Vigor Plast India Limited IPO has entered the capital market with an issue size of ₹25.10 crore, offering investors an opportunity to participate in one of the fastest-growing companies in the Plumbing Pipes & Fitting sector. The IPO opens for subscription on 4th September 2025 and will close on 9th September 2025. The allotment is expected to be finalized on 10th September 2025, with a tentative listing date set for 12th September 2025 on the NSE SME platform.

The IPO consists of a fresh issue of 24.99 lakh shares worth ₹20.24 crore and an offer for sale (OFS) of 6 lakh shares totaling ₹4.86 crore. The price band has been fixed at ₹77 to ₹81 per equity share, with a lot size of 1,600 shares. Retail investors need to apply for a minimum of 2 lots (3,200 shares), requiring an investment of ₹2,59,200. At the upper price band of ₹81, the company’s market capitalisation is expected to be ₹83.85 crore.

Company Background

Vigor Plast India Limited, based in Jamnagar, Gujarat, has been operating since 2014 in the Plumbing Pipes & Fitting industry. The company has grown rapidly, establishing itself as a reliable provider of quality products at competitive prices. Over the years, it has earned a strong reputation in the market for offering durable and efficient plumbing solutions.

The company is led by its promoters and directors — Jayesh Premjibhai Kathiriya, Rajeshbhai Kathiriya, and Premjibhai Dayabhai Kathiriya. Each plays a vital role in the company’s growth:

• Jayesh heads production and quality control, ensuring strict compliance with product standards.

• Premjibhai oversees overall operations and sets the strategic direction.

• Rajesh drives sales and marketing, strengthening the company’s market presence.

IPO Management

The Book Running Lead Manager of the issue is UNISTONE CAPITAL PRIVATE LIMITED, with KFIN TECHNOLOGIES LIMITED acting as the registrar. Alacrity Securities Limited is the Market Maker for this IPO.

Objectives of the IPO

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹1,139.30 lakh for repayment of certain secured borrowings availed by the company.

2. ₹379.96 lakh for funding capital expenditure towards the development and construction of a new warehouse in Ahmedabad, Gujarat.

3. Balance funds for general corporate purposes.

Financial Performance

Vigor Plast India has shown steady financial growth over the past three fiscal years.

• Revenue from operations was ₹4,601.81 lakh in FY2025, compared to ₹4,251.80 lakh in FY2024 and ₹3,738.65 lakh in FY2023.

• EBITDA increased to ₹1,252.49 lakh in FY2025, from ₹758.98 lakh in FY2024 and ₹318.14 lakh in FY2023.

• Profit After Tax (PAT) rose sharply to ₹515.06 lakh in FY2025, from ₹292.91 lakh in FY2024 and just ₹29.87 lakh in FY2023.

The company’s pre-issue EPS for FY2024 is ₹6.57 and post-issue EPS is ₹4.98. The pre-issue P/E ratio stands at 12.33x, while the post-issue P/E ratio is 16.28x, compared to the industry P/E ratio of 27x. Additionally, the ROCE is 28.24%, and both ROE and RoNW stand at 59.39% for FY2024, reflecting efficient capital utilization.

Grey Market Premium (GMP)

As of 29th August 2025, the Grey Market Premium (GMP) of Vigor Plast India IPO is ₹0, showing no expected listing gains. While GMP is only an unofficial indicator and should not be solely relied upon, the flat trend suggests limited short-term enthusiasm among investors.

Subscription Status and Anchor Investors

On the second day of subscription (5th September 2025 at 12:00 PM), the IPO was subscribed 0.37 times, indicating relatively slow demand compared to other SME IPOs.

Before the IPO opened to the public, the company successfully raised ₹7.08 crore from Anchor Investors at a price of ₹81 per share, allocating 8,73,600 shares.

IPO Allotment and Listing

The allotment is expected on 10th September 2025, with listing on 12th September 2025 at the NSE SME exchange. Investors can check their allotment status online by entering their application number, PAN, or DP Client ID on the registrar’s website once it is live.

Review and Outlook

Despite being a fast-growing player in the plumbing and fittings sector, the absence of a Grey Market Premium and low subscription figures point towards cautious investor sentiment. While the financials show healthy growth in revenue, EBITDA, and profitability, the valuation does not indicate significant listing gains in the short term.

Given the high minimum investment requirement of ₹2.59 lakh and the current market outlook, the Vigor Plast India IPO may not be the best choice for those seeking quick returns. Investors with a long-term perspective who believe in the growth potential of the plumbing sector may consider participation, but for short-term listing gains, it is advisable to avoid this IPO.

The Upcoming IPOs in this week and coming weeks are Airfloa Rail Technology, Dev Accelerator, Taurian MPS, Jay Ambe Supermarkets, Krupalu Metals, Urban Company, Shringar House of Mangalsutra, Karbonsteel Engineering.

The Current active IPO are Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

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