Vruddhi Engineering Limited is coming up with an IPO worth INR 4.76 crores, consisting of a fresh issue of 6.80 lakh shares. The company plans to use the funds raised to meet the working capital requirements and general corporate purposes.
Vruddhi Engineering Works Limited IPO – Important Dates
| Vruddhi Engineering IPO Date | March 26, 2024 to March 28, 2024 |
| Vruddhi Engineering IPO Listing Date | April 3, 2024 |
| Vruddhi Engineering IPO Price | INR 66 to 70 per share |
| Vruddhi Engineering IPO Lot Size | 2000 Shares |
| Vruddhi Engineering IPO Total Issue Size | INR 4.76 crores |
| Vruddhi Engineering IPO Basis of Allotment | April 1, 2024 |
| Vruddhi Engineering IPO Initiation of Refunds | April 2, 2024 |
| Vruddhi Engineering IPO Credit of Shares to Demat | April 2, 2024 |
| Vruddhi Engineering IPO Issue Type | Book Built Issue IPO |
| Vruddhi Engineering IPO Listing At | BSE SME |
Vruddhi Engineering IPO – Company Profile
The company mainly offers mechanical splicing solutions to the real estate, construction, and infrastructure industries by designing, engineering, and supplying rebar couplers. The company’s offering under this vertical includes
(a) supply of rebar couplers as per the customer’s needs;
(b) on-site threading services of the couplers and
(c) trading in threading machines and spares.
The company believes it offers end-to-end mechanical splicing solutions from design, manufacturing, testing, logistics, and rebar threading. The company believes that the rebar couplers offered by the company are an alternative to the conventional splicing methods followed in the construction industry.
Vruddhi Engineering Works IPO Review
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in lakhs) | 0.44 | 220.65 | 1,307.69 |
| Equity (₹ in lakhs) | 0.12 | 9.56 | 212.12 |
| Expenses (₹ in lakhs) | 1.32 | 208.05 | 1,208.19 |
| Profit and Loss After Tax (₹ in lakhs) | (0.88) | 9.44 | 75.53 |
| Diluted EPS only (₹) | (0.55) | 5.90 | 15.17 |
| Return on Net Worth (%) | (733.33%) | 98.74% | 35.51% |
| NAV per Equity Share (₹) | 1.20 | 95.62 | 683.34 |
| Total Assets (in lakhs) | 3.03 | 100.14 | 782.33 |
| Total Liabilities (in lakhs) | 2.90 | 90.58 | 570.21 |
| Debt Equity Ratio (in times) | 1.00 | 41.48 | 9.12 |
| Current Ratio (in times) | 4.49 | 1.41 | 1.26 |
| Inventory Turnover Ratio (in times) | (0.02) | 104.56 | 55.33 |
Vruddhi Engineering IPO Fundamental Analysis
Vruddhi Engineering Works witnessed substantial growth from 2021 to 2023. Revenue surged from ₹0.44 lakhs to ₹1,307.69 lakhs, while equity expanded from ₹0.12 lakhs to ₹212.12 lakhs. Expenses rose gradually, and profitability saw significant improvement, reflecting enhanced operational efficiency and investor confidence.
Revenue Growth
The company experienced significant revenue growth over the three-year period. Starting at ₹0.44 lakhs in 2021, revenue surged to ₹220.65 lakhs in 2022 and then to ₹1,307.69 lakhs in 2023, indicating consistent and substantial expansion in income.
Expense Management
Expenses grew alongside revenue but at a slower rate. In 2021, expenses were ₹1.32 lakhs, rising to ₹208.05 lakhs in 2022, and further to ₹1,208.19 lakhs in 2023. This indicates the need for effective cost-management strategies to maintain profitability amidst revenue expansion.
Profitability Enhancement
The company’s profitability improved significantly over the three years. It started with a loss of ₹0.88 lakhs in 2021, turned to a profit of ₹9.44 lakhs in 2022, and then rose substantially to ₹75.53 lakhs in 2023, reflecting enhanced operational efficiency and revenue generation.
Earnings Per Share Growth
Diluted EPS showed consistent growth throughout the period. It began at (0.55) in 2021, increased to 5.90 in 2022, and then further to 15.17 in 2023, indicating improved shareholder earnings potential.
Return on Net Worth (RoNW) Improvement:
RoNW exhibited significant improvement over the three years. It started with a negative percentage (-733.33%) in 2021, then increased to 98.74% in 2022, and further to 35.51% in 2023, showcasing enhanced profitability relative to shareholder equity.
Net Asset Value (NAV) Increase
NAV per equity share saw substantial growth. Starting at ₹1.20 in 2021, it rose to ₹95.62 in 2022, and further to ₹683.34 in 2023, indicating increased asset value and potential investor returns.
Asset and Liability Expansion
Both total assets and liabilities experienced significant growth from 2021 to 2023. Total assets increased from ₹3.03 lakhs to ₹782.33 lakhs, while total liabilities rose from ₹2.90 lakhs to ₹570.21 lakhs, suggesting overall expansion and increased financial activity within the organization.
Debt Management
The debt-equity ratio fluctuated notably, from 1.00 in 2021 to 41.48 in 2022, and then to 9.12 in 2023, reflecting changes in the company’s debt financing strategies and financial leverage.
Liquidity Analysis
The current ratio declined gradually over the three years, from 4.49 in 2021 to 1.26 in 2023, indicating a slight decrease in liquidity. However, it remained above the critical threshold of 1, suggesting overall adequate liquidity.
Inventory Efficiency
The inventory turnover ratio improved significantly over the period, from (0.02) in 2021 to 104.56 in 2022, and then to 55.33 in 2023, indicating better management of inventory and operational efficiency.
Vruddhi Engineering Works Limited IPO Peer Comparison
Vruddhi Engineering Works Limited demonstrated strong financial performance, with a total revenue of ₹1,307.69 lakhs, EPS of ₹242.66, RoNW of 35.51%, and NAV per Equity Share of ₹683.30.
| Company | Total Revenue (₹ in lakhs) | Face Value (₹) | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Vruddhi Engineering Works Limited | 1307.69 | 10 | 242.66 | 35.51% | 683.30 |
| Shiv Aum Steels Limited | 49,592.70 | 10 | 10.53 | 14.95% | 70.40 |
| SRU Steels Limited | 1,671.64 | 10 | 0.87 | 5.26% | 11.09 |
Vruddhi Engineering IPO Objective
The main objective of Vruddhi Engineering’s IPO is to meet the working capital requirement by allocating INR 4 crores for incremental business needs in FY 2024. The remaining funds will support general corporate goals and initiatives, including strategic partnerships, branding, marketing, and client referral fees.
- To meet the working capital requirement: To support the incremental business requirements, the company requires additional working capital to fund its incremental working capital requirements in the Financial Year 2024. The company proposes to utilise INR 4 crores for the said purpose.
- General Corporate Purpose: 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.
Vruddhi Engineering Works IPO Risks And Challenges
Vruddhi Engineering’s risks include legal proceedings against the director, potentially impacting business and financial health. Limited expansion in Mumbai may hinder growth. Competitive product segments pose margin and profitability risks as operations scale.
- There is a direct and indirect case pending against the director of the company. The sum involved is INR 216.85 crores. Any adverse decision in such proceedings may have a material adverse effect on the business, results of operations, and financial condition.
- The operations of the company are significantly located in and around Mumbai and failure to expand the operations may restrict the growth and adversely affect the growth.
- All of the product verticals are extremely competitive segments and the company faces the risk of competition affecting the margins and profitability.
Vruddhi Engineering IPO – Industry & Market Potential
By 2040, the real estate market will grow to ₹ 65,000 crore (US$ 9.30 billion) from ₹ 12,000 crore (US$ 1.72 billion) in 2019. The real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021, and contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
India’s real estate sector saw over 1,700 acres of land deals in top eight cities in the first nine months of FY22. Foreign investments in the commercial real estate sector were at US$ 10.3 billion from 2017-2021. As of February 2022, developers expect demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.
Vruddhi Engineering Works Limited IPO – Type of Offer
Vruddhi Engineering Limited is launching an IPO valued at INR 4.76 crores, comprising 6.80 lakh new shares. The company intends to allocate the proceeds towards meeting working capital requirements and general corporate purposes.
Vruddhi Engineering Works IPO Offer Size
The offer size of Vruddhi Engineering Limited’s IPO is INR 4.76 crores. The net proceeds will be used to meet the working capital requirement.
Vruddhi Engineering IPO Allotment Structure
Vruddhi Engineering’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Makers Reservations: A portion of the issue is reserved for market makers.
How to apply for a Vruddhi Engineering Works Limited IPO?
To apply for the Vruddhi Engineering IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Vruddhi Engineering IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Vruddhi Engineering IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Vruddhi Engineering IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Vruddhi Engineering IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Vruddhi Engineering IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Vruddhi Engineering IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Vruddhi Engineering IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Vruddhi Engineering Ltd IPO Offer Registrar
The registrar for the Vruddhi Engineering Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre,
Mahakali Caves Road, Andheri (East) Mumbai – 400093,
E-mail Id: [email protected]
Website: www.bigshareonline.com
Vruddhi Engineering Limited IPO – FAQs
The allotment date of the Vruddhi Engineering Limited IPO is April 1, 2024.
The price band of the issue is INR 66-70 per share.
Vruddhi Engineering Limited is coming up with an IPO worth INR 4.76 crores, consisting of a fresh issue of 6.80 lakh shares. The company plans to use the funds raised to meet the working capital requirements and general corporate purposes.
The listing date of Vruddhi Engineering’s IPO is April 3, 2024.
