Viviana Power Tech Limited IPO
i. Viviana Power Tech is engaged in the business of Power transmission, Distribution and Industrial EPC space projects (Engineering, Procurement and construction). They provide wide range of services such as Power Transmission, EHV substation, Testing and Commissioning of sub-station and Transmission, Power Distribution Network Establishment, Underground Cable laying, Upgradation and modification of existing power system. They also undertake turnkey jobs for Supply, Civil, Erection, Testing & Commissioning of all types of Electrical system.
ii. Viviana Power deals with state government power utilities, private power entities and Renewable energy developers. Preferentially, company opts for EPC projects. Company bags project work from government utilities through open bidding process and from private power entities and renewable energy developers by way of open bidding or preferential basis in accordance with company’s merit and performance.
iii. Company has set business module to suit operational needs. Business operations mainly comprises of two main tasks: Supply and service. For performing these tasks, various sequential activities are performed. It has to deploy quality manpower and developed resources. The Company owns adequate machineries but for specific requirements of machineries, they have to avail services on hire basis. At site, company sets up office and store facilities as per project requirement and deploy project team and hire labours on daily basis as per the site requirement.
iv. Competitive Strengths:
- Organizational stability along with management expertise.
- Existing client relationship.
- Well-trained employee base.
- Quality Assurance.
Objects of the Viviana Power Tech Limited IPO:
Viviana Power Tech Limited IPO Details:
|Open Date:||Sep 05 2022|
|Close Date:||Sep 08 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||8.80 Cr.|
|Lot Size:||2000 Shares|
|Issue Price:||₹ 55 Per Equity Share|
|Listing At:||NSE Emerge|
Promoters And Management:
Financials of Viviana Power Tech Limited IPO:
|Particulars (in Cr)||March 22||March 21||March 20|
|Revenue from operations||32||22||20|
|Purchase of Stock-in-Trade||11||11.87||8.58|
|Employee Benefit Expense||2.25||1.94||1.53|
|Profit (Loss) before tax||3.96||1.31||1.54|
|Profit (Loss) for the period||2.90||0.99||1.21|
|Earnings per share||4.85||1.65||2.02|
Comparison With Peers:
|Name of the Company||P/E||EPS||RONW %||NAV per share (Rs)|
|Viviana Power Tech Limited||11||4.85||18%||26|
|KEC International Limited||30||12.92||10%||140|
|Kalpataru Power Transmission Limited||15||36||12.5%||283|
Recommendation on Viviana Power Tech Limited IPO:
Review and Recommendation of Vivina Power Tech by IZ team is 5/10
1. The Company is engaged in the business of Power transmission, Distribution and Industrial EPC space projects (Engineering, Procurement and construction). 2. Mr. Nikesh Kishorechandra Choksi the MD of the company has 10 years of experience in the power industry. 3. Company’s revenue has increased from 20 Crores in Fy21 to 32 Crores in Fy22. 4. PAT has increased from 1.21 Crores in Fy21 to 2.90 Crores in Fy22. 5. Company has high receivables days of 122. 6. Asking P/E at 11x looks reasonable. 7. The power sector is growing well and electricity amendment bill already tabled in the parliament will be beneficiary for the whole power sector.