Vrundavan Plantation Limited IPO

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1. Founder’s Vision: The business was founded by Mr. Upendra Tiwari with a clear vision of preserving and protecting the environment by selling plants and offering various gardening and landscaping services. This vision was based on the idea that gardening and landscaping services were evolving into a lucrative business.

2.Product Line: The company’s nursery business segment offers a wide range of plant products, including big trees, shrubs, ground covers, climbers, indoor plants, and various types of pots (plastic, terracotta, self-watering, etc.). They also provide gardening tools and accessories, as well as garden inputs like plant foods, organic pesticides, and potting mixes.

3. Service Business Segment: In addition to selling plants and related products, the company also offers a variety of gardening and landscaping services. These services include lawn mowing, brush and jungle cleaning, hedge trimming, and watering for roadside plants. They also take maintenance contracts from different organizations, including government departments.

4. Business Expansion: Over the years, the business has expanded its services beyond just plant sales. They have ventured into maintenance services and garden development contracts, initially within the local territory of Ahmedabad but later expanding to work with renowned infrastructure companies in Ahmedabad and other parts of India.

5. Government Contracts: The company’s founder leveraged their expertise in the gardening and landscaping industry to bid for and secure government contracts for various projects. This move marked a significant turning point in their business expansion.

6. Business Succession: The company has undergone a significant transformation by entering into a Business Succession Agreement and an addendum that includes a Non-Compete Clause. This step ensures that the predecessor (Mr. Upendra Tiwari) will not engage in any activities that directly compete with the successor (the company) and will provide support to the successor for establishing new and existing services.

7. Diverse Customer Base: The company serves a diverse customer base, including individuals looking for plants and gardening products, as well as government departments and organizations seeking gardening, landscaping, and maintenance services.

8. Product and Service Portfolio Diversification: The company has expanded its offerings to include a wide range of plants, pots, garden tools, accessories, and maintenance services, ensuring a diversified revenue stream.

9. Environmental Mission: The core vision of the business is to contribute to environmental conservation and protect green spaces in an era of deforestation. This environmental commitment likely appeals to customers who are eco-conscious.

Objects of the Vrundavan Plantation Limited IPO:

The company proposes to utilize the Net Proceeds from the issue towards the following objects: 1. Repayment of Working capital and unsecured loan. 2. Working Capital Requirement 3. General Corporate Purpose, 4. Meeting Public Issue Expenses.
DRHP of Vrundavan Plantation Limited IPO
RHP of Vrundavan Plantation Limited IPO

Vrundavan Plantation Limited IPO Details:

Open Date: Oct 30 2023
Close Date: Nov 01 2023
Total Shares: 1,416,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 15.29 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 108 Per Equity Share
Listing At: BSE SME
Listing Date: Nov 09 2023

Promoters And Management:

i. Upendra Tiwari aged 52 years, is a Promoter and Managing Director of the company. He is the founder of Vrundavan Nursery & Plantation (Proprietorship). He is non-matriculate. He is a visionary entrepreneur having vast experience in the field of Horticulture and Landscape business since 1997 and has played a pivotal role in setting up business of the Company. He has awarded as “MAN OF THE YEAR AWARD-2022” By Divya Bhaskar Group, Ahmedabad, He primarily looks after the overall business operations of the Company. He is the driving force behind the working of the company. As a leader, he always delivers value to the customers and endeavor in fulfilling their expectations. ii. Dineshkumar Dubey aged 53 years, is a director of the company. He has completed his Bachelor of Science in Agriculture and A. H. from Chandra Shekhar Azad University of Agriculture & Technology, Kanpur, in the year 1991. He has more than 27 years of Experience in the field of Agriculture, Horticulture and Landscape. He plays a vital role in the execution of projects and involved in day-to-day operation of projects in the Company. He is Driving the company's financial planning and Performing risk management by analyzing the organization’s liabilities and investments. iii. Vishal Tiwari aged 25 years, is a Non-Executive Director of the Company. He is Pursuing Integrated Master of Design from Gujarat University, Ahmedabad. He possess deep insight into design and creative aspects including Creating garden designs on paper, Analyze natural and manmade elements of the area including soil, slope, drainage and natural vegetation, lighting and other construction projects. He direct, coordinate, and oversee operations activities as professional.

Financials of Vrundavan Plantation Limited IPO:

Particulars ( In Lakhs )
01st April, 2023 - 31st May, 2023
Revenue from Operations 181
Other Income 0
Total Revenue 181
Cost of Material Consumed 96
Employee benefits expenses 0.6
Other Expenses 54
EBITDA 29
Depreciation & Amortisation 0.3
Finance Cost 3
EBIT 29
OPM (%) 16.17%
PBT 26
Tax 8
PAT 17
NPM (%) 9.59%
No.of Shares 53.32
EPS 0.32

Comparison With Peers:

Note: - There is no listed companies related to this company.

Recommendation on Vrundavan Plantation Limited IPO:

Vrundavan Plantation IPO Analysis

Introduction

Vrundavan Plantation operates in two main sectors: Nursery Business and Services Business. This analysis aims to provide a comprehensive look into the company's IPO.

Business Overview

1. Nursery Business: The Nursery business focuses on various aspects ranging from market demand identification to sales. It ensures the delivery of high-quality, disease-free plants tailored to customer needs. 2. Services Business: The Services Business handles projects from bidding to payment, ensuring quality work and compliance at each stage.

Working Capital Requirement

The business requires significant working capital, which is the primary reason for this IPO

Risks

The business faces challenges like competition from organized and unorganized sectors, low prices from unorganized players, and rising labor costs.

Financials

The Red Herring Prospectus (RHP) provides limited financial data, showing a revenue of 1.80 Cr and a PAT of 17 Lac for two months. Annualized figures indicate a revenue of 10.8 Cr and a PAT of 1.02 Cr.

Market Capitalization and Valuation

With a market cap of 57 Cr, the resulting P/E ratio is 55x, which is quite high.

Additional Note

The company recently converted from a partnership to a Public Limited Company, limiting the available financial data for analysis.

Conclusion

Given the high P/E ratio and limited financial data, caution is advised in evaluating this IPO.

Lead Manager of Vrundavan Plantation Limited IPO:

  1. Interactive Financial Services

Registrar of Vrundavan Plantation Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Vrundavan Plantation Limited 307, Sun Avenue One, Nr. Sun Prima, Ambawadi Na, Ahmedabad, 380006 Phone: 079 3520 1135 Email: cs@vrundavanplantation.com Website: http://www.vrundavanplantation.com/

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