Vdeal System Ltd., a prominent player in the Electrical Panels, Industrial Automation, Process Instrumentation, and Industrial IoT (I-4) sectors, is set to launch its Initial Public Offering (IPO) to raise ₹18.07 crores through a Fixed Price Issue. This IPO is composed entirely of a Fresh Issue of 16.14 lakh shares. The subscription period is scheduled from August 27, 2024, to August 29, 2024. The allotment is expected to be finalized by August 30, 2024, with shares listed on the NSE SME by September 3, 2024.

Vdeal System Ltd. has over 20 years of experience in delivering cutting-edge automation solutions to a broad range of customers across India. The company has built a strong reputation for providing complete solutions in Industrial Automation and Electrical Panels, establishing itself as a leader in the industry.

Share Pricing and Investment Details

The IPO share price is set at ₹112 per equity share. Investors can purchase a minimum of 1,200 shares, requiring a minimum investment of ₹134,400 for retail investors. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 2 lots (2,400 shares), which amounts to ₹268,800.

Affinity Global Capital Market Private Limited has been appointed as the book-running lead manager for this IPO, while CAMEO CORPORATE SERVICES LIMITED will act as the registrar. M/s Black Fox Financial Private Limited has been selected as the Market Maker, responsible for maintaining liquidity in the market.

Grey Market Premium (GMP) and Allotment Status

The Grey Market Premium (GMP) for the Vdeal System Ltd. IPO is currently estimated to be in the range of ₹75 to ₹80. This indicates potential listing gains of 70% - 75%. It is essential to note that GMP is a speculative figure based on informal trading, and the actual price discovery will occur once the shares are officially listed on the stock exchange.

To check the Vdeal System IPO allotment status, investors can visit the registrar's website on or after August 30, 2024. The process involves selecting Vdeal System Ltd. from the dropdown list of IPOs, entering the application number, PAN, or DP Client ID, and submitting the details to view the allotment status.

Objectives of the IPO and Utilization of Funds

The funds raised from the Fresh Issue will be allocated towards the following objectives:

Working Capital Requirements: A sum of ₹702.58 lakhs will be used to meet the company's working capital needs.

Loan Repayment: ₹463.95 lakhs will be allocated towards the prepayment and repayment of secured and unsecured loans taken by the company.

General Corporate Purposes: ₹370.00 lakhs will be set aside for general corporate purposes.

Offer Expenses: The remaining funds will be used to cover the expenses related to the IPO.

Financial Performance and IPO Review

Vdeal System Ltd. has shown robust financial performance over the past few years. The company’s revenue has increased from ₹1,623.96 lakhs in FY22 to ₹2,075.41 lakhs in FY23, and it currently stands at ₹2,625.08 lakhs in FY24. Similarly, EBITDA has grown from ₹139.65 lakhs in FY22 to ₹239.92 lakhs in FY23, and it is now at ₹536.03 lakhs in FY24. The Profit After Tax (PAT) has improved from ₹23.10 lakhs in FY22 to ₹110.09 lakhs in FY23, and currently stands at ₹311.38 lakhs in FY24.

For the Vdeal System IPO, the pre-issue Earnings Per Share (EPS) is ₹9.50, and the post-issue EPS is ₹6.36. The pre-issue Price-to-Earnings (P/E) ratio is 11.78x, while the post-issue P/E ratio is 17.61x. In comparison, the industry P/E ratio stands at 68.06x. The company's Return on Capital Employed (ROCE) for FY24 is 32.83%, and Return on Equity (ROE) is 49.52%. These financial metrics indicate that the IPO is attractively priced and offers a compelling investment opportunity.

Conclusion

The Vdeal System Ltd. IPO presents a lucrative investment opportunity for both retail investors and High-Net-Worth Individuals (HNIs). The company’s strong financial performance, strategic use of IPO funds, and favorable Grey Market Premium make it an attractive option for those seeking listing gains or long-term investment potential.

Investors are encouraged to carefully evaluate the details of this IPO and consider participating to take advantage of the opportunities in the rapidly growing sectors of Industrial Automation and IoT (I-4). With its solid track record and growth prospects, Vdeal System Ltd. is poised to make a significant impact on the industry and deliver value to its shareholders.

Also Read : Indian Phosphate IPO Sees 5.27x Subscription on Day 1, High GMP Predicts Strong Gains

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. The Upcoming IPOs in this week and coming weeks are Premier Engineers, Jay Bee Laminations Limited, Paramatrix Technologies Limited, Vdeal System Limited, Aeron Composite Limited, ECOS (India) Mobility & Hospitality Limited. The current active IPO is Indian Phosphate Limited, Rapid Multimodal Limited, Resourceful Automobile Limited.
Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX & Upstox.