Vision Infra Equipment Solutions Limited (VIESL) is gearing up for its Initial Public Offering (IPO), set to open on September 06, 2024. This IPO represents a fresh issue of 65.16 lakh shares, with a total issue size of ₹106.21 crores. The price band for the shares is set between ₹155 and ₹163, and investors can participate in the IPO with a minimum investment of ₹130,400 for 800 shares. High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹260,800 for 1,600 shares. The subscription period for this IPO will close on September 10, 2024, with allotment expected to be finalized by September 11, 2024, and shares are scheduled to be listed on the NSE SME on September 13, 2024.

Vision Infra Equipment Solutions is a leading provider of equipment services across various sectors, including airports, smart cities, irrigation, building & factories, mining, and railways. Their services encompass renting, trading, and refurbishing road construction equipment, making them a pivotal player in the infrastructure space.

The company’s financial performance has shown impressive growth. Revenue surged from ₹30,510.16 lakhs in FY22 to ₹36,889.54 lakhs in FY23 and is currently at ₹34,965.58 lakhs for FY24. EBITDA has grown from ₹3,411.67 lakhs in FY22 to ₹5,565.03 lakhs in FY23, reaching ₹8,152.67 lakhs in FY24. Profit After Tax (PAT) increased from ₹927.88 lakhs in FY22 to ₹2,668.90 lakhs in FY24. This indicates strong operational efficiency and financial health.

For the IPO, the pre-issue Earnings Per Share (EPS) is ₹15.43, and the post-issue EPS is ₹10.83. The pre-issue Price-to-Earnings (P/E) ratio stands at 10.56x, while the post-issue P/E ratio is 15.05x, compared to the industry average of 16.15x. The Return on Capital Employed (ROCE) for FY24 is 28.19%, and the Return on Equity (ROE) is a remarkable 130.95%. These metrics suggest that the IPO is fairly valued and could offer good returns.

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The Grey Market Premium (GMP) for VIESL is estimated to be between ₹50 and ₹55. This premium reflects the market’s anticipation of the IPO’s performance but does not guarantee the actual listing price.

Investors interested in this IPO should keep an eye on the subscription status starting September 06, 2024, and check their allotment status on September 11, 2024. The IPO proceeds will be allocated towards purchasing additional equipment, meeting working capital needs, and other general corporate purposes.

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