Viaz Tyres Limited IPO

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i. Viaz Tyres is engaged in manufacturing of rubber tubes for bicycles, two and three wheeleres, passanger vehicles and heavy load industrial vehicles. They also deal in ancillary products like Off The Road (OTR) Tyre tubes and Animal Driven Vehicle (ADV) Tubes, Engine Oil and Grease on white labeling bases.

ii. Further, they have recently started selling bicycle tyres which they get manufactured on job work basis, depending upon the market demands. The company sells rubber tubes, bicycle tyres and ancillary products under the brand names. Viaz . They sell their products in domestic as well as international markets. In order to capture more market share they are developing alternate brand CVAZ.

iii. Viaz Tyres has recently ventured into trading of Tyres through exclusive distributorship of Maxxis Rubbers Private Limited tyres for Turkey.

iv. They have state-of-the-art infrastructure with latest production facility with installed capacity of manufacturing 7,00,000 Tube per Month, located at Nandasan near Ahmedabad, Gujarat India. Their production facility is latest and updated with employee and environment friendly measures

v. As of 2022, they have total 15 domestic distributors for rubber tubes across India. Their distribution network is spread across 19 states, namely, Andhra Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nādu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal.

vi. Company’s Core business can be divided in following categories:

i. Manufacturing of rubber tubes for bicycles, two and three wheeleres, passanger vehicles and heavy load industrial vehicles and sale of ancillary products like Off The Road (OTR) Tyre tubes and Animal Driven Vehicle (ADV) Tubes, Engine Oil and Grease on white labeling bases; and
ii. Trading of Tyres through exclusive distributorship of Maxxis Rubbers Private Limited for sale of tyres in Turkey

vii. As of 2022, they have 7 international distributors. They also have a presence in 5 countries namely United States of America, Turkey, Romania, United Arab Amirates and Colombia.

Competitive Strengths

i. Experienced Promoters and Management Team:
ii. Widespread distribution network
iii. Wide range of Products

 

 

 

 

 

Objects of the Viaz Tyres Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. Repayment or Prepayment or part repayment of Loan 2. To Meet Working Capital Requirements 3. General Corporate Purpose 4. To meet Public Issue Expenses  
RHP of Viaz Tyres Limited IPO

Viaz Tyres Limited IPO Details:

Total Shares: 3,226,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Price: ₹ 62 Per Equity Share
Listing At: NSE Emerge

Promoters And Management:

Mr. Janakkumar Mahendrakumar Patel aged 35 years is Promoter and Chairman cum Managing Director of the Company. Originally, he was appointed as an Additional Executive Director (Promoter Category) w.e.f. March 10, 2020 and was regularised as Executive Director on September 30, 2020. Thereafter, he was appointed as Managing Director for a period of five (5) years w.e.f. April 12, 2022, not liable to retire by rotation. He is also appointed as Chairman of the Company w.e.f. October 18, 2022. He has completed graduation in Business Administration from University of Pune in year 2009. He is having experience of more than 10 years in rubber industry and more than 4 years of experience in food industry. He has been instrumental in taking major policy decision of the Company and in leading the Company. He has been playing vital role in formulating business strategies and effective implementation of the same. Mr. Rajeshkumar Prabhudasbhai Patel aged 42 years is Promoter and Whole Time Director of the Company. Originally, he was appointed as an Additional Executive Director (Promoter Category) w.e.f. March 10, 2020 and was regularised as Executive Director on September 30, 2020. Thereafter, he was appointed as Whole Time Director for a period of five (5) years w.e.f. April 12, 2022, not liable to retire by rotation. He has completed higher secondary education from Gujarat Secondary and Higher Secondary Education Board in year 1998. He is having experience of more than 2 years in rubber industry and more than 4 years of experience in food industry. He has been instrumental in taking major financial decision of the Company. He has been playing vital role in financial strategies of the Company. Mrs. Himaben Janakkumar Patel aged 34 years is a Promoter and Non-Executive Director of the Company. She is appointed as a Non-Executive Director (Promoter Category) w.e.f. April 25, 2022, liable to retire by rotation. She has completed graduation in Commerce from Gujarat University in year 2009. She is having experience of more than a year as Independent Director in a food industry company and is currently acting as Non-Executive Director of the Company w.e.f. April 25, 2022.  

Financials of Viaz Tyres Limited IPO:

Particulars ( In Lakhs ) 6MFY23 2022 2021 2020
Revenue from Operations 2354 2919 2914 1986
Other Income 24 13 3 7
Total Revenue 2379 2933 2917 1994
Cost of Materials Consumed 1804 2189 1777 751
Purchase of Stock-in-Trade - - - 2000
Changes in inventories 25 -7 340 -1136
Employee Benefits Expense 53 63 210 43
Other Expenses 154 219 196 95
EBITDA 340 468 392 240
Depreciation & Amortisation 63 144 185 102
Finance Cost 73 122 142 117
EBIT 277 323 207 137
OPM (%) 14.33% 15.96% 13.45% 12.05%
PBT 204 200 64 19
Taxes 51 54 3 5
PAT 152 146 60 14
NPM (%) 6.42% 5.01% 2.08% 0.73%
No.of Shares 122 122 122 122
EPS 1.24 1 0.49 0.11
P/E 49.73 51.7 125.25 523.47

Comparison With Peers:

There is no listed company with similar business model.

Recommendation on Viaz Tyres Limited IPO:

To be updated shortly
 

Lead Manager of Viaz Tyres Limited IPO:

  1. Beeline Broking Limited

Registrar of Viaz Tyres Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Viaz Tyres Limited 915/916, Maple Trade, Near Surdhara Circle, SAL Hospital Road, Thaltej, Ahmedabad, 380059 Phone: 079-46016174 Email: cs@viaztyres.com Website: https://www.viaztyres.com/

Discussion on Viaz Tyres Limited IPO:

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