Vinyas Innovative Technologies IPO aims to raise ₹54.66 crore thorough a fresh issue of 33.1 lakh shares. The IPO price band is ₹162 to ₹165 per share. Vinyas Innovative Technologies is a provider of design, engineering and electronics manufacturing services catering to global Original Equipment Manufacturers and Original Design Manufacturers in Electronic Industry.
IPO opens
Sep 27, 2023
IPO Closes
Oct 03, 2023
IPO Size (Rs.)
₹54.66 Cr
IPO Size (shares)
3,312,800 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹162 to ₹165
Minimum Lot
800 Shares
Listing At
NSE SME
Anchor quota
~ 28.5%
Market maker
~ 5%
QIB
~19%
NII Quota
14.25%
Retail Quota
~33.25%
Lead Manager
Sarthi Capital Advisors
Registrar
Skyline Financial
Market maker
Gretex Share Broking
About Vinyas Innovative Technologies
Incorporated in 2001, Vinyas Innovative Technologies Limited is a provider of design, engineering and electronics manufacturing services catering to global Original Equipment Manufacturers and Original Design Manufacturers in Electronic Industry.
As an integrated electronic manufacturing services provider, the Company offers a broad range of products and services across multiple industry segments for about 20 years.
With wide industry knowledge, cutting-edge technologies & state-of-the-art infrastructure, Vinyas supports its Global partners from conceptualizing the design, engineering, manufacturing to turnkey requirements for mission-critical applications.
It leverages the design capabilities of with over three decades of domain expertise providing engineering and design solutions globally with a focus on multiple industries. Its Electronic Manufacturing Services are provided as Build to Print (“B2P”) and Build to Specification (“B2S”) services to clients.
B2P solutions involve client providing the design for the product for which it provides agile and flexible manufacturing services.
B2S services involve utilising its design capabilities to design the relevant product based on the specifications provided by the client and manufacturing the product.
(i) printed circuit board (“PCB”) assembly (“PCBA”), and
(ii) box builds which are used in safety critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.
Company is equipped with high-tech, RoHS-compliant PCB assembly lines both SMT & PTH with the capability to handle multi-layer, flexible and rigid PCBs with a wide range of components.
The company caters to EMS needs of .defence sector, medical, consumer electronics, industrial, prototype and telecom sectors.
Promoters: Mr. Narendra Narayanan, Mrs. Meera Narendra and Mr. Sumukh Narendra
Promoter holding will come down from 39.87% to 29.37% after the IPO.
Defence production in India is gradually heading towards private sector participation.
Continuously investing in strengthening its design & manufacturing expertise, Our Company is identified as a game changer in EMS industry for its innovative and in-house path breaking solutions to complex manufacturing processes. Focusing on quality, integrity and hard work, we have not only established a Global network of suppliers and customers but also created a long-lasting partnership to accelerate One-stop-shop solution to all its customer worldwide.
Our Company is the preferred partner for the Global OEMs and ODMs by offering end-to-end solutions ranging from Design for Manufacturability, Supply Chain Management, PCB assembly, advanced test solutions, Product Integration and after-market support.
A significant portion of its revenue from operations are generated from the defence & aerospace contracts. In Fiscal 2021, 2022 and 2023, the revenue from the offset defence contracts was 74.83%, 86.57% and 82.31% of our total revenue from sale of products and services, respectively in such periods.
Its core competencies include PCBA and electronic hardware design and development, software design and development, firmware design and development, mechanical design and development, product prototype design and development, functional testing and validation, environment testing and verification and engineering services.
Vinyas Innovative Technologies long-term bank facilities were assigned “[ICRA]BB” (ICRA double B) and short bank facilities were assigned “[ICRA]A4” (ICRA A four) ratings for Fiscal 2024 by ICRA Limited pursuant to its letter dated January 30, 2023.
It has availed Term Loans from Canara Bank.
Issue proceeds will be used to meet working capital requirements.
The revenue from operations generated by the key industries it caters to:
Industry
FY 2022-23
FY 2021-22
FY 2020-21
Revenue from Operations
% Revenue from Operations
Revenue from Operations
% Revenue from Operations
Revenue from Operations
% Revenue from Operations
Defence & Aerospace
19,303.94
82.31%
17984.69
86.57%
13,596.06
66.31%
Industrial
2,326.24
9.92%
1,352.83
6.51%
668.43
3.26%
Medical
292.63
1.25%
236.45
1.14%
415.14
2.02%
Telecom
96.86
0.41%
281.67
1.36%
4,559.17
22.24%
Others
1,432.73
6.11%
918.12
4.42%
1,264.11
6.17%
Total
23,452.40
100.00%
20,773.76
100.00%
20,502.91
100.00%
Geographical Presence and Revenue break-up:
Particulars
FY 2022-23
FY 2021-22
FY 2020-21
India
21,612.06
20,062.71
18,994.39
Canada
18.95
2.72
637.77
United States of America
695.69
383.00
472.75
Israel
1,039.28
302.13
87.58
Singapore
–
–
59.54
France
–
0.33
–
Germany
0.95
–
3.55
Japan
–
–
38.19
Netherland
–
–
1.99
Norway
–
–
1.06
United Kingdom
0.44
67.81
11.21
Switzerland
–
129.61
135.35
Denmark
–
–
35.64
Australia
–
–
2.90
Italy
–
–
20.99
China
46.97
42.17
–
Poland
38.08
–
–
Vinyas has been serving the defence sector for years. The company has been deriving ~80% of its revenue from the defence sector, which includes reputed Indian offset partners such as DCX Systems Pvt. Ltd. (Indian offset partner of ELTA Systems Ltd., Israel) and Alpha Elsec Defence & Aerospace Systems Pvt. Ltd. (Indian offset partner of the European Union).
Further, the company has also been directly serving customers from defence and other industries such as Bharat Electronics Ltd., Larsen & Toubro Limited, Lotus Aviation Technology Pvt. Ltd., Schneider Electric India Pvt Ltd, and L&T Technology Services Ltd
Peers:
Particulars
Vinyas Innovative Technologies Limited
Peers
Cyient DLM Ltd.
Centum Electronics Ltd.
Revenue from Operations
23,452.40
83,203.30
50,055.40
Total Revenue
23,885.41
83,834.40
50,523.00
EBITDA
2,490.41
9,409.10
5,835.80
EBIT
2,269.26
7,467.60
4,212.40
EBT
1,008.94
4,316.00
2,637.80
PAT
734.34
3,172.70
1,939.90
EBITDA Margin
10.43%
11.22%
11.55%
EBIT Margin
9.50%
8.91%
8.34%
EBT Margin
4.22%
5.15%
5.22%
PAT Margin
3.07%
3.78%
3.84%
Share Capital
374.20
5,286.60
1,288.50
Reserves & Surplus
4,178.79
14,500.60
26,975.80
Net Worth
4,552.99
19,787.20
28,264.30
Short Term Borrowing
6,676.95
21,491.10
10,592.20
Long Term Borrowing
1,894.06
9,956.30
–
Total Borrowing
8,571.01
31,447.40
10,592.20
Debt / Equity
1.88
1.59
0.37
RoE
16.13%
16.03%
6.86%
RoCE
35.20%
25.11%
14.90%
Net Debt / EBITDA
3.26
1.56
1.46
Current Ratio
1.17
1.13
1.22
NAV
121.67
37.43
219.36
Cash & Equivalents
445.78
16,760.10
2,068.40
Current Assets
17,564.23
83,968.80
48,354.50
Current Liabilities
15,015.87
74,486.80
39,690.80
Vinyas Innovative Technologies has in past experienced delays in filing of statutory dues particularly during COVID period. This is also reflected in it credit rating. Vinyas Innovative Technologies long-term bank facilities were assigned “[ICRA]BB” (ICRA double B) and short bank facilities were assigned “[ICRA]A4” (ICRA A four) ratings for Fiscal 2024 by ICRA Limited pursuant to its letter dated January 30, 2023.
Big jump in profits in Fy23 when revenue has gone up only marginally from FY22 is not so assuring unless there are specific reasons for the same.
Vinyas Innovative Technologies IPO is coming at a PE ratio of 28.3x(fy23 earnings) .
I have applied in Vinyas Innovative Technologies IPO partly and intend tpo do more subject to fundconstraints and res[ponse on Day 3. There are strong tailwinds for EMS and Defense sector but there is other some reason too.
I have taken an early decision to apply in Vinyas Innovative Technologies IPO for a reason other than Listing gains as well. The company trains and then employs several persons with differentiated abilities at work place. I like this gesture of management and hold them in good esteem due to this noble act.
GMP as reported on social media has been around Rs. 15-20.
Sarthi Capital Advisors Private Limited is the lead manager with quite a decent record of good listing and performance subsequently with the exception of Spectrum Talent Management IPO. Past issues handled by them include Spectrum Talent Management, Homesfy Realty Limited, Frog Cellsat Limited, P. E. Analytics Limited, Marvel Decor Limited, Servotech Power Systems, Aarvi Encon Ltd, Vivo Collaboration Solutions Ltd, Brand Concepts Limited etc.
SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
There are reports that SEBI is of view that SME stocks prone to more market manipulation and SEBI may be looking to curb speculation in SME stocks.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in 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.
