V.L.Infraprojects Ltd IPO: Review, Valuation, Date & GMP

V.L.Infraprojects Limited IPO-Complete Overview

V.L.Infraprojects Limited IPO by V.L.Infraprojects Limited was founded in 2014 and specializes in the planning, building, and completion of government projects, particularly those involving water infrastructure and irrigation. The company is involved in the completion of water supply and wastewater infrastructure initiatives, which primarily include the purchasing of pipes and their installation, connection, and setting up with backward integration, as well as all related construction projects such as civil works, pumping stations, and the installation of electromechanical equipment (pumping machines) for the conveyance of water supply from river to household. The company also operates and maintains water pipelines.

Budget 2023-24 proposes a 33% increase in capital investment for infrastructure to Rs.10 lakh crore (US$ 122 billion), which is 3.3% of GDP. The Union Budget 2023-24 includes a capital spending of Rs. 2.40 lakh crore (US$ 29 billion) for railways, the greatest ever and approximately 9 times the outlay in 2013-14.

The company is a Class AA approved contractor by the Gujarat Government, has a civil/electrical contractor authorization from the Karnataka State Public Works Department, is registered in a special class with the Telangana Government, and is approved as a contractor by the Madhya Pradesh Government.

By March 31, 2024, the company had 30 employees.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 23, 2024. Let's take a closer look at the IPO's offerings below.

V.L.Infraprojects Limited IPO Overview

V.L.Infraprojects IPO is an SME book-built issue of Rs.18.52 crores comprising a wholly Fresh Issue of 44.1 lac Shares (amounting to Rs.18.52 crores) out of which 35% is allocated to retail investors, 50% to institutional investors, 15% to non-institutional-investors.

The IPO will be available to investors on July 23, 2024, and conclude on July 25, 2024. The anticipated listing date for the IPO is Tuesday, July 30, 2024, and will be held on the NSE and SME. The price of each Share is set at Rs.39 to Rs.42.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

 

Company Financial

The company's revenue increased by 149.72%, while profit after tax (PAT) increased by 175.76% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.11,400.05 lac.

• The net worth of the company is Rs.1,636.01 lac.

• The company's EBITDA is Rs.1,090.40 lac.

• The total assets of the company are Rs.5,691.39 lac.
  
  

(Amount in lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	5,691.39	2,836.24	1,955.40
Total Revenue	11,400.05	4,565.14	3,560.70
PAT	614.01	222.66	110.58
Net worth	1,636.01	1,022.00	730.84
Reserve & Surplus	505.76	268.50	456.84
Borrowing	1,654.81	999.02	1,003.52

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in lac)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	-175.36	113.88	-243.73
Net Cash Flow Financing Activities	499.49	-45.88	276.49
Net Cash Flow Investing Activities	-180.03	-55.82	-19.95

Category-wise Revenue From Operations Breakdown

 

State-wise Revenue Breakdown

Revenue Breakdown Based On Projects Completed By Company And Joint Ventures.

Sector-wise Revenue Breakdown

The Objective Of The Issue

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

• To fulfill operational funding requirements.

• General business objectives.
  
  

Peers Of V.L.Infraprojects Limited

(Figures as of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Ems Limited	10	28.91	13.92

 

 

Evaluation

The price of this IPO is Rs.39 to Rs.42 for each Share.

Evaluation Of P/E Ratio

Considering the Fiscal that concluded on 31 March 2024, with EPS of Rs.5.43 from the last year, the resulting P/E ratio is 7.73x.

Considering the weighted EPS of Rs.3.59 for the last three years, the P/E ratio is 11.69x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 13.92x.

Particulars	P/E Ratio
Highest	13.92
Lowest	13.92
Average	13.92

In simple words, the P/E ratio of V.L.Infraprojects Limited-IPO (7.73x and 11.69x), compared with the industry’s average P/E of 13.92x, 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

• Professional promoters and management staff focused on water supply projects (WSPs).

• End-to-end execution capability.

• Optimum use of resources.

• Long-term ties with its customers.

 

 

IPO’s Weaknesses

• A large portion of the revenues approx. 89.74 % comes from the state of Gujarat. Any negative developments in this region may harm its business, financial situation, and performance.

• Joint venture projects may be delayed due to partner performance or severe losses, which might negatively impact its business.

• The company relies on a few vendors to purchase products. The loss of these major suppliers could impact its business operations.

• They rely on subcontractors' collaboration to complete projects on schedule and successfully. Failure to do so can harm the standard of its development, profitability, and reputation.

• Strikes, work stoppages, or pay demands by employees, labor contractors, or subcontractors may negatively impact its operations.

 

IPO GMP Today

V.L.Infraprojects Limited IPO’s latest GMP is Rs.65.

V.L.Infraprojects Limited IPO Timetable (Tentative)

The IPO is scheduled from July 23 to July 25, 2024, with allotment on July 26, refund initiation on July 29, and listing on July 30, 2024.

Events	Date
IPO Opening Date	July 23, 2024
IPO Closing Date	July 25, 2024
IPO Allotment Date	July 26, 2024
Refund initiation	July 29, 2024
IPO Listing Date	July 30, 2024

 

V.L.Infraprojects Limited IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on July 23, close on 25 July, and offer a total issue size of 4,410,000 Shares (aggregating up to Rs.18.52 Cr) comprising a whole fresh issue size of 4,410,000 Shares (amounting to Rs.18.52 Cr).

IPO Opening & Closing date	July 23, 2024 to July 25, 2024
Face Value	Rs.10 per Share
Issue Size	4,410,000 Shares (amounting to Rs.18.52 Cr).
Offer for Sale	NA
Fresh Issue	4,410,000 Shares (amounting to Rs.18.52 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

 

V.L.Infraprojects Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.126000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.252000.

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

 

V.L.Infraprojects Limited IPO Reservation

Institutional Portion	50%
Retail Share Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management of V.L.Infraprojects Limited IPO

• Mr. Rajagopal Reddy Annam Reddy.

• Mrs. Mydhili Rajagopal Reddy.

• Mr. Nageswara Rao Repuri.

Pre-Issue Promoter Shareholding	90.91%
Post-Issue Promoter Shareholding	65.39%

 

V.L.Infraprojects Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd

 

 

Dividend Policy

The company has not paid or declared any dividend in the last three financial years.

 

Conclusion

The company has seen negative cash flow in operating, financing, and investing activities in the last few financial years. To fulfill its objectives, the company is currently conducting 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 information 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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

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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