V.L.Infraprojects Limited IPO

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The company, originally incorporated as “V.L.Infraprojects Private Limited” on December 19, 2014, under the Companies Act, 2013, transitioned to a public limited company named “V.L.Infraprojects Limited” on September 1, 2023. The Corporate Identification Number is U45200GJ2014PLC081602. They are headquartered in Ahmedabad, Gujarat, and were founded by their Promoter, Chairman, Managing Director, and CEO, Mr. Rajagopal Reddy Annam Reddy. Their company benefits from the extensive experience of their promoters, including Mr. Rajagopal Reddy Annam Reddy, Mrs. Mydhili Rajagopal Reddy, and Mr. Nageswara Rao Repuri, who collectively have over 45 years of experience.

Services and Expertise

They are a government-approved “AA” class contractor in Gujarat, holding licenses and registrations in Karnataka, Telangana, and Madhya Pradesh. Their expertise includes designing, constructing, and commissioning various government projects, particularly in the water infrastructure and irrigation segments.

Key Areas of Operation

i. Water Supply and Sewerage Infrastructure: They handle the procurement, laying, joining, and commissioning of pipes, including all related civil engineering works such as the construction of pumping stations and installation of electro-mechanical equipment.
ii. Operations & Maintenance: They provide services for the maintenance of water distribution pipelines.
iii. Expansion of Services: Initially focused on water pipeline projects in Gujarat, they have expanded to cover road construction, irrigation, water infrastructure, and environmental projects, with a presence in Madhya Pradesh, Telangana, Maharashtra, and Gujarat.

Partnerships

They have successfully collaborated with various firms, including Spun Pipe Construction Co. (Baroda Private Limited), HM Electro Mech Limited, and Krishna Construction Co., enhancing their project execution capabilities and expanding their service offerings.

In summary, their company is dedicated to delivering high-quality infrastructure projects with a strong focus on innovation, sustainability, and customer satisfaction, positioning them for continued growth and success in the industry.

Objects of the V.L.Infraprojects Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Working Capital Requirements; and ii. General Corporate Purposes.
DRHP of V.L.Infraprojects Limited IPO
RHP of V.L.Infraprojects Limited IPO

V.L.Infraprojects Limited IPO Details:

Open Date: Jul 23 2024
Close Date: Jul 25 2024
Total Shares: 4,410,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 18.52 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 39 - 42 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 30 2024

Promoters And Management:

Mr. Rajagopal Reddy Annam Reddy, aged 49, is the Promoter, Chairman, Managing Director, and CEO of the Company. He holds a Bachelor of Engineering (Mechanical) from Sri Venkateswara University (1998) and an MBA from the Indian School of Business Management and Administration (2009). With over 20 years of experience in the construction industry, he has been a Director since the Company's incorporation on December 19, 2014. He was appointed Managing Director on November 1, 2017, and reappointed for another five years from November 1, 2023. Additionally, he became CEO on September 13, 2023. Mrs. Mydhili Rajagopal Reddy, aged 41, is the Whole Time Director of the company. She holds a Bachelor's degree in Commerce from Sri Venkateswara University (2002) and has over 9 years of experience in administration and human resources (HR). She has been a Director since the company's incorporation on December 19, 2014, and was appointed Whole Time Director on December 24, 2016. She was reappointed for another five years, effective from July 5, 2021. Mr. Nageswara Rao Repuri, aged 41, is the Whole Time Director and Chief Financial Officer of the company. He holds a Bachelor's degree in Commerce from Andhra University (2004) and has over 18 years of experience in accounting. He was appointed as an Additional Director on February 21, 2021, and was regularized as a Director on November 30, 2021. He was appointed Whole Time Director for five years from July 3, 2023, and became Chief Financial Officer on September 13, 2023.

Financials of V.L.Infraprojects Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
2024
Revenue from Operations 3,072 3,555 4,556 11,393
Other Income 5 5 9 7
Total Revenue 3,078 3,561 4,565 11,400
Cost of materials consumed 1,228 1,486 2,443 6,641
Purchases of traded goods 0 0 204 828
Employees Benefit Expenses 120 106 119 147
Other Expenses 1,478 1,650 1,318 2,686
EBITDA 251 319 481 1,097
OPM (%) 8.16% 8.96% 10.54% 9.63%
Depreciation & Amortisation 12 35 38 49
EBIT 239 284 443 1,048
Finance Cost 121 130 134 197
PBT 118 154 309 852
Tax 35 44 86 238
PAT 83 111 223 614
NPM (%) 2.71% 3.11% 4.88% 5.39%
No.of Shares 157.12 157.12 157.12 157.12
EPS 0.53 0.70 1.41 3.90

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
V.L.Infraprojects Limited 114 6 3.90 10.7 42 66
EMS Limited 793 153 27.44 24.6 674 3,740
* All the data is as per FY24.

Recommendation on V.L.Infraprojects Limited IPO:

1. V.L. Infraprojects Limited, headquartered in Ahmedabad, Gujarat, was established in 2014. The company transitioned to a public limited entity in 2023 and is led by founder and CEO Rajagopal Reddy Annam Reddy. 2. Business Model and Operations The company operates on an EPC model, specializing in water infrastructure, irrigation projects, road construction, and building construction. Its services encompass design, procurement, construction, and maintenance. Water pipeline construction is the major segment, contributing 85% to its services. 3. Presence and Reach With operations extending to Madhya Pradesh, Telangana, and Maharashtra, V.L. Infraprojects holds various contractor licenses, including "AA" class certification in Gujarat. 4. Financial Performance Revenue: ₹11,393.16 Lakhs (2024), marking a 150.09% growth from the previous year. EBITDA: ₹1,090.40 Lakhs with a 9.57% margin. PAT: ₹614.01 Lakhs with a 5.39% margin. The company has shown consistent growth in revenue and profitability. 5. Debt Profile V.L. Infraprojects Limited manages a long-term debt of ₹2.38 Crores and an increased short-term debt of ₹7.65 Crores. Significant short-term debt increases financial strain and affects the ability to finance projects. 6. IPO and Market Position V.L. Infraprojects Limited 's upcoming IPO is a significant milestone, aiming to raise 18.52 crore. The IPO is expected to have a post-IPO market capitalization of 66 crore, with a P/E ratio of 10.7x. 7. Strengths Strong growth in financial performance. Diversified project portfolio. Strategic geographic expansion beyond Gujarat. Robust operational and managerial capabilities. 8. Weakness Heavy reliance on Gujarat for revenue exposes the company to risks from regional economic or political changes. Also Intense competition in the infrastructure sector can lead to pricing pressures and reduced profit margins. 9. Conclusion V.L. Infraprojects Limited has established itself as a significant player in the infrastructure sector, with a focus on high-quality project execution and strategic expansion. The company's IPO aims to support further growth, positioning it well for future opportunities in the Indian infrastructure market.

Lead Manager of V.L.Infraprojects Limited IPO:

  1. Beeline Broking Limited

Registrar of V.L.Infraprojects Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

V.L.Infraprojects Limited Office at 716, Shivalik Satyamev, Near Vakil saheb Bridge Bopal, Ahmedabad- 380058 Phone: +91 9998850177 Email: cs@vlil.in Website: http://www.vlil.in/

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