Vishnusurya Projects and Infra LTD. IPO - Review, Valuation & GMP

Vishnusurya Projects and Infra Limited - Complete Overview

Established in 1996, Vishnusurya Projects and Infra Limited is primarily engaged in the extraction of raw stones, the production of aggregates, and the manufacturing of sand using Crushing Plants and Sand Washing Plants.

The company operates across three key verticals:

1. Engineering Procurement and Construction (EPC).

2. Mining of Aggregates and Manufactured Sand Production.

3. Drones or Unarmed Aerial Vehicles.

In the EPC domain, Vishnusurya Projects and Infra Limited undertake construction and infrastructure projects across diverse sectors, including water resources, transportation, railways, and institutional development. Additionally, the company has a track record of executing real estate projects such as villa construction, multi-storied apartments, specific contracts like compound walls, renovation works, site formation, and infrastructure projects for governmental, autonomous, and private entities within the state of Tamil Nadu.

Furthermore, the company owns and operates two quarries in Tamil Nadu, India:

The first quarry and crushing facility, spanning 105 acres in Aruppukottai, Virudhunagar District, handles rock breaking, rock auguring, and crushing operations. This facility has a capacity to produce 250 tonnes per hour and 100 tonnes of washed sand simultaneously.

The second aggregates and manufactured sand unit, located in Vandavasi, Tiruvannamalai District, is equipped with a crushing machine capable of handling 350 tonnes and 150 tonnes of sand washing concurrently. This facility is situated approximately 100 km from Chennai.

Additionally, the company is involved in the acquisition, sale, and provision of comprehensive drone services for surveillance, mapping, and surveying applications.

Vishnusurya Projects and Infra Limited has received Class I contractor accreditation from various departments and agencies, including the Greater Chennai Corporation (GCC), the Government of Tamil Nadu Water Resources Department, the Tamil Nadu Water Supply and Drainage Board, and the Highways Departments. This accreditation enables the company to participate in and undertake projects awarded by various other departments and agencies.

 

 

What does the company do? 

Vishnusurya Projects and Infra Limited is involved in the extraction of unprocessed stones and the production of aggregates, as well as the manufacturing of sand through Crushing Plants and Sand Washing Plants.

 

IPO Overview 

The Vishnusurya Projects and Infra Limited IPO date is scheduled to be open for subscription from September 29, 2023, to October 4, 2023. This SME IPO is a Fixed Price Issue IPO.

The total issue size for the upcoming SME IPO amounts to Rs. 49.98 crore. Out of this, the company has allocated 50% of the shares to retail investors, while the remaining 50% is allotted to other investors.

The Vishnusurya Projects and Infra Limited IPO price is fixed at Rs. 68 per share. A single lot of this issue comprises 2000 shares, and retail investors have the option to bid for 1 lot.

 

Vishnusurya Projects and Infra Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	29 September 2023
IPO Closing Date	4 October 2023
IPO Allotment Date	9 October 2023
Refund initiation	10 October 2023
IPO Listing Date	12 October 2023

 

Vishnusurya Projects and Infra Limited IPO Details 

IPO Opening & Closing Date	29 September to 4 October 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 68 per Share
Lot Size	2000 Shares
Price of 1 lot	Rs. 136,000
Issue Size	7,350,000 Shares (aggregating up to Rs. 49.98 Cr)
Offer for sale	NA
Fresh issue	7,350,000 Shares (aggregating up to Rs. 49.98 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Limited

 

Vishnusurya Projects and Infra Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Vishnusurya Projects and Infra Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	9,594.72	11,849.39	12,105.28
Total Revenue	6,339.33	9,603.62	13,326.06
PAT	229.18	2,158.97	1,736.64
Net worth	3,573.72	4,155.88	5,952.39
Reserve & Surplus	3,078.32	3,660.48	5,043.99
Total Borrowings	1,472.32	3,489.49	3,625.24

 

Revenue from Operations contributed by the Business Segments

(Amount in Lakhs)

Particulars	FY 23	FY 22	FY 21
Sale of Products - Construction Aggregates	7,484.75	4,244.16	3,402.67
Sale of Services - Construction and EPC	3,599.54	1,534.17	2,821.31
Sale of Flats	-	380.33	97.85
Other Operating Revenues	2,152.82	1,487.28	-
Total	13,237.11	7,645.94	6,321.84

 

Objective of the Issue

The company aims to utilize the raised funds for the following purposes:

• Satisfying the company's working capital needs.
• Partial or full repayment or prepayment of specific outstanding borrowings taken by the company.
• General corporate objectives.

 

Promoters and Management of Vishnusurya Projects and Infra Limited

Bhavani Jayaprakash is the Promoter of the Company. 

Pre-issue Promoter Shareholding	88.74%
Post-issue Promoter Shareholding	62.24%

 

Peer Comparison 

Below are the listed peers of Vishnusurya Projects and Infra Limited

Company Name	Revenue from Operations for Fiscal 2023 (Rs. in Lakhs)	EPS (Rs.) Diluted	P/E Ratio
Vishnusurya Projects and Infra Limited	13237.11	23.62	61.95
Rachana Infrastructure Limited	6,351.67	1.22	80.90
Sonu Infratech Limited	6,405.16	3.65	12.32
A B Infrabuild Limited	1,2308.86	5.95	5.60

 

IPO's Valuations

Vishnusurya Projects and Infra Limited IPO price has been set at Rs. 68 per share, and the EPS is Rs. 25.30. Considering the issue price, the company's PE ratio for IPO valuation is 2.69.

 

Dividend Policy 

As per the Vishnusurya Projects and Infra Limited  IPO DRHP, the company has not declared or distributed any dividends on its Equity Shares in the past. However, the past dividend record may not necessarily predict the dividend amounts, if any, in the future.

 

IPO's Strengths 

• Experienced Promoter and Competent Management Team.
• Concentration on Infrastructure Projects.
• Evident growth trajectory with a robust order backlog.
• Industry expertise coupled with effective execution capabilities.
• Impressive Financial Performance.

 

IPO Weaknesses

• The company is currently involved in ongoing litigations, both against it and initiated by it.
• There are outstanding legal disputes involving the Group Company, as well as litigations initiated by the Group Company.
• Negative cash flows have been reported in the company's operating, investing, and financing activities.
• The success and profitability of the company are significantly reliant on the performance of and conditions within the construction and infrastructure industry.
• Instances of delays in paying statutory dues, such as EPFO and ESIC, have occurred.
• Past instances of regulatory non-compliance, delays, or errors have been noted.
• The company's Drone business activities are subject to strict regulation and may undergo changes.
• The company must adhere to various laws and regulations, including those related to the environment and health and safety.
• The majority of the company's operations are conducted within the state of Tamil Nadu.
• The auditors' report on the company's financial statements contains specific qualifications and matters of emphasis listed in the annexure to the auditors' reports issued in accordance with Companies Act requirements.
• The company is obligated to obtain approvals and licenses as part of its regular business operations.

 

 

IPO GMP Today

Latest GMP of Vishnusurya Projects and Infra SME IPO GMP is Rs. 30.

 

Conclusion

Vishnusurya Projects and Infra Limited operates in the field of infrastructure construction and related services. The company has demonstrated commendable and consistent performance over the years. Furthermore, the company has a robust order book, which is indicative of a promising future ahead. Investors may consider this issue for investment following a thorough analysis.

 

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.

 

 

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