VL Infraprojects Limited, which operates in construction and infrastructure development industry plans to float its IPO soon. It helps the company reach a new level, providing potential investors with the chance to invest in its development. This blog features a detailed look at the V. L. Infraprojects IPO, covering financial ratios, the company’s strategy, and observations from the IPO document. To get more information on this IPO, do not forget to check out The Invest Advisory.
Table of Contents
Company Overview
V. L. Infraprojects is a SME company involved in construction and development of project contractual right relating to roads, highways and industrial buildings etc. The company boasts a standing order book, skilled work force and the ability to execute orders to enhance its capacity to take advantage of the rising infrastructure demand in India.
VL Infraprojects IPO Details
| IPO Date | July 23, 2024 to July 25, 2024 |
| Listing Date | Tuesday, July 30, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹39 to ₹42 per share |
| Subscription Rate | 633.63 |
| Lot Size | 3000 Shares |
| Total Issue Size | 4,410,000 shares (aggregating up to ₹18.52 Cr) |
| Fresh Issue | 4,410,000 shares (aggregating up to ₹18.52 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 11,302,500 |
| Share holding post issue | 15,712,500 |
| Market Maker portion | 240,000 shares |
VL Infraprojects Ltd IPO’s Subscription Details
VL Infraprojects IPO reached a subscription rate of 633.63 times on it last day of IPO offering onwards, which show extremely high interest from the investors to the IPO. It suggests that the IPO’s listing price could potentially see gains over 100% to 120%.
VL Infraprojects IPO GMP Today
On its last day of offering, the subscription rate hit 633.63x times. Which shows a higher interaction of the investors, and this IPO could be a jackpot for investors. To take advantage of the subscription rate on a sight the Grey Market Premium of the VL Infraprojects IPO can be expected to be ₹42. The estimated issue price of the V.L Infraprojects IPO is ₹39-₹42 per share. This price combines the cap price and today’s GMP. This table shows the V.L Infraprojects IPO’s GMP trend from the previous days.
The expected listing share price range of VL Infraprojects IPO is ₹90-₹100.
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| GMP Date | IPO Price | GMP Price |
| July 29, 2024 | ₹39-₹42 | ₹42 |
| July 28, 2024 | ₹39-₹42 | ₹45 |
| July 27, 2024 | ₹39-₹42 | ₹45 |
| July 26, 2024 | ₹39-₹42 | ₹50 |
| July 25, 2024 | ₹39-₹42 | ₹35-₹40 |
| July 24, 2024 | ₹39-₹42 | ₹24 |
| July 23, 2024 | ₹39-₹42 | ₹18 |
| July 22, 2024 | ₹39-₹42 | ₹20 |
| July 21, 2024 | ₹39-₹42 | ₹15-₹20 |
VL Infraprojects IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
V.L Infraprojects IPO Anchor Investors Details
V.L. Infraprojects IPO raises Rs. 5.24 crore from anchor investors.
The V. L. Infraprojects IPO Anchor bid date is July 22, 2024.
| Bid Date | July 22, 2024 |
| Shares Offered | 1,248,000 |
| Anchor Portion Size (In Cr.) | 5.24 |
| Anchor lock-in period end date for 50% shares (30 Days) | August 25, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | October 24, 2024 |
V.L Infraprojects IPO Timeline (Tentative Schedule)
V. L. Infraprojects IPO bids are from the 23rd to the 25th of July, 2024.
| IPO Open Date | Tuesday, July 23, 2024 |
| IPO Close Date | Thursday, July 25, 2024 |
| Basis of Allotment | Friday, July 26, 2024 |
| Initiation of Refunds | Monday, July 29, 2024 |
| Credit of Shares to Demat | Monday, July 29, 2024 |
| Listing Date | Tuesday, July 30, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 25, 2024 |
VL Infraprojects IPO Lot Size
The shares offer will be open for subscription for a minimum of 3000 and in multiples of the same. Below is the table that shows the minimum and maximum investment by retail investors and HNI in terms of share and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 3000 | ₹126,000 |
| Retail (Max) | 1 | 3000 | ₹126,000 |
| HNI (Min) | 2 | 6,000 | ₹252,000 |
V.L Infraprojects IPO Promoter Holding
The company’s promoters are Mr. Rajagopal Reddy Annam Reddy, Mrs. Mydhili Rajagopal Reddy, and Mr. Nageswara Rao Repuri.
| Share Holding Pre Issue | 90.91% |
| Share Holding Post Issue | 65.39% |
V.L. Infraprojects Limited Financial Information (Restated)
V. L. Infraprojects Limited’s revenue reached up to 149.72% of profit after tax (PAT) rose by 175.76% within the financial year ending 31 March 2024 and 31 March 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 5,691.39 | 2,836.24 | 1,955.40 | 1,641.29 |
| Revenue | 11,400.05 | 4,565.14 | 3,560.70 | 3,077.57 |
| Profit After Tax | 614.01 | 222.66 | 110.58 | 83.37 |
| Net Worth | 1,636.01 | 1,022.00 | 730.84 | 620.26 |
| Reserves and Surplus | 505.76 | 268.50 | 456.84 | 346.26 |
| Total Borrowing | 1,654.81 | 999.02 | 1,003.52 | 659.41 |
| Amount in ₹ Lakhs | ||||
Key Performance Indicator
Market capitalisation of IPO for V. L. Infraprojects is Rs 65.99 Cr.
KPI as of March, 31 2024.
| KPI | Values |
| ROE | 46.20% |
| ROCE | 39.09% |
| RoNW | 37.53% |
| P/BV | 2.9 |
| PAT Margin (%) | 5.39 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 5.43 | 3.91 |
| P/E (x) | 7.73 | 10.75 |
Note:
- Pre IPO EPS is calculated considering Pre issue shareholding as on the date of right issue prospectus and the latest FY earnings till March 31, 2024 stated in RHP.
- The Post Issue EPS depends on the Post issue shareholding and annualized FY earnings of March 31, 2024 as mentioned in the RHP.
Objects of the Issue (V.L.Infraprojects IPO Objectives)
The Issue Proceeds from the Fresh Issue will be utilized towards the following objects:
1. To Meet Working Capital Requirements.
2. General Corporate Purposes.
V.L Infraprojects IPO Review (Apply)
The company is involved in water pipeline and sewerage business and now expanding in the irrigation, building construction and road construction business respectively. The growth rate in its FY24 performance was higher with the increased expenditure of the state governments. It has orders in pipeline, which are amounting to Rs. 160 cr. as at 31 March 2024. From the FY24 reputed earnings, the situation seems lucratively priced issue. Share holders may hold shares for the middle to long term returns.
Business Model and Competitive Advantage
Core Operations
V. L. Infraprojects have been established as an infrastructural constructing company dealing in roads, highways, and industrial structures. The company’s core operations involve:
1. Project Planning and Execution: There is thorough planning and scheduling of each project to ensure they are completed on time and to the required quality level.
2. Procurement and Supply Chain Management: Proper procurement and management of the supplies is another driver to cost control and Project efficiency.
3. Technological Integration: The use of advanced technologies improves the management and execution of a project.
Competitive Edge
V. L. Infraprojects’ competitive advantage lies in its:
• Experienced Management Team: A team with vast experience especially in the provision of infrastructure.
• Strong Order Book: An established pipeline of active and planned projects.
• Operational Efficiency: Strong project management and delivery skills.
Risks and Considerations
Purchasing IPOs involves certain risks that are unavoidable. Here are some considerations for potential investors:
1. Market Volatility: IPOs can be very erratic in the initial periods of their trading on the stock market and the stock market as a whole is often unpredictable.
2. Project Execution Risks: Due to operating in the construction and infrastructure sector, V. L Infraprojects faces risk associated with project delivery and formal authorization.
3. Economic Factors: Fluctuations within the economic arena such as rates of interests and inflation may affect the company.
Investment Outlook
Growth Prospects
V. L. Infraprojects has a great prospect in the current construction industry of India because of the increasing interest in infrastructure construction. It is also positive that the company is aimed at the expansion of the business and its experience in successful project implementation.
Recommendations
Investors should consider the following before investing in the V. L. Infraprojects IPO:
• Assess the Pricing: Assess the determination of the IPO price band in relation to the company’s financial profile and the prospects of the market.
• Review Financials: Evaluate the company and it balance sheet and growth prospects in order to determine the possible returns in the future.
• Understand Risks: Understand the fact that there are operational and market risks as far as infrastructure investments are concerned.
V.L. Infraprojects Limited Contact Details
V.L.Infraprojects Limited
Office at 716, Shivalik Satyamev,
Near Vakil saheb Bridge Bopal,
Ahmedabad- 380058
Phone: +91 9998850177
Email: [email protected]
Website: http://www.vlil.in/
Conclusion
The VL Infraprojects IPO is quite an attractive offer for buyers who would like to invest in the infrastructure industry. As it had sound financials and efficient and experienced managers, together with having been operating in quite a favourable sector, it could potentially have good upside. However, as with any other investment, it is important to assess the risks and do proper research before engaging in such activity.