Vision Infra Equipment Solutions Limited IPO

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They are a comprehensive solution provider in the equipment space, offering services across multiple sectors, including airports, smart cities, irrigation, building & factories, mining, and railways. Their core offerings include renting road construction equipment and trading and refurbishing these machines. Their services are designed to enhance efficiency, control costs, and streamline supply chains for their clients.

Service Offerings:

Renting of Road Construction Equipment: They provide their equipment under two rental models:
i. Time-Based Pricing: Clients pay a fixed fee based on the duration they use the equipment. This model is popular among contractors and developers in the infrastructure and road construction industries, particularly for activities like paving.
ii. Output-Based Pricing: In this model, clients pay based on the results delivered by the service, rather than a fixed fee or hourly rate. This approach is commonly used in road construction activities such as milling and crushing, where they deploy both their equipment and manpower to achieve desired outcomes.

Fleet and Clientele:

They maintain a large fleet of equipment from major OEMs, including Wirtgen, Case, Luigong, Dynapac, Komatsu, Atlas Copco, Ashok Leyland, Bharat Benz, Eicher Motors, Volvo, Terex Power Screen, Caterpillar, Metro, and BOMAG. Their fleet is rented out to leading infrastructure companies like Larsen & Toubro, Ashoka Buildcon Ltd, Afcons Infrastructure Ltd, NCC Ltd, GMR Infraprojects Ltd, Shapoorji Pallonji, Dilip Buildcon Ltd, Tata Projects Ltd, ITD Cementation India Limited, HG Infra Engineering Ltd, IRB Infra Developers Ltd, and GR Infra Projects Ltd.

Offering equipment for rent provides their clients with the flexibility to access the latest technology without the need for a long-term commitment or the significant capital investment required to purchase machinery outright. As of November 30, 2023, they own a fleet of 326 road construction equipment. Their customer base has grown significantly, with 65 customers served in FY 2021, expanding to approximately 90 customers in FY 2023.

In summary, their business is centered on providing flexible, efficient, and cost-effective equipment solutions to various industries, with a strong focus on infrastructure and road construction. Through their diverse fleet and tailored rental models, they enable their clients to optimize their operations and achieve their project goals.

Objects of the Vision Infra Equipment Solutions Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding Capital Expenditure towards the purchase of additional equipment ii. Funding to meet working capital requirements iii. General Corporate Purpose
DRHP of Vision Infra Equipment Solutions Limited IPO
RHP of Vision Infra Equipment Solutions Limited IPO

Vision Infra Equipment Solutions Limited IPO Details:

Open Date: Sep 06 2024
Close Date: Sep 10 2024
Total Shares: 6,516,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 106.21 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 155 - 163 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 13 2024

Promoters And Management:

Sachin Vinod Gandhi aged 41 years is the Chairman and Managing Director and Promoter of the Company. He has an overall experience of around 19 years in the construction equipment industry. He has completed B.com from University of Pune, in the year 2004. He has played a pivotal role in business planning and development along with the overall management of the Company. He drives the organization’s goals and visions with a keen eye on industry trends and business strategies. Chetan Vinod Gandhi aged 37 years is the Whole-Time Director and Promoter of the Company. He has an overall experience of around 14 years. He has completed Master in Business Administration with a specialization in Marketing Management, from University of Pune in the year 2009. He plays a pivotal role in overseeing various facets of the Company's operations. He diligently manages refurbishment activities, spearheads sales strategies, and provides leadership to the office team, ensuring cohesion and efficiency across all departments. His strategic vision, and exceptional interpersonal skills, have been instrumental in driving the Company towards sustainable growth and success. Sameer Sanjay Gandhi aged 33 years is the Whole-Time Director and Promoter of the Company. He has an overall experience of around 13 years. He has completed B.com from University of Pune, in the year 2010. He is entrusted with responsibilities including renting and sales planning, where his strategic acumen and approach drive the business towards its objectives. His decision-making and commitment to delivering results have significantly contributed to the Company's success and growth trajectory.

Financials of Vision Infra Equipment Solutions Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 29,457 35,981 33,275
Other Income 1,053 909 1,691
Total Revenue 30,510 36,890 34,966
Cost of Material Consumed 22,108 23,489 17,669
Cost of Service provided 3,149 4,076 5,313
Changes in inventories -813 623 -1,603
Employees Benefit Expenses 837 1,423 1,696
Other Expenses 728 774 1,962
EBITDA 4,502 6,505 9,928
OPM (%) 14.76% 17.63% 28.39%
Depreciation & Amortisation 2195 3365 4236
EBIT 2,307 3,140 5,692
Finance Cost 1,094 1,503 1,747
PBT 1231 1,638 3,945
Tax 286 719 1277
PAT 928 919 2669
NPM (%) 3.04% 2.49% 7.63%
No.of Shares 238.16 238.16 238.16
EPS 3.89 3.85 11.20

Comparison With Peers:

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

Recommendation on Vision Infra Equipment Solutions Limited IPO:

1. Vision Infra Equipment Solutions Limited is a comprehensive solution provider in the equipment space, offering Their services across various sectors such as airports, smart cities, irrigation, building & factories, mining, railways, and more. 2. Their business is primarily focused on two main areas: the renting of road construction equipment and the trading and refurbishment of these machines. Their services are designed to enhance efficiency, ensure cost control, and streamline supply chains for their clients. 3. Core Services i. Renting of Road Construction Equipment ii. Time-Based Pricing iii. Output-Based Pricing Their fleet includes equipment from major OEMs such as Wirtgen, Case, Luigong, Dynapac, Komatsu, Atlas Copco, and others, which is leased to prominent infrastructure companies like Larsen & Toubro, Ashoka Buildcon Ltd, and Tata Projects Ltd, among others. 4. Key Projects and Clients They have provided equipment and services for numerous high-profile projects across various sectors. Some notable projects include: i. Road Construction: Samruddhi Mahamarg, Delhi-Jaipur Highway, Ahmedabad-Vadodara Expressway. ii. Airports: Hyderabad International Airport, Indira Gandhi International Airport. iii. Defence: Bhuj Defence Airport, Varsha Project (Indian Navy). iv. Railways: Delhi-Mumbai Freight Corridor, High-Speed Rail Project (Ahmedabad-Mumbai). v. Smart Cities: Ujjain, Pune, Amravati Capital City, Dholera Smart City. vi. Irrigation: Kaleshwaram Dam. vii. Buildings & Factories: Kia Motors in Anantpur, Reliance Life Science. viii. Municipal Solid Waste Management: Kalyan-Dombivali Municipal Corporation, Raipur Municipal Corporation. 5. Competitive Landscape The market for renting and refurbishing road construction equipment is competitive, with the competition influenced by factors such as project type, location, and the availability of suitable equipment. While several large and small service providers offer similar services, they distinguish themselves through their extensive fleet, technical expertise, and proven track record. 6. The Revenue has Increased from Rs.294 Crores in FY22 to Rs.333 Crores in FY24. 7. The EBITDA has Increased from 45 Crores in FY22 to 99 Crores in FY24. 8. The PAT has Increased from 9 Crores in FY22 to 26 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.83, and EPS is 11.20, 10. Market Capitalization is 388 Crores and P/E is 14.5x based on FY24.

Lead Manager of Vision Infra Equipment Solutions Limited IPO:

  1. Hem Securities Limited

Registrar of Vision Infra Equipment Solutions Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Vision Infra Equipment Solutions Limited Shop No 401-405, Bhawani, International BusinessBay, Bhavani Peth, Pune, Pune City - 411042 Phone: +91 (020) - 26440999 Email: info@visioninfraindia.com Website: http://www.visioninfraindia.com/

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