July 24, 2024
New Delhi, India
IPO Watch
V L Infraprojects’ initial public offering (IPO) has garnered significant investor interest, achieving an oversubscription rate of 119.51 times on the second day. The IPO, which began on Tuesday, July 23, and will close on Thursday, July 25, is priced between ₹39 and ₹42 per share with a face value of ₹10. Investors can bid for a minimum of 3,000 shares and multiples thereof.
Key Highlights:
- Subscription Status: As of Day 2, the retail portion of the IPO has been subscribed 198.58 times, while the Non-Institutional Investors (NII) portion has been subscribed 83.15 times. The Qualified Institutional Buyers (QIB) portion has seen a subscription rate of 8.33 times.
- Day 1 Performance: On the first day, the IPO was oversubscribed by 62.22 times, with the retail portion subscribed 106.07 times.
- Share Allocation: The IPO has allocated up to 8,34,000 equity shares to QIBs, 6,27,000 shares to NIIs, 14,61,000 shares to retail investors, and 2,40,000 shares to market makers.
Company Overview:
V L Infraprojects focuses on government projects, particularly water infrastructure and irrigation in Karnataka, Telangana, and Madhya Pradesh. Their projects include water supply and sewerage infrastructure, pipe procurement and installation, civil works construction, electromechanical equipment installation, and water distribution pipeline operations and maintenance. The company is a Government Approved Contractor in the “AA” Class by the Gujarat government.
Peer Comparison:
According to the red herring prospectus (RHP), V L Infraprojects’ listed peer is EMS Ltd, which has a P/E ratio of 13.920.
IPO Details:
The IPO, valued at ₹18.52 crore, includes a fresh issuance of 4,410,000 equity shares with a face value of ₹10. There is no “offer for sale” component. The proceeds will be used for working capital requirements and general company purposes.
GMP and Estimated Listing Price:
The grey market premium (GMP) for V L Infraprojects IPO is +55, indicating that shares are trading at a premium of ₹55 in the grey market. Considering the upper end of the IPO price band, the estimated listing price is ₹97 per share, which is 130.95% higher than the IPO price of ₹42.
Book-Running Lead Manager and Registrar:
Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the IPO, with Skyline Financial Services Private Ltd serving as the registrar. Spread X Securities is the market maker for the IPO.
Investors have shown strong interest in V L Infraprojects’ IPO, reflecting confidence in the company’s growth potential and its focus on critical infrastructure projects. With the IPO closing soon, all eyes will be on the final subscription numbers and the eventual listing performance.
Disclaimer:
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