Vilas Transcore Ltd IPO: Review, Valuation, Date & GMP

Vilas Transcore Limited IPO  - Complete Overview

Established in 2006, Vilas Transcore Limited specializes in manufacturing and supplying components for the power distribution and transmission sector, serving transformer and power equipment manufacturers both in India and internationally.

The company produces a variety of electrical laminations, including cold-rolled grain-oriented (CRGO) lamination cores, CRGO slit coils, CRGO stacked (assembled) cores, CRGO wound cores, and CRGO toroidal cores. 

These products are primarily used in power transformers, distribution transformers, dry-type transformers, and high, medium, and low voltage current transformers.

Vilas Transcore Limited manufactures its products in accordance with industry standards and customer specifications, utilizing the latest technology to meet defined requirements based on product dimensions and materials for application in the power and distribution equipment industry. 

The company mainly caters to the power distribution and power engineering industries. Their product range, including CRGO laminated cores, CRGO cores, and slit coils, are critical components in various types of power and distribution transformers.

The company operates two manufacturing units in Gujarat: one in Por near Vadodara, covering an area of 2,200 square meters, and another in Village Por, Vadodara, spanning 11,000 square meters. 

Their manufacturing facilities are ISO 9001:2015 certified for quality management systems and approved for sourcing toroidal cores for current transformers (CT) up to 400 KV class for Power Grid projects.

As of December 31, 2023, Vilas Transcore Limited generated a revenue of Rs. 23,829.57 lakhs.

 

Vilas Transcore Limited IPO Overview

Vilas Transcore Limited IPO date is slated to be open for subscription from May 27, 2024, to May 29, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Vilas Transcore Limited IPO price is fixed in the range of at Rs.139 to Rs.147 per share. 

The total issue size of this IPO amounts to Rs.95.26 Cr. The company has allocated 35% shares to retail investors, 50% to institutional investors and 15% to non-institutional investors.

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Vilas Transcore Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has and the total borrowing has increased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	20,820.50	18,879.83	17,265.64
Total Revenue	23,829.57	28,478.14	23,518.05
PAT	1,679.49	2,022.43	1,791.49
Net worth	13,725.33	12,045.84	10,023.41
Reserve & Surplus	13,531.38	13,404.08	11,451.23
Total Borrowings	499.95	489.62	346.72

Geographical-wise Revenue Breakup

(Amount in Lakhs)

Particular	December 31, 2023	March 31, 2023	March 31, 2022
Domestic	23297.74	28220.36	23232.63
Export	276.82	40.15	70.29
Total	23574.56	28260.51	23302.92

 

 

The Objective of the Issue

The company will utilise the fund to fulfill the following objectives:

1. Funding for strategic investment and acquisitions,

2. Funding Capital Expenditure towards construction of factory building,

3. Funding capital expenditure towards acquiring and installing additional plant and machinery,

4. General Corporate Purpose,

5. To meet issue expenses.
   
   

Peers of Vilas Transcore Limited IPO

There are no listed companies in India engaged in the same business as Vilas Transcore Limited.

 

Evaluation

The IPO is priced within the range of Rs.139 to Rs.147 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 11.24 from the last year, the resulting P/E ratio is 13.07x.

• Taking into account the weighted EPS of Rs 9.42 for the last three years, the P/E ratio amounts to 15.60x.

Comparative Analysis with Listed Peers

There are no listed peers of the company in India.

IPO's Strengths 

• Established player in the manufacturing of transformer components and power equipment sector

• Strong manufacturing capabilities

• Longstanding relationships with customers

• Skilled and experienced promoter and management team

• Strong financial position with robust financial performance
  
  

IPO Weaknesses 

• Pricing pressure from customers may adversely affect its gross margin, profitability, and ability to increase prices.

• Economic cyclicality and reduced demand in the power distribution sector may materially adversely affect the company's business.

• Strict quality requirements mean that any product defects or failure to meet quality standards may result in the cancellation of existing and future orders, recalls, or warranty and liability claims.

• Failure to compete effectively in the highly competitive power distribution components industry may have a material adverse effect on the company's business and prospects.

• Excessive dependence on a single or limited number of products may adversely impact the company's operations and results.

• The company deals and will continue to deal with various Micro and Small Enterprises on mutually accepted terms and conditions.

• The company requires certain licenses, permits, and approvals in the ordinary course of business; failure to obtain or retain them in a timely manner may materially adversely affect operations.
  
  

IPO GMP Today 

The latest GMP of Vilas Transcore Limited is Rs. 97.

 

Vilas Transcore Limited IPO timetable (Tentative)

Vilas Transcore Limited IPO is scheduled from May 27 to May 29, 2024, with allotment on May 30, refund initiation on May 31, and listing on June 3, 2024.

Events	Date
IPO Opening Date	May 27, 2024
IPO Closing Date	May 29, 2024
IPO Allotment Date	May 30, 2024
Refund initiation	May 31, 2024
IPO Listing Date	June 3, 2024

Vilas Transcore Limited IPO Details 

Vilas Transcore Limited IPO, with a face value of Rs.10 per share, opens on May 27 and closes on May 29, 2024, offering 6,480,000 shares at Rs.139 to Rs.147 per share, with a lot size of 1000 shares, aiming to raise Rs.95.26 Cr, and will be listed on NSE SME.

IPO opening & closing date	May 27, 2024 to May 29, 2024
Face value	Rs.10 per share
Issue Price	Rs.139 to Rs.147 per share
Lot Size	1000 shares
Price of 1 lot	Rs. 147,000
Issue Size	6,480,000 shares (aggregating up to ₹95.26 Cr)
Fresh issue	6,480,000 shares (aggregating up to ₹95.26 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Vilas Transcore Limited IPO Lot Details 

For Vilas Transcore Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.147,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs.294,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

Vilas Transcore Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

 

Promoters and Management of Vilas Transcore Limited

• Nilesh Jitubhai Patel

• Natasha Jitubhai Patel

Pre-issue Promoter shareholding	99.97%
Post-issue Promoter shareholding	73.01%

 

Vilas Transcore Limited IPO Lead Managers

• Hem Securities Limited 
  
  

Dividend Policy

According to the DRHP of Vilas Transcore Limited, the company has not paid any dividends in the last three years.

Conclusion

The company operates in the power distribution and transmission sector and has shown strong revenue growth in recent years. Experienced investors may consider applying for the upcoming IPO for potential medium to long-term gains.

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 stock 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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