Vision Infra Equipment Solutions Limited (VIESL), a prominent player in the infrastructure equipment space, is gearing up to launch its Initial Public Offering (IPO) in September 2024. The company operates across multiple sectors such as airports, smart cities, irrigation, building & factories, mining, and railways, providing a range of services that include renting road construction equipment, trading, and refurbishing equipment.

Vision Infra Equipment Solutions IPO Overview:

The Vision Infra Equipment Solutions Limited IPO is a Book Built Issue aiming to raise ₹106.21 Crores through a Fresh Issue of 65.16 lakh shares. The IPO is set to open for subscription on September 06, 2024, and will close on September 10, 2024. The company has set a price band of ₹155 to ₹163 per share, and shares will be listed on the NSE SME Exchange.

Investors are required to buy a minimum lot size of 800 shares, meaning that retail investors must invest at least ₹130,400, while High-Net-Worth Individuals (HNIs) must purchase a minimum of 2 lots (1,600 shares), requiring a minimum investment of ₹260,800.

The allotment finalization is expected to take place on September 11, 2024, with a tentative listing date set for September 13, 2024. HEM Securities Limited is the book-running lead manager, and Link Intime India Private Limited serves as the registrar for this issue. Hem Finlease Private Limited is the sole market maker for the IPO.

Grey Market Premium (GMP) Insights:

The Grey Market Premium (GMP) for Vision Infra Equipment Solutions Limited IPO is expected to be in the range of ₹50 to ₹55, indicating a potential listing gain of 30%-33%. However, as with all IPOs, investors are cautioned that GMP is based on informal trading and market speculation before the official listing. While it can offer an early indicator of market sentiment, the GMP should not be the sole basis for investment decisions.

Live Subscription Status:

As of 11:20 AM on September 06, 2024, the Vision Infra Equipment Solutions Limited IPO has been subscribed 0.15 times on the first day of the subscription period. Investors can monitor the live subscription status on the NSE or financial news websites to track interest levels across different investor categories such as retail investors, HNIs, and institutional investors.

Vision Infra Equipment Solutions Financial Performance:

Over the past few years, Vision Infra Equipment Solutions has demonstrated steady financial growth. The company’s revenue increased from ₹30,510.16 Lakhs in FY22 to ₹36,889.54 Lakhs in FY23, and is currently at ₹34,965.58 Lakhs in FY24. This growth has been supported by an increase in EBITDA, which rose from ₹3,411.67 Lakhs in FY22 to ₹5,565.03 Lakhs in FY23, with the figure standing at ₹8,152.67 Lakhs in FY24.

Despite a dip in Profit After Tax (PAT) in FY23, from ₹927.88 Lakhs in FY22 to ₹918.85 Lakhs, the company saw a strong recovery in FY24, with PAT soaring to ₹2,668.90 Lakhs. This demonstrates the company’s ability to generate higher profits and recover from temporary downturns.

In terms of valuation, Vision Infra Equipment Solutions is issuing shares at a pre-issue Earnings Per Share (EPS) of ₹15.43 and a post-issue EPS of ₹10.83. The company’s pre-issue Price-to-Earnings (P/E) ratio is 10.56x, while the post-issue P/E ratio is 15.05x, which compares favorably to the industry average P/E ratio of 16.15x.

Additionally, the company boasts a Return on Capital Employed (ROCE) of 28.19% and a Return on Equity (ROE) of 130.95% for FY24, further showcasing its efficient capital management and profitability. These metrics suggest that the IPO is reasonably priced and offers potential for growth.

IPO Allotment and Listing Details:

Investors can check the allotment status for the Vision Infra Equipment Solutions IPO on the registrar’s website, Link Intime India Private Limited, once the allotment is finalized on September 11, 2024. Here’s how to check the allotment status:

Visit the IPO allotment status page on the registrar’s site.

Select Vision Infra Equipment Solutions Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Once the allotment is done, shares are expected to list on September 13, 2024, on the NSE SME.

Objectives of the IPO:

The company intends to use the proceeds from the Fresh Issue for the following purposes:

₹4,681.15 Lakhs will be allocated for funding capital expenditure to purchase additional equipment.

₹3,650.00 Lakhs will be used to meet working capital requirements.

Remaining funds will go towards general corporate purposes.

IPO Review and Investment Recommendation:

With a well-established presence across multiple infrastructure sectors, Vision Infra Equipment Solutions Limited has shown strong financial growth over the past few years, with increasing revenue and profitability. The company’s efficient capital management is reflected in its high ROCE and ROE metrics.

Although the IPO is priced at a slight premium, its valuation is in line with industry averages, and the company’s robust financial performance justifies this pricing. The expected Grey Market Premium further supports the potential for listing gains in the range of 30%-33%.

Given these factors, we recommend that investors apply for the Vision Infra Equipment Solutions Limited IPO for both listing gains and long-term investment potential. The company’s growth prospects, coupled with its presence in key infrastructure sectors, make this IPO an attractive opportunity.

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