Vilas Transcore
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 May 2024 – 29 May 2024
- Listing date
- 03 Jun 2024
- Face value
- ₹10 per share
- Issue price
- ₹147 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹95.26 Cr
- Market cap at offer price
- ₹360 Cr
- Promoter holding
- 99.51% → 73.17% pre-issue → post-issue
- ISIN
- INE0AZY01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Plot No 435 To 437, Nr Galaxy Hotel, N H, No 8, Village Por, 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 | 18,45,000 | — | — |
| Market maker | 3,26,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹147
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,47,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,94,000 |
| S-HNI (max) | 6 | 6,000 | ₹8,82,000 |
| B-HNI (min) | 7 | 7,000 | ₹10,29,000 |
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 (₹) | 11.20 | 8.93 |
| P/E (×) | 13.13 | 16.46 |
| Price to book (×) | 0.00 | — |
| Market cap | — | ₹360 Cr |
Key performance indicators
- Return on net worth
- 12.24%
- ROCE
- 16.10%
- Debt / equity
- 0.03
- PAT margin
- 7.12%
- NAV per share
- ₹76.25
- Price to book
- 0.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vilas Transcore
Incorporated in 2006 and converted to a public company in 2011, Vilas Transcore Limited is engaged in the manufacturing and supply of components for the power distribution and transmission sector. The company manufactures CRGO (Cold Rolled Grain Oriented) electrical laminations, cores, slit coils, stacked assembled cores, wound cores, and toroidal cores primarily for transformer manufacturers. The business was transferred from a proprietorship firm M/s Vilas Transcore (owned by promoter Nilesh Jitubhai Patel) in 2007 as a going concern. The company generates revenue by supplying these precision components to transformer manufacturers and generates the majority of its revenue from CRGO electrical lamination products, which account for more than 75% of sales revenue.
Company Analysis
from RHPVilas Transcore Limited manufactures and supplies electrical lamination cores and coils for power transformers, distribution transformers, and transmission equipment used in the power distribution and transmission sector in India and abroad.
Incorporated in 2006 and converted to a public company in 2011, Vilas Transcore Limited is engaged in the manufacturing and supply of components for the power distribution and transmission sector. The company manufactures CRGO (Cold Rolled Grain Oriented) electrical laminations, cores, slit coils, stacked assembled cores, wound cores, and toroidal cores primarily for transformer manufacturers. The business was transferred from a proprietorship firm M/s Vilas Transcore (owned by promoter Nilesh Jitubhai Patel) in 2007 as a going concern. The company generates revenue by supplying these precision components to transformer manufacturers and generates the majority of its revenue from CRGO electrical lamination products, which account for more than 75% of sales revenue.
Objects of the Issue
- Funding for strategic investment and acquisitions ₹500.00 lakhs p.22
- Funding Capital Expenditure towards construction of factory building ₹2009.87 lakhs p.22
- Funding capital expenditure towards acquisition and installation of additional plant and machinery ₹4520.71 lakhs p.22
- General Corporate Purpose p.22
- Funding for strategic investment and acquisitions ₹500.00 lakhs p.70
- Funding Capital Expenditure towards construction of factory building ₹2009.87 lakhs p.71
- Funding capital expenditure towards acquisition and installation of additional plant and machinery ₹4520.71 lakhs p.72
- General Corporate Purpose [●] p.74
- To meet issue expenses [●] p.70
- —
Issue Structure
- Total Issue
- ₹[●] lakhs (upto 64,80,000 Equity Shares)
- Fresh Issue
- upto 64,80,000 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] per Equity Share (to be determined)
- Lot Size
- [●]
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and supplies electrical lamination cores and coils to power transformer, distribution transformer, and current transformer manufacturers. Revenue is generated through the sale of CRGO lamination cores, CRGO slit coils, CRGO stacked cores, CRGO wound cores, and CRGO Toroidal cores. The business relies on purchase orders from customers rather than long-term supply agreements. Major customers include transformer manufacturers, with the top customer (Voltamp Transformers Limited) representing 41.93% of revenues as of December 31, 2023.
Business Segments
SWOT Analysis
- • Established manufacturer with 18-year operating history(p.22)
- • Diversified product portfolio across CRGO lamination applications(p.22)
- • Strong financial performance with consistent profitability(p.23)
- • Established market position in transformer components with 3 decades of promoter experience(p.97)
- • Strong revenue growth: 113% CAGR from FY2021 to FY2023(p.96)
- • Low debt and strong balance sheet with net worth of Rs. 13,725.33 lakhs as of December 31, 2023(p.98)
- • ISO 9001:2015 certified with Power Grid approval for up to 400 kV current transformers(p.97)
- • Diversified customer base with repeat orders; over 60% revenue from repeated customers(p.99)
- • Installed manufacturing capacity of 12,000 MT across two facilities near Vadodara(p.97)
- • Long-term customer relationships built over years with vendor lock-in effects(p.102)
- • Quality standards, competitive pricing, and customized solutions create barriers to entry(p.102)
- • Experience in design, research, engineering, and ability to meet customer requirements differentiate from competitors(p.102)
- • Promoter has 27 years of experience in transformer lamination and electrical industry(p.129)
- • Strong profitability record with consistent growth(p.139)
- • Established market presence and customer relationships with major transformer manufacturers(p.177)
- • Strong revenue growth trajectory (45.96% CAGR FY2021-FY2023)(p.177)
- • ISO 9001:2015 certified with approval for Power Grid projects(p.177)
- • Low financial leverage with strong balance sheet(p.163)
- • Experienced promoter with ~three decades of business experience(p.178)
- • Modern manufacturing infrastructure with latest machinery and dual facilities(p.177)
- • Heavy dependence on single key customer(p.29)
- • Concentration among top five customers(p.29)
- • No long-term firm supply agreements with customers(p.30)
- • Over-reliance on single product category(p.34)
- • Pending historical liabilities to Micro and Small Enterprises(p.34)
- • Promoter involved with struck-off company(p.34)
- • Outstanding litigation involving company and promoter(p.36)
- • Unregistered lease for planned expansion facility(p.31)
- • High customer concentration: top 5 customers represent 54.8% of revenue in December 2023(p.99)
- • EBITDA margins declining: from 10.93% in FY2022 to 9.34% in December 2023(p.94)
- • Capacity utilization at 91.53% in December 2023, down from 83.99% in FY2022(p.102)
- • PAT margin compression from 7.69% in FY2022 to 7.12% in December 2023(p.94)
- • High dependence on domestic market with minimal export exposure(p.102)
- • Limited insurance coverage excludes product liability and third-party claims(p.103)
- • Proposed expansion facility is leased on unregistered agreement with limited tenure(p.103)
- • Trademark applications have been objected(p.103)
- • High customer concentration with top 5 customers accounting for 65-78% of revenues(p.185)
- • Dependence on single largest customer for significant revenue portion(p.178)
- • Operational concentration in single geographic location(p.177)
- • Declining profitability margins despite revenue growth(p.178)
- • Outstanding litigation and contingent liabilities including criminal proceedings(p.188)
- • India's expanding power generation capacity and electrification(p.22)
- • Continued household electrification under government schemes(p.22)
- • Expansion of manufacturing facilities(p.30)
- • Strategic investments and acquisitions planned(p.22)
- • Expanding manufacturing capacity via new factory building and machinery worth Rs. 6,530.58 lakhs(p.70)
- • India's renewable energy capacity adding 15.5 GW annually, driving transformer demand(p.89)
- • India's power generation projected to grow; target of 1,750 BU for FY24(p.91)
- • Strategic investment and acquisition funding of Rs. 500 lakhs to pursue complementary growth(p.70)
- • Outsourcing trend: transformer manufacturers increasing reliance on component suppliers(p.99)
- • Government commitment to 500 GW renewable energy target by 2026(p.90)
- • Geographic expansion strategy to strengthen customer relationships(p.102)
- • Rate contracts provide stability and enable faster customer order fulfillment(p.102)
- • Case-to-case customer engagement allows for tailored offerings and relationship building(p.102)
- • Approval from Powergrid for sourcing Toroidal Cores for Current Transformers up to 400 KV(p.111)
- • Growing power sector demand and infrastructure investment(p.177)
- • Expansion of customer base through new transformer manufacturers(p.177)
- • Capacity expansion potential with 12000 MT combined installed capacity(p.177)
- • Export market growth opportunity(p.171)
- • Product diversification in specialized transformer cores and applications(p.177)
- • Economic cyclicality in power distribution sector(p.31)
- • Pricing pressure from customers(p.30)
- • Intense competition in the industry(p.33)
- • Rapid technological change and evolving customer requirements(p.31)
- • Supply chain disruptions and raw material volatility(p.34)
- • Dependency on third-party logistics providers(p.33)
- • Macroeconomic and geopolitical risks(p.44)
- • Regulatory and compliance changes(p.44)
- • Dependence on imported raw materials: 39.33% of FY2023 procurement from overseas(p.102)
- • Global growth deceleration forecast to 2.4% in 2024, down from 2.6% in 2023(p.87)
- • China's growth slowdown and property sector downturn affecting global demand(p.87)
- • Elevated global commodity prices and supply chain risks from geopolitical tensions(p.88)
- • Tight global financial conditions and elevated borrowing costs constraining growth(p.87)
- • Cyclicality of transformer and power equipment industries tied to infrastructure investment cycles(p.93)
- • Extremely competitive precision components manufacturing industry with difficult long-term competitive landscape prediction(p.102)
- • Manufacturing operations subject to inherent accidents and force majeure risks(p.103)
- • Competition based on macroeconomic factors, quality, design, price, and delivery(p.102)
- • Capital-intensive business with complex technology acts as competitive dynamic for existing players(p.102)
- • Industry cyclicality and economic sensitivity(p.178)
- • Intense competition in transformer component manufacturing(p.186)
- • Foreign exchange and import price volatility(p.170)
- • Regulatory changes and compliance requirements(p.178)
- • Supply chain disruptions and raw material availability(p.183)
- • Global economic and pandemic-related risks(p.179)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nilesh Jitubhai Patel | Promoter | 99.30% | 73.01% |
| Natasha Nilesh Patel | Promoter | 0.21% | 0.16% |
| Mr. Nilesh Jitubhai Patel | Promoter | 99.30% | 73.01% |
| Ms. Natasha Nilesh Patel | Promoter Group | — | — |
| Tushar Somabhai Patel | Promoter Group | 0.18% | 0.13% |
| Nilesh Jitubhai Patel | Promoter | 99.30% | — |
| Natasha Nilesh Patel | Promoter | — | — |
| Nilesh Jitubhai Patel | Promoter/Chairman and Managing 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.