Virtuoso Optoelectronics Limited IPO
i. Virtuoso Optoelectronics manufacture consumer durable goods and assemble a wide array of products and provide end-toend product solutions. Under the OEM model, we manufacture and supply products basis designs developed by the customers, who then further distribute these products under their own brands. Under the ODM model, in addition to manufacturing, we conceptualize and design the products are then marketed to their customers’ perspective customer under their brands. The company has developed ODM capabilities with respect to lighting products and small appliances
ii. Their current product portfolio of consumer goods includes
i. Split Air Conditioners;
ii. Water Heaters;
iii. LED Lighting products; and
iv. other miscellaneous products such as injection molding components for air conditioners.
iii. Virtuoso Optoelectronics offers innovative solutions to its customers, which include leading international and national consumer brands. Their comprehensive solution suite includes global sourcing, fabrication of components and parts, captive manufacturing and assembly, quality testing, packaging and logistics support, which enables us to partner with leading consumer goods brands in India. Their key customers include leading brands in Air Conditioning & Water Heater segments
iv. Competitive Strengths:
i. Infrastructure and Integrated Manufacturing Facility.
ii. Culture of innovation and highly experienced and young management.
iii. Constant focus on developing new and innovative products.
iv. Economies of Scale.
v. R&D and product design capabilities lead to ODM business generation.
vi. Availability of Performance Linked Incentives.
vii. Strong relationships with a diverse top-tier customer base.
Objects of the Virtuoso Optoelectronics Limited IPO:
Virtuoso Optoelectronics Limited IPO Details:
|Open Date:||Sep 02 2022|
|Close Date:||Sep 07 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||30.24 Cr.|
|Lot Size:||2000 Shares|
|Issue Price:||₹ 56 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Sep 15 2022|
Promoters And Management:
Financials of Virtuoso Optoelectronics Limited IPO:
|Particulars (in Cr)||March 22||March 21||March 20|
|Revenue from operations||200||115||68|
|Cost of Material Consumed||171||102||56|
|Changes in inventories||0.44||-3.27||0.64|
|Employee Benefit Expense||3.61||2.71||1.03|
|Profit (Loss) for the period||6.4||2.6||2.5|
Comparison With Peers:
Recommendation on Virtuoso Optoelectronics Limited IPO:
Review and Recommendation of Virtuoso Optoelectronics Limited IPO by IZ Team is
1. They manufacture consumer durable goods and assemble a wide array of products and provide end-toend product solutions. They serve under both original equipment to OEMs and ODM (Original Design Manufacturer). They have two manufacturing facilities which are strategically located in and around Nashik (Maharashtra) and they also has R&D centre. 2. They manufacture products on the basis designs and developed by the customers, who then further distribute these products under their own brands 3. The current product portfolio of consumer goods includes (i) Split Air Conditioners; (ii) Water Heaters; (iii) LED Lighting products; and (iv) other miscellaneous products such as injection molding components for air conditioners 4. The industry in which the company is working is getting good support from Government under PLI Scheme. 5. Revenue has increased from 68 Crores in Fy20 to 200 Crores in Fy22. 6. PAT has grown from 1.40 Crores in Fy20 to 3.94 Cores in Fy22. 7. EPS of FY22 is Rs. 3.1 per share and P/E is 18x (looks reasonable).