The VVIP Infratech IPO is a much-awaited IPO for those investors who are interested in investing in a promising infrastructural company. This blog post offers detailed information on the VVIP Infratech IPO, insights, and financial ratios for better investment selection.
Table of Contents
About VVIP Infratech IPO
VVIP Infratech Limited also known as Vibhor Builders Private Limited was founded in 2001 and it is an infrastructure company.
The company primarily focuses on projects in Uttar Pradesh, Uttarakhand, NCR Delhi and other northern regions based in India. It is a Class ‘A’ civil and electrical contractor having over two decades of experience in the execution and construction of infrastructure projects such as sewerage, sewage treatment plants, water tanks, water treatment plants, sector development works, power distribution and sub-stations up to 33 KVA, Jal Jeewan Mission, etc.
The number of employees as of September 30, 2023 is 466.
VVIP Infratech IPO Details
Minimum Investment – ₹ 1,09,200 / 1200 Shares
| IPO Date | July 23, 2024 to July 25, 2024 |
| Listing Date | Tuesday, July 30, 2024 |
| Face Value | ₹10 per share |
| Subscription Rate | 236.92x |
| Price Band | ₹91 to ₹93 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 6,582,000 shares (aggregating up to ₹61.21 Cr) |
| Fresh Issue | 6,582,000 shares (aggregating up to ₹61.21 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 18,387,700 |
| Share holding post issue | 24,969,700 |
| Market Maker portion | 338,400 shares |
VVIP Infratech Ltd IPO’s Subscription Details
On it last day of offering VVIP Infratech IPO reached an overall subscriptions of 236.92 times subscription, this show a strong position from the investors side as compare to first day. That reflect the listing share price of IPO will gains between 30%-35%.
VVIP Infratech IPO GMP Today
Current subscription rate for the IPO is 236.92x. Which reflects the good demands of investors on the IPO. Chances of listing price will be gain more than 30%. The last updated Grey Market Premium (GMP) of the VVIP Infratech IPO, according to the subscription rate, is ₹34. The estimated listing price of the VVIP Infratech IPO is ₹91 to ₹93 per share. This price combines the cap price and today’s GMP. This table shows the VVIP Infratech IPO’s GMP trend from the previous days.
The expected listing share price for VVIP Infratech Limited is ₹93-₹125.
| GMP Date | IPO Price | GMP Price |
| July 29, 2024 | ₹91-₹93 | ₹36 |
| July 28, 2024 | ₹91-₹93 | ₹34 |
| July 27, 2024 | ₹91-₹93 | ₹32 |
| July 26, 2024 | ₹91-₹93 | ₹32 |
| July 25, 2024 | ₹91-₹93 | ₹25-₹28 |
| July 24, 2024 | ₹91-₹93 | ₹25 |
| July 23, 2024 | ₹91 to ₹93 | ₹32 |
| July 22, 2024 | ₹91 to ₹93 | ₹35-₹40 |
| July 21, 2024 | ₹91 to ₹93 | ₹30 |
| July 20, 2024 | ₹91 to ₹93 | ₹25-₹35 |
Allotment and Subscription Details
The IPO of VVIP Infratech will involve the public issue through the book-building method on the basis of allotment. Here’s a breakdown of how the allotment will work:
1. Retail Investors: Applicant with share capital up to ₹2 lakhs. Shareholders who are classified under the retail investors will be granted firm one lot which is equivalent to 1200 shares.
2. Qualified Institutional Buyers (QIBs): Professional investors who are likely to take up a large portion of the IPO.
3. Non-Institutional Investors (NIIs): HNI’s, who apply for shares exceeding ₹2 lakhs in value.
VVIP Infratech IPO Timeline (Tentative Schedule)
VVIP Infratech IPO starts on July 23, 2024, and ends on July 25, 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 |
VVIP Infratech 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 |
VVIP Infratech IPO Lot Size
The minimum lot size permissible in the offer is 1200 shares with the number thereafter being in multiples of this figure. Below is a table indicating minimum and maximum number of shares and amount invested by retail investor and HNI.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | ₹111,600 |
| Retail (Max) | 1 | 1200 | ₹111,600 |
| HNI (Min) | 2 | 2,400 | ₹223,200 |
VVIP Infratech IPO Promoter Holding
Mr. Praveen Tyagi, Mr. Vaibhav Tyagi, and Mr. Vibhor Tyagi hold stake in the company as its promoters.
| Share Holding Pre Issue | 92.34% |
| Share Holding Post Issue |
VVIP Infratech Limited Financial Information (Restated Consolidated)
The total income of VVIP Infratech Limited has been growing in the aforementioned year by 35%, to 77% and profit after tax (PAT) it increased by 52%. to 56 % in the financial year ending with, 31st March 2024 and up to march 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 26,319.67 | 24,158.58 | 26,624.58 |
| Revenue | 28,588.31 | 21,056.28 | 18,526.04 |
| Profit After Tax | 2,071.23 | 1,357.66 | 452.96 |
| Net Worth | 11,061.17 | 8,639.66 | 6,803.50 |
| Reserves and Surplus | 9,222.40 | 8,579.13 | 6,742.97 |
| Total Borrowing | 4,431.98 | 3,598.39 | 6,679.88 |
Key Performance Indicator
The market capitalization of VVIP Infratech IPO is 232.22 Cr.
KPI as at 31 March 2024.
| KPI | Values |
| ROE | 21.36% |
| ROCE | 19.00% |
| Debt/Equity | 0.4 |
| RoNW | 18.73% |
| P/BV | 0.87 |
| PAT Margin (%) | 7.31 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 11.26 | 8.29 |
| P/E (x) | 8.26 | 11.21 |
Note:
- Pre IPO earnings per share is computed at Pre issue shareholding as on RHP and earnings of the latest Financial Year i.e. March 31, 2024 as mentioned in RHP.
- The Post Issue EPS is calculated from the Post issue shareholding and annualized earning of the FY ending march 31, 2024 as mentioned in the RHP.
Objects of the Issue (VVIP Infratech IPO Objectives)
The company intends to utilize the proceeds of the Issue to meet the following objectives:
- Capital Expenditure
- Working Capital Requirement
- General Corporate Purpose
- Issue Expense
VVIP Infratech IPO Review (May apply)
The company itself is in infrastructure activities with special concentration in STP related services. It has shown growth in its top and bottom lines for the reported periods and has order book of Rs. 477+ cr. That is, the core intellectual capital statement shall be prepared for the first time as of March 31, 2024. According to the super earnings estimates of the FY24 the issue looks fully priced. It is in the midst of a growing competitive and dispersed market niche strategy. Sophisticated investors might invest moderate amounts for medium term gains.
How to Apply IPO?
Investors interested in applying for the VVIP Infratech IPO can do so through the following methods:
- Online Application: Shares can be bought through online trading firms or through the firm’s website.
- Physical Application: Go and fill an application form at specified bank branches.
Investment Prospects
Positive Aspects
- Strong Market Position: The projects currently being implemented and planned by VVIP Infratech suggest the Company is well-positioned in the market.
- Experienced Management: company is manned by senior management staff with the relevant experience in the infrastructure industry.
- Growth Potential: As long-term infrastructure projects are planned, the company has the basis for future growth.
Risks and Considerations
- Market Fluctuations: Stock markets are volatile, and this influences the IPO results in unpredictable ways.
- Project Delays: Sustaining the organisation’s revenues and profitability could be a challenge if there were delays in completing these projects.
- Regulatory Risks: The infrastructure sector is a highly regulated industry; changes in laws, rules, or regulations affecting the business may occur.
Conclusion
The VVIP Infratech IPO seems more appealing to investors willing to venture into this category of business in the infrastructure industry. Given a good history, well-defined growth plan and a positive market environment, the IPO may generate promising returns. However, they imply that similar to any investment opportunities, it should be researched and the possible risks need to be determined.
VVIP Infratech Limited Contact Details
VVIP Infratech Limited
Fifth Floor, VVIP Style,
Nh-58 Raj Nagar Extension,
Ghaziabad – 201017
Phone: +91 9990060123
Email: [email protected]
Website: http://www.vvipinfra.com/
For more detailed information and updates on the VVIP Infratech IPO, visit The Invest Advisory