Vision Infra Equipment Solutions IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

Vision Infra Equipment Solutions is a solution provider in the equipment space delivering their services in airports, smart cities, irrigation, building & factories, mining, railways , etc. Their portfolio of services includes: renting of road construction equipment and trading and refurbishment of these equipment.

VIESL, an Book Built Issue amounting to ₹106.21 Crores, consisting entirely an Fresh Issue of 65.16 Lakh Shares. The subscription period for the VIESL IPO opens on September 06, 2024, and closes on September 10, 2024. The allotment is expected to be finalized on or about Wednesday, September 11, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about Friday September 13, 2024.

The Share price band of VIESL IPO is set at ₹155 to ₹163 equity per share, with a minimum lot size of 800 shares. Retail investors are required to invest a minimum of ₹130,400, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (1,600 shares), amounting to ₹260,800.

HEM SECURITIES LIMITED is the book-running lead manager, LINK INTIME INDIA PRIVATE LIMITED is the registrar for the Issue. Hem Finlease Private Limited is the sole Market Marker for the VIESL IPO.

Vision Infra Equipment Solutions Limited IPO GMP Today
The Grey Market Premium of Vision Infra Equipment Solutions Limited IPO is expected in the range of ₹50 to ₹55 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.

Vision Infra Equipment Solutions Limited IPO Live Subscription Status Today
As of 11:59 AM on 10 September 2024, the Vision Infra Equipment Solutions Limited IPO live subscription status shows that the IPO subscribed 4.08 times on its Last day of subscription period. Check the Vision Infra Equipment Solutions Limited IPO Live Subscription Status Today at NSE.

Vision Infra Equipment Solutions Limited IPO Allotment Status
Vision Infra Equipment Solutions IPO allotment date is 11 September, 2024, Wednesday. Vision Infra Equipment Solutions IPO Allotment will be out on 11th August 2024 and will be live on Registrar Website from the allotment date. Check Vision Infra Equipment Solutions Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Vision Infra Equipment Solutions Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Vision Infra Equipment Solutions Limited IPO
Vision Infra Equipment Solutions Issue Proceeds from the Fresh Issue will be utilized towards the following objects : 
1. ₹4681.15 Lakhs is required for Funding Capital Expenditure towards purchase of additional equipment 
2. ₹3650.00 Lakhs is required for Funding to meet working capital requirements 
3. General Corporate Purpose.

Refer to Vision Infra Equipment Solutions Limited RHP for more details about the Company.

Check latest IPO Review & analysis, Live GMP today, Live Subscription Status Today, Share Price, Financial Information, latest IPO news, Upcoming IPO News before applying in the IPO.

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Vision Infra Equipment Solutions IPO Details

IPO Date September 06, 2024 to September 10, 2024
Listing Date September 13, 2024
Face Value ₹10
Price ₹155 to ₹163 per share
Lot Size 800 Shares
Total Issue Size 6,516,000 Equity Shares (aggregating to ₹106.21 Cr)
Fresh Issue 6,516,000 Equity Shares (aggregating to ₹106.21 Cr)
Offer for Sale Nil
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 18,126,400
Share holding post issue 24,642,400

Vision Infra Equipment Solutions IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 800 ₹130,400
Retail (Max) 1 800 ₹130,400
HNI (Min) 2 1,600 ₹260,800

Vision Infra Equipment Solutions IPO Timeline (Tentative Schedule)

IPO Open Date Friday, September 06, 2024
IPO Close Date Tuesday, September 10, 2024
Basis of Allotment Wednesday, September 11, 2024
Initiation of Refunds Thursday, September 12, 2024
Credit of Shares to Demat Thursday, September 12, 2024
Listing Date Friday, September 13, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 10, 2024

Vision Infra Equipment Solutions IPO Reservation

Investor Category Shares Offered Reservation %
QIB Portion 3,089,600 Not More than 50% of the Net Issue
Non-Institutional Shares Offered 927,200 Not Less than 15% of the Net Issue
Retail Shares Offered 2,163,200 Not Less than 35% of the Net Issue
Market Maker Portion 336,000 5.16% of the Issue

Vision Infra Equipment Solutions IPO Promoter Holding

Share Holding Pre Issue 95.44%
Share Holding Post Issue 70.20%

Vision Infra Equipment Solutions IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed
Anchor Investor Portion 1,853,600 - -
Qualified Institutional Buyers (QIBs) 1,236,000 5,964,800 4.82
Non Institutional Investors (NIIS) 927,200 3,077,600 3.31
Retail Individual Investors (RIIs) 2,163,200 10,330,400 4.77
Market Maker Portion 336,000 - -
Total 5,915,800 19,372,800 4.08

About Vision Infra Equipment Solutions Limited

Vision Infra Equipment Solutions story started in 1983 as a family business engaged in the refurbishment of commercial vehicles. Since then, they have grown in purpose and scale, spreading their roots far and wide. Now in their generational journey, their focus is on leasing, renting, refurbishing, and selling road construction equipment and other types of construction machinery. They also manage works contracts, projected crushing, soil stabilization, recycling, milling, and paving.

They have built a reputation for delivering high-quality equipment and reliable service. They prioritize clear, straightforward business practices and put their customers first. Their expertise is in finding machinery at the right prices, leasing it to reputable clients across the country, and selling it at the optimal time.

Looking ahead, “VIESL” aims to support India’s infrastructure development. They provide machinery that offers great value and helps their customers achieve their project goals. They are eager to contribute to India’s progress with solutions that consider both environmental and social responsibilities.

INDUSTRY SCENARIO
India has the second-largest road network in the world, spanning over 6.3 million kms. Over 64.5% of all goods in the country are transported through roads, while 90% of the total passenger traffic uses road network to commute. 

Under the Union Budget 2023- 24, the Government of India allocated Rs. 2.7 lakh crore (US$ 33 billion) to the Ministry of Road Transport and Highways. The Roads sector is expected to account for 18% capital expenditure over FY19-FY25. In FY22 (until November 2021) private sector invested Rs. 15,164 crore (US$ 1.98 billion) in roads. 

India's road network has grown 59% to become the second-largest in the world in the last nine years. India has nearly 64 lakh km of total road network and the National Highways network alone stood at 145,240 km in 2022-23 compared to 91,287 km in 2013-14. 

NHAI (National Highways Authority of India) is planning to raise Rs. 40,000 crore (US$ 5.72 billion) to monetize its highway assets through Infrastructure Investment Trust (InvIT). 

India had a total of 97,830 km of National Highways in 2014-15 which has expanded to 145,155 km by March 2023. NHAI plans to construct 25,000 kms of national highways in 2022-23 at a pace of 50 km per day. In August 2022, Minister for Road Transport and Highways Mr. Nitin Gadkari inaugurated and laid the foundation stone of 6 National Highway projects of 119 Kms worth Rs. 2,300 crore (US$ 288.63 million) in Indore, Madhya Pradesh.

Road transport is the dominant mode of transport in India, both in terms of traffic share and contribution to the national economy. Apart from facilitating the movement of goods and passengers, road transport plays a key role in promoting equitable socio-economic development across regions of the country. It also plays a vital role in social and economic integration and development of the country. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road transport a greater significance in both passenger and freight traffic vis-à-vis other modes of transport.

India has about 63.73 lakh km of road network, which is the second largest in the world. 

National Highways play a very important role in the economic and social development of the country by enabling efficient movement of freight and passengersand improving access to the market. MoRTH and its implementing agencies have implemented multiple initiatives in the last 8 years to augment the capacity of the National Highway infrastructure in India. 

In the Union Budget 2023-24, the government has decided to raise the allocation towards the Ministry of Roads by some 36% to Rs. 2.7 lakh crore (US$ 32.6 billion) for 2023-24. 

In FY23, the total length of National Highways in the country was 1,45,240 km. 

National Highways had increased from 91,000 km in 2008 to 1,41,000 km in 2022, and the pace of construction had improved from 12 km a day to 42.03 km in FY23. 

In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated and laid the foundation stone of 8 National Highway projects of 226 km length worth Rs. 1800 crore (US$ 217.4 million) at Igatpuri, Nashik, Maharashtra. In October 2022, the Prime Minister of India laid the foundation of road and ropeway projects worth more than Rs. 3,400 crores (US$ 410 million) in Mana, Uttarakhand. A network of 35 Multimodal Logistics Parks is planned to be developed as part of Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore (US$ 5.5 billion), which once operational, shall be able to handle around 700 million metric tonnes of cargo. Of this, MMLPs at 15 prioritized locations will be developed with a total investment of about Rs. 22,000 Crore (US$ 2.6 billion). 

Government is working towards the development of a national highway network of 2 lakh kms by 2025. The Indian Railways expects to complete total revenue of Rs. 2,64,500 crore (US$31.81 billion) by the end of 2023-24.

Increasing investments in Indian infrastructure
The National Infrastructure Pipeline (NIP) for 2019-2025 is a first-of-its-kind, whole-of-government exercise to provide worldclass infrastructure to citizens, improving their quality of life. 

Infrastructure is the backbone of any country. Its development implies growth in all sectors of the economy, not to mention real estate, an indirect beneficiary of every headwind in infrastructure sector. The PM Awas Yojna and the extended credit-linked subsidy scheme address the affordability concern by provisioning increment in the PM Awas Yojna by 66% to 79,000 crores and extension of CLSS till 2027. 

FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.23 billion and US$ 28.95 billion, respectively, between April 2000-September 2022. 

In January 2023, the Construction arm of Larsen & Toubro secured orders for its power transmission & distribution and buildings & factories businesses to establish a 112.5MW Solar Power Plant in West Bengal and to construct a 600-bed super speciality hospital in Mumbai, respectively. In December 2022, BHEL formed a consortium with Titagarh Wagons and is among five entities which have bid for the mega Rs. 58,000 crore (US$ 7 billion) contract to manufacture 200 Vande Bharat trains and maintain them for the next 35 years. 

In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated and laid the foundation stone of 8 National Highway projects of 226 km length worth Rs. 1,800 crore (US$ 217.4 million) at Igatpuri, Nashik, Maharashtra. In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated 7 National Highway projects worth Rs. 2,444 crore (US$ 295 million) with a total length of 204 km in Rewa, Madhya Pradesh. In November 2022, the Prime Minister of India laid the foundation stone of various road projects worth over Rs. 2200 crore (US$ 2.6 billion), namely the Medak-Siddipet-Elkathurthy section of NH-765DG; Bodhan-Basar-Bhainsa section of NH-161BB; Sironcha to Mahadevpur Section of NH-353C in Telangana. 

In October 2022, National Highways Infra Trust (NHAI InvIT), the infrastructure investment trust sponsored by the National Highway Authority of India (NHAI) to support the Government of India's National Monetization Pipeline, raised a sum of Rs. 1,430 crore (US$ 172.6 million) from domestic and international investors through the placement of its units, for part funding its acquisition of three additional road projects from NHAI. As many as 52 critical infrastructure gap projects identified by MoPSW for connecting maritime ports and IWTs (Inland Waterway Terminals) to be taken up under PM Gati Shakti National Master Plan. Currently, the DPR of a total of 56 projects (including 11 IWT projects) under this category with a total of 1215 km length are under the bidding stage for the feasibility assessment of these projects, which is being carried out by NHAI.

VISION INFRA EQUIPMWNT SOLUTIONS LIMITED COMPETITIVE STRENGTHS
1. They own a large and young fleet of road construction equipment
2. Wide presence in domestic market with vast customer base
3. Leverage their capabilities to capture strong industry tailwinds and growth prospects for road infrastructure
4. In house execution team and established track record
5. Order Book for road construction activities across India
6. Experienced Promoters and senior management team
7. Stable financial performance

VISION INFRA EQUIPMWNT SOLUTIONS LIMITED STRATEGIES
1. Expansion of their geographical footprint
2. Continue to enhance their core strengths by attracting, retaining and training skilled personnel and process up gradation
3. Foster Strong relationship with suppliers and customer and expand their customer base
4. Continue to focus on building young fleet of equipment with quick equipment turnover
5. Cost effective procurement

VISION INFRA EQUIPMWNT SOLUTIONS LIMITED RISK FACTORS & CONCERNS
1. They generate a significant percentage of their revenue from few clients.
2. The road construction industry is sensitive to the government infrastructure spending or regulatory changes.
3. They derive a significant portion of their revenue from trading and refurbishment activities, for which they have to rely on third parties.
4. They derive a certain portion of their income from profit on sale of fixed assets
5. The construction equipment industry is sensitive to changing economic conditions and various other factors.

Vision Infra Equipment Solutions Limited Financial Information (Restated Consolidated)

Amount in (₹ in Lakhs)

Period Ended Mar 31, 2024 Mar 31, 2023 Mar 31, 2022
Reserve of Surplus 616.31 - -
Total Assets 36,134.75 24,743.86 20,848.77
Total Borrowings 26,427.66 15,145.70 13,082.08
Fixed Assets 19,673.59 16,112.45 10,081.89
Cash 1,051.27 395.30 173.69
Net Borrowing 2,5376.39 14,750.4 12,908.39
Revenue 34,965.58 36,889.54 30,510.16
EBITDA 8,152.67 5,565.03 3,411.67
PAT 2,668.90 918.85 927.88
EPS 15.43 5.31 5.36

Note 1:- ROE & ROCE calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 2:- Pre EPS and Post EPS calculation in KPI is based (PAT) on 31st Mar, 2024 Data, given in RHP.
Note 3:- RoNW calculation in KPI is based on 31st Mar, Data, given in RHP.
Note 4:- Price to Book Value calculation in KPI is based on NAV Cap Price after completion of an Offer, given in Price Band AD on the Website.

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) ₹15.43
EPS Post IPO (Rs.) ₹10.83
P/E Pre IPO 10.56
P/E Post IPO 15.05
ROE 130.95%
ROCE 28.19%
P/BV 2.84
Debt/Equity 11.26
RoNW 113.75%

Vision Infra Equipment Solutions Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Vision Infra Equipment Solutions Lmited ₹10.83 28.19% 130.95% 15.05 2.84 11.26 113.75%
There are no listed peers of the company. % % - - - %
Vision Infra Equipment Solutions Limited Contact Details

VISION INFRA EQUIPMENT SOLUTIONS LIMITED

Shop No 401-405, Bhawani, International BusinessBay, Bhavani Peth, Pune, Pune City, Maharashtra, India, 411042
Contact Person Dipali Rakesh Shah
Telephone +91 (020) - 26440999
Email Id : info@visioninfraindia.com
Website : https://www.visioninfraindia.com/

Vision Infra Equipment Solutions IPO Registrar and Lead Manager(s)

Registrar : LINK INTIME INDIA PRIVATE LIMITED
Contact Person Shanti Gopalkrishnan
Telephone +91 8108114949
Email Id : visioninfra.smeipo@linkintime.co.in
Website : https://www.linkintime.co.in/

Lead Manager : HEM SECURITIES LIMITED
Contact Person Roshni Lahoti
Telephone +91- 022- 49060000
Email Id : ib@hemsecurities.com
Website : https://www.hemsecurities.com/

Vision Infra Equipment Solutions IPO Review

Vision Infra Equipment Solutions is a solution provider in the equipment space delivering their services in airports, smart cities, irrigation, building & factories, mining , railways , etc. Their portfolio of services includes: renting of road construction equipment and trading and refurbishment of these equipment.

The Company is led by the Promoter and Managing Director, Sachin Vinod Gandhi having an overall experience of around 19 years in the associated industry and the Promoter and Whole Time Directors Chetan Vinod Gandhi and Sameer Sanjay Gandhi having an overall experience of around 14 and 13 years respectively in the associated industry.

Financially, VIESL revenue increased from ₹30,510.16 Lakhs in FY22 to ₹36,889.54 Lakhs in FY23 and currently at34,965.58 Lakhs in FY24. Similarly, EBITDA increased from ₹3,411.67 Lakhs in FY22 to ₹5,565.03 Lakhs in FY23 and currently at ₹8,152.67 Lakhs in FY24. The PAT also increased from ₹927.88 Lakhs in FY22 to ₹918.85 Lakhs in FY23 and currently at ₹2,668.90 Lakhs in FY24. This indicates a steady financial performance.

For the VIESL IPO, the company is issuing shares at a pre-issue EPS of ₹15.43 and a post-issue EPS of ₹10.83. The pre-issue P/E ratio is 10.56x, while the post-issue P/E ratio is 15.05x against Industry P/E ratio is 16.15x. The company's ROCE for FY24 is 28.19% and ROE for FY24 is 130.95%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Vision Infra Equipment Solutions listing gains of 30% - 33%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Vision Infra Equipment Solutions Limited IPO for Listing gain or long term investment purposes.

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