IPO News

Vishnu Prakash R Punglia has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO comprises a fresh issue of 3.12 crore equity shares with no offer-for-sale (OFS) component.

The IPO size is expected to be Rs 300 crore. Proceeds from the fresh issuance to the tune of Rs 58.64 crore will be utilised for purchasing capital equipment, Rs 140 crore will be used for funding the working capital requirements of the company and the balance for general corporate purposes. Choice Capital Advisors and Pantomath Capital Advisors are the book-running lead managers. The equity shares are proposed to be listed on BSE and NSE.

The Jodhpur-based company has experience in the design and construction of major infrastructure projects for the central and state governments, with ongoing projects in nine states.

Go Digit General Insurance has refilled draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) after making certain changes to its employee stock appreciation rights scheme. This came after SEBI returned Go Digit's draft IPO papers on January 30 and asked the company to refile the documents with certain updates. The company had first filed the DRHP with Sebi in August 2022 to raise funds through an initial share sale.

The size of the company's IPO remain unchanged in the revised documents. The IPO comprises fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders. Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes. ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the issue. The equity shares of the company will be listed on BSE and NSE.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

Zaggle Prepaid Ocean Services has received the Securities and Exchange Board of Indiaís (SEBI) approval to float an initial public offering (IPO).

Proceeds from the fresh issue would be utilised towards customer acquisition and retention, development of technology and products, payment of debt and for general corporate purposes. ICICI Securities, Equirus Capital, IIFL Securities and JM Financial have been appointed as merchant bankers to manage the IPO. The equity shares of the company will be listed on the BSE and NSE.

Founded in 2011, Zaggle Prepaid Ocean Services operates in the business-to-business-to-customer segment. It has created a market niche in the country by offering a combined solution for spend management through prepaid cards and employee management (through SaaS).

Cyient DLM has received the Securities and Exchange Board of Indiaís (SEBI) approval to float an initial public offering (IPO).

The funds raised through the IPO would be utilised for funding incremental capital requirements, capital expenditure, debt payment, achieving inorganic growth through acquisitions as well as for general corporate purposes. Axis Capital and JM Financial are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Cyient DLM, a subsidiary of Cyient, is the leading integrated EMS and solutions provider with a focus on the entire life cycle of a product, including design, build and maintenance. It has three state manufacturing facilities in Hyderabad, Bengaluru and Mysore.

Aeroflex Industries has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 350 crore through an initial public offering (IPO).

Proceeds from the fresh issue will be utilised to the extent of Rs 35 crore for the payment of debt, Rs 84 crore for funding its working capital requirements, and a certain amount will be used for general corporate purposes and acquisitions for inorganic growth. Pantomath Capital Advisors is the sole book-running lead manager to the issue. The companyís equity shares are proposed to be listed on the BSE and NSE.

Aeroflex is a manufacturer and supplier of metallic flexible flow solution products, catering to global markets. It exports its products to more than 80 countries including Europe, USA and others and generates 80 per cent of its revenue from exports.

SPC Lifesciences has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The Initial Public Offering (IPO) consists of fresh issuance of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.39 lakh equity shares by promoter -- Snehal Rajivbhai Patel.

The proceeds from the fresh issue will be used to pay debt, to support working capital needs and to fund capital expenditure requirements for setting up Phase-2 at its Dahej facility in order to expand product offerings of pharmaceutical intermediates, and for general corporate purpose. Ambit and HDFC Bank are the book running lead managers to the issue. The shares of the company will be listed on the BSE and NSE.

SPC Lifesciences is a leading manufacturers of advanced intermediates for certain key active pharmaceutical ingredients.

Netweb Technologies India has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 700 crore through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth Rs 257 crore and an offer for sales of 85 lakh equity shares by promoters.

Proceeds of the fresh issue to the tune of Rs 32.77 crore will be used to fund capital expenditure, Rs 128.02 crore to support long-term working capital, Rs 22.5 crore for debt payment, besides, general corporate purposes. Equirus Capital and IIFL Securities are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Netweb Technologies is one of the country's leading high-end computing solutions (HCS) providers. It is one of the few original equipment manufacturers (OEMs) in the country and is a recipient of production-linked incentives schemes of the Government of India.

JG Chemicals has received the Securities and Exchange Board of Indiaís (SEBI's) approval to float an initial public offering (IPO). The IPO comprises fresh issue of equity shares worth up to Rs 202.50 crore and an offer-for-sale (OFS) of 57 lakh equity shares by its existing promoter group shareholders. Equity shares of the company will be listed on BSE and NSE.

The company, which filed the draft red herring prospectus with the SEBI in January 2023, got the regulatorís approval on March 20, 2023. Proceeds from the fresh issue will be used for investment in its material subsidiary BDJ Oxides. It will use Rs 45 crore in repayment of borrowings availed by its arm, Rs 5.31 crore will be used for setting up a Research & Development centre, Rs 65 crore will be used to fund the long-term working capital requirements of its material arm. It will also use Rs 35 crore for funding the long-term working capital requirements of the company and other general corporate purposes. Centrum Capital, Emkay Global Financial Services and Keynote Financial Services are the book-running lead managers to the issue.

The Kolkata-based firm is India's largest zinc oxide manufacturer in terms of production and revenue.

IndiaFirst Life Insurance Company has received the Securities and Exchange Board of Indiaís (SEBI) approval to float an initial public offering (IPO). The IPO comprises a fresh issue of up to Rs 500 crore along with an offer for sale (OFS) of up to 14,12,99,422 equity shares by the promoters and existing shareholders of the company.

The company, which filed the draft red herring prospectus with the SEBI in October 2022, got the regulatorís approval on March 15, 2023. The net proceeds from the fresh issuance worth Rs 500 crore will be used towards augmentation of its capital base to support solvency levels.

ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers to the issue. The equity shares will be listed on the BSE and NSE.

IndiaFirst Life Insurance Company (IndiaFirst Life) is one of the fastest growing private life insurers in India. IndiaFirst Life is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India's biggest public sector banks.

Tata Technologies, a subsidiary of Tata Motors, has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The equity shares of the company are proposed to be listed on both -- NSE and BSE.

The IPO is purely an offer for sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital.  Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company. JM Financial, Citigroup Global Markets India and BofA Securities India are the book running lead managers to the issue.

Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs).

IPO Name Price Band Open Date Close Date Minimum Qty Apply
CHETANA 80 - 85 24-07-2024 26-07-2024 1600

IPO type

EQUITY

Face value

10

Lot size (qty)

1600

Category

Retail

Retail discount

0.00

Min - Max inv amt

80 - 85

Issue size

3864000

MIEL 53 - 56 24-07-2024 26-07-2024 2000

IPO type

EQUITY

Face value

10

Lot size (qty)

2000

Category

Retail

Retail discount

0.00

Min - Max inv amt

53 - 56

Issue size

3610000

VLINFRA 39 - 42 23-07-2024 25-07-2024 3000

IPO type

EQUITY

Face value

10

Lot size (qty)

3000

Category

Retail

Retail discount

0.00

Min - Max inv amt

39 - 42

Issue size

3162000

SMCG01 1000 19-07-2024 01-08-2024 10

IPO type

DEBT

Face value

1000

Lot size (qty)

10

Category

Retail

Retail discount

0.00

Min - Max inv amt

1000

Issue size

750000

EQ1NSETEST 1 - 2 10-06-2024 31-12-2036 1

IPO type

EQUITY

Face value

1

Lot size (qty)

1

Category

Retail

Retail discount

0.00

Min - Max inv amt

1 - 2

Issue size

10000000000

EQ2NSETEST 1 - 2 10-06-2024 31-12-2036 1

IPO type

EQUITY

Face value

1

Lot size (qty)

1

Category

Retail

Retail discount

0.00

Min - Max inv amt

1 - 2

Issue size

10000000000

SM1NSETEST 1 10-06-2024 31-12-2036 1

IPO type

EQUITY

Face value

1

Lot size (qty)

1

Category

Retail

Retail discount

0.00

Min - Max inv amt

1

Issue size

10000000000

IPO Details

COMPANY NAME
Chetana Education Ltd.
ADDRESS
401, E- Wing, B & C Block , Trade Link, Kamala Mill , Delisle Road
CITY / STATE / PINCODE
Mumbai Maharashtra 400013
WEBSITE
www.chetanaeducation.com
PHONE
022-6245 6000
EMAIL
cs@chetanaeducation.com
LEADMANAGER
Hem Securities Ltd.
PROMOTERS
Anil Jayantilal Rambhia, Rakesh Jayantilal Rambhia, Shilpa Anil Rambhia
PRE SHARE CAP
15000000
OFFER TO PUBLIC
5400000
PRE PROMOTER HOLDER
100
POST PROMOTER HOLD
73.53
REGISTRAR
Link Intime India Pvt Ltd.
ADDRESS
401, E- Wing, B & C Block , Trade Link, Kamala Mill , Delisle Road , 400083
Registrar Phone
+91 810 811 8484
Registrar EMail
helpdesk@linkintime.co.in
Registrar Fax
91-022-49186060
Registrar WebSite
www.linkintime.co.in
Objective
1. Repayment of certain borrowing availed by our Company, in part or full.2. To meet Working Capital requirements.3. General Corporate Purpose.

Description
We are a content-based company, specializing in educational book publishing for the CBSE/State Board curriculumcatering to the K-12 segment. Additionally, we provide access to educational software for learning videos (for teachersand Students) accessible through QR (Quick Response) codes, backed by a comprehensive sales and distributionnetwork. We currently focus on serving the Maharashtra State Board and Central Board of Secondary Education(CBSE), covering the spectrum of education books from early pre-primary learning to K-12 course. During the Fiscalyear 2023, we sold over 6 million books, covering students across different standards ranging from pre-primary,primary, secondary, and higher secondary levels.

COMPANY NAME
Manglam Infra & Engineering Ltd.
ADDRESS
H. No.46, Nikhil Nestles Jatkhedi , Hoshangabad Road , University (Bhopal), Huzur
CITY / STATE / PINCODE
Bhopal Madhya Pradesh 462026
WEBSITE
www.manglaminfra.com
PHONE
0755-2569877
EMAIL
info@manglaminfra.com
LEADMANAGER
Unistone Capital Pvt Ltd.
PROMOTERS
Ajay Verma, Nisha Singh, Seema Verma, Yogendra Kumar Singh
PRE SHARE CAP
12664600
OFFER TO PUBLIC
4932000
PRE PROMOTER HOLDER
100
POST PROMOTER HOLD
REGISTRAR
Bigshare Services Pvt Ltd
ADDRESS
H. No.46, Nikhil Nestles Jatkhedi , Hoshangabad Road , University (Bhopal), Huzur , 400093
Registrar Phone
91-022-62638200
Registrar EMail
Investor@bigshareonline.com
Registrar Fax
91-022-62638299
Registrar WebSite
Objective
1. To meet the working capital requirements, and2. General corporate purposes;

Description
We are an infrastructure consultancy company, and our core business is providing project managementconsultancy services which includes detailed project reports (DPRs), Supervision and quality control(SQC), and operation & maintenance (O & M) for Highways/Roads, Bridges, Tunnels, Buildings/Urbandevelopment. We undertake various project independently as well as through Joint ventures and MoUswith other players in this industry. As on date of the Draft Red Herring Prospectus, we cater to variousstate governments of Madhya Pradesh, Jammu & Kashmir, Bihar, Arunachal Pradesh, Jharkhand,Himachal Pradesh, Uttar Pradesh, Manipur, Nagaland, Maharashtra, Assam, Rajasthan, Uttarakhandand Haryana and central government and have completed total 127 projects out of which 115 projectsare undertaken on an independent basis and 12 projects are undertaken through Joint ventures andMoUs. Currently, we have 46 on-going projects out of which 25 projects are being undertaken on anindependent basis and 21 projects are being undertaken through Joint ventures and MoUs. We are ateam of more than 300 qualified professionals, with experience ranging between 7 to 15+ years. Inalignment with our business requirements, we also occasionally engage third-party service providersfor specific contracts on need basis.

COMPANY NAME
VL Infraprojects Ltd.
ADDRESS
716, Shivalik Satyamev , Near Vakil Saheb Bridge , Bopal
CITY / STATE / PINCODE
Ahmedabad Gujarat 380058
WEBSITE
www.vlil.in
PHONE
9998850177
EMAIL
cs@vlil.in
LEADMANAGER
Beeline Capital Advisors Pvt Ltd.
PROMOTERS
Mydhili Rajagopal Reddy, Nageswara Rao Repuri, Rajagopal Reddy Annam Reddy
PRE SHARE CAP
10275000
OFFER TO PUBLIC
4410000
PRE PROMOTER HOLDER
90.91
POST PROMOTER HOLD
65.39
REGISTRAR
Skyline Financial Services Pvt Ltd
ADDRESS
716, Shivalik Satyamev , Near Vakil Saheb Bridge , Bopal , 110020
Registrar Phone
91-011-26812682/84
Registrar EMail
admin@skylinerta.com
Registrar Fax
91-11-26292681
Registrar WebSite
Objective
1. To Meet Working Capital Requirements.2. General Corporate Purposes.

Description
The company is a Government Approved Contractor in ‚ÄúAA‚ÄĚ Class with the Government of Gujarat, Civil/ElectricalContractor License from Karnataka State Public Works department, Special class registration in Government of Telanganaand contractor registration in Government of Madhya Pradesh. The company provides designing, construction, andcommissioning of various types of government projects especially in water infrastructure and irrigation segment.The Company is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurementof pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering workslike construction of civil work, pumping stations and installation of electro-mechanical equipment‚Äôs (pumping machinery)for distribution of water supply from the river to household. We also provide operations & maintenance services for waterdistribution pipelines.
IPO Analysis

Chetana Education coming with IPO to raise Rs 45.90 crore

The issue will open on July 24, 2024 and will close on July 26, 2024

Details

Chetana Education

  • Chetana Education is coming out with initial public offering (IPO) of 54,00,000 shares in a price band Rs 80-85 per equity share.
  • The issue will open on July 24, 2024 and will close on July 26, 2024.
  • The shares will be listed on NSE Emerge Platform.
  • The face value of the share is Rs 10 and is priced 8.00 times of its face value on the lower side and 8.50 times on the higher side.
  • Book running lead manager to the issue is Hem Securities.
  • Compliance Officer for the issue is Jignesha Jitendra Fofandi.

Profile of the company

The company is a content-based company, specializing in educational book publishing for the CBSE/State Board curriculum catering to the K-12 segment. Additionally, it provides access to educational software for learning videos (for teachers and Students) accessible through QR (Quick Response) codes, backed by a comprehensive sales and distribution network. It currently focuses on serving the Maharashtra State Board and Central Board of Secondary Education (CBSE), covering the spectrum of education books from early pre-primary learning to K12 course. 

Some of the names in its lineup include Master Key, Self-Study, Firefly, Bright Buddies, My Skill Book, Grade Me, QR series etc. Apart from publishing books, it is also involved in developing a range of digital content for enhanced understanding of topics for students and aim to make the content more viable for a better learning experience. It has over the years produced many videos that can be accessed via QR codes, which could help transform traditional content into digital formats, facilitating the students for further self-studies post school and tutorials without any additional cost. 

It has an in-house sales team working from its branches and marketing offices across India. It considers its schools, teachers and students to be its ‚Äėtouch points‚Äô and its sales team is responsible for developing the relationships with its customers in its pre-primary, primary, secondary and higher secondary learning businesses. Along with marketing its content directly to educators and schools to place its products on prescribed and recommended reading lists, it also markets its products directly to distributors and dealers.

Proceed is being used for:

  • Repayment of certain borrowing availed by the company, in part or full 
  • Meeting working capital requirements 
  • General corporate purpose

Industry Overview

With around 26.31% of India’s population in the age group of 0-14 years, India’s education sector provides numerous opportunities for growth. According to the Union Budget 2023-24: The government allocated Rs. 68,804.85 crore ($8.3 billion) for the Department of School Education and Literacy, compared with Rs 59,819.37 crore ($8 billion) in the Union Budget 2022-23, a 13.06% YoY increase. Government of India’s target of Gross Enrolment Ratio (GER) of 50% by 2035 for students in the 18-23 age group is expected to drive investments in the education space. According to KPMG, India has also become the second largest market for E-learning after the US.

India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector. India has over 250 million school-going students, more than any other country. Huge demand-supply gap with an additional requirement of 200,000 schools, 35,000 colleges, 700 universities and 40 million seats in the vocational training centres. Applications for the ‚ÄėStudy In India' programme increased by 146% in 2021.

The education market in India is expected to amount to $225 billion by FY25. From April 2000-March 2023, Foreign Direct Investment (FDI) equity inflow in the education sector stood at $9.2 billion.  The edtech space has attracted private equity investments of over $4 billion over the last five years. Indian edtech startups have received total investment of $3.94 billion across 155 deals in FY22. In June 2022, edtech platform Physics Wallah became India‚Äôs 101st unicorn by raising $100 million in a Series-A funding round from West Bridge Capital and GSV Ventures, valuing the company at $1.1 billion.

Pros and strengths

Focused digital and technology platform: Its investment in technology within the pre-primary and secondary/higher secondary sections is offering students a mix of interactive learning experiences and additional comprehensive practice. In the pre-primary section, its dedication to technological advancement is highlighted through the introduction of its apps, specially curated to facilitate play-based learning, digital videos, and supplementary resources. For the secondary and higher secondary sections, it has been using QR codes with self-learning videos, providing students with a dual model of learning. These QR codes provide students with instant access to comprehensive video based explanations of key concepts and answers by experienced Teachers, reinforcing classroom teachings.

Healthy position in the K-12 market: It currently generate 100% of its revenue from the contents and titles sold in the K-12 education sector in terms of both numbers and revenue from operations, with presence in the CBSE affiliated schools and State Board affiliated schools across India with Maharashtra State Board books contributing to the highest amongst the State Boards. In addition, it has evolved its print content business to include digital learning solutions through the introduction of the QR code. From Fiscal 2022 to Fiscal 2023, its K-12 operating revenue grew at a CAGR of 75.35%.

Widespread sales and distribution network: It has a widespread sales and distribution network which spans across 18 states and union territories, consisting of over 500 distributors and dealers. It has an in-house sales team of over 200 personnel working from its branches and marketing offices. Its salesforce reaches out to the different touch points including educators, students, schools colleges along with distributors and dealers. Its sales and distribution network have provided it with a deep market reach through initiatives such as regular school visits, retailer displays, participation in key tradeshows, sponsorship of educational events, and teacher workshops.

Risks and concerns

Generate major portion of revenue from Maharashtra Board and CBSE: It generates majority of its revenue from selling its books for the Maharashtra State Boards and CBSE. For the financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 it derived major portion of its revenue from the Maharashtra State Board and CBSE. For the financial year ended March 31, 2024, March 31, 2023 and March 31, 2022, it derived major portion of its revenue from the state of Maharashtra i.e. 61.69%, 66.12% and 64.83% respectively. Due to the geographical concentration of its revenue and operations at Maharashtra, its operations are prone to local, regional and environmental factors, thus any materially adverse social, political or economic development, civil disruptions, or changes in the policies of the state government or state or local governments and require a modification of its business strategy or require it to incur significant capital expenditure or suspend its operations.

Fluctuations in the prices of raw materials: The company is dependent on third party suppliers for procuring the raw materials and other designing and decorative bought out material which it uses to print and publish the books which it sells to its customers. It is exposed to fluctuations in the prices of these materials as well as its unavailability, particularly as it typically do not enter into any long-term supply agreements with all its suppliers and its major requirement is met in the spot market. The cost and availability of such materials are subject to a variety of factors and any increase in their cost and their availability at a reasonable price or at all, could adversely affect its margins, sales and results of operations.

High working capital requirements: Its business requires significant amount of working capital and major portion of its working capital is utilized towards operating expenses, inventories, trade receivables and cash and cash equivalents. Its working capital facility and overdraft facility stood at Rs 4030 lakh from The Saraswat Co-op Bank and ICICI Bank. Its growing scale and expansion, if any, may result in increase in the quantum of current assets. Its inability to maintain sufficient cash flow, credit facility and other sources of funding, in a timely manner, or at all, to meet the requirement of working capital or pay out debts, could adversely affect its financial condition and result of its operations.

Outlook

Chetana Education is a content-based company, specializing in educational book publishing for the CBSE/State Board curriculum catering to the K-12 segment. Additionally, it provides access to educational software for learning videos (for teachers and Students) accessible through QR (Quick Response) codes, backed by a comprehensive sales and distribution network. On the concern side, the Indian market for education content is highly competitive and fragmented. The Indian education market consists of multiple boards, including the state education boards, the Central Board of Secondary Education (CBSE), and the Indian Certificate of Secondary Education (ICSE). Further, there are only a few large, established industry participants similar to it as the market is characterized between smaller regional, state and local content providers and also includes subject specific content providers for particular subjects or course material.

The company is coming out with a maiden IPO of 54,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 80-85 per equity share. The aggregate size of the offer is around Rs 43.20 crore to Rs 45.90 crore based on lower and upper price band respectively. On performance front, its total income has increased significantly by 23.89% to Rs. 9367.06 lakh in Fiscal 2024 from Rs 7560.77 lakh in Fiscal 2023. The company’s profit after tax (PAT) stood at Rs 1203.47 lakh in Fiscal 2024 as compared to Rs 685.47 lakh in the Fiscal 2023. Going forward, it intends to further consolidate its current position and increase its market share in the Maharashtra State Board and CBSE. Additionally, it aims to focus on entering and expanding its presence in various other state boards like Tamil Nadu and Gujarat which will be supported by its vast range of products. By expanding the customer base in the Maharashtra State Board and CBSE and entering into new state boards, it can expand its market share along with growing its revenue from operations and improving operational efficiency.

Manglam Infra & Engineering coming with IPO to raise Rs 27.62 crore

The issue will open on July 24, 2024 and will close on July 26, 2024

Details

Manglam Infra & Engineering

  • Manglam Infra & Engineering is coming out with initial public offering (IPO) of 49,32,000 shares in a price band Rs 53-56 per equity share.
  • The issue will open on July 24, 2024 and will close on July 26, 2024.
  • The shares will be listed on NSE Emerge Platform.
  • The face value of the share is Rs 10 and is priced 5.30 times of its face value on the lower side and 5.60 times on the higher side.
  • Book running lead manager to the issue is Unistone Capital.
  • Compliance Officer for the issue is Neha Jain.

Profile of the company

The company is an infrastructure consultancy company, and its core business is providing project management consultancy services which includes detailed project reports (DPRs), Supervision and quality control (SQC), and operation & maintenance (O&M) for Highways/Roads, Bridges, Tunnels, Buildings/Urban development. It undertakes various project independently as well as through Joint ventures and MoUs (Memorandum of understanding) with other players in this industry. It caters to various state governments of Madhya Pradesh, Jammu & Kashmir, Bihar, Arunachal Pradesh, Jharkhand, Himachal Pradesh, Uttar Pradesh, Manipur, Nagaland, Maharashtra, Assam, Rajasthan, Uttarakhand and Haryana and central government.

Currently, it has 45 on-going projects out of which 22 projects are being undertaken on an independent basis and 23 projects are being undertaken through Joint ventures and MoUs. It is a team of more than 300 qualified professionals, with experience ranging between 7 to 15+ years. In alignment with its business requirements, it also occasionally engages third-party service providers for specific contracts on need basis.

Its promoters, Ajay Verma and Yogendra Kumar Singh collectively bring more than 33 years of technical experience to its organization in the field of Infrastructure Consultancy Engineering Services. Their role as the guiding force has been paramount in the successful execution of its business strategies over the years. Their industry knowledge, understanding, track record, and relationships within the sector have played a pivotal role in the growth of its business. Moreover, these attributes provide it with a competitive edge, enabling the expansion of its geographical footprint. Simultaneously, their strategic insights have empowered it to explore new avenues for future growth.

Proceed is being used for:

  • Meeting the working capital requirements
  • General corporate purposes

Industry Overview

India‚Äôs high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. Prime Minister Mr. Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors. The government‚Äôs focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. 

In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs 11.11 lakh crore ($133.86 billion), which would be 3.4 % of GDP. As per the Interim Budget 2023-24, a capital outlay of Rs 2.55 lakh crore ($30.72 billion) has been made for the Railways, an increase of 5.8% over the previous year. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of $1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.

With a 37% increase in the current fiscal year, capital expenditures (capex) are on the rise, which bolsters ongoing infrastructure development and fits with 2027 goals for India's economic growth to become a $5 trillion economy. In order to anticipate private sector investment and to address employment and consumption in rural India, the budget places a strong emphasis on the development of roads, shipping, and railways. India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast-growing population. This investment will only be rational as well as sustainable, if it additionally focuses on long-term maintenance and strength of its buildings, bridges, ports, and airports.

Pros and strengths

Presence in diversified projects: It has a presence across a spectrum of diversified projects, such as road/highway projects, bridges projects, tunnel projects, building and urban development projects. It provides consultancy services for a wide array of infrastructure projects, including detailed project reports (DPRs), Supervision and quality control (SQC), and operation & maintenance (O&M). In the realm of road and highway projects, it has consistently offered its expertise to ensure the successful planning, design, and execution of transportation networks. 

Qualified employee base and proven management team: It has proficient workforce, consisting of over 272 employees as of May 31, 2024, among whom 159 are Engineers. A substantial number of its team members, especially those in senior management roles, have demonstrated long standing commitment to its organization. It recognizes human capital as a paramount asset, with their technical expertise and skill sets providing it a distinct competitive edge in delivering various Infrastructure Consultancy services.

Consistent financial performance: It is an infrastructure consultancy company, and its core business is providing project management consultancy services which include design, engineering, procurement, construction and integrated project management services and it undertakes various project independently as well as through Joint ventures. It has demonstrated consistent growth in terms of revenues and profitability. Its total revenue has increased from Rs 2,581.16 lakh for Fiscal 2022 to Rs 4,024.36 lakh for Fiscal 2024, at a CAGR of 22.98%. Its net profit as restated has increased from Rs 332.96 lakh for Fiscal 2022 to Rs 676.41 lakh for Fiscal 2024, at a CAGR of 42.53% in last 3 years.

Risks and concerns

Dependent on Government Bodies: It is primarily engaged in providing infrastructure consultancy services to various government bodies. Currently, all its revenue is derived from government clients, thereby, implying its heavy reliance on infrastructure consultancy services business as a major revenue stream from government bodies. Most of its transactions with its customers are typically on a work order basis. There can also be no assurance that it will be awarded with the projects in future, since in its industry projects are awarded by customer (which are Government entities) on tender-basis. Consequently, any failure to consistently secure government awarded projects may have adverse implications on its financial performance.

Maximum revenue generated from Madhya Pradesh: A significant portion of its revenue from operations are derived from its services offered to clients concentrated in Madhya Pradesh. For the Fiscals 2024, 2023 and 2022, its revenue generated from operations in Madhya Pradesh was Rs 1,685.04 Lakh, Rs 1,344.77 Lakh, Rs 762.83 Lakh, respectively, which represented 41.87%, 39.07% and 29.55% of its revenue from operations for such periods. Any decrease in revenue from operations, including due to increased competition or supply, or reduction in demand, or its inability to extend or renew subsisting contracts at commercially viable terms, may have an adverse effect on its business, cash flows, results of operation and financial condition.

High working capital requirements: Its business requires funds towards working capital requirements. In case there are insufficient cash flows to meet its working capital requirement or it is unable to arrange the same from other sources or there are delays in disbursement of arranged funds, or it is unable to procure funds on favourable terms, at a future date, it may result into its inability to finance its working capital needs on a timely basis which may have an adverse effect on its operations, profitability and growth prospects.

Outlook

Manglam Infra & Engineering is engaged in business of providing all kind of advisory and consultancy services related with infrastructure, environment, water supply and sanitation, industrial planning urban designing, urban planning housing & Project Management, civil designing, construction management, to act as consultants for construction of buildings and all types of constructed properties. On the concern side, it faces competition from domestic and international companies. It foresees this competition from organized and unorganized players to continue to grow as the demand. Growing competition may result in a decline in its market share and may affect its margins which may adversely affect its business operations and its financial condition.

The company is coming out with a maiden IPO of 49,32,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 53-56 per equity share. The aggregate size of the offer is around Rs 26.14 crore to Rs 27.62 crore based on lower and upper price band respectively. On performance front, the company's revenue from operations the financial year 2023-24 is Rs 4,024.36 lakh. This represents 16.92% increase compared to the previous financial year's revenue from operations of Rs 3441.88 lakh. The Profit after Tax (PAT) for the financial year 2023-24 reached Rs 676.41 lakh, marking a notable increase from Rs 554.16 lakh in the financial year 2022-23. Going forward, as it evolves, its strategic focus will be shifting from solely providing infrastructure consultancy services to a more comprehensive approach that includes the execution of projects. This transition is guided by a set of business strategies aimed at broadening its scope and enhancing its capabilities in project execution. For this, it looks to develop a holistic service model that integrates consultancy services with project execution, providing clients with end-to-end solutions and create synergies between its existing expertise in consultancy and project execution to offer seamless services.

VL Infraprojects coming with IPO to raise Rs 18.52 crore

The issue will open on July 23, 2024 and will close on July 25, 2024

Details

VL Infraprojects

  • VL Infraprojects is coming out with initial public offering (IPO) of 44,10,000 shares in a price band Rs 39-42 per equity share.
  • The issue will open on July 23, 2024 and will close on July 25, 2024.
  • The shares will be listed on NSE Emerge Platform.
  • The face value of the share is Rs 10 and is priced 3.90 times of its face value on the lower side and 4.20 times on the higher side.
  • Book running lead manager to the issue is Beeline Capital Advisors.
  • Compliance Officer for the issue is Anjali Mukeshbhai Samani.

Profile of the company

The company is a Government Approved Contractor in ‚ÄėAA‚Äô Class with the Government of Gujarat, Civil/Electrical Contractor License from Karnataka State Public Works department, Special class registration in Government of Telangana and contractor registration in Government of Madhya Pradesh. The company provides designing, construction, and commissioning of various types of government projects especially in water infrastructure and irrigation segment.

The company is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurement of pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering works like construction of civil work, pumping stations and installation of electro-mechanical equipment’s (pumping machinery) for distribution of water supply from the river to household. It also provides operations & maintenance services for water distribution pipelines.

The company began its operations focusing on water pipeline projects in Gujarat. It has since expanded its services to encompass all aspects of road construction, irrigation, water infrastructure, and environmental projects. It has locational presence in the state of Madhya Pradesh, Telangana, Maharashtra, and Gujarat. It is committed to maintaining the highest standards, the same is evident by the ISO 9001:2015 certification for quality management, ISO 14001:2015 certification for environmental management, and ISO 45001:2018 certification for occupational health and safety management systems.

Proceed is being used for:

  • Meeting working capital requirements
  • General corporate purposes

Industry Overview

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The $1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway.

In Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs 10 lakh crore ($122 billion), which would be 3.3 per cent of GDP. As per the Union Budget 2023-24, a capital outlay of Rs 2.40 lakh crore ($29 billion) has been provided for the Railways, which is the highest ever outlay and about 9 times the outlay made in 2013-14. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 subsectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of $1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.

In recent years, there has been a substantial increase in the pace of construction of national highways, from an average of 12 kilometres per day in 2014-15 to around 29 kilometres per day in 2021-22. In November 2022, National Investment and Infrastructure Fund (NIIF) is set up as a collaborative investment platform between the Government of India, global investors, multilateral development banks (MDB) and domestic financial institutions to facilitate investment across multiple sectors in India through an India Japan Fund. In June 2022, the Minister of Road Transport and Highways, opened 15 national highway projects worth Rs 13,585 crore ($1.7 billion) in Patna and Hajipur, Bihar. 

Pros and strengths

End-to-end execution capabilities: Its execution capabilities, comprising strong in-house operations consisting of design, engineering, procurement, construction, and quality assurance teams, are a critical factor that have contributed to the growth story of the company. Its track record in construction of projects has been instrumental in its consistent sales and performance. Its construction management team ensures efficient and rapid construction and completion of its projects.

Optimal utilization of resources: The company constantly endeavours to improve its execution process, capabilities, skill upgrading of employees, and modernization of plant and machineries to optimize the utilization of resources. It regularly analyses its material procurement policy and project execution process to identify and eliminate bottlenecks and take corrective measures for smooth and efficient working thereby putting resources to optimal use.

Experienced promoters and management team: Its promoters, Rajagopal Reddy Annam Reddy, Mydhili Rajagopal Reddy and Nageswara Rao Repuri has more than 45 years of combined experience in various fields including Accounting, Finance, Human Resources and Construction operations. Its Promoter, Rajagopal Reddy Annam Reddy, has led the company with his vision. Its management team comprises experienced professionals. The strength and entrepreneurial vision of its Promoter and management have been instrumental in driving the steady growth of the company and implementing its strategies.

Risks and concerns

Depend on limited number of clients: Significant revenue from a limited number of clients increases the potential volatility of its results and exposure to individual contract risks. It may be required to accept onerous contractual terms in its contracts for projects awarded to its by such clients. While, the company has not experienced such instances in the past, in the event the company is unable to comply with its obligations in any contract with such top 5 and top 10 clients, it would result in a substantial reduction in the number of contracts awarded by such client in future resulting in an impact on the overall business and revenue generated by the company from such client. Further, such concentration of its business on selected projects or clients may have an adverse effect on its results of operations.

Reliance on raw material suppliers: Timely and cost effective execution of its projects is dependent on adequate and timely supply of raw materials, chief amongst them being steel, cement, Concrete, Brick etc. It has not entered into any long term contracts or supply arrangements with any of the company’s suppliers and if, for any reason, the company’s primary suppliers should curtail or discontinue their delivery of such materials in the quantities needed, the company’s ability to meet its material requirements for construction contracts could be impaired, its construction schedules could be disrupted, and the company may not be able to complete construction contracts as per schedule or at such costs that were anticipated. If the company is unable to procure the requisite quantities of construction materials in time and at commercially acceptable prices, the performance of its financial results and business prospects could be adversely affected.

Dependent on few suppliers: Its top ten suppliers contribute 82.87%, 84.90%, 64.09% and 67.85% of its total purchase from operations for the financial year ended on March 31, 2024, 2023, 2022 and 2021, respectively. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Outlook

VL Infraprojects is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurement of pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering works like construction of civil work, pumping stations and installation of electro-mechanical equipment’s (pumping machinery) for distribution of water supply from the river to household. It also provides operations & maintenance services for water distribution pipelines. On the concern side, it operates in a competitive environment and its industry has been frequently subject to intense price competition for the acquisition and bidding of projects. Its competition varies depending on the size, nature and complexity of the project and on the geographical region in which the project is to be executed. It competes against major construction companies at the national and local levels and in multiple segments of construction business.

The company is coming out with a maiden IPO of 44,10,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 39-42 per equity share. The aggregate size of the offer is around Rs 17.20 crore to Rs 18.52 crore based on lower and upper price band respectively. On performance front, the total revenue from operations increased by Rs 6,837.47 lakh being 150.09% for the FY 2023-24 to Rs 11,393.16 lakh as compared to Rs 4,555.70 lakh during the FY 2022-23. The company’s profit after tax (PAT) stood at Rs 614.01 lakh in the FY 2023-24 as compared to Rs 222.66 lakh in the FY 2022-23. Meanwhile, it intends to continue its focus in enhancing project execution capabilities so as to derive twin benefits of client satisfaction and improvements in operating margins. It will constantly endeavour to leverage its operating skills through its equipment and project management tools to increase productivity and maximize asset utilization in its ongoing projects.

IPO Name Price range Issue Size (in crores) Lot Size Open Date Close Date
SATECH 56 - 59 3900000 2000 26-07-2024 30-07-2024
APRAMEYA 56 - 58 3606000 2000 25-07-2024 29-07-2024
TROM 110 - 115 1951200 1200 25-07-2024 29-07-2024
IPO Name Type Price range Issue Size (in crores) Lot Size Open Date Close Date Apply
NO CLOSED IPO'S
IPO Name Type Price range Issue Size (in crores) Lot Size Open Date Close Date Apply
NO LISTED IPO'S