Vivid Electromech Limited, an ISO 9001:2015 certified company, has launched its Initial Public Offering (IPO) to raise funds from the capital markets. The company operates in the electrical equipment and automation segment, specialising in the manufacturing of Low-Voltage (LV) and Medium-Voltage (MV) electrical panels, along with providing comprehensive automation solutions.

Company Overview

Vivid Electromech is engaged in delivering end-to-end electrical and automation solutions, covering the entire value chain, including:

• Design and engineering
• Fabrication and assembly
• Testing and commissioning

This integrated approach allows the company to cater to diverse industrial requirements while maintaining quality and operational efficiency.

The company primarily generates its revenue from the domestic market, contributing over 97% of total revenue, and serves a wide range of industries such as:

• Data centres
• Infrastructure projects
• Renewable energy
• Manufacturing sector

These sectors are witnessing steady growth, driven by increasing investments in infrastructure, digital transformation, and energy transition.

IPO Structure and Issue Size

The Vivid Electromech IPO is a book-built issue worth ₹130.54 crore, comprising:

• A fresh issue of 0.19 crore shares, aggregating to approximately ₹104.56 crore
• An offer for sale (OFS) of 0.05 crore shares, aggregating to around ₹25.97 crore

The IPO opened for subscription on March 25, 2026, and will close on March 30, 2026. The allotment of shares is expected to be finalised on or about April 1, 2026, with the shares scheduled to be listed on the BSE SME platform on or around April 6, 2026.

Price Band and Valuation

The IPO has been priced in the range of ₹528 to ₹555 per equity share. At the upper price band of ₹555, the company’s market capitalisation is estimated at approximately ₹493.26 crore.

This valuation reflects the company’s position in the electrical equipment and automation industry, which is closely linked to infrastructure and industrial growth.

Lot Size and Investment Details

The lot size for the IPO is 240 shares, and the minimum investment requirements are as follows:

• Retail investors: Minimum investment of 2 lots (480 shares) amounting to ₹2,66,400
• High Net-Worth Individuals (HNIs): Minimum investment of 3 lots (720 shares) amounting to ₹3,99,600

As with most SME IPOs, the investment threshold is relatively higher, which may limit participation to investors with higher risk appetite.

Key Intermediaries

The IPO is being managed by HEM Securities Limited, acting as the book-running lead manager. The registrar to the issue is MUFG Intime India Private Limited, responsible for handling allotment and investor-related processes.

Additionally, Hem Finlease Pvt. Ltd. has been appointed as the market maker, ensuring liquidity in the stock after listing, which is a standard requirement for SME IPOs.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Vivid Electromech IPO is currently reported to be ₹0, indicating a neutral sentiment in the grey market.

It is important to note that GMP is an unofficial indicator based on informal trading and should not be considered a reliable measure of listing performance. It depends on demand and supply dynamics in an unregulated environment and is provided for informational purposes only.

Industry Outlook

Vivid Electromech operates in the electrical equipment and automation sector, which plays a critical role in supporting industrial and infrastructure development. The demand for LV and MV panels is closely linked to growth in sectors such as power distribution, renewable energy, and industrial automation.

With increasing focus on digital infrastructure like data centres, as well as expansion in renewable energy projects, the demand for reliable electrical systems is expected to remain strong. Automation solutions are also becoming increasingly important for improving efficiency and reducing operational costs in industries.

Investor Considerations

Investors evaluating the Vivid Electromech IPO may consider the following aspects:

• The company’s integrated business model and technical capabilities
• Strong exposure to growing sectors like data centres and renewable energy
• High dependence on the domestic market (over 97% revenue)
• SME listing, which may impact liquidity and price volatility
• Current neutral GMP, reflecting cautious market sentiment

As with any IPO, investors should carefully review the company’s financial performance, order book, and risk factors before making investment decisions.

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