Vision Infra Equipment Solutions Limited (VIESL) specializes in providing equipment solutions across various sectors such as airports, smart cities, irrigation, building & factories, mining, and railways. Their services include the renting, trading, and refurbishment of road construction equipment. VIESL is now launching its Initial Public Offering (IPO) to raise capital.

IPO Details and Subscription Period

The Vision Infra Equipment Solutions IPO is a Book Built Issue amounting to ₹106.21 Crores, entirely consisting of a Fresh Issue of 65.16 Lakh Shares. The subscription period for the IPO opens on September 06, 2024, and closes on September 10, 2024. The shares are expected to be listed on the NSE SME around September 13, 2024, with the allotment process being finalized on September 11, 2024.

Share Price Band and Lot Size

The share price band for VIESL IPO is set between ₹155 and ₹163 per share. The minimum lot size is 800 shares, requiring a retail investment of ₹130,400. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (1,600 shares), amounting to ₹260,800.

Grey Market Premium

The Grey Market Premium (GMP) for Vision Infra Equipment Solutions IPO is estimated to be in the range of ₹50 to ₹55. While GMP can provide a rough estimate of potential listing gains, it is important to remember that it is not a definitive indicator of the final listing price. GMP is influenced by market demand and supply in an unorganized manner.

Subscription Status

As of September 10, 2024, at 11:59 AM, the Vision Infra Equipment Solutions IPO has been subscribed 4.08 times on its final day of the subscription period. For the latest updates on the subscription status, investors can check the NSE website.

Allotment Status

The allotment status for Vision Infra Equipment Solutions IPO will be available on September 11, 2024. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated as follows:

₹46,81.15 Lakhs for funding capital expenditure towards the purchase of additional equipment.

₹36,50.00 Lakhs for meeting working capital requirements.

General Corporate Purpose.

Financial Performance and Valuation

Vision Infra Equipment Solutions has shown a steady financial performance with revenue increasing from ₹30,510.16 Lakhs in FY22 to ₹34,965.58 Lakhs in FY24. EBITDA and PAT have also shown positive growth. The IPO is priced with 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, compared to an industry P/E ratio of 16.15x. The company’s ROCE for FY24 is 28.19% and ROE for FY24 is 130.95%, indicating strong financial metrics.

Investment Recommendation

The Vision Infra Equipment Solutions IPO offers potential listing gains estimated at 30% - 33%. Given the company’s strong financial performance and reasonable valuation, we recommend considering the IPO for both short-term gains and long-term investment.

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