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

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: -

  1. Funding for strategic investment and acquisitions.
  2. Funding Capital Expenditure towards construction of factory building.
  3. Funding capital expenditure towards acquisition and installation of additional plants and machinery.
  4. General Corporate Purpose.
  5. 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.

Vilas Transcore IPO Details

IPO Date May 27, 2024 to May 29, 2024
Listing Date June 03, 2024
Face Value ₹10 per share
Price ₹139 to ₹147 per share
Lot Size 1000 Shares
Total Issue Size ₹95.26 Cr
Fresh Issue 6,480,000 shares (aggregating up to ₹95.26 Cr)
Offer for Sale Nil
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 18,000,000
Share holding post issue 24,480,000

Vilas Transcore IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 1000 ₹147,000
Retail (Max) 1 1000 ₹147,000
HNI (Min) 2 2,000 ₹294,000

Vilas Transcore IPO Timeline (Tentative Schedule)

IPO Open Date Monday, May 27, 2024
IPO Close Date Wednesday, May 29, 2024
Basis of Allotment Thursday, May 30, 2024
Initiation of Refunds Friday, May 31, 2024
Credit of Shares to Demat Friday, May 31, 2024
Listing Date Monday, June 3, 2024
Cut-off time for UPI mandate confirmation 5 PM on May 29, 2024

Vilas Transcore IPO Reservation

Investor Category Shares Offered Reservation %
QIB Shares Offered 3240000 Not more than 50% of the Net Issue
NII (HNI) Shares Offered 972000 Not less than 15% of the Net Issue
Retail Shares Offered 2268000 Not less than 35% of the Net Issue

Vilas Transcore IPO Promoter Holding

Share Holding Pre Issue 99.97%
Share Holding Post Issue 73.01%

About Vilas Transcore Limited

VILAS TRANSCORE LIMITED, incorporated in 2006, is engaged in the manufacturing and supply of components used in the power distribution and transmission sector, primarily to transformer and other power equipment manufacturer in India and abroad.

They manufacture and supply a different range of electrical lamination cold rolled grain oriented (C.R.G.O.) lamination core, CRGO slit coils, CRGO stacked (assembled cores), CRGO wound core and CRGO Toroidal core which are mainly used in power transformer, distribution transformer & dry type transformers, high voltage / medium voltage & low voltage current transformers.

With two manufacturing facilities located at Por near Vadodara, Gujarat, their products, CRGO laminated Core, CRGO core and slit coils are one of the most important parts of different kinds of power transformer, distribution transformer & other current transformers.

Company manufactures products keeping in mind the industry standards and specifications given by the customer, with the use of latest technology to manufacture products for their customers with the defined requirements.

Industry

India stands as the third-largest producer and consumer of electricity globally, with an installed power capacity of 423.35 GW as of July 31, 2023. The country experienced its highest power generation growth rate in over three decades during FY23, with an 8.87% increase to 1,624.15 billion kilowatt-hours (kWh). In FY24, until July 2023, power generation reached 585.47 billion units (BU). From FY10 to FY23, electricity generation in India grew at a compound annual growth rate (CAGR) of 4.75%.

The demand for electricity is projected to rise further, driven by expanding industrial activity, a growing population, increased electrification, and higher per-capita usage. Power consumption in FY23 saw a 9.5% growth to 1,503.65 BU, up from 1,374.02 BU in FY22. India's electricity generation from both renewable and non-renewable sources was 1,373.08 BU in FY21, 1,484.36 BU in FY22, and 1,617.72 BU in FY23, reflecting a consistent upward trend in power production.

Risk to the issue:

  • Voltamp Transformers Limited is the key customer, providing approximately 41% of revenue to the company. Further the top 5 customers hold approximately 67% of revenue from operations. Any loss of such customers may affect the business.
  • The company don’t enter into any firm supply agreements with customers. If our customers choose not to source their requirements from them, their business and results of operations may be materially adversely affected.
  • The company is totally dependent on the power distribution sector, any economic cyclicality in the sector may affect the business of the company. The demand for power is sensitive to factors such as consumer demand, seasonal fluctuations, consumer confidence, disposable income levels and general economic conditions.
  • CRGO Electrical lamination accounts for more than 75% of sales revenue. Such reliance on a single product for a major portion of revenue might harm the company if any disruption happens in the same.
  • The company faces competition in Indian and overseas market, based on many factors, including product quality and reliability, product design and innovation, manufacturing capabilities and price.

Vilas Transcore Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 31st Dec 23 31st Mar 23 31st Mar 22 31st Mar 21
Reserve of Surplus 135.31 134.04 114.51 97.29
Total Assets 208.21 188.80 172.66 142.66
Total Borrowings 5.00 4.90 3.47 7.58
Fixed Assets 33.44 34.49 37.13 38.12
Cash 40.96 39.56 37.54 33.12
Net Borrowing -35.96 -34.67 -34.07 -25.54
Revenue 235.75 282.61 233.03 132.65
EBITDA 22.02 28.51 25.47 7.99
PAT 16.79 20.22 17.91 5.23
EPS 9.33 11.24 9.95 2.91

Note 1. Post P/E is calculated on the annual return of FY23.
Note 2. ROE, ROCE, RONW, P/Bv, D/E shown on Dec'23 basis.

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) 11.24
EPS Post IPO (Rs.) 8.26
P/E Pre IPO 13.08
P/E Post IPO 17.79
ROE 13.03%
ROCE 16.10%
P/BV 1.93
Debt/Equity 0.03
RoNW 12.24%

Vilas Transcore Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
No direct Listed Player - - - - - - -
Vilas Transcore Limited Contact Details

VILAS TRANSCORE LIMITED

Plot No 435 To 437, Nr Galaxy Hotel, N H No 8, Village Por, Vadodara, Gujarat, 391243.

E-mail: nilesh@vilastranscore.com

Tel No: +91- 9328026762

Website: www.vilastranscore.com

Vilas Transcore IPO Registrar and Lead Manager(s)

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai –400093, India.

Telephone: +91 22 6263 8200

Email: ipo@bigshareonline.com

Website: www.bigshareonline.com

Vilas Transcore IPO Review

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 company is led by Mr. Nilesh Jitubhai Patel, Chairman and Managing Director, who has about 30 years of experience in this field. Under his leadership, VTL has grown its operations and established itself in both Indian and global markets.

Financially, VTL's revenue increased from Rs. 132.65 crore in FY21 to Rs. 233 crore in FY22 further going to Rs. 282.61 Cr. in FY23 and landing at Rs. 235 crore for the 9MFY24. Similarly, EBITDA rose from Rs. 7.99 crore in FY21 to Rs. 25.47 crore in FY22 further going to Rs.28.51 Cr. in FY23 and then landing at Rs. 22.02 crore for the 9MFY24. This indicates steady financial performance.

For the IPO, VTL is issuing shares at a pre-issue EPS of Rs. 11.24 and a post-issue EPS of Rs. 8.26. The pre-issue P/E ratio is 13.08, while the post-issue P/E ratio is 17.79. The company's ROCE for FY23 is 22.64%, and ROE for FY23 is 18.33%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) indicates potential listing gains of 13.6% - 40%. Given the company's steady financial performance and the valuation of the IPO, we recommend to apply in the IPO for short-term listing gains or investment purposes. 

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