Vision Infra Equipment Solutions Limited (VIESL) is a leading solution provider in the equipment space, delivering a diverse range of services to sectors such as airports, smart cities, irrigation, building & factories, mining, and railways. Their service portfolio includes the renting of road construction equipment, along with the trading and refurbishment of such equipment. Vision Infra has built a reputation for providing specialized solutions across key infrastructure sectors in India.

The company has launched an Initial Public Offering (IPO) worth ₹106.21 crores, consisting entirely of a Fresh Issue of 65.16 lakh shares. Investors can subscribe to the Vision Infra Equipment Solutions IPO between September 6, 2024, and September 10, 2024.

The price band for the IPO is set between ₹155 to ₹163 per equity share, with a minimum lot size of 800 shares. Retail investors are required to make a minimum investment of ₹130,400, while High-Net-Worth Individuals (HNIs) must purchase at least 2 lots (1,600 shares), amounting to ₹260,800.

The book-running lead manager for the IPO is HEM Securities Limited, with Link Intime India Private Limited acting as the registrar. Hem Finlease Private Limited is the sole market maker for Vision Infra Equipment Solutions Limited IPO. The company’s shares will be listed on the NSE SME, with a tentative listing date set for Friday, September 13, 2024.

Live Subscription Status and Allotment

As of 06:22 PM on September 9, 2024, the Vision Infra Equipment Solutions Limited IPO live subscription status reveals that the IPO has been subscribed 2.91 times on the second day of its subscription period. The allotment date is scheduled for Wednesday, September 11, 2024, and investors will be able to check their allotment status via the registrar’s website.

To check the Vision Infra Equipment Solutions IPO allotment status, investors can:

Visit the IPO allotment status page.

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

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

Submit the details to view the allotment status.

This will help investors confirm whether they have been allotted shares and proceed accordingly with their investment decisions.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Vision Infra Equipment Solutions Limited IPO is expected to range between ₹50 and ₹55, indicating potential listing gains of 30% to 33%. However, it's important to note that GMP is unofficial and speculative, with no actual trading happening in the grey market prior to the listing. Investors should exercise caution and not rely solely on GMP to make investment decisions, as the final listing price is driven by market demand and company performance.

Financial Performance

Vision Infra Equipment Solutions has demonstrated steady financial growth over recent years. The company’s revenue increased from ₹30,510.16 lakhs in FY22 to ₹36,889.54 lakhs in FY23, and is projected to reach ₹34,965.58 lakhs in FY24. Although there was a slight dip in FY24, the overall revenue growth trend remains strong.

Similarly, the company’s EBITDA improved significantly from ₹3,411.67 lakhs in FY22 to ₹5,565.03 lakhs in FY23, and further jumped to ₹8,152.67 lakhs in FY24, indicating the company’s effective management of operational costs and increasing profit margins.

The company’s Profit After Tax (PAT) saw a notable increase from ₹927.88 lakhs in FY22 to ₹918.85 lakhs in FY23, with an even stronger performance of ₹2,668.90 lakhs in FY24, demonstrating a substantial improvement in profitability.

For the Vision Infra Equipment Solutions IPO, the company is offering shares at a pre-issue EPS of ₹15.43 and a post-issue EPS of ₹10.83. The pre-issue P/E ratio stands at 10.56x, while the post-issue P/E ratio is 15.05x, which is slightly below the industry average P/E ratio of 16.15x. This suggests that the IPO is fairly priced and offers value to investors.

In addition, Vision Infra's Return on Capital Employed (ROCE) for FY24 is an impressive 28.19%, and the Return on Equity (ROE) is 130.95%, highlighting the company’s strong ability to generate profits and create shareholder value.

Objectives of the IPO

The proceeds from the Fresh Issue of Vision Infra Equipment Solutions Limited IPO will be directed toward the following objectives:

Funding capital expenditure of ₹4,681.15 lakhs to purchase additional equipment, enhancing the company’s operational capabilities.

Working capital requirements of ₹3,650 lakhs, allowing the company to scale its operations and meet growing demand.

The remaining funds will be used for general corporate purposes, providing financial flexibility for future growth.

Vision Infra Equipment Solutions IPO Review and Recommendation

Led by Sachin Vinod Gandhi, who has 19 years of experience in the equipment space, and supported by Chetan Vinod Gandhi and Sameer Sanjay Gandhi, with 14 and 13 years of experience respectively, Vision Infra Equipment Solutions has built a strong presence in the infrastructure sector. The company’s strategic focus on renting, trading, and refurbishing equipment makes it a key player in providing essential services to various industries, including airports, smart cities, mining, and railways.

Financially, Vision Infra Equipment Solutions has shown a consistent growth trajectory, with increasing revenues, EBITDA, and profitability. The company's strong ROCE and ROE highlight its efficient use of capital and ability to generate high returns, which is appealing for both retail and institutional investors.

For short-term investors, the Grey Market Premium suggests potential listing gains of around 30% to 33%, making the IPO attractive for those seeking quick returns. However, for long-term investors, Vision Infra’s solid financial performance, experienced management team, and expansion plans make this IPO a viable investment for sustained growth.

Given these factors, we recommend investors to apply for the Vision Infra Equipment Solutions Limited IPO, whether for listing gains or long-term investment opportunities. The company is poised to capitalize on India’s growing infrastructure development, positioning itself for continued success in the years to come.

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