VVIP Infratech Ltd IPO: Review, Valuation, Opening Date & GMP

VVIP Infratech Ltd IPO-Complete Overview

VVIP Infratech Limited IPO by VVIP Infratech Limited was founded in VVIP Infratech Limited, previously known as Vibhor Builders Private Limited, is an infrastructure firm founded in 2001.

India has the world's second-largest road network, comprising approximately 63.73 lakh kilometers. This includes national highways, state highways, district, and rural roads. The company works mostly on initiatives in Uttar Pradesh, Uttarakhand, Delhi NCR, and other northern parts of India. It is a Class 'A' civil and electrical contractor with over 20 years of experience in the execution and building of infrastructure initiatives such as sewerage, sewage treatment plants, water tanks, water treatment plants, development of the sector works, distribution systems, and substations up to 33 kVA, Jal Jeewan Mission, and so on.

By September 30, 2023, the company employed 466 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.

VVIP Infratech Limited IPO Overview

VVIP Infratech IPO is an SME book-built issue of Rs.61.21 crores comprising a wholly Fresh Issue of 65.82 lac Shares (amounting to Rs.61.21 crores) out of which 35% is allocated to retail investors, 50% to institutional investors, 15% to non-institutional-investors.

Investors can purchase shares in the IPO beginning on July 23, 2024, and it will end on July 25, 2024. The IPO is expected to be listed on Tuesday, July 30, 2024, on the BSE and SME. The price of every share is set between Rs.91 and Rs.93.

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

Company Financial

The company's revenue increased by 35.77%, while profit after tax (PAT) increased by 52.56% 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.28,588.31 lac.

• The net worth of the company is Rs.11,061.17 lac.

• The company's EBITDA is Rs.3145.91 lac.

• The total assets of the company are Rs.26,319.67 lac.

(Amount in lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	26,319.67	24,158.58	26,624.58
Total Revenue	28,588.31	21,056.28	18,526.04
PAT	2,071.23	1,357.66	452.96
Net worth	11,061.17	8,639.66	6,803.50
Reserve & Surplus	9,222.40	8,579.13	6,742.97
Borrowing	4,431.98	3,598.39	6,679.88

 

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	1910.33	5165.01	-87.48
Net Cash Flow Investing Activities	-995.60	-1302.38	1991.13
Net Cash Flow Financing Activities	-1214.39	-3775.93	-1032.10

 

Geography-wise Revenue Breakdown

Sector-wise Revenue Breakdown

(Amount in lac)

Sector	31 Mar 2024	31 Mar 2023	31 Mar 2022
Pipeline, Tube Well & Water Tank	12909.92	3042.39	446.69
Sewer Work & Treatment Plant Work	4629.57	10974.74	9009.60
Electric Work	398.39	382.70	334.71
Operation & Maintenance STP	318.48	301.94	268.19
Pool & Boundary Wall Work	72.72	-	-
Material & Scrap Sale	1836.53	3.90	1.07
Building Construction Work	1322.62	-	-
Revenue from Construction	6864.69	6184.27	8126.46
Total	28352.92	20889.94	18186.72

 

The Objective Of The Issue

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

• Capital expenditure

• Working capital requirement

• Corporate Purpose

• Issue Expense

Peers Of VVIP Infratech Limited

(Figures as of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Ems Limited	10	28.91	13.92
Vishnusurya Projects and Infra Limited	10	13.23	16.62

Evaluation

The price of this IPO is Rs.91 to Rs.93 for each Share.

Evaluation Of P/E Ratio

Considering the Fiscal that concluded on 31 March 2024, with EPS of Rs.17.24 from the last year, the resulting P/E ratio is 5.39x.

Considering the weighted EPS of Rs.46.37 for the last three years, the P/E ratio is 2.00x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 10.10x.

Particulars	P/E Ratio
Highest	19.31
Lowest	15.10
Average	10.10

In simple words, the P/E ratio of VVIP Infratech Limited-IPO (5.39x and 2.00x), compared with the industry’s average P/E of 10.10x, 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

• As of January 31, 2024, the company has outstanding orders worth Rs. 47762 Lakhs for rural water supply projects in Rampur and Farrukhabad, Uttar Pradesh, under the Jal Jeevan Mission under the State Water & Sanitation Mission. These projects include operation and maintenance for 10 years.

• Strong, high-quality work, timely delivery, and affordable rates

• Experienced and trained engineers and technicians.

• As cities expand, there is a greater demand for infrastructure development.

IPO’s Weaknesses

• Late payments from consumers can lead to increased costs and lower earnings, negatively hurting its operations and finances.

• Joint venture projects may be delayed due to causes such as non-performance by partners.

• There are currently no purchase orders for plant and machinery that will be financed through the Issue.

• The company's Restated Summary Information indicates that negative cash and cash equivalents were created in the fiscal year 2021. Similar negative cash flows may occur in the future.

• Many of its commercial agreements, including joint ventures, include measures to control project delays. Fine, penalty, or damages clauses promote prompt completion and resolve potential delays.

IPO GMP Today

VVIP Infratech Limited IPO’s latest GMP is Rs.122.

VVIP Infratech 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

 

VVIP Infratech 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 6,582,000 Shares (aggregating up to Rs.61.21 Cr) comprising a whole fresh issue size of 6,582,000 Shares (amounting to Rs.61.21 Cr).

IPO Opening & Closing date	July 23, 2024 to July 25, 2024
Face Value	Rs.10 per Share
Issue Size	6,582,000 Shares (amounting to Rs.61.21 Cr).
Offer for Sale	NA
Fresh Issue	6,582,000 Shares (amounting to Rs.61.21 Cr).
Listing at	BSE, SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

VVIP Infratech Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.111600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.223200.

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

 

VVIP Infratech Limited IPO Reservation

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

Promoters And Management Of VVIP Infratech Limited IPO

• Mr. Praveen Tyagi

• Mr. Vaibhav Tyagi

• Mr. Vibhor Tyagi

Pre-Issue Promoter Shareholding	92.34%
Post-Issue Promoter Shareholding	-

VVIP Infratech Limited IPO Lead Managers

• Share India Capital Services Private Limited

Dividend Policy

The company has no formal dividend policy.

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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