VVIP Infratech Limited IPO

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The Company is a leading infrastructure firm in India, recognized as a Class “A” Civil and Electrical contractor with over two decades of experience. They specialize in executing and constructing a wide range of infrastructure projects including:
i. Sewer and Sewer Treatment Plants (STPs)                       ii. Water Tanks and Water Treatment Plants (WTPs)
iii. Sector Development Work                                                 iv. Electrical Distribution and Sub Stations up to 33 kVA
v. Jal Jeevan Mission work

Regional Focus

They primarily operate in Uttar Pradesh, Uttarakhand, NCR Delhi, and other northern parts of India. Their strong regional focus allows them to leverage local expertise and resources effectively.

Financial Health and Order Book

As of January 31, 2024, their order book stands at ₹477.62 Crores, including an Operation and Maintenance (O&M) order book of ₹126.19 Crores. Additionally, they have submitted bids for ₹182.00 Crores in tenders for projects in Roorkee, Uttarakhand, which are currently under review. This significant increase in their order book value highlights their strong execution capabilities and ability to secure new projects, reflecting positively on their growth prospects.

Objects of the VVIP Infratech Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: i. Capital Expenditure ii. Working Capital Requirement iii. General Corporate Purpose iv. Issue Expense

VVIP Infratech Limited IPO Details:

Open Date: Jul 23 2024
Close Date: Jul 25 2024
Total Shares: 6,582,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 61.21 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 91 - 93 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 30 2024

Promoters And Management:

Praveen Tyagi, the Promoter and Director of the Company and founder of VVIP Group, holds a Diploma in Civil Engineering from DN Polytechnic, Meerut. With over three decades of experience in civil construction and infrastructure development, he started his career as a civil contractor in 1991 and formed a private company in 2001. Under his leadership, the company became renowned for Sewer and Water Treatment Plants. In 2010, he ventured into real estate with the VVIP Addresses project in Raj Nagar Extension, Ghaziabad. Following its success, the company launched several residential and commercial projects, earning a strong reputation in the Ghaziabad and Greater Noida (West) markets. Vaibhav Tyagi, Managing Director and Promoter of the company, holds a Bachelor of Business Administration. He joined the group's infrastructure business in 2015 and oversees its overall operations. A visionary young professional, he has been instrumental in the company's involvement in the Jal Jeevan Mission. Vaibhav actively manages project execution, liaises with departments, and works on new tenders. Vibhor Tyagi, Whole Time Director and Promoter of the company, holds a Bachelor of Business Administration (Marketing) from Eastern Institute for Integrated Learning in Management University, Sikkim. He joined the company ten years ago and plays a key role in the group's real estate business. Vibhor has mastered project execution, human resources, construction, marketing, and other business areas, driving the organization towards a leadership position in the real estate and construction sectors.

Financials of VVIP Infratech Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 18,189 20,890 28,353
Other Income 338 166 235
Total Revenue 18,524 21,056 28,588
Cost of Operations 14,327 18,391 24,781
Change in inventories 2,106 -564 -830
Employees Benefit Expenses 659 494 524
Other Expenses 506 588 732
EBITDA 926 2,147 3,381
OPM (%) 5.00% 10.20% 11.83%
Depreciation & Amortisation 77 99 155
EBIT 850 2,048 3,226
Finance Cost 261 270 405
PBT 589 1,779 2,821
Tax 271 609 718
PAT 318 1170 2104
NPM (%) 1.71% 5.56% 7.36%
No.of Shares 249.69 249.69 249.69
EPS 1.27 4.68 8.42

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
VVIP Infratech Limited 284 21 8.42 11.0 93 232
EMS Limited 793 153 27.44 24.5 673 3,737
Vishnusurya Projects and Infra Limited 231 28 11.21 20.2 226 556
* All the data is as per FY24.

Recommendation on VVIP Infratech Limited IPO:

1. VVIP Infratech Limited company is specialize in executing and constructing various infrastructure projects, including sewer systems, sewer treatment plants, water tanks, water treatment plants, sector development work, electrical distribution and substations up to 33 kVA, and projects under the Jal Jeevan Mission. 2. Geographic Focus and Market Presence Primarily, their operations are concentrated in Uttar Pradesh, Uttarakhand, NCR Delhi, and other northern regions of India. They are a rapidly growing company with a strong emphasis on innovation and quality, positioning them as a key player in the development of India's infrastructure sector, particularly in the area of sewer treatment plants (STPs). 3. Order Book and Growth Prospects As of January 31, 2024, their company boasts an impressive order book of Rs. 477.62 Crores, including an Operation and Maintenance (O&M) order book of Rs. 126.19 Crores. Additionally, we have submitted bids amounting to Rs. 182.00 Crores for tenders in Roorkee, Uttarakhand, which are under process. 4. Offered Services i. Common Effluent Treatment Plant (CETP) ii. Surface Water Treatment Plant iii. Sewage Treatment Plant (STP) iv. Sludge Treatment and Disposal 5.  SWOT Analysis Strengths i. Government focus on infrastructure.                      ii. Urbanization demand. iii. Rural infrastructure development.                         iv. Economic growth. v. Skilled manpower. Weaknesses i. Reliance on government policies.                            ii. Competitive bidding. iii. Unskilled manpower challenges.                           iv. Delays due to local issues. Opportunities i. Increased government spending.                             ii. Real estate development. iii. Railway and road growth.                                        iv. Renewable energy focus. Threats i. Raw material price volatility.                                     ii. Delays in clearances. iii. Environmental challenges.                                     iv. Quality issues. v. Natural disaster delays. 6. The Revenue has Increased from Rs.182 Crores in FY22 to Rs.283 Crores in FY24. 7. The EBITDA has Increased from 9 Crores in FY22 to 34 Crores in FY24. 8. The PAT has Increased from 3 Crores in FY22 to 21 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.95, and EPS is 8.42, 10. Market Capitalization is 232 Crores and P/E is 11.03x based on FY24.

Lead Manager of VVIP Infratech Limited IPO:

  1. Share India Capital Services Private Limited

Registrar of VVIP Infratech Limited IPO:

  1. Maashitla Securities Pvt. Limited

Company Address:

VVIP Infratech Limited Fifth Floor, VVIP Style, Nh-58 Raj Nagar Extension, Ghaziabad - 201017 Phone: +91 9990060123 Email: cs@vvipinfra.com Website: http://www.vvipinfra.com/

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