Visaman Global Sales Limited IPO

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Visaman Global Sales Limited is a company based in Rajkot, Gujarat, India, specializing in the supply of a diverse range of steel products. Established in 2019, the company operates under the regulatory framework of the Companies Act, 2013.

Core Business Activities

Visaman Global Sales Limited is engaged in the supply of various steel products including:
i. Pipes: Round, square, and rectangle pipes
ii. Structural Steels: Various specifications
iii. Coils: BGL coils, GP (GI) coils, HR coils, CR coils, color-coated coils
iv. Sheets and Plates: MS sheets, GP and GC sheets, CR sheets, HR sheets, color-coated sheets
v. Panels: Roofing PUF panels, wall PUF panels

Value-Added Services

Credit Facility:
The company provides a credit facility to its existing customers as a value-added service. This service is available to customers with a good financial record, who have consistently paid their outstanding amounts on time. The company determines the creditworthiness of these customers, setting a fixed credit limit and credit days, which vary from customer to customer.

Customization:
Visaman Global Sales Limited offers customization services to meet the specific requirements of their customers regarding the size, length, breadth, thickness, etc., of the products. They coordinate with manufacturers to customize the specified products. If the manufacturer is unable to fulfill the customization, the company outsources this process to third-party process houses.

Onsite Delivery:
The company ensures the delivery of their products directly to the customer’s site, enhancing convenience and service quality.

Strategic Partnerships

Visaman Global Sales Limited is a dealer of APL Apollo Tubes Limited, which supports their product offerings and market presence.

Summary

Visaman Global Sales Limited is a steel supply company based in Rajkot, Gujarat, engaged in providing a wide range of steel products and value-added services, including credit facilities, product customization, and onsite delivery. Established in 2019, the company has built strategic partnerships to enhance its market offerings and customer service.

Objects of the Visaman Global Sales Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding of capital expenditure requirements of the Company towards setting up of a manufacturing facility at Rajkot, Gujarat, India ii. Funding Working Capital Requirements of the company; and iii. General corporate purposes.
DRHP of Visaman Global Sales Limited IPO
RHP of Visaman Global Sales Limited IPO

Visaman Global Sales Limited IPO Details:

Open Date: Jun 24 2024
Close Date: Jun 26 2024
Total Shares: 3,732,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 16.05 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 43 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 01 2024

Promoters And Management:

Mr. Mitulkumar Sureshchandra Vasa, 43, is the Promoter, Chairman, and Managing Director of the Company. He holds a B.B.A. from Saurashtra University (2000) and a Ph.D. in Business Management from the University of Swahili (2020). He is also a director on the boards of Devika Fincap Private Limited, VSG Mart Limited, Visaman Sales Private Limited, and Visaman Infra Projects Private Limited. With over 6 years of experience in the steel and steel products trading industry, he has been instrumental in key policy decisions and business strategies for the Company. He was redesignated as Managing Director on December 30, 2020. Mr. Vasa has received multiple awards, including the Fastest Growing Indian Company Excellence Award and the Youngest Business Leader of the Year Award. Ms. Avni M Vasa, aged 41 years is one of the Promoters and Non-Executive Non-Independent Director of the Company. She has completed her Bachelor of Commerce (B.com.) from Saurashtra University, Gujarat in the year 2003. She has been associated with the Company since incorporation and has working experience of more than 4 years in our Company. She is responsible for looking overall administration of the Company. Mr. Kular Brijesh N, 43, is a Promoter, Wholetime Director, and CFO of the Company. He holds a B.Com. (2003) and LL.B. (2009) from Saurashtra University. He previously worked with M/s Tulsi Submersible Pumps since 2013. Since the Company's incorporation, he has been a sales manager, became CFO on June 14, 2021, and a director in July 2022. With over 10 years of experience in submersible pumps manufacturing and steel trading, he oversees the company's accounting and finance.

Financials of Visaman Global Sales Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 13,636 32,404 37,603 20,691
Other Income 0 3 2 0.4
Total Revenue 13,636 32,407 37,605 20,691
Cost of Material Consumed 13,288 31,923 37,419 20,507
Change in Inventories -195 -408 -1,103 -796
Employees Benefit Expenses 158 251 242 175
Other Expenses 232 358 388 231
EBITDA 152 283 659 574
OPM (%) 1.12% 0.87% 1.75% 2.77%
Depreciation & Amortisation 4 12 49 30
EBIT 148 271 610 544
Finance Cost 91 143 451 420
PBT 57 128 159 124
Tax 17 33 45 22
PAT 33 95 113 102
NPM (%) 0.25% 0.29% 0.30% 0.49%
No.of Shares 138.11 138.11 138.11 138.11
EPS 0.24 0.68 0.82 0.73

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Visaman Global Sales Limited 376 1 0.82 52.4 43 59
Shree Marutinandan Tubes Limited 47 2 98.54 31.9 240 83
Swastik Pipe Limited 709 9 3.90 32.3 71.2 166
Hi-Tech Pipes Limited 2,386 38 2.95 45.8 134 2,011
* All the data is as per FY23.

Recommendation on Visaman Global Sales Limited IPO:

Review and Recommendation of Visaman Global Sales by team IZ is 4/10. 1. Visaman Global Sales Limited has been engaged in the supply of various steel products and has established itself as a reliable partner for its clients. 2. Core Business Activities The company specializes in supplying a wide range of steel products, including: i. Round pipes                               ii. Square pipes                           iii. Rectangle pipes iv. Structural steels                      v. BGL coils                                  vi. GP(GI) coils vii. HR coils                                  viii. CR coils                                  ix. Colour coated coils x. MS sheets                                 xi. GP and GC sheets                 xii. CR sheets xiii. HR sheets and plates          xiv. Colour coated sheets           xv. Roofing PUF panels xvi. Wall PUF panels Additionally, Visaman Global Sales Limited provides a credit facility to its existing customers as a value-added service. This facility allows customers with a good financial track record to pay at a later date. 3. Distribution Channels The company operates through multiple distribution channels: i. One-tier Distribution (Direct to Customer): Customers place orders directly with the company, which then procures the specified materials from suppliers or manufacturers and supplies them directly to the customers. ii. Two-tier Distribution (Supply through Channel Partners): Customers place orders with dealers, distributors, or retailers, who then requisition the company. The company procures the materials and supplies them to the dealers, distributors, or retailers, who in turn deliver them to the customers. iii. Three-tier Distribution (Supply to Stockyards): The company procures materials from suppliers or manufacturers and stores them in stockyards. The stock is then supplied to trade channels or direct customers as per their requirements. Visaman Global Sales Limited uses a diversified sales and distribution mix, including Business-to-Consumer (B2C), Business-to-Channel (B2CH), and Business-to-Business (B2B) models. 4. Competition The company operates in a competitive environment, facing competition from both organized and unorganized players in the market. Key factors influencing client decisions include product quality, brand value, distribution network, reliability, and competitive pricing. Despite the competition, Visaman Global Sales Limited leverages its experience and reliability record to maintain a competitive edge. 5. The Revenue has Increased from Rs.136 Crores in FY21 to Rs.376 Crores in FY23. 6. The EBITDA has Increased from 1.5 Crore in FY21 to 6.5 Crores in FY23. 7. The PAT has Increased from 33 Lakhs in FY21 to 1 Crore in FY23. 8. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 0.98, 9. Market Capitalization is 59 Crores & P/E is 43.8x based on FY24.

Lead Manager of Visaman Global Sales Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Visaman Global Sales Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Visaman Global Sales Limited C/o., Jain Traders, 8, Sorathiawadi Near Narmada, 80 Feet Road, Rajkot- 360002 Phone: +91 90237 30627 Email: cs@visamansales.com Website: https://visamanglobalsales.com/

Discussion on Visaman Global Sales Limited IPO:

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