V-Marc India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Mar 2021 – 31 Mar 2021
- Listing date
- 09 Apr 2021
- Face value
- ₹10 per share
- Issue price
- ₹39 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹23.40 Cr
- Market cap at offer price
- ₹88.86 Cr
- Promoter holding
- 94.97% → 69.96% pre-issue → post-issue
- ISIN
- INE0GXK01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Pantomath Capital Advisors Pvt.Ltd.
- Registered office
- Plot No.3, 4, 18, 20A, Sector IIDC, SIDCUL, Uttarakhand
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,00,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹39
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,17,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,34,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,36,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,53,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹88.86 Cr |
About V-Marc India SME
V-Marc India Limited is engaged in manufacturing and marketing of wires and cables under the brand name 'V-Marc'. The Company's Promoter Vikas Garg commenced business in a partnership firm in 2006 as a manufacturer and distributor of PVC insulated wires and cables. Over the years, the Company has evolved, expanded and diversified to become an established manufacturer of wires and cables with a total income of ₹17,164.44 lakhs in Fiscal 2020. The Company manufactures and sells a diverse range of wires and cables including single & multistrand cables, CCTV cables, LAN cables, coaxial cables, telephone switchboard cables, power cables (LT and HT cables upto 33kv grade), flexible & control cables, core flat cables, solar cables, wires and aerial bunched cables. The Company sells its products through a diversified sales & distribution mix, majorly by securing government tenders for supply to government projects, supply to EPC contractors for turnkey projects, and through its dealer & distribution network and direct sales to private companies.
Company Analysis
from RHPV-Marc India Limited manufactures and markets wires and cables for power distribution, telecommunications, and industrial applications across India.
V-Marc India Limited is engaged in manufacturing and marketing of wires and cables under the brand name 'V-Marc'. The Company's Promoter Vikas Garg commenced business in a partnership firm in 2006 as a manufacturer and distributor of PVC insulated wires and cables. Over the years, the Company has evolved, expanded and diversified to become an established manufacturer of wires and cables with a total income of ₹17,164.44 lakhs in Fiscal 2020. The Company manufactures and sells a diverse range of wires and cables including single & multistrand cables, CCTV cables, LAN cables, coaxial cables, telephone switchboard cables, power cables (LT and HT cables upto 33kv grade), flexible & control cables, core flat cables, solar cables, wires and aerial bunched cables. The Company sells its products through a diversified sales & distribution mix, majorly by securing government tenders for supply to government projects, supply to EPC contractors for turnkey projects, and through its dealer & distribution network and direct sales to private companies.
Objects of the Issue
- Funding capital expenditure for setting up proposed new manufacturing facility at Roorkee, Uttarakhand ₹1,500.00 lakhs p.18
- Funding the working capital requirements of our Company ₹500.00 lakhs p.18
- General corporate purposes ₹462.96 lakhs p.18
- Funding capital expenditure for the Project - installation of a new Catenary Continuous Vulcanization (CCV) line to manufacture high voltage cables and expand existing installed capacities ₹1,500.00 lakhs p.73
- Funding the working capital requirements of our Company ₹500.00 lakhs p.73
- General corporate purposes ₹462.96 lakhs p.73
- Setting up a new state-of-the-art manufacturing facility with installation of Catenary Continuous Vulcanization (CCV) line to manufacture high voltage cables produced by dry/nitrogen gas cure technology and to increase installed capacities for existing product portfolio p.108
- Funding capex for new manufacturing facility with additional installed capacity and installation of CCV Technology p.184
- General corporate purposes
Issue Structure
- Total Issue
- Up to ₹2,340.00 lakhs
- Fresh Issue
- Up to 60,00,000 equity shares at ₹39 per share aggregating up to ₹2,340.00 lakhs
- Price Band
- ₹37 (Floor Price) to ₹39 (Cap Price)
- Lot Size
- 3,000 Equity shares and in multiples of 3,000 Equity Shares thereafter
- Face Value
- ₹10 per equity share
Business Model
The Company generates revenue through three main channels: (1) securing government tenders for supply to government projects; (2) supplying to EPC contractors for turnkey projects; and (3) sales through its dealer & distribution network and direct sales to private companies. The Company manufactures wires and cables and sells them to various customer segments including government entities, PSU companies, EPC contractors, and private companies.
Business Segments
SWOT Analysis
- • Established manufacturer with 15+ years of heritage in wires and cables(p.17)
- • Diverse product portfolio across multiple cable segments(p.17)
- • Products certified to BIS and international quality standards(p.17)
- • Diversified sales and distribution channels including government, EPC contractors, and dealer network(p.17)
- • Backward integration through group company reduces raw material supply dependence(p.23)
- • Wide product portfolio with quality focus and diversified client base(p.84)
- • Established distribution network(p.84)
- • Experienced management and dedicated employee base(p.84)
- • Wide product portfolio with focus on quality and established manufacturing capacity(p.107)
- • Quality certifications and in-house quality control infrastructure(p.107)
- • Diversified customer base across multiple industries and geographies reducing concentration risk(p.107)
- • Established dealer and distribution network across 12 states with 650+ dealers(p.108)
- • Experienced management team with 20+ years industry expertise(p.108)
- • Recognition as MSME Unit of the Year and NPC award(p.106)
- • Established manufacturing presence with two operational facilities in Haridwar and significant installed capacity expansion planned(p.184)
- • Diversified distribution network with 650+ authorized dealers across 12 states and established government contracting track record(p.184)
- • Quality certifications demonstrating manufacturing standards and compliance(p.184)
- • Positive financial performance with revenue and EBITDA CAGR growth between 2018-2020(p.184)
- • High dependence on limited number of suppliers for raw materials(p.22)
- • No long-term agreements with raw material suppliers; reliance on spot purchases(p.22)
- • High concentration of revenue from limited customer base(p.30)
- • Significant dependence on government and PSU contracts with unpredictable award timing(p.30)
- • Manufacturing facilities concentrated in single location (Haridwar)(p.24)
- • Substantial litigations pending against the company(p.19)
- • Trademark assignment still pending; brand not fully protected(p.31)
- • Low capacity utilization of existing manufacturing facility(p.38)
- • Declining revenue trend in recent periods(p.50)
- • High debt burden with significant short-term borrowings(p.49)
- • Low cash and cash equivalents position(p.49)
- • Declining profitability trend(p.50)
- • High concentration of promoter shareholding creating governance risk(p.144)
- • Declining capacity utilization in recent periods(p.114)
- • Significant inventory holdings exposed to obsolescence and market fluctuation risk(p.115)
- • Dependence on few major customer categories (government and EPC contractors)(p.115)
- • Long-term and short-term borrowing obligations creating financial leverage(p.157)
- • Trademark registration still pending for primary brand(p.118)
- • Significant dependence on limited number of customers for revenue generation(p.197)
- • High reliance on a single supplier for raw materials - 54.66% of total raw material purchases from related party V-Marc Electricals(p.190)
- • Substantial debt burden with total borrowings of ₹5,062.77 lakhs as at December 31, 2020(p.195)
- • Pending trademark assignment and registration creating intellectual property uncertainty(p.211)
- • Multiple outstanding income tax demands and liabilities indicating tax compliance challenges(p.187)
- • Wires and cables industry projected to grow at 11% CAGR to reach ₹1,000-1,100 Billion by FY 2023-24(p.17)
- • India has become net exporter of cables and wires with 12% double-digit annual growth (2009-2019)(p.17)
- • Growing share of organized players from 68% (FY 2018-19) to expected 79% by FY 2023-24(p.17)
- • Government policies and schemes driving growth in electrification, housing, and smart cities(p.17)
- • Expansion into new geographic markets beyond current 72.53% concentration in three states(p.25)
- • Setup of new manufacturing facility with advanced CCV technology and higher capacity (11,520 km p.a.)(p.25)
- • India's renewable energy expansion and 227 GW capacity target by 2022(p.102)
- • Growth of wires and cables sector driven by government infrastructure spending(p.105)
- • Expanding market share for organized cable players(p.104)
- • Smart Cities Mission creating infrastructure demand(p.105)
- • Rural electrification schemes driving wires and cables demand(p.104)
- • High voltage and extra high voltage cable market expansion opportunity(p.105)
- • Expansion into higher-value HT cable segment via new CCV technology facility(p.108)
- • Penetration of under-served Tier-2, Tier-3 cities and rural markets(p.109)
- • Geographic expansion into under-penetrated states (Haryana, Himachal Pradesh, Jammu & Kashmir)(p.109)
- • International market expansion through dealer and agent network(p.109)
- • Brand strengthening through marketing and advertising initiatives(p.109)
- • Planned capacity expansion through new manufacturing facility with CCV technology to increase production capabilities(p.184)
- • Government infrastructure initiatives creating expanding market opportunities for government tenders(p.191)
- • Geographic expansion potential with current supply coverage across 21 states and room for growth(p.184)
- • Diversification of product portfolio with specialized cable offerings for multiple industries(p.184)
- • Volatility in raw material prices linked to commodity markets and crude oil prices(p.22)
- • Intense competition in fragmented wires and cables industry from larger, better-resourced competitors(p.28)
- • Risk of power supply shortage and fuel availability affecting manufacturing(p.29)
- • Government contract awards are competitive and unpredictable with pre-qualification requirements(p.30)
- • Exposure to liquidated damages and performance guarantees on government and EPC contracts(p.30)
- • Geographic concentration risk with both existing and proposed facilities in Uttarakhand(p.36)
- • COVID-19 pandemic poses ongoing risk to operations, supply chain, and customer demand(p.27)
- • Regulatory approvals pending for proposed manufacturing facility(p.29)
- • Global economic downturn and currency fluctuations could adversely impact business(p.44)
- • Indian infrastructure inadequacy affecting business operations(p.45)
- • Foreign investment restrictions limiting access to international capital(p.45)
- • India's sovereign credit rating downgrades impacting borrowing costs(p.45)
- • Natural disasters and pandemic risks disrupting operations(p.45)
- • Rising inflation eroding margins if unable to pass costs to customers(p.47)
- • Global financial market volatility affecting Indian economy and markets(p.47)
- • Changing tax laws and regulatory uncertainties(p.46)
- • Global economic slowdown and manufacturing sector weakness(p.97)
- • Cyclical dependence on government projects and tenders subject to policy changes(p.115)
- • Exposure to raw material price volatility affecting margins(p.114)
- • Significant power consumption creating operating cost exposure(p.115)
- • Fragmented and competitive industry with larger organized players(p.116)
- • Dependence on single geographic location (Haridwar) for manufacturing creating operational risk(p.114)
- • Insurance coverage gaps for product liability and business interruption(p.117)
- • COVID-19 pandemic impact on operations and demand(p.107)
- • Increasing competition from domestic and international manufacturers potentially impacting market position and pricing(p.197)
- • Volatility in raw material costs affecting profitability and operating margins(p.185)
- • Customer payment defaults and delayed collections impacting cash flow(p.185)
- • Regulatory restrictions on borrowing and covenant requirements limiting operational flexibility(p.195)
- • COVID-19 pandemic continuing to impact business activity and market conditions(p.181)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vikas Garg | Promoter | 75.02% | — |
| Meenakshi Garg | Promoter | 19.95% | — |
| Vikas Garg | Promoter | 75.02% | 55.26% |
| Meenakshi Garg | Promoter | 19.95% | 14.70% |
| Vikas Garg | Promoter | 75.02% | 55.26% |
| Meenakshi Garg | Promoter | 19.95% | 14.70% |
| Vikas Garg | Promoter / Managing Director | — | — |
| Meenakshi Garg | Promoter / Director | — | — |
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.