VVIP Infratech Limited is launching an IPO with a fresh issue of 65,82,400 shares worth INR 61.21 crores. The company aims to effectively manage capital expenditures, working capital requirements, and general corporate purposes.
VVIP Infratech IPO – Important Dates
| VVIP Infratech Limited IPO Date | July 23, 2024 to July 25, 2024 |
| VVIP Infratech Limited IPO Listing Date | July 30, 2024 |
| VVIP Infratech Limited IPO Price | INR 91-93 per share |
| VVIP Infratech Limited IPO Lot Size | 1200 shares |
| VVIP Infratech Limited IPO Total Issue Size | INR 61.21 crores |
| VVIP Infratech Limited IPO Basis of Allotment | July 26, 2024 |
| VVIP Infratech Limited IPO Initiation of Refunds | July 29, 2024 |
| VVIP Infratech Limited IPO Credit of Shares to Demat | July 29, 2024 |
| VVIP Infratech Limited IPO Issue Type | Book Built Issue IPO |
| VVIP Infratech Limited IPO Listing At | BSE SME |
VVIP Infratech Limited IPO – Company Profile
VVIP Infratech Limited, a leading Indian infrastructure company, has over two decades of expertise in executing and constructing projects, including sewers, treatment plants, water tanks, electrical distribution, and more.
The company’s skilled engineering team is known for high-quality work, timely delivery, and competitive pricing. It is also preferred for STPs, constructing two 56 MLD STPs using SBR technology in 2013.
Active in northern India, it has a Rs. 477.62 Crores order book, strong growth prospects, and focuses on innovation and quality, demonstrating its robust execution capabilities and potential to lead in infrastructure development.
VVIP Infratech Ltd IPO Fundamental Analysis
VVIP Infratech Limited Technologies’ financial analysis reveals a mixed performance. Revenue has increased, equity shows growth and profitability, RoNW has improved, and EPS has decreased. Total assets rose, but liquidity weakened; inventory turnover suggests strong sales or efficiency.
- Revenue Trend: The revenue increased from ₹18,188.53 lakhs in March 2022 to ₹20,889.94 lakhs in March 2023. The revenue for the current year’s 6-month period ending September 2023 is INR 12,114.48 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹452.96 lakhs in March 2022 to ₹1,226.77 lakhs by September 2023. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has reduced from ₹74.83 in March 2022 to ₹42.00 by September 2023.
- Return on Net Worth (RoNW): The RoNW has risen from 6.66% to 12.43%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest strong sales or efficient inventory management.
VVIP Infratech IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 September 2023 |
| Revenue (₹ in lakhs) | 18,188.53 | 20,889.94 | 12,114.48 |
| Equity (₹ in lakhs) | 6,803.5 | 8,639.66 | 9,866.43 |
| Expenses (₹ in lakhs) | 17,937.14 | 19,277.69 | 10,516.22 |
| Profit and Loss After Tax (₹ in lakhs) | 452.96 | 1,357.66 | 1,226.77 |
| Diluted EPS only (₹) | 74.83 | 224.29 | 42.00 |
| Return on Net Worth (%) | 6.66 | 15.71 | 12.43 |
| NAV per Equity Share (₹) | 1,123.99 | 1,427.33 | 337.82 |
| Total Assets (in lakhs) | 26,624.58 | 24,158.58 | 26,480.02 |
| Total Liabilities (in lakhs) | 19,210.56 | 15,095.98 | 16,155.36 |
| Debt Equity Ratio | 0.57 | 0.27 | 0.21 |
| Current Ratio (in times) | 2.28 | 2.09 | 1.94 |
| Inventory Turnover Ratio | 1.81 | 2.73 | 3.81 |
VVIP Infratech Limited IPO Peer Comparison
VVIP Infratech Limited shows strong financial performance, while EMS Limited demonstrates significant revenue and profitability. Vishnusurya Projects and Infra Limited also exhibit solid results, highlighting varying financial strengths across these companies.
| Company | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | Total Income (₹ in lakhs) |
| VVIP Infratech Limited | 10 | – | 42.00 | 13.69 | 14,817.45 |
| EMS Limited | 10 | 19.31 | 21.95 | 24.8 | 54,327.71 |
| Vishnusurya Projects and Infra Limited | 10 | 15.10 | 23.62 | 32.8 | 13,326.06 |
VVIP Infratech Ltd IPO Objective
The main objective of VVIP Infratech Limited is to manage capital expenditure and working capital requirements effectively.
- Capital Expenditure: The company intends to spend INR 10.50 crores on various new machinery, including auto-loaded mixture machines, hydraulic cranes, forklifts, and tippers from suppliers like Schwing Stetter India Pvt Ltd and Action Construction Equipment Ltd.
- Working Capital Requirement: The company plans to utilize INR 159.19 crores from the issue proceeds for working capital needs in FY 2025-26, with the remainder met through internal accruals and borrowings, addressing future growth requirements.
- General Corporate Purpose: The company will deploy the balance of funds towards general corporate purposes, including meeting operating expenses, initial development costs for new projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies.
VVIP Infratech IPO Risks And Challenges
VVIP Infratech Limited’s risk includes ongoing litigation that may impact business, uncertainties around lease renewal and contract stability, and challenges in meeting FY 2024 working capital needs, which could affect financial health and operations.
- Ongoing litigation involving their company, directors, promoters, subsidiaries, and group companies may pose risks. Adverse outcomes in these cases could adversely affect the company’s business and operations.
- A lease renewal for their registered office is not guaranteed, and securing similar terms may be challenging. Any disruption or cancellation of contracts with licensors/lessors could adversely affect their operations and overall business.
- Their working capital needs are estimated at Rs. 3000 lakhs for FY 2024, funded by issue proceeds. Failure to secure adequate financing or manage trade receivables could negatively impact their financial health and operations.
VVIP Infratech Ltd IPO – Industry & Market Potential
The global roads and highways market is projected to grow from $674.98 billion in 2022 to $716.74 billion in 2023, despite short-term disruptions from the Russia-Ukraine war, reaching $871.36 billion by 2027.
India is significantly increasing infrastructure investment, with capital outlay rising to ₹10 lakh crore for FY24. Plans include significant railways, airports, metro networks, and logistics investments, aiming for substantial growth and modernization by 2027.
India’s electricity sector is set for significant transformation; by 2031, it aims to produce 40 GW from solar rooftops and 21 nuclear reactors. By 2030, renewable energy’s share will rise to 44%, with total capacity reaching 500 GW.
VVIP Infratech Limited IPO – Type of Offer
VVIP Infratech Limited is launching an IPO with a fresh issue of 65,82,400 shares worth INR 61.21 crores. The company aims to effectively manage capital expenditures, working capital requirements, and general corporate purposes.
VVIP Infratech IPO Offer Size
The offer size of VVIP Infratech Limited is INR 61.21 crores, consisting of a fresh issue of 65,82,400 shares. The company seeks funds to effectively manage capital expenditures, working capital requirements, and general corporate purposes.
VVIP Infratech Limited IPO Allotment Structure
VVIP Infratech Limited’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. 338,400 shares are 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 Maker Reservation: A portion of shares, i.e. 338,400 shares, are reserved for marker makers.
How to apply for a VVIP Infratech Limited IPO?
To apply for the VVIP Infratech Limited 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 VVIP Infratech Limited 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 VVIP Infratech Limited 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 VVIP Infratech Limited’s 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 VVIP Infratech Limited 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 VVIP Infratech Limited 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 VVIP Infratech Limited IPO:
● Registrar’s Website: Visit the website of Maashitla Securities Private Limited, the registrar of the VVIP Infratech Limited 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) Small Medium Exchange (SME). 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.
VVIP Infratech Limited Ltd IPO Offer Registrar
The registrar for the VVIP Infratech Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Maashitla Securities Private Limited
451, Krishna Apra Business Square,
Netaji Subhash Place, Pitampura,
Delhi – 110034, India
Tel No.: 011-45121795
Email: [email protected]
Website: www.maashitla.com
VVIP Infratech Limited Limited IPO – FAQs
1. What is VVIP Infratech Limited’s allotment date?
The allotment date of the VVIP Infratech Limited IPO is July 26, 2024.
2. What is the price band of the VVIP Infratech Limited IPO?
The price band of the issue is INR 91-93 per share.
3. What is the size of the VVIP Infratech Limited IPO?
The offer size of VVIP Infratech Limited is INR 61.21 crores, consisting of a fresh issue of 65,82,400 shares. The company seeks funds to effectively manage capital expenditures, working capital requirements, and general corporate purposes.
4. What is the listing date of the VVIP Infratech Limited IPO?
The listing date of VVIP Infratech Limited’s IPO is July 30, 2024.
