V.L.Infraprojects Ltd IPO

Last Updated: 27 August 2024 5:14 PM by chetan

The V.L. Infraprojects IPO was subscribed 633.63 times, with retail investors leading the charge at 839.50 times, followed by non-institutional buyers at 725.73 times and qualified institutional buyers at 203.73 times. Anchor investors and market makers each subscribed 1 time. In total, 29.22 lakh shares were offered, but bids were placed for approximately 185.14 crore shares, amounting to ₹7,776.10 crore. The IPO was kept open for a period of 3 trading days.

1. To Meet Working Capital Requirements; and
2. General Corporate Purposes.

VL Infraprojects Ltd. (VLIL) is a Government Approved Contractor in "AA" Class with the Government of Gujarat, Civil/Electrical Contractor License from Karnataka State Public Works department, Special class registration in Government of Telangana and contractor registration in Government of Madhya Pradesh. 

The company provides designing, construction, and commissioning of various types of government projects especially in water infrastructure and irrigation segment. The Company is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurement of pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering works like construction of civil work, pumping stations and installation of electro-mechanical equipment's (pumping machinery) for distribution of water supply from the river to household. 

It also provides operations & maintenance services for water distribution pipelines. The company began its operations focusing on water pipeline projects in Gujarat. It has since expanded services to encompass all aspects of road construction, irrigation, water infrastructure, and environmental projects. It has locational presence in the state of Madhya Pradesh, Telangana, Maharashtra, and Gujarat. The company is committed to maintaining the highest standards, the same is evident by the ISO 9001:2015 certification for quality management, ISO 14001:2015 certification for environmental management, and ISO 45001:2018 certification for occupational health and safety management systems.

Over the years, on material basis, it has successfully executed around 30 projects worth Rs. 104.86 cr. Over time, its execution capabilities have grown significantly both in terms of the size of projects that it bids for and executes, and the number of projects that it executes simultaneously. As of July 13, 2024, it has 15 on-going projects worth approximately Rs. 160 cr. 

The Vision of the Company is to stride towards becoming a prominent player in Engineering and Construction Industry. It has focused on its vision and is working with a strategy to tap the huge growth potential in the Infrastructure Sector, in India both independently and through collaborations. To achieve this, the company is committed to complete customer satisfaction by creating a value-driven ethical & professional working environment with well-defined objectives. These goals would be embracing the principles of engineering excellence, fostering innovation, leadership development, employee engagement and encouraging collaborations at all levels.

The company has achieved a great reputation in this field within a short span of time with its strong & effective management and in time project execution. Company has successfully handled and executed various water infrastructure projects of Gujarat Water Supply and Sewerage Board, Gujarat Water Infrastructure Limited, Nagarpalikas, Public Works Department (PWD) also with Joint Venture with Spun pipe Construction co (Baroda Private Limited), HM Electro Mech Limited, Krishna Construction Co., Partnership Firm.

Out of our total revenue from operations more than 50% of revenue originates from Top 10 Customers consisting of Gujarat Water Supply and Sewerage Board, GKC Projects Limited, Naandi Infratech Private Limited, Nagarapalika Parishad, Kurwai, Nagarapalika Parishad, Sirmour, Nagarapalika Parishad, Pali and Nagarapalika Parishad, Dhanpuri. Further, out of its total purchases more than 50% of purchases originates from Top 10 suppliers consisting of The Spunpipe and Construction Company (Baroda) Private Limited, H.M. Electro Mech Limited, Umiya Steel Corporation, Bajrang Industries, AL Muneer MM Traders, Sri Rama Traders, AL Adil Traders, Saurashtra Cement Limited, Kamala Paints and Hardware and Jindal Saw Limited. As of March 31, 2024, it had 30 employees on its payroll. 

According to the management, it has shifted its focus from small dia pipelines to big dia pipelines projects that gives better margins and going forward, it is adding other activities like constructions of Roads, Irrigation related services and real estate constructions.