Vilas Transcore Limited IPO

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Incorporated in 2006, the company specializes in the manufacturing and supply of components for the power distribution and transmission sector. They cater to both domestic and international transformer and power equipment manufacturers.

Their product portfolio includes:

i. Electrical lamination cold rolled grain oriented (CRGO) lamination core      ii. CRGO slit coils
iii. CRGO stacked (assembled cores)                                                                           iv. CRGO wound core
v. CRGO Toroidal core

These products are essential for various types of transformers, including power transformers, distribution transformers, and dry-type transformers, as well as high, medium, and low voltage current transformers.

Product and Market Focus

Their primary market is the power distribution and power engineering industry. The products they manufacture play a crucial role in the efficiency and reliability of transformers. Specifically, the transformer core, made from laminated sheets of CRGO steel, is designed to minimize current and hysteresis losses, thus ensuring optimal energy transfer and support for the primary and secondary windings.

The manufacturing process involves meticulous attention to factors such as functional reliability, longevity, and cost-effectiveness. They use advanced technology and adhere to industry standards to deliver products that meet the specific dimensions and material requirements of our customers.

Customer Base and Market Reach

They have established strong relationships with renowned Indian and global transformer manufacturers. Their top customers include Voltamp Transformers Limited, Electrotherm India Limited, Atlas Transformers India Limited, and Shilchar Technologies Limited. The contributions of their top five customers to their revenue have been significant over the past few fiscal years.

Conclusion

Their company has demonstrated consistent growth and resilience, driven by their commitment to quality, customer satisfaction, and innovation. As they continue to expand their market reach and enhance their manufacturing capabilities, they remain dedicated to meeting the evolving needs of the power distribution and transmission sector.

Objects of the Vilas Transcore Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives:- i. Funding for strategic investment and acquisitions, ii. Funding Capital Expenditure towards construction of factory building, iii. Funding capital expenditure towards acquiring and installing additional plant and machinery, iv. General Corporate Purpose, v. To meet issue expenses.
DRHP of Vilas Transcore Limited IPO
RHP of Vilas Transcore Limited IPO

Vilas Transcore Limited IPO Details:

Open Date: May 27 2024
Close Date: May 29 2024
Total Shares: 6,480,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 95.26 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 139 - 147 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 03 2024

Promoters And Management:

Mr. Nilesh Jitubhai Patel, aged 50 years, is the Promoter, Chairman and Managing Director of the Company. He has been associated with the Company since its inception. Prior to starting the Company he was running a proprietorship firm in the name M/s Vilas Transcore. He holds a certificate of diploma in electrical from the Maharaja Sayajirao University of Baroda, Gujarat in 1992. He has an experience of more than 27 years in manufacturing and processing of laminated cores, transformer components and sheets for transformer and power industry. He is the backbone of the Company. His role and responsibilities include material procurement, sales, marketing & distribution and overall business development of the Company. He is also responsible for new business planning and strategies. Under his leadership, the company is taking strides towards achieving a goal of making the company a renowned name in and around Gujarat. Mr. Vipul Kumar Patel, aged 43 years, is the Whole Time Director and CFO of the Company. He was originally appointed on the board of directors on September 30, 2022. Further he was re-designated as Whole Time Director of the Company w.e.f. March 01, 2023. He is also the Chief Financial Officer of the Company. He has completed his Bachelors of Commerce in 1999 from North Gujarat University, Gujarat and Bachelors of Education in 2007 from Hemchandracharya North Gujarat University. He has a total work experience of around 16 years in the field of Accounts and Finance. He has been entrusted with the responsibility of looking after the Accounts and Finance department & Admin & HR department of the Company. Miss Natasha Nilesh Patel, aged 21 years, is the Non-Executive Director of the Company. She was originally appointed on the board on June 09, 2020. She has completed her International Bachelor of Business Administration with Honours from York University. She has a work experience of 3 years in the field of Manufacturing Industry.

Financials of Vilas Transcore Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 13,265 23,303 28,261 23,575
Other Income 220 215 218 255
Total Revenue 13,485 23,518 28,478 23,830
Cost of Material Consumed 11,798 21,184 22,426 17,584
Changes in Inventories -567 -3,086 1,282 2,346
Employees Benefit Expenses 669 849 939 777
Other Expenses 494 1,683 683 607
EBITDA 1,092 2,888 3,149 2,516
OPM (%) 8.09% 12.28% 11.06% 10.56%
Depreciation & Amortisation 224 227 232 173
EBIT 867 2,661 2,917 2,343
Finance Cost 163 256 196 111
PBT 704 2405 2721 2232
Tax 181 614 699 553
PAT 523 1791 2022 1679
NPM (%) 3.88% 7.62% 7.10% 7.05%
No.of Shares 244.80 244.80 244.80 244.80
EPS 2.13 7.31 8.26 6.86

Comparison With Peers:

Note :- There are no listed companies in India that engage in a business similar to this Company.

Recommendation on Vilas Transcore Limited IPO:

Review and Recommendation of Vilas Transcore by team IZ is 5/10. 1. The company specializes in the manufacturing and supply of components critical to the power distribution and transmission sector. Their primary focus is on serving transformer and power equipment manufacturers both domestically and internationally. Their extensive product line includes electrical lamination cold rolled grain oriented (C.R.G.O.) lamination core, CRGO slit coils, CRGO stacked (assembled cores), CRGO wound core, and CRGO Toroidal core. These products are integral to the functionality of power transformers, distribution transformers, dry-type transformers, and high, medium, and low voltage current transformers. 2. Market Position and Product Importance They primarily serve the power distribution and power engineering industries. Their CRGO laminated cores, CRGO cores, and slit coils are essential components for various types of transformers. The core of a transformer is vital for its proper functioning, made through laminated sheets to minimize current losses, and CRGO steel material to reduce hysteresis losses. The design and manufacture of these laminations consider various factors such as manufacturing efficiency, functional reliability, service life, and economy. Proper material use and shape optimization are crucial for transformer efficiency. 3. Product Portfolio They manufacture and supply various components crucial for transformer manufacturing, including: i. CRGO Transformer Lamination: Essential for power and distribution transformers, made from grain-oriented electrical steel to enhance efficiency and reduce losses. ii. CRGO Stacked Assembled Core/Coil-Core Assembly: Custom-manufactured for customer specifications, tested for core losses before delivery. iii. Wound Core/Toroidal Core: Manufactured from high-grade CRGO steel, used in various types of transformers, ensuring low core loss and retaining magnetic properties. iv. Yoke Shunt/Tank Shield: Used in large transformers to reduce losses and control stray losses, providing a permeable path for leakage flux. v. CRGO Slit Coils: Produced in various sizes to meet customer specifications, using carbide slitting lines to minimize burr formation. 4. Competition The precision components manufacturing industry is highly competitive, but their extensive experience, technological capabilities, and strong customer relationships give them a competitive edge. While the industry has no specific legal or regulatory entry barriers, the capital-intensive nature and complex technology requirements act as natural barriers for new entrants. Their ability to meet varying customer requirements, maintain product quality, and deliver on time sets them apart in the market. 5. The Revenue has Increased from Rs.132 Crores in FY21 to Rs.282 Crores in FY23. 6. The EBITDA has Increased from 10 Crores in FY21 to 31 Crores in FY23. 7. The PAT has Increased from 5 Crores in FY21 to 20 Crores in FY23. 8. As per FY23, CFO/EBITDA is 0.98, As per FY24, EPS is 9.14, 9. Market Capitalization is 360 Crore & P/E is 16.06x based on FY24.

Lead Manager of Vilas Transcore Limited IPO:

  1. Hem Securities Limited

Registrar of Vilas Transcore Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Vilas Transcore Limited Plot No 435 To 437, Nr Galaxy Hotel, N H No 8, Village Por, Vadodara- 391243 Phone: +91- 9328026768 Email: accounts@vilastranscore.com Website: https://vilastranscore.com/

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