Vdeal System Ltd IPO: Review, Valuation, Date & GMP

Vdeal System IPO - Complete Overview

Vdeal System IPO an SME IPO is a fixed price issue of Rs.18.08 crore by Vdeal System Ltd. which was founded in December 2009. It is a provider of integrated electrical and automation solutions. The company specializes in Energy Management Systems (EMSs), Smart Programmable Logic Controllers (PLCs), Smart Low Voltage (LV), Smart Medium Voltage (MV), Smart Variable Frequency Drive (VFD), Medium Voltage (MV) Soft Starter, and Smart panels. They also sell sandwich bus ducts that are air-insulated. 

The company's manufacturing facility is located in Bhubaneswar, Orissa.

In-house product design and development, production, system integration, and maintenance are all part of their offering for automation solutions and intelligent electrical control panels that meet strict international IEC safety and quality standards.

The company has an ISO 9001:2015 certification. Reveal Sense Node, REVNET IIoT Platform, and many Sense IoT Gateway are among the products offered by the company.

This new SME IPO is to be launched on 27 August 2024, and its ‘initial public offering’ will end on 29 August 2024.  

 

Vdeal System IPO Overview

The Rs.18.08 crore Vdeal System Ltd. IPO consists of a fully fresh issue of 16.14 lac Shares, of which 50% are allowed to retail investors and 50% to others.

This SME IPO date is from August 27-August 29, 2024. The expected IPO listing date is Tuesday, September 03, 2024, on NSE and SME. Vdeal System IPO price band is Rs.112 for each Share.

Company Financial 

The company’s revenue rose by 26% and PAT increased by 183% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.2,727.93 lac.

• The total revenue of the company is Rs.2,625.08 lac.

• The company’s PAT is Rs.311.38 lac.

• The net worth of the company is Rs.628.75 lac.

• The company’s EBITDA is Rs.538.63 lac.

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,727.93	1,544.44	1,142.33
Total Revenue	2,625.08	2,075.41	1,623.96
PAT	311.38	110.09	23.1
Net Worth	628.75	341.83	231.73
Total Reserves & Surplus	301.1	312.04	201.95
Borrowings	937.67	621.02	639.51

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	134.61	111.98	-12.33
Net Cash Flow Investing Activities	-363.08	-8.47	-10.55
Net Cash Flow Financing Activities	224.49	-94.08	-53.10

 

Product-wise Revenue Breakdown

(Amount in lac)

Product	FY 2023-2024	FY 2022-2023	FY 2021-2022
Panels	1,392.57	1,103.73	654.88
Automation	1,031.66	806.37	652.69
Spares	198.24	162.30	310.90
Total	2,622.48	2,072.40	1,618.48

 

Geography-wise Revenue Breakdown

(Amount in lac)

Geography	FY 2023-2024	FY 2022-2023	FY 2021-2022
Odisha	2,150.73	1,265.94	1,221.77
West Bengal	384.35	803.01	392.23
Delhi	24.33	3.20	-
Telangana	3.86	0.26	3.34
Punjab	10.87	-	1.15
Haryana	24.99	-	-
Madhya Pradesh	16.95	-	-
Raigarh	6.40	-	-
Total	2,622.48	2,072.40	1,618.48

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Fulfill the requirements for working capital.

• Repayment of all or a portion of some loans, both secured and unsecured, obtained by the company.

• To cover the offer's expenditure.

• To fulfill working capital needs.

• General corporate purposes.

Peers of Vdeal System Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Akanksha Power And Infrastructure Limited.	10	1.82	72.45
Saakshi Medtech And Panels Limited.	10	6.41	40.25

 

 

Evaluation

The IPO price is Rs.112 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.9.50 from the last year, the resulting P/E ratio is 11.79x.

Considering the weighted EPS of Rs.5.99 for the last three years, the P/E ratio is 18.70x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 68.06x.

Particulars	P/E Ratio (x)
Highest	91.48
Lowest	40.25
Average	68.06

In simple words, the P/E ratio of Vdeal System IPO (11.79x), compared with the industry’s average P/E of 68.06x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry. 

IPO's Strengths 

• Strong in-house technical expertise and an experienced management team.

• Customizing or tailoring products to meet specific customer needs.

• Best practices for an efficient supply chain and production process.

• Competitive pricing and location advantage.

• Building a strong brand reputation.

• Quality control and safety commitment.

• A well-thought-out growth plan.

 

IPO’s Weaknesses

• A part of the Net Proceeds will be used by the company to repay or prepay specific loans.

• Eastern India has contributed significantly to its revenue. Any decline in business from these states could negatively impact its revenue and profitability.

• The company has taken out short-term, unsecured loans that are subject to early repayment by the lenders. 

• A substantial amount of the income originates from specific States in India; any decline in business from these areas could harm its earnings.

• A worldwide shortage of chips could negatively impact the production process.

• If there are any industrial accidents, physical hazards, or other risks at the construction sites, it could harm the operations and subject the company to material liabilities, lost income, and higher expenses.

• The company had a negative cash flow from its operating, investing, and financing activities in the past three years, sustained negative cash flow could impact its growth and business.

 

Vdeal System IPO GMP Today

Vdeal System IPO GMP today is Rs.0 as of 26 August 2024.

IPO Timetable (Tentative)

The IPO date is from August 27 to August 29, 2024, with allotment on August 30, refund initiation on September 02, and listing on September 03, 2024.

Events	Date
IPO Opening Date	August 27, 2024
IPO Closing Date	August 29, 2024
IPO Allotment Date	August 30, 2024
Refund Initiation	September 02, 2024
IPO Listing Date	September 03, 2024

 

 

Vdeal System IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 27, 2024, close on August 29, 2024, and offer a total issue size of 1,614,000 Shares (aggregating up to Rs.18.08 Cr) comprising a whole fresh issue size of 1,614,000 Shares (totaling up to Rs.18.08 Cr).

IPO Opening & Closing date	August 27, 2024 to August 29, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.112
Lot Size	1200 Shares
Issue Size	1,614,000 Shares (totaling up to Rs.18.08 Cr).
Offer for Sale	NA.
Fresh Issue	1,614,000 Shares (totaling up to Rs.18.08 Cr).
Listing at	NSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Limited.

 

Vdeal System IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,34,400 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.268,800.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Vdeal System IPO Reservation

Other’s Portion	50%
Retail’s Portion	50%

Promoters And Management of Vdeal System Ltd.

• Mr. Dhiraj Kochar.

• Mrs. Tapaswini Panda.

• Mr. Brahmananda Patra.  

• Reveal AI Technologies Private Limited.

Pre-Issue Promoter Shareholding	99.97%
Post-Issue Promoter Shareholding	66.96%

 

IPO Lead Managers

• Affinity Global Capital Market Private Limited.

Dividend Policy

The company has not paid any dividends during the last three FYs.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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