Vishnusurya Projects and Infra IPO is aiming to raise ₹ 4,998.00 Lakhs with the equity shares proposed to be listed on the Emerge platform of National Stock Exchange of India. The IPO constitutes a fresh issue of 73,50,000 equity shares of face value of ₹ 10 each.. Vishnusurya Projects and Infra Limited is one of the leading players in the fields of construction, infrastructure development, mining, and aggregates mainly focused on the state of Taminadu.
IPO opens
Sep 29, 2023
IPO Closes
Oct 05, 2023
IPO Size (Rs.)
₹49.98 Cr
IPO Size (shares)
7,350,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹68 per share
Minimum Lot
2000 Shares
Listing At
NSE SME
NII Quota
~50%
Retail Quota
~50%
Lead Manager
Khandwala Securities Limited
Registrar
Cameo Corporate Services
Market maker
Nikunj Stock Brokers
About Vishnusurya Projects and Infra IPO
Vishnusurya Projects and Infra Limited is engaged in mining of rough stones and manufacturing of aggregates & Manufacture-sand by using Crushing Plants and Sand washing plants.
In addition to mining activities, it is engaged in EPC Projects (construction and infrastructure) delivered across all key sectors such as water, transportation, rail, resource, and institutional development.
Company has executed and delivered multiple real estate projects in the past, such as construction of villas, multi storied apartments, specific contracts like compound wall, renovation works, site formation, etc.
Company is also engaged in buying, selling and providing integrated solutions for Drones as a Service for surveillance, mapping and surveying purposes.
Its business operations are broadly divided into the following categories:
It has been accredited as a Class I contractor with various departments and agencies viz. (1) Greater Chennai Corporation (“GCC”), (2) Government of Tamil Nadu Water Resources Department, (3) Tamil Nadu Water Supply and Drainage Board, (4) Highways Departments pursuant to which we are eligible to participate and undertake projects awarded by various other departments and agencies
Bhavani Jayaprakash is the Promoter of the Company.
Financials: Vishnusurya Projects and Infra IPO
Particulars / Rs. Lacs
2023
2022
2021
Total Revenue
13,326.06
9,603.62
6,339.33
Profit before tax
2,231.44
2,958.81
321.03
Profit/(loss) after tax
1,658.10
785.27
403.39
NPM
12.4%
8.2%
6.4%
Equity Share Capital
908.4
495.4
495.4
Reserve and Surplus
5,043.99
3,660.48
3,078.32
Net worth
5,952.39
4,155.88
3,573.72
Basic & Diluted EPS (₹)
25.3
24.95
12.62
Return on Net worth (%)
27.86
18.98
11.2
Net Asset Value
65.53
99.41
85.19
Total Borrowings
3,625.24
3,489.49
1,472.32
Post issue Share Capital
2,461
FV
10.0
IPO price
68.0
EPS Fy23
6.7
PE Fy23
10.1
Market cap in Lacs
16,734.8
Market Cap/sales
1.3
Vishnusurya Projects and Infra IPO: Salient Points
The overall capital expenditure on infrastructure is estimated to grow at a CAGR of 11.4% over FY 2021-26 in India, driven by spending on water supply, transport and urban infrastructure.
Company proposes to utilize the Net Proceeds towards the following objects:
No.
Objects
Estimated amount
1.
Funding of working capital requirements of our Company
3,000.00
2.
Repayment/ Prepayment, in part or full, of certain outstanding borrowings availed byCompany
915.27
3.
General Corporate Purposes
383.78
Total
4,299.05
Company has executed 17 projects in the recent years, out of which 10 are civil construction projects, 1 is of road construction and 6 are infrastructure related projects with an aggregate value of Rs. 13,619.06 Lakhs.
The following table sets forth certain information on the Revenue from Operations contributed by business segments, for the periods indicated:
Particulars
March 31, 2023
March 31, 2022
March 31, 2021
Sale of Products – Construction Aggregates
7,484.75
4,244.16
3,402.67
Sale of Services – Construction and EPC
3,599.54
1,534.17
2,821.31
Sale of Flats
–
380.33
97.85
Other Operating Revenues
2,152.82
1,487.28
–
TOTAL
13,237.11
7,645.94
6,321.84
Its construction and infrastructure activities are primarily focused in and around the Tamil Nadu region.
It has availed loans from State Bank of India, HDFC Limited, India bulls Housing Finance Limited.
Financial Key Performance Indicators:
Key Performance Indicators
March 31, 2023#
March 31, 2022#
March 31, 2021#
Revenue from Operations
13,237.11
7,645.94
6,321.84
Total Revenue
13326.06
9603.62
6339.33
Gross Profit
6,988.47
3,490.94
2,068.36
Gross Margin
52.79%
45.66%
32.72%
EBITDA
3240.34
2179.64
1010.24
EBITDA Margin
24.32%
22.70%
15.94%
Profit After Tax
1658.10
785.27
403.39
PAT Margin
12.44%
8.18%
6.36%
ROE
27.86%
18.98%
11.20%
ROCE
31.22%
18.98%
11.20%
Net Debt/ EBITDA
1.10
1.51
1.27
Peers:
Indicators/ Rs Lacs
Vishnusurya Proj
Rachana Infra
Sonu Infratech
A B Infrabuild
Revenue from Operations
13237.11
6351.67
6405.16
12308.86
EBITDA
3294.87
773.68
1116.5
1338.86
EBITDA Margin
24.32%
12.18%
17.43%
10.88%
Profit After Tax for the Year
1658.1
226.2
273.42
753.78
PAT Margin
12.44%
3.56%
4.27%
6.12%
ROE
27.86%
2.51%
12.19%
21.34%
ROCE
31.22%
5.56%
10.03%
19.38%
Net Debt/ EBITDA
1.1
2.05
3.5
2.17
PE
10.1
83.4
14.3
21.3
Vishnusurya Projects and Infra IPO is coming at a PE ratio of 10x(fy23 earnings) .
I intend to apply in Vishnusurya Projects and Infra IPO subject to availability of funds.
GMP as reported on social media has been around Rs. 25
Khandwala Securities Limited is the Lead Manager and this is their first SME IPO.
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.
