VL Infraprojects Receives SEBI Approval for NSE SME IPO Launch! Get Ready for the Upcoming IPO!
VL Infraprojects Limited has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) on the NSE SME Emerge Platform. The company plans to issue up to 44,10,000 equity shares with a face value of ₹10 per share in this upcoming IPO.
Currently, VL Infraprojects’ total paid-up capital stands at 1,13,02,500 equity shares, which will increase to 1,57,12,500 equity shares after the IPO listing. The company’s promoters and promoters group currently hold 1,02,75,000 equity shares, accounting for 90.91% of the total paid-up capital, while public shareholding stands at 10,27,500 equity shares, representing 9.09%.
According to the Draft Red Herring Prospectus (DRHP) filed by the company, the net proceeds from the IPO will be used to fund its working capital requirements.
Financial Performance and Business Overview:
As of the September 2023 quarter, VL Infraprojects reported a Return on Equity (ROE) of 26.57%, showing a consistent increase from previous years. The Return on Capital Employed (ROCE) for FY23 was 22.97%, up from 18.41% in FY22. The company’s debt-equity ratio stood at 1.04, and its debt service coverage ratio was 3.33 as of September 2023, indicating strong financial health.
Revenue diversification is a key strategy for VL Infraprojects, with 95.59% of its revenue in FY23 coming from its top five clients, reflecting strong client relationships. The company operates across various sectors including water pipeline construction, irrigation projects, road construction, building construction, and power and civil projects. In FY23, nearly 73% of its revenue was generated from water pipeline construction and operations & maintenance services, highlighting its business resilience and revenue generation capabilities.
Infraprojects
VL Infraprojects holds prestigious government approvals and licenses, including being classified as a Government-Approved Contractor in “the AA” Class by the Government of Gujarat, and holds licenses in Karnataka, Telangana, and Madhya Pradesh.
This IPO marks a significant milestone for VL Infraprojects as it aims to expand its operations and strengthen its market position in the infrastructure sector.
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