What You Must Know About Vision Infra Equipment Solutions IPO: Price Band ₹155 to ₹163 Per Share

Vision Infra Equipment Solutions Limited (VIESL), established in 2015, provides equipment solutions across different sectors like airports, smart cities, irrigation, buildings, mining, and railways. The company focuses on three main areas: renting road construction equipment, trading these machines, and refurbishing them.

VIESL offers two pricing models for renting equipment:

• Time-based pricing: Customers pay a fixed fee for how long they use the equipment.
• Output-based pricing: Payment is linked to the results achieved with the equipment.

This flexibility allows them to meet the needs of various clients, from contractors needing equipment for a specific period to those requiring it for particular activities like milling and crushing.

As of 31st November 2023, VIESL has a fleet of 326 road construction machines from major brands like Wirtgen, Case, Luigong, Dynapac, and Komatsu. The company has grown its customer base from around 65 in FY 2021 to about 90 in FY 2023, serving major players like Larsen & Toubro, Ashoka Buildcon Ltd, and Afcons Infrastructure Ltd. VIESL has played a key role in many significant projects, including the JNPT Road Project, Samruddhi Mahamarg, Mumbai-Bangalore Highway, and several international airports, proving their expertise in the infrastructure sector.

The Objective of the Issue

• Funding Capital Expenditure: To purchase additional equipment to expand the company's fleet.
• Meeting Working Capital Requirements: To support the company's growing operations.
• General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.

Highlights of Vision Infra Equipment Solutions IPO

Vision Infra Equipment Solutions IPO is set to launch with a book-built issue of ₹106.21 crores. The issue comprises entirely of a fresh issue of 65.16 lakh shares. Here are the key details of the IPO:

• The IPO opens for subscription on 6th September 2024 and closes on 10th September 2024.
• The allotment is expected to be finalised on 11th September 2024.
• Refunds will be initiated on 12th September 2024.
• Credit of shares to Demat accounts is also expected on 12th September 2024.
• The company will tentatively list on NSE SME on 13th September 2024.
• The price band is set at ₹155 to ₹163 per share.
• The lowest lot size for the IPO application is 800 shares.
• Retail investors need to invest a minimum of ₹130,400.
• The minimum investment for HNI is 2 lots (1,600 shares), amounting to ₹260,800.
• Hem Securities Limited is the book running lead manager for the IPO.
• Link Intime India Private Ltd serves as the registrar.

Vision Infra Equipment Solutions IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 10th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Vision Infra Equipment Solutions IPO Issue Details/Capital History

The Vision Infra Equipment Solutions IPO is scheduled from 6th September to 10th September 2024, with a price band of ₹155 to ₹163 per share and a face value of ₹10. The lot size is 800 shares, and the total issue size is 6,516,000, raising up to ₹106.21 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 17,300,000 pre-issue to 23,816,000 post-issue. The market maker portion consists of 336,000 shares.

Vision Infra Equipment Solutions IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for at least 800 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and high-net-worth individuals (HNI), expressed in shares and monetary values.

SWOT Analysis: Vision Infra Equipment Solutions Ltd

Strengths:

• Diverse portfolio of road construction equipment from major OEMs
• Established client base including major infrastructure companies
• Flexible pricing models catering to different customer needs
• Strong presence in various infrastructure sectors

Weaknesses:

• High dependence on the infrastructure sector, which can be cyclical
• Significant reliance on debt for funding operations and expansion
• Potential vulnerability to technological changes in construction equipment

Opportunities:

• Growing infrastructure development in India, particularly in smart cities and transportation
• Potential for geographical expansion within India
• Scope for diversification into related equipment rental sectors

Threats:

• Intense competition in the equipment rental market
• Economic downturns affecting infrastructure spending
• Regulatory changes impacting the construction or equipment rental industries

Financial Highlights: Vision Infra Equipment Solutions Ltd

Below are the financial results for the period ended November 30, 2023, and the Fiscal years FY23, FY22, and FY21: