Vrundavan Plantation Ltd. IPO: Review, Valuation & Today GMP

Vrundavan Plantation Limited - Complete Overview

Established in 1997, Vrundavan Plantation operates in the nursery business with a primary focus on Landscape Development, Horticulture/Plantation/Landscape maintenance works, and Irrigation works. 

The company's core vision is to combat deforestation and the diminishing green spaces by conserving and safeguarding the environment. 

Their goal is to oversee the management of 10 million hectares of both forest and non-forest land, with the aim of increasing forest cover and enhancing the quality of existing forests, thereby contributing to greening India and the world.

Within the nursery business segment, Vrundavan Plantation offers a variety of products, including Big Trees, Shrubs, Ground Covers, Climbers, Indoor Plants, and more. 

They also engage in the trading of pots, which encompass plastic pots, terracotta pots, self-watering pots, hanging pots, and even pots made from various materials like brass and ceramic. 

Additionally, the company trades gardening tools and provides all necessary gardening accessories. They also trade in garden inputs such as plant foods, organic pesticides, potting mixes, and nutrients, among other related products.

 

What does the company do? 

Vrundavan Plantation operates in the nursery business with a primary focus on Landscape Development, Horticulture/Plantation/Landscape maintenance works, and Irrigation works. 

 

 

Company Products

Within the nursery business segment, Vrundavan Plantation offers a variety of products, including Big Trees, Shrubs, Ground Covers, Climbers, Indoor Plants, and more. 

They also engage in the trading of pots, which encompass plastic pots, terracotta pots, self-watering pots, hanging pots, and even pots made from various materials like brass and ceramic. 

Additionally, the company trades gardening tools and provides all necessary gardening accessories. They also trade in garden inputs such as plant foods, organic pesticides, potting mixes, and nutrients, among other related products.

 

IPO Overview

The Vrundavan Plantation IPO date is scheduled to be open for subscription from October 30 to November 1, 2023. This SME IPO is anticipated to be listed on November 9, 2023. 

The Vrundavan Plantation IPO price is fixed at Rs. 108 per share, and the total issue size of the upcoming SME IPO amounts to Rs. 15.29 crore. 

Regarding the allocation, the company has earmarked 50% of the shares for retail investors and the remaining 50% for other investors. Continue reading to explore the detailed IPO review.

 

Vrundavan Plantation Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	30 October 2023
IPO Closing Date	1 November 2023
IPO Allotment Date	6 November 2023
Refund initiation	7 November 2023
IPO Listing Date	9 November 2023

 

Vrundavan Plantation Limited IPO Details

IPO Opening & Closing Date	30 October to 1 November 2023
Face value	Rs.10 per Share
Issue Price	Rs. 108 per Share
Lot Size	1200 Shares
Price of 1 lot	Rs. 129,600
Issue Size	1,416,000 Shares (aggregating up to Rs.15.29 Cr)
Offer for Sale	NA
Fresh issue	1,416,000 Shares (aggregating up to Rs.15.29 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

 

Vrundavan Plantation Limited IPO Lot Details 

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

 

 

Vrundavan Plantation Limited IPO Reservation

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

 

Company Financial

Amount in Lakhs

Period	31 May 2023
Total Assets	2,321.67
Total Revenue	180.68
PAT	17.33
Net worth	413.82
Reserve & Surplus	22.15
Total Borrowings	17.47

 

Objective of the Issue 

The company intends to use the Net Proceeds from the issue for the following purposes:

• Settling working capital and unsecured loans.
• Covering working capital needs.
• General corporate purposes.
• Meeting expenses related to the public issue.

 

Promoters and Management of Vrundavan Plantation Limited

Mr Upendra Tiwari is the promoter of the company.

Pre-issue Promoter Shareholding	85.29%
Post-issue Promoter Shareholding	62.65%

 

Peer Comparison 

According to its DRHP, the company does not have any publicly traded competitors or peers.

 

IPO's Valuations

In order to evaluate the IPO valuation, we can utilize the information provided by the company in its DRHP. Vrundavan Plantation's IPO price is set at Rs. 108 per share, and the EPS is Rs. 3.12. With reference to the issue price, the company's P/E ratio is calculated at 34.62.

 

Dividend Policy

According to the Vrundavan Plantation IPO DRHP, the company has not distributed any dividends in the past, and the prospect of future dividend payments depends upon the company's financial earnings.

 

IPO's Strengths 

• The company provides a well-rounded selection of services, including specialized offerings.
• The organization maintains stability and is led by experienced management.
• Operations run seamlessly, ensuring efficiency.
• The company has a strong base of existing clients.
• It consistently delivers high-quality services.

 

IPO Weaknesses

• The company's operating history is relatively brief.
• The business of the company is vulnerable to the impacts of climate and environmental risks.
• The company's operations necessitate obtaining and renewing various registrations, licenses and permits from government and regulatory authorities.
• Plantations and landscaping businesses are highly reliant on weather conditions.
• Over 55% of the company's purchases are made from its top 10 suppliers, and it relies on just 8 buyers for 100% of its sales.
• Plantations are susceptible to a range of pests and diseases.
• Fluctuations in market demand and prices for plantation and landscaping services can influence profitability.
• The Company has failed to submit GST returns in a timely manner.
• The company must adhere to environmental regulations.
• An increase in the costs of seeds, pesticides, equipment, and labour could negatively impact the company's profitability.
• Natural disasters and climate change have the potential to adversely affect the company's business and profitability.
• In the previous year, the company experienced negative cash flows.

 

 

IPO GMP Today 

The Latest GMP of Vrundavan Plantation SME IPO is Rs. 40.

 

Conclusion

The company has a limited operating history and has experienced negative cash flow. Its financial performance is also not very impressive. It is advisable for investors to consider investing only after conducting a thorough analysis of all relevant factors.

 

 

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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