Vision Infra Equipment Solutions Limited is launching an IPO worth ₹106.21 crores, entirely consisting of a fresh issue of 65.16 lakh shares. The IPO opens for subscription on September 6, 2024, and closes on September 10, 2024.
The allotment is expected to be finalised on September 11, 2024, with the shares listing on NSE SME on September 13, 2024. The price band for the IPO is set between ₹155 to ₹163 per share. Retail investors can apply with a minimum lot size of 800 shares, requiring an investment of ₹130,400. High Net Worth Individuals (HNI) have a minimum lot size of 2 lots (1,600 shares), amounting to ₹260,800.
Hem Securities Limited is the book-running lead manager for this IPO, while Link Intime India Private Ltd serves as the registrar. Hem Finlease is the market maker for the Vision Infra Equipment Solutions IPO.
Industry Outlook:
- India's road network grew 59% in 9 years, reaching 6.3 lakh km, with National Highways expanding from 91,287 km (2013-14) to 145,155 km (2022-23).
- The construction sector attracted $32 billion in FDI (April 2000 - September 2023); 100% FDI is permitted in urban infrastructure and construction under the automatic route.
Vision Infra Equipment Solutions IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding expenditure towards setting-up of 12 new stores in Maharashtra (“New Stores”);
- Repayment or pre-payment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes.
About Vision Infra Equipment Solutions Limited
Founded in 2015, Vision Infra Equipment Solutions Limited specialises in providing services across various sectors, including airports, smart cities, irrigation, buildings and factories, mining, and railroads.
The company’s core offerings include road construction machinery rental, trade, and reconditioning. Equipment rental is available through two pricing models: time-based, where customers pay a fixed fee for equipment use over a specific period, and output-based, where charges are determined by the results achieved.
Vision Infra Equipment Solutions boasts a substantial fleet of 326 road construction machines from leading OEMs such as Wirtgen, Caterpillar, and Volvo, which are leased to major infrastructure companies like Larsen & Toubro, Tata Projects Ltd, and Dilip Buildcon Ltd.
As of March 31, 2024, the company employed 227 permanent employees and 763 contract staff, including operators, engineers, and supervisors, ensuring smooth and efficient operations across its diverse service portfolio.
Peer Details
Vision Infra Equipment Solutions Limited operates in a unique business segment with no directly comparable listed companies in India.
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Contact Details of Vision Infra Equipment Solutions IPO
- Registered office: Shop No 401-405, Bhawani, International Business Bay, Bhavani Peth, Pune, Pune City, Maharashtra, India, 411042
- Phone: +91 (020) - 26440999
- E-mail: info@visioninfraindia.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operations (in ₹ lakh) | 33,274.58 | 35,980.81 |
| Profit After Tax (PAT) (in ₹ lakh) | 2,668.89 | 918.85 |
| Current Ratio (x) | 1.04 | 0.63 |
| Net Worth (in ₹ lakh) | 2,346.31 | 3,000.37 |
| Total Borrowings (in ₹ lakh) | 26,427.66 | 15,145.70 |
| Return on Equity (%) | 130.95% | 33.32% |
| Return on Capital Employed (RoCE) (%) | 28.29% | 30.63% |
| Earnings Per Share (in ₹) | 15.43 | 5.31 |
Know before investing
Strengths
6Owns 395 diverse road construction equipment as of March 2024.
Offers flexible rental pricing models: time-based and output-based.
Serves 133 customers across 26 Indian states as of FY2024.
Maintains young equipment fleet; 153 units under one-year-old.
Strategic industry partnerships with major OEMs and infrastructure companies.
Strong in-house team of 204 skilled professionals for operations.
Risks
6A capital-intensive business requiring significant funds for expansion and operations.
High revenue dependency on top 10 clients; potential concentration risk.
Vulnerable to economic fluctuations affecting construction equipment demand and profitability.
Limited suppliers may disrupt operations, affecting profitability and reputation.
Rapid technological changes could render the current equipment fleet obsolete.
Seasonality impacts operations, particularly during monsoon, causing revenue fluctuations.
