Vdeal System Limited IPO

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Vdeal System Limited is an ISO 9001:2015 certified company, demonstrating its commitment to maintaining high standards of quality and safety. The company specializes in providing comprehensive solutions across various segments of the electrical and automation industry. Its product portfolio includes:
i. Smart Low Voltage (LV) Panels                                            ii. Smart Medium Voltage (MV) Panels
iii. Smart Variable Frequency Drive (VFD) Panels               iv. Medium Voltage (MV) Soft Starters
v. Energy Management Systems (EMS)                                vi. Smart Programmable Logic Controller (PLC) Panels
vii. Air-Insulated & Sandwich Busducts

These products are designed and manufactured in-house, ensuring adherence to international IEC standards of quality and safety. Vdeal System Limited’s solutions are not only designed for optimal performance but also for seamless integration into larger systems, providing clients with reliable and efficient automation solutions.

As an integrated electrical and automation solution provider, Vdeal System Limited serves a diverse array of industries. The company’s business-to-business (B2B) model ensures that its products are tailored to meet the specific needs of industry players, making it a key supplier in various industrial segments.

Innovation in AI, ML, and IoT In addition to its core electrical and automation products, Vdeal System Limited is at the forefront of the next wave of innovation driven by Artificial Intelligence (AI) and Machine Learning (ML). The company is developing solutions that integrate AI, ML, and the Internet of Things (IoT) into a Cloud-based Software as a Service (SaaS) model.

IoT has emerged as a crucial technology in the 21st century, enabling everyday objects like kitchen appliances, cars, thermostats, and baby monitors to connect to the internet via embedded devices. Vdeal System Limited’s IoT solutions aim to facilitate seamless communication between people, processes, and devices, further solidifying its position as a forward-thinking company in the technology-driven world.

Conclusion

Vdeal System Limited has evolved from its humble beginnings as a private limited company in Orissa to a prominent public limited company with a strong presence in the electrical and automation industry. Through strategic acquisitions, name changes, and a focus on innovation, the company has positioned itself as a leading provider of integrated electrical solutions, serving a wide range of industries. Its commitment to quality, safety, and technological advancement ensures that it remains at the cutting edge of industry developments, ready to meet the evolving needs of its clients.

Objects of the Vdeal System Limited IPO:

The company intend to utilize the issue proceeds to meet the following objects: i. To meet the working capital requirements ii. Prepayment and repayment of all or a portion of certain secured and unsecured loan availed by the company iii. General Corporate Purpose and iv. To meet the Offer expenses
DRHP of Vdeal System Limited IPO
RHP of Vdeal System Limited IPO

Vdeal System Limited IPO Details:

Open Date: Aug 27 2024
Close Date: Aug 29 2024
Total Shares: 1,614,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 18.08 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 112 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 03 2024

Promoters And Management:

Mr. Dhiraj Kochar, 47, is the founding Promoter and Chairman of Vdeal System Limited. He has been with the company since its incorporation on December 10, 2009, serving as Managing Director and, since November 20, 2023, also as Chief Executive Officer. With a Bachelor's Degree in Electrical and Electronics Engineering from Karnataka Regional Engineering College and advanced certifications in AI and ML, Mr. Kochar brings over 16 years of experience in automation solutions. His technical expertise and visionary leadership have been instrumental in transforming the company into a trusted industry name, driving innovation and strategic growth. Mrs. Tapaswini Panda, 37, is a Promoter and Director of Vdeal System Limited, appointed as Whole-time Director and Chief Financial Officer on November 20, 2023, for a five-year term. She joined the company on April 12, 2021, and holds a Diploma in Electrical Engineering from Sanjay Memorial Institute of Technology, Orissa. With over 15 years of experience in Administration, Finance, Production, and Negotiation, Mrs. Panda is known for her keen attention to detail and organizational skills. She previously served as Purchase Manager at Grids Steel & Alloys Limited and is also on the Board of Reveal AI Technologies Private Limited. Mr. Brahmananda Panda, 37, is a Promoter and Executive Director of Vdeal System Limited, having joined the company on November 13, 2023. He holds a Master’s Degree in Computer Application from Biju Patnaik University of Technology, Rourkela. With over 11 years of experience in Software Project Management and Software Testing, both manual and automated, Mr. Panda has a strong background in the insurance and manufacturing sectors.

Financials of Vdeal System Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 1,618 2,072 2,622
Other Income 5 3 3
Total Revenue 1,624 2,075 2,625
Cost of materials consumed 1,366 1,645 1,904
Changes in inventories -148 -116 -222
Employees Benefit Expenses 159 198 222
Other Expenses 93 98 164
EBITDA 153 251 556
OPM (%) 9.45% 12.08% 21.18%
Depreciation & Amortisation 48 19 20
EBIT 106 232 536
Finance Cost 75 83 110
PBT 31 149 426
Tax 8 39 115
PAT 23 110 311
NPM (%) 1.42% 5.30% 11.86%
No.of Shares 48.90 48.90 48.90
EPS 0.47 2.25 6.36

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Vdeal System Limited 26 3 6.36 17.6 112 55
Akanksha Power & Infrastructure Limited 57 3 1.44 85.7 124 229
Saakshi Medtech & Panel Limited 122 11 6.41 39.0 250 441
* All the data is as per FY24.

Recommendation on Vdeal System Limited IPO:

Review and Recommendation of  Vdeal System by team IZ is 3/10. 1. Vdeal System Limited offers a wide array of products and services that cater to the diverse needs of the electrical and automation industries. The company’s offerings include: i. Smart Electrical Panels                                       ii. Busduct Systems iii. Product Design and Development                  iv. System Integration and Servicing v. AI, ML, and IoT Integration 2. Market Presence The company operates on a business-to-business (B2B) model, supplying its products across multiple industry segments. Vdeal System Limited is well-positioned to capitalize on the growing demand for energy-efficient and automated electrical solutions in India and beyond. 3. SWOT Analysis Strengths: i. Established operations with a proven track record across various industries. ii. Fast adoption of energy-efficient technology, compliance with the latest IEC standards, and integration of IoT and digitalization in panels. iii. An experienced management team that drives innovation and quality. iv. Customizable, flexible, and modular products designed to meet unique customer needs. v. Strong focus on process automation and quality service delivery. Weaknesses: i. High working capital requirements to sustain operations. ii. Heavy dependency on suppliers, which could impact production and delivery timelines. Opportunities: i. Expansion of online selling through the GEM Portal and the company’s website for direct sales to system integrators and one-time customers. ii. Development of infrastructure and entry into new geographical areas. iii. Growing opportunities in the green energy sector, driven by increasing demand for sustainable solutions. Threats: i. Intense competition from both organized and unorganized players in the industry. ii. Potential changes in government policies that could impact business operations. iii. External factors such as war and natural calamities that could disrupt supply chains and production. 4. Competition Vdeal System Limited operates in a highly competitive industry characterized by low entry barriers, which makes it vulnerable to competition from new entrants. The market includes numerous players, both organized and unorganized, with some competitors having greater financial resources and a broader product range. 5. The Revenue has Increased from Rs.16 Crores in FY22 to Rs.26 Crores in FY24. 6. The EBITDA has Increased from 1.5 Crores in FY22 to 5.5 Crores in FY24. 7. The PAT has Increased from 23 Lakhs in FY22 to 3 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.96, and EPS is 6.36, 9. Market Capitalization is 55 Crores and P/E is 17.6x based on FY24.

Lead Manager of Vdeal System Limited IPO:

  1. Affinity Global Capital Markets Pvt Ltd

Registrar of Vdeal System Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Vdeal System Limited Plot No. 4/A A, 4/B & 6, Janla Industrial Area Khordha, Jatni - 752054 Phone: + 91 0674 291067 Email: compliance@vdealsystem.com Website: http://www.vdealsystem.com/

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