’s Initial Public Offering (IPO) includes a fresh issue of 24,00,000 shares totaling INR 20.40 crores. The company intends to use the net proceeds to fulfill its working capital needs and to invest in its subsidiary, M/s. Daxon Realty.

VR Infraspace Ltd IPO Offer Size

The offer size of VR Infraspace Limited is INR 20.40 crores. The company intends to use the net proceeds to fulfill its working capital needs and to invest in its subsidiary, M/s. Daxon Realty.

VR Infraspace Limited IPO Allotment Structure

VR Infraspace Limited’s IPO allotment structure includes a Retail Individual Investors (RII) category with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 1,21,600  shares for Market Makers.

·Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.

·Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.

· Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 1,21,600 equity shares for this purpose.

How to apply for a VR Infraspace Limited IPO?

To apply for the VR Infraspace IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the VR Infraspace IPO details in the IPO section of the Alice Blue platform.
  3.  Place the Bid: Enter the number of shares you wis