Vision Infra Equipment Solutions IPO opens today: GMP jumps 30%, should you Bid or Skip?

Team Finance Saathi

    06/Sep/2024

What's Covered Under the Article:

Vision Infra Equipment Solutions IPO opens today, offering 65.16 lakh shares with a price band of ₹155 to ₹163.

The IPO proceeds aim to fund capital expenditures and meet working capital needs, enhancing future growth.

Retail investors can participate with a minimum investment of ₹130,400, targeting long-term returns and potential gains.

Vision Infra Equipment Solutions Limited (VIESL) is launching its much-anticipated ₹106.21 Crore IPO today, September 6, 2024. This marks a significant milestone for the company, which operates in various sectors including airports, smart cities, irrigation, and more. The IPO is set to offer 65.16 lakh fresh shares, and its subscription window will remain open until September 10, 2024. The IPO comes at an important time for Vision Infra, with the company positioning itself as a leader in the equipment space across India.

The IPO is structured as a Book Built Issue, with a price band set between ₹155 and ₹163 per equity share. The minimum lot size is 800 shares, meaning retail investors will need to invest a minimum of ₹130,400 to participate. High-net-worth individuals (HNIs) must invest at least ₹260,800, as they are required to purchase a minimum of two lots. These details indicate the IPO is accessible to both retail and institutional investors alike, creating opportunities for potential listing gains.

Key Players
HEM Securities Limited is serving as the book-running lead manager, while Link Intime India Private Limited is the registrar for the issue. Additionally, Hem Finlease Private Limited will act as the market maker, ensuring the smooth execution of trades once the shares are listed on the NSE SME exchange. The allotment of shares is expected to be finalized around September 11, 2024, with the tentative listing date set for September 13, 2024.

For those interested in tracking the subscription status, you can check the Vision Infra Equipment Solutions IPO Live Subscription Status on the NSE. As of 11:20 AM on September 6, 2024, the IPO has already been subscribed 0.15 times, showcasing strong early interest from investors. This live status is crucial for gauging investor sentiment and market demand during the IPO subscription period.

Financial Performance and Prospects
The financial metrics of Vision Infra Equipment Solutions Limited present a promising picture. The company's revenue has grown steadily from ₹30,510.16 Lakhs in FY22 to ₹36,889.54 Lakhs in FY23. This upward trend continued into FY24, where revenue reached ₹34,965.58 Lakhs. This consistent growth is complemented by a substantial increase in EBITDA, which surged from ₹3,411.67 Lakhs in FY22 to ₹8,152.67 Lakhs in FY24. Moreover, the company's PAT has shown marked improvement, rising from ₹927.88 Lakhs in FY22 to ₹2,668.90 Lakhs in FY24.

The company's return on capital employed (ROCE) stands at an impressive 28.19%, while its return on equity (ROE) for FY24 is a remarkable 130.95%. These figures indicate a healthy financial position and suggest that Vision Infra Equipment Solutions is well-equipped to expand its operations and deliver consistent returns to its investors.

The Grey Market Premium (GMP) for Vision Infra Equipment Solutions Limited IPO is expected to range between ₹50 to ₹55, reflecting investor confidence in the company's potential for listing gains. While GMP is not an official measure of IPO performance, it offers an early indication of market sentiment and demand for the stock. It's important to note that GMP is often driven by unofficial trades and market speculation, so actual IPO performance may differ once the shares are listed on the NSE SME exchange.

Allotment and Listing
The allotment of shares for Vision Infra Equipment Solutions Limited IPO is set to be finalized on September 11, 2024. Investors will be able to check the status of their allotment on the registrar’s website by following a few simple steps:

Also Read : Bajaj Housing Finance IPO opens on September 9 - Latest IPO GMP, Dates, Lot Size & Share Price

Visit the IPO allotment status page.

Select Vision Infra Equipment Solutions Limited IPO from the list of available IPOs.

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

Submit the details to check your allotment status.

By ensuring that you follow these steps, you can easily verify whether you've secured shares in this promising IPO.

Utilization of Funds
The primary purpose of this IPO is to raise funds for several key initiatives:

₹4681.15 Lakhs will be allocated towards the purchase of additional equipment, enabling the company to expand its service offerings and cater to a growing client base.

₹3650.00 Lakhs will be used to meet the company’s working capital requirements, ensuring smooth day-to-day operations and supporting the company's growth objectives.

A portion of the proceeds will also be reserved for general corporate purposes, providing Vision Infra with the flexibility to respond to market demands and opportunities.

Investment Considerations
Investors evaluating the Vision Infra Equipment Solutions Limited IPO should consider both its short-term potential for listing gains and its long-term value. With a pre-issue P/E ratio of 10.56x and a post-issue P/E ratio of 15.05x, the IPO appears to be fairly priced, especially when compared to the industry P/E ratio of 16.15x. These valuations suggest that the company offers an attractive investment opportunity for those seeking both immediate returns and long-term growth.

Additionally, retail investors are encouraged to take advantage of the relatively low entry point, with a minimum investment of ₹130,400. This positions the IPO as an appealing option for investors looking to diversify their portfolios or capitalize on India’s growing infrastructure sector.

To stay informed on the latest updates and insights, you can explore our comprehensive guide on the Best IPOs to Apply Now and check the Live IPO GMP Today. For more in-depth coverage on financial markets and IPOs, visit our Share Market News section.

To explore more about similar developments, visit the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and check out the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi for the latest updates and news in the sector.

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