Vilas Transcore IPO: Day 1 Sees 9.85 Times Oversubscription; Power Sector Supplier Gains Investor Attention!

Vilas Transcore Limited, according to their Red Herring Prospectus (RHP), mainly serves the power engineering and distribution sectors. Their products like slit coils, CRGO laminated core, and CRGO core are crucial for various types of transformers. These components ensure the proper functioning of transformers by reducing current and hysteresis losses.

Currently, the company operates from two production plants near Vadodara, Gujarat.

ADVERTISEMENT

The company’s profit after tax (PAT) rose by 12.89% and revenue by 21.09% between March 31, 2022, and March 31, 2023.

Subscription Status

• The IPO is oversubscribed by 9.85 times on day 1.
• Retail investors have subscribed 13.94 times, while non-institutional investors subscribed 7.44 times. Qualified Institutional Buyers subscribed 4.51 times.

Details of the IPO

• The IPO is worth approximately ₹95.26 crores and includes a fresh issue of 6,480,000 equity shares with a face value of ₹10 each.
• The proceeds will be used for various purposes including general corporate expenses, funding capital expenditures, and strategic investments.

Registrar and Lead Manager

• The registrar for the IPO is Bigshare Services Pvt Ltd, and the book running lead manager is Hem Securities Limited.

Grey Market Premium

• The grey market premium for Vilas Transcore IPO is +90, indicating a premium of ₹90 per share.
• This suggests an expected listing price of ₹237 per share, which is 61.22% higher than the IPO price of ₹147.
• Grey market premium reflects investor willingness to pay more than the issue price.

Expert Review

• Dilip Davda, a contributing editor at Chittorgarh, noted that the company’s growth in revenue and profit is promising. However, based on FY24 earnings, the issue seems fully priced. He suggests informed investors consider medium to long-term benefits.”