One of the upcoming and highly anticipated offerings is the Vision Infra Equipment Solutions Limited IPO, which is set to launch on September 6, 2024 today.A significant participant in the equipment rental market is Vision Infra Equipment Solutions, which provides critical services for the infrastructure sector. This comprehensive guide will take you through everything there is to know about such a company including its origin, financial standing, size of the IPO, price range and how to subscribe if you want to invest in this IPO.
Table of Contents
Vision Infra Equipment Solutions IPO Launch Date & Details
- IPO Opening Date: September 6, 2024
- IPO Closing Date: September 10, 2024
- Issue Type: Book Built Issue IPO
- Price Band: ₹155 to ₹163 per share
- Face Value: ₹10 per share
- Lot Size: 800 shares
- Total Issue Size: 6,516,000 equity shares
- Issue Size: ₹106.21 crore
- Listing Date: Tentatively September 13, 2024
- Market Listing: NSE SME
IPO Timeline (Tentative)
| Event | Date |
| IPO Opening Date | September 6, 2024 |
| IPO Closing Date | September 10, 2024 |
| Allotment Date | September 11, 2024 |
| Refund Initiation Date | September 12, 2024 |
| Shares Credited to Demat | September 12, 2024 |
| Listing Date | September 13, 2024 |
Company Overview: Vision Infra Equipment Solutions Ltd.
Vision Infra Equipment Solutions Ltd. (VIESL) is a Pune-based company that was founded in 2015. The company offers solutions in the equipment rental space, focusing on infrastructure contracts. Its portfolio includes renting out road construction equipment, trading, and refurbishing. With services provided to major sectors such as airports, smart cities, railways, mining, irrigation, and more, VIESL has grown to become a reliable name in the equipment rental industry.
The company provides equipment under two pricing models:
- Time-based pricing: Customers pay a fixed fee based on how long they use the equipment.
- Output-based pricing: Customers pay based on the results achieved with the equipment.
By serving infrastructure giants like Larsen & Toubro, GMR Infra Projects, and Tata Projects, Vision Infra Equipment Solutions has developed a strong market presence.
Key Highlights:
- Fleet Size: On March 31st, 2024, the firm possessed a total number of 395 road construction machines.
- Employees: It consists of 227 permanent and 763 contractual workers.
- Major Clients: It comprises several prominent infrastructure firms such as Dilip Buildcon Ltd., NCC Ltd., and Shapoorji Pallonji.
Vision Infra Equipment Solutions IPO Size & Price Band
Issuing the IPO are 6516000 equity shares of ₹10̷ per share. In its upper price band, the company hopes to collect ₹106.21 crore from its initial public offering. Below is a detailed breakdown on all elements relating to allocation and pricing for this IPO.
Key Details:
| Parameter | Value |
| IPO Size | ₹106.21 crore |
| Price Band | ₹155 to ₹163 per share |
| Face Value | ₹10 per share |
| Shares Offered | 6,516,000 shares |
| Market Maker Portion | 336,000 shares |
| Post IPO Market Cap | ₹401.67 crore |
| Minimum Investment Amount | ₹130,400 (for 800 shares) |
Utilisation of Proceeds
The company intends to use the proceeds from the IPO as follows:
- Capital Expenditure: ₹46.81 crore for purchasing additional equipment.
- Working Capital: ₹36.50 crore.
- General Corporate Purposes: The remaining amount will be allocated here.
Lot Size & Investment Details
The minimum lot size for Vision Infra Equipment Solutions IPO is 800 shares, and investors can bid for shares in multiples of 800 thereafter. Below is the breakdown for retail and HNI investors:
Retail Investors
| Number of Lots | Shares | Investment (₹) |
| 1 | 800 | ₹130,400 |
| Maximum | 1 lot | ₹130,400 |
HNI Investors
| Number of Lots | Shares | Investment (₹) |
| 2 | 1,600 | ₹260,800 |
| 3 | 2,400 | ₹391,200 |
Financials & Growth Potential
Vision Infra Equipment Solutions has been enjoying consistent revenues over the last three financial years. However, there was a major surge in net profits on the consolidated basis during FY24. Despite almost unchanged top line figures, it made bumper earnings for FY 24 which raises questions on how sustainable this growth can be.
Financial Performance
| Fiscal Year | Revenue (₹ Cr.) | Net Profit (₹ Cr.) | PAT Margin (%) |
|---|---|---|---|
| FY22 | ₹305.10 | ₹9.28 | 3.15% |
| FY23 | ₹368.90 | ₹9.19 | 2.55% |
| FY24 (Consol.) | ₹349.66 | ₹26.69 | 8.02% |
Key Financial Metrics
- EPS (FY24): ₹10.38
- RoNW (Return on Net Worth): 73.23%
- P/E Ratio (FY24 Consolidated): 15.05 at the upper price band.
- P/BV Ratio: 2.85, based on a post-IPO NAV of ₹57.25 per share.
Considering the current state of things both positive and negative there are many things that can explain the sudden stratospheric rise in net earnings for this fiscal year, these include; increased other income. Nonetheless, some knowledgeable investors may look at it as an opportunity for a long-term investment due to the company’s large growth prospects in areas such as infrastructure, railways and smart cities.
The Vision Infra Equipment Solutions IPO Application Process
You can apply for Vision Infra Equipment Solutions IPO through ASBA (Application Supported by Blocked Amount) or UPI (Unified Payments Interface) methods. Below is a step-by-step guide for applying through various brokers and banks:
Through Dhan (UPI Method):
- Login to your Dhan account.
- Go to Console > Market > IPO.
- Select Vision Infra Equipment Solutions IPO.
- Enter your UPI ID, Quantity, and Price.
- Submit the form and approve the UPI mandate via your UPI app.
Through Net Banking (ASBA Method):
- Login to your bank’s Net Banking portal.
- Go to the IPO section and select Vision Infra Equipment Solutions IPO.
- Fill in the required details (quantity, price).
- Submit and your bid amount will be blocked in your bank account.
Financial Growth and Sustainability Concerns
One among the many issues that have been raised concerning Vision Infra Equipment Solutions is how net profit increased sharply during FY24 while total revenue remained fairly constant. In FY24, the firm made net profits of ₹26.69 Crores compared to ₹9.19 Crores in FY23, indicating a rise of over 270%. On account of other income going up, this surge in profits raised concerns regarding their sustainability going forward.
Here’s a detailed look at the company’s financial growth over the past three years:
Financial Growth (₹ Cr.)
| Fiscal Year | Revenue | Net Profit | Other Income | EPS | PAT Margin |
| FY22 | 305.10 | 9.28 | 2.31 | 5.31 | 3.15% |
| FY23 | 368.90 | 9.19 | 3.15 | 5.29 | 2.55% |
| FY24 (Consol.) | 349.66 | 26.69 | 16.91 | 10.38 | 8.02% |
Graph: Vision Infra Equipment Solutions Financial Growth (FY22 – FY24)
The company reported EPS of ₹10.38 for FY24 and a Return on Net Worth (RoNW) of 73.23%, both of which are significant improvements compared to the previous years. However, these numbers also bring up the issue of profit sustainability, particularly in light of the increased other income.
Return on Capital Employed (RoCE)
Despite a strong Return on Equity (RoE) for the firm, the reports have not presented clear data on Return on Capital Employed (RoCE), thereby making some investors apprehensive with regards to long-term investment yields.
Competitive Landscape and Market Position
According to the offer documents, Vision Infra Equipment Solutions does not have any directly listed peers in the Indian market. This positions it uniquely, as there’s less competition in the listed space for similar services. However, the company does face competition from other unlisted players in the construction equipment rental sector, both regionally and nationally.
SWOT Analysis of Vision Infra Equipment Solutions
Strengths:
- Established customer base: Working with major infrastructure companies like Larsen & Toubro, Tata Projects, and Dilip Buildcon.
- Large equipment fleet: As of March 2024, the company owns 395 pieces of road construction machinery, allowing flexibility in operations.
Weaknesses:
- Dependency on infrastructure sector: Revenue and growth prospects are closely tied to government policies and infrastructure spending.
- Static revenue growth: Despite strong profit growth, the company’s revenue has been relatively stagnant over the last few years.
Opportunities:
- Government’s infrastructure push: With large-scale infrastructure projects planned, there is potential for increased demand in the equipment rental space.
- Expanding service portfolio: Offering value-added services like equipment refurbishment could attract more customers.
Threats:
- Economic downturn: Any slowdown in the economy or reduced government infrastructure spending could directly impact revenue.
- Technological advancements: Keeping up with the latest equipment technologies to stay competitive will require significant capital investment.
Conclusion & Final Thoughts
The Vision Infra Equipment Solutions IPO opens up an advantageous chance for individuals searching to invest in India’s rising infrastructure sector. The organisation has successfully established a large clientele base and recorded substantial profits in FY24, although questions linger on whether it can maintain such rapid expansion speed.
Long term investors may find this IPO worthwhile because of the company’s future outlook in regards to renting out construction and infrastructural devices. However, short term investors would need to exercise caution considering that the IPO is completely priced and sudden increases in profits might not even last for a while.
A careful analysis of risks must precede making any decisions about investment and so, if you’re an investor with a long-term point of view together with comprehension of the industry, then putting your money into Vision Infra Equipment Solutions IPO could be one good alternative added into your collection.
FAQs
- When does Vision Infra Equipment Solutions go public on the stock exchange?
September 6, 2024 is when the IPO begins, and September 10, 2024 is when it ends.
- What is the Vision Infra Equipment Solutions IPO pricing range?
The share price range is ₹155 to ₹163.
- How do I apply for the Vision Infra Equipment Solutions IPO?
You can apply through ASBA via your bank or through brokers like Zerodha using UPI.
- What is the minimum investment for the Vision Infra Equipment Solutions IPO?
The minimum investment is ₹130,400 for 800 shares.
- When will Vision Infra Equipment Solutions list on the NSE SME?
The listing date of September 13, 2024 is provisional.
- Is Vision Infra Equipment Solutions a good long-term investment?
While the company has strong potential, particularly in India’s infrastructure sector, the sustainability of its recent profit growth is uncertain. Long-term investors may find it worthwhile, but careful consideration of risks is advised.
- What is the Market Capitalization of Vision Infra Equipment Solutions Post-IPO?
Based on the upper price band of ₹163 per share, the post-IPO market capitalization of Vision Infra Equipment Solutions is expected to be around ₹401.67 crore.
- What Kind of Risks Come with Putting Money Into This IPO?
While Vision Infra Equipment Solutions has shown strong growth, particularly in FY24, some potential risks include:
Sustainability of earnings: The FY24 earnings boost raises concerns over whether the company can maintain this level of performance in future fiscal years.
Sector dependency: The company’s revenue is tied to the infrastructure and construction sector, which is influenced by government policies and economic conditions.
High P/E ratio: The P/E ratio based on FY23 standalone earnings is 43.70, indicating that the issue might be on the higher end of the pricing spectrum.
- Who are the Lead Managers and Market Makers for the IPO?
The IPO is solely lead-managed by Hem Securities Limited, and the market maker is Hem Finlease Pvt. Ltd.. Link Intime India Pvt. Ltd. is the registrar for the issue.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
