Vilas Transcore IPO (SME) Overview

Vilas Transcore Limited manufactures and supplies power distribution and transmission components, primarily to transformer and other power equipment manufacturers in India and abroad. Vilas Transcore IPO is set to raise Rs 95.26 crores. The issue is entirely a fresh issue of 64.8 lakh shares.

IPO opensMay 27, 2024
IPO ClosesMay 29, 2024
IPO Size (Rs.)₹95.26 Cr
IPO Size (shares)6,480,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹139 to ₹147 per share
Minimum Lot1000 Shares
Listing AtBSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerHem Securities Limited
Market makerHem Finlease

About Vilas Transcore:

  • Incorporated in the year 2006,.
  • They are engaged in the manufacturing and supply of components used in the power distribution and transmission sector, primarily to transformer and other power equipments manufacturer in India and abroad.
  • They manufacture and supply a different range of electrical lamination cold rolled grain oriented (C.R.G.O.) lamination core, CRGO slit coils, CRGO stacked (assembled cores), CRGO wound core and CRGO Toroidal core which are mainly used in power transformer, distribution transformer & dry type transformers, high voltage / medium voltage & low voltage current transformers.
  • They operate from our two manufacturing facilities located across the Ahmedabad Mumbai highway at Por near Vadodara
  • As on March 31, 2023, their aggregate installed capacity across these manufacturing facilities was 12000 metric tonne per annum.
  • . As on December 31, 2023, Company has employed approximately 268 employees
  • The promoters of the company are Nilesh Jitubhai Patel and Natasha Jitubhai Patel.

Financials: Vilas Transcore IPO

Particulars/ Rs Lacs9m Dec 20232022-232021-222020-21
Total Income23574.5628260.5123302.9313265.15
Profit/(loss) after tax1679.492022.431791.49523.42
Share Capital1800300300300
Net Worth13725.3312045.8410023.418231.92
Earnings per Share9.3311.249.952.91
Net Asset Value76.2566.9255.6945.73
Total Borrowings499.95489.62346.72757.83
Post issue Share Capital2448   
IPO price147.0   
EPS Fy237.3   
PE Fy2320.1   
EPS Fy24 (annualized)9.1   
PE Fy24  (annualized)16.1   
Market cap in Lacs35,986   
Market cap / Sales1.27   

Anchors: Vilas Transcore IPO

Vilas Transcore IPO: Salient Points

  • Business is directly related to the demand in power sector/ transformers
  • The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr. NoParticularsAmt (Rs. in Lacs)
1.Funding for strategic investment and acquisitions500.00
2.Funding Capital Expenditure towards construction of factory building2009.87
3.Funding capital expenditure towards acquisition and installation of additional plant and machinery4520.71
  • Breakdown of the revenue from sale of different products:
Product detailsFor December 31, 2023FY 2022-23FY 2021-22FY 2020-21
CRGO Electrical Lamination20480.0823345.3518139.4010054.16
Transformer Core1414.291360.761073.66965.09
Insulation Craft Paper143.8176.6840.6855.92
CRGO Electricals Steel in Coils958.182710.433684.521899.26
Scrap and Others578.20767.29364.66138.16
Dry Transformers0.000.000.00152.56
  • Key Performance Indicators:
Key Financial PerformanceAs of and for the year/period ended
December 31, 2023FY 2022-23FY 2021-22FY 2020-21
Revenue from operations23,574.5628,260.5123,302.9313,265.15
EBITDA Margin9.34%10.09%10.93%6.02%
PAT Margin7.12%7.16%7.69%3.95%
RoCE (%)16.10%22.64%24.74%9.22%
  • They are currently expanding manufacturing facilities by setting up another manufacturing unit at Karjan, Vadodara
  • Clients:
  • Voltamp Transformers Limited is their largest customer and represented 41.93%, 42.82%, 53.76% and 53.15% of their revenues from sale of products for the period December 31, 2023, Fiscal year 2023, 2022 and 2021 respectively.
  • Peers: None
  • Between fiscals 2021 and 2023, their revenue from operations has increased from Rs. 13265.15 lakhs to Rs. 28260.51 lakhs and during the same period they have increased the number of customers over Rs. 100 Lakhs annual sales from 3 to 6.
  • During the last 3 fiscal year, they have generated over 60% of revenue from operation from repeated customer.
  • Exports are miniscule. just 1%.
  • Almost Debt free company
  • Capacity expansion from 12000MT to 24000 MT .
  • The New capacity, will come in Dec 24 and will be used to manufacture core abovev100 MVA.
  • Management expects to reach revenue of 1000 cr in next 3 years
  • Vilas Transcore IPO is coming at a PE ratio of 20x (FY23 Earnings) and 16.1x (fy24 annualized earnings)
  • I intend to apply in Vilas Transcore IPO subject to availability of funds. Business is directly related to the demand in power sector/ transformers which is good at present.
  • On flip side there are many related party transactions.
  • GMP as reported on social media has been Rs. 105 (71%)
  • Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Premier Roadlines Limited, Aztec Fluids & Machinery Limited , Amkay Products Limited, Aspire & Innovative Advertising Limited, Blue Pebble Limited, Enfuse Solutions, Sona Machinery Limited, Harshdeep Hortico Limited, Megatherm Induction Limited, New Swan Multitech Limited, Shri Balaji Valve Components Limited, Shanti Spintex, SJ Logistics,Siyaram Recycling Industries Limited, Deepak Chemtex Limited, Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
  • SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
  • This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

Leave a Reply