Vilas Transcore IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

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Vilas Transcore Limited IPO GMP

Vilas Transcore Ltd. (VTL) manufactures and supplies components for the power distribution and transmission sector, catering primarily to transformer and power equipment manufacturers in India and abroad. Their products include electrical lamination cores and coils used in various types of transformers.

The Vilas Transcore IPO is a book-built issue amounting to Rs 95.26 crores, entirely comprising a fresh issue of 64.8 lakh shares. The subscription period for the IPO is from May 27, 2024, to May 29, 2024, with the allotment expected to be finalized on May 30, 2024. The IPO is set to list on the NSE SME on June 3, 2024.

The price band for the shares is ₹139 to ₹147 each, and the minimum lot size for an application is 1,000 shares, requiring a minimum investment of ₹147,000 for retail investors. For high-net-worth individuals (HNIs), the minimum investment is 2 lots, or 2,000 shares, amounting to ₹294,000.

Hem Securities Limited is the book-running lead manager for the IPO, with Bigshare Services Pvt Ltd acting as the registrar and Hem Finlease serving as the market maker.

The Issue comprises of the fresh Issue of 64,80,000 Equity Shares, aggregating to ₹95.26 Cr.

Net proceeds will be utilized towards: -

Funding for strategic investment and acquisitions.
Funding Capital Expenditure towards construction of factory building.
Funding capital expenditure towards acquisition and installation of additional plants and machinery.
General Corporate Purpose.
To meet issue expenses.

With inline to continue scaling business, the company intend to keep pursuing strategic investments and acquisitions which are complementary to their business and will enhance range of products and services. Although the company have not entered into any definitive agreements towards any such potential strategic acquisition but will make it in the near coming future.

Company proposes to utilize Rs. 2009.87 lakhs for capital expenditure towards construction of factory shed & building (including construction of new shed, air conditioning system in new shed, epoxy flooring, construction of compound wall, RCC road and underground water tank etc.) to meet operational efficiencies. This will increase the installed capacity of the company, increase the customer base and undertake additional orders by the Company.

The company is currently expanding their manufacturing facility by setting up a new plant at Vadodara, Gujarat. The proposed facility will be equipped with lamination machines including Hole Punch Unit, V Notch Punching Unit, Spares and Scrap Removal System and is proposed to be commissioned during the year F.Y. 2024-25.

Grey Market Premium (GMP) of VILAS TRANSCORE LIMITED

The Grey Market Premium is expected in the range of Rs 20 - Rs. 59 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.