V.L.Infraprojects
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Jul 2024 – 25 Jul 2024
- Listing date
- 30 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹42 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹18.52 Cr
- Market cap at offer price
- ₹65.99 Cr
- Promoter holding
- 90.91% → 65.39% pre-issue → post-issue
- ISIN
- INE0QXL01015
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Office at 716, Shivalik Satyamev, Near Vakil saheb Bridge Bopal, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 12,48,000 | — | — |
| Market maker | 2,40,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹42
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 21,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.43 | 3.91 |
| P/E (×) | 7.73 | 10.74 |
| Price to book (×) | 2.90 | — |
| Market cap | — | ₹65.99 Cr |
Key performance indicators
- Return on net worth
- 37.53%
- ROCE
- 39.09%
- PAT margin
- 5.39%
- NAV per share
- ₹14.47
- Price to book
- 2.90
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About V.L.Infraprojects
V.L.Infraprojects Limited was originally incorporated as a private limited company on December 19, 2014, and converted to a public limited company on September 1, 2023. Based in Ahmedabad, Gujarat, the company is founded by Promoter Cum Chairman and Managing Director Mr. Rajagopal Reddy Annam Reddy with over 45 years of combined experience from its three promoters. The company is a Government Approved Contractor in 'AA' Class with Gujarat and holds civil/electrical contractor licenses from multiple states. It provides end-to-end services including design, procurement, laying and joining of pipes, civil works, pumping stations, and electro-mechanical equipment installation for water distribution systems. The company has expanded from water pipeline projects in Gujarat to serve multiple states including Madhya Pradesh, Telangana, and Maharashtra. It maintains ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications and also provides operations & maintenance services for water distribution pipelines.
Company Analysis
from RHPV.L.Infraprojects Limited designs, constructs, and commissions water supply, sewerage, irrigation, and road infrastructure projects, operating primarily in Gujarat through EPC (Engineering, Procurement, Construction) contracting.
V.L.Infraprojects Limited was originally incorporated as a private limited company on December 19, 2014, and converted to a public limited company on September 1, 2023. Based in Ahmedabad, Gujarat, the company is founded by Promoter Cum Chairman and Managing Director Mr. Rajagopal Reddy Annam Reddy with over 45 years of combined experience from its three promoters. The company is a Government Approved Contractor in 'AA' Class with Gujarat and holds civil/electrical contractor licenses from multiple states. It provides end-to-end services including design, procurement, laying and joining of pipes, civil works, pumping stations, and electro-mechanical equipment installation for water distribution systems. The company has expanded from water pipeline projects in Gujarat to serve multiple states including Madhya Pradesh, Telangana, and Maharashtra. It maintains ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications and also provides operations & maintenance services for water distribution pipelines.
Objects of the Issue
- To Meet Working Capital Requirements ₹1,480.00 Lakhs p.23
- General corporate purposes p.23
- To Meet Working Capital Requirements ₹ 1,480.00 Lakhs p.87
- General Corporate Purposes [●] p.87
Issue Structure
- Total Issue
- 4410000 Equity Shares aggregating up to ₹ [●] Lakhs
- Fresh Issue
- 4410000 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- Not Applicable
- Price Band
- ₹ [●] per Equity Share (Floor Price) to ₹ [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue through Engineering, Procurement, and Construction (EPC) contracts for government projects, primarily in water supply and sewerage infrastructure, with backward integration including civil works, pumping stations, and electro-mechanical installations. It also provides operations and maintenance services for water distribution systems. Revenue is project-based through competitive bidding processes with government and local authorities.
Business Segments
SWOT Analysis
- • Government-approved contractor with AA Class rating in Gujarat and multiple state registrations(p.21)
- • Extensive promoter experience of over 45 years in construction and infrastructure(p.21)
- • ISO certified for quality, environmental and occupational health & safety management(p.21)
- • Strong revenue growth trajectory with PAT growing from ₹83.37L (FY21) to ₹614.01L (FY24)(p.24)
- • Successful project execution track record enabling repeat business from existing clients(p.41)
- • Experienced management team with extensive industry background(p.86)
- • Government-approved contractor with multiple state registrations(p.86)
- • ISO certifications for quality, environment, and occupational health & safety(p.86)
- • End-to-end execution capabilities in water infrastructure projects(p.86)
- • Strong revenue growth trajectory(p.99)
- • Experienced promoters with 45+ years combined experience in construction and related fields(p.121)
- • Focused expertise in water supply projects with 9+ years of experience(p.124)
- • End-to-end execution capabilities with in-house teams for design, engineering, procurement, and construction(p.124)
- • ISO certifications for quality, environmental, and occupational health and safety management(p.121)
- • Strong track record with 30 completed projects worth ₹10,486.43 Lakhs and 15 ongoing projects(p.121)
- • Government contractor status in AA Class with multiple state registrations(p.121)
- • Government-approved contractor with strong credentials(p.221)
- • ISO certifications across quality, environment, and safety(p.221)
- • Strong revenue growth trajectory(p.224)
- • Experienced promoter and management team(p.221)
- • Improved profitability and returns(p.226)
- • Established contractor credentials across multiple states(p.234)
- • Quality and safety certifications in place(p.246)
- • Multiple state-level contractor registrations(p.246)
- • High geographical concentration with 89.74% of revenue from Gujarat(p.28)
- • Significant customer concentration with top 5 clients accounting for 80.50% of FY24 revenue(p.29)
- • High debt burden of ₹1,654.81 Lakhs as of March 31, 2024(p.37)
- • Working capital intensive business requiring substantial financing with negative operating cash flow in FY24(p.43)
- • Dependence on top 10 suppliers accounting for 82.87% of total purchases in FY24(p.42)
- • History of compliance issues including inadvertent erroneous filings under Companies Act and delayed GST/EPF returns(p.37)
- • Pending permit extensions for three major ongoing projects that could delay completion(p.41)
- • High customer concentration risk(p.100)
- • High supplier concentration risk(p.100)
- • Significant working capital requirement relative to scale(p.87)
- • Negative operating cash flows in recent periods(p.99)
- • Gross profit margin compression(p.99)
- • High dependency on top customers with top 1 customer contributing 37.80% of revenue(p.122)
- • Significant supplier concentration with top 1 supplier accounting for 27.99% of purchases(p.122)
- • Geographic concentration with majority of revenue (89.70%) from Gujarat state in FY24(p.123)
- • Negative operating cash flows of ₹175.36 Lakhs in FY24 despite positive PAT(p.122)
- • Small workforce of only 30 employees limiting scalability(p.137)
- • High reliance on subcontractors and joint venture partners(p.222)
- • Significant increase in short-term borrowings(p.232)
- • High debt-to-equity ratio approaching 1:1(p.215)
- • Negative operating cash flow in FY 2023-24(p.231)
- • Geographic concentration with 89.74% revenue from Gujarat(p.225)
- • Severe revenue concentration with top customers creating dependency risk(p.234)
- • High supplier concentration creating procurement vulnerability(p.234)
- • Multiple ongoing GST tax demands across states(p.237)
- • Direct income tax investigation for contentious purchases(p.239)
- • Outstanding TDS defaults accumulated over multiple years(p.240)
- • Debt exceeds equity with Total Debt/Shareholders Fund ratio of 1.01(p.235)
- • India's National Infrastructure Pipeline (NIP) and government focus on water infrastructure development(p.23)
- • Expansion into multiple states and diverse project segments beyond core water supply business(p.21)
- • Growing demand for water and sanitation infrastructure as India develops(p.23)
- • India projected as fastest-growing major economy providing sustained infrastructure investment(p.22)
- • Geographic expansion into multiple states(p.86)
- • Diversification into multiple infrastructure segments(p.86)
- • Operations & maintenance services expansion(p.86)
- • India's infrastructure push with ₹10 lakh crore (US$122 billion) capital investment allocated in Budget 2023-24(p.115)
- • National Infrastructure Pipeline with 9,142 projects covering 34 sub-sectors and $1.9 trillion investment potential(p.115)
- • Jal Jeevan Mission to provide household tap connections to all rural areas by 2024(p.117)
- • AMRUT 2.0 scheme with ₹2,99,000 crore outlay over 5 years for urban water supply and sewerage(p.118)
- • India projected as fastest-growing major economy with 7% growth and infrastructure as key enabler(p.114)
- • Expansion into non-metro Tier II and III cities with blurring divide between metro and non-metros(p.119)
- • Expanding geographic presence across India(p.221)
- • Backward integration in water infrastructure projects(p.221)
- • Growth in water pipeline construction segment(p.224)
- • Operations and maintenance services for infrastructure(p.221)
- • Entry into new project categories(p.224)
- • Potential for migration to NSE Main Board upon meeting capital and profitability criteria(p.266)
- • Strong infrastructure project pipeline in water, irrigation and road construction sectors(p.234)
- • Capital raised through IPO can support business expansion and debt reduction(p.249)
- • Intense competition in low-barrier construction sector with numerous national and local competitors(p.33)
- • Risk of material price and labour cost escalation beyond contractual escalation provisions(p.34)
- • Project execution risks including delays, cost overruns, and unforeseen implementation challenges(p.32)
- • Dependence on government tender processes with no assurance of contract awards despite qualification(p.31)
- • Global economic slowdown and tightening monetary conditions affecting India's growth(p.21)
- • Outstanding tax litigation of ₹155.70 Lakhs and contingent liabilities related to bank guarantees(p.25)
- • Regulatory and licensing renewal risks including need to update approvals following conversion to public company(p.34)
- • COVID-19 pandemic and future pandemic risks to operations(p.47)
- • Environmental regulation stringency increases(p.48)
- • Interest rate fluctuation risks(p.48)
- • Tax policy changes and regulatory compliance risks(p.48)
- • Global economic and political instability(p.49)
- • Natural calamities and weather extremities(p.49)
- • Global economic slowdown with global growth projected at 2.4% in 2024, marking third consecutive year of deceleration(p.108)
- • Geopolitical risks including Middle East conflict heightening uncertainty in commodity markets(p.108)
- • Elevated inflation remaining above target with global inflation projected above 2015-19 average beyond 2024(p.108)
- • Global trade weakness with goods trade contracting and slowest expansion outside recessions in past 50 years(p.110)
- • Supply chain disruptions from Red Sea attacks and geopolitical tensions affecting logistics costs(p.110)
- • Restrictive trade policies and reshoring affecting supply chain efficiency(p.110)
- • Highly competitive market with minimal entry barriers intensifying competition(p.136)
- • Dependence on government infrastructure projects(p.221)
- • Project execution and cost overrun risks(p.222)
- • Natural calamities and force majeure events(p.222)
- • Political stability and regulatory changes(p.222)
- • Material price volatility(p.222)
- • General economic and competitive pressures(p.222)
- • Business not seasonal but subject to project-award dependency and cyclicality(p.234)
- • Regulatory compliance risks with multiple ongoing GST disputes across states(p.237)
- • Exposure to fluctuating material costs and input price inflation(p.233)
- • Foreign exchange volatility exposure despite primary India operations(p.233)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajagopal Reddy Annam Reddy | Promoter / Chairman, Managing Director & CEO | 43.18% | 31.06% |
| Mrs. Mydhili Rajagopal Reddy | Promoter / Whole-time Director | 33.18% | 23.87% |
| Mr. Nageswara Rao Repuri | Promoter / Chief Financial Officer / Whole-time Director | 10.00% | 7.19% |
| Mr. Rajagopal Reddy Annam Reddy | Promoter | 43.18% | 31.06% |
| Mrs. Mydhili Rajagopal Reddy | Promoter | 33.18% | 23.87% |
| Mr. Nageswara Rao Repuri | Promoter | 10.00% | 7.19% |
| Mr. Radha Krishna Reddy Annam Reddy | Promoter Group | 4.55% | 3.27% |
| Rajagopal Reddy Annam Reddy | Promoter/Chairman and Managing Director | — | — |
| Mydhili Rajagopal Reddy | Promoter | — | — |
| Nageswara Rao Repuri | Promoter | — | — |
| Mr. Rajagopal Reddy Annam Reddy | Promoter | 43.18% | — |
| Mrs. Mydhili Rajagopal Reddy | Promoter | 33.18% | — |
| Mr. Nageswara Rao Repuri | Promoter | 10.00% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.