Virtuoso Optoelectronics SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Sep 2022 – 07 Sep 2022
- Listing date
- 15 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹56 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹30.24 Cr
- Market cap at offer price
- ₹114 Cr
- Promoter holding
- 100.00% → 73.51% pre-issue → post-issue
- ISIN
- INE0I0T01010
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Plot No.7, M.I.D.C., Satpur, Maharashtra
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 | 2,80,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹56
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 16,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 18,000 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.11 | — |
| P/E (×) | 18.01 | — |
| Market cap | — | ₹114 Cr |
Key performance indicators
- Return on net worth
- 18.53%
- Debt / equity
- 0.20
- PAT margin
- 1.97%
- NAV per share
- ₹14.19
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Virtuoso Optoelectronics SME
Virtuoso Optoelectronics Limited, incorporated on September 11, 2015 as a private company and converted to public limited on April 19, 2021, manufactures and assembles consumer durable goods and provides end-to-end product solutions. The company operates under both OEM and ODM business models. Under the ODM model, it conceptualizes, designs, and manufactures products marketed under customers' brands. The company's current product portfolio includes split air conditioners, LED lighting products, and miscellaneous products such as injection molding components for air conditioners. The company has developed ODM capabilities with respect to lighting products and small appliances and operates two manufacturing facilities in Nashik, Maharashtra.
Company Analysis
from RHPVirtuoso Optoelectronics Limited manufactures consumer durable goods including split air conditioners, LED lighting products, and injection molding components, serving customers through Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) business models.
Virtuoso Optoelectronics Limited, incorporated on September 11, 2015 as a private company and converted to public limited on April 19, 2021, manufactures and assembles consumer durable goods and provides end-to-end product solutions. The company operates under both OEM and ODM business models. Under the ODM model, it conceptualizes, designs, and manufactures products marketed under customers' brands. The company's current product portfolio includes split air conditioners, LED lighting products, and miscellaneous products such as injection molding components for air conditioners. The company has developed ODM capabilities with respect to lighting products and small appliances and operates two manufacturing facilities in Nashik, Maharashtra.
Objects of the Issue
- Funding the incremental working capital requirements of our Company ₹2040.00 Lakhs p.23
- General corporate purposes ₹678.60 Lakhs p.23
- Funding the incremental working capital requirements of our Company ₹2,040.00 Lakhs p.95
- General corporate purposes ₹678.60 Lakhs p.98
- Not explicitly stated in this section of the document
Issue Structure
- Total Issue
- ₹3024.00 Lakhs
- Fresh Issue
- 54,00,000 Equity Shares at ₹56/- per share, aggregating ₹3024.00 Lakhs
- Offer for Sale
- N.A.
- Price Band
- ₹56/- per Equity Share (Fixed Price)
- Lot Size
- 2000 Equity Shares
- Face Value
- ₹10.00 per Equity Share
Business Model
The company manufactures consumer durable goods and components under OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) models. Under the OEM model, customers provide specifications and sometimes identify suppliers, with raw material costs being pass-through items and conversion costs agreed upon prior to orders. Under the ODM model, the company manages the complete supply chain, conceptualizes product designs, and manufactures products for sale under customers' brand names.
Business Segments
SWOT Analysis
- • Experience and knowledge of Promoter spanning more than a decade(p.102)
- • Strong customer relationships with majority of leading brands(p.102)
- • Research & development and product design capabilities(p.102)
- • Track record of financial performance with growing profitability(p.102)
- • Established manufacturing capabilities in consumer durables and ODM design(p.220)
- • Strong revenue growth trajectory(p.226)
- • Improved profitability and PAT growth(p.227)
- • Positive net worth and financial position(p.256)
- • Highly dependent on few key customers for significant revenue(p.31)
- • No long-term firm commitment agreements with customers(p.33)
- • Significant dependence on few suppliers(p.40)
- • Registered office premises not owned by company(p.35)
- • High dependence on senior management and promoter(p.35)
- • Product portfolio heavily concentrated in few product lines(p.35)
- • Promoter and promoter group will retain majority control post-IPO(p.43)
- • No alternate funding arrangements identified for project implementation(p.43)
- • High debt levels with significant borrowing requirements(p.95)
- • Low cash reserves and liquidity position(p.67)
- • Limited scale relative to industry peers(p.104)
- • High inventory concentration relative to assets(p.65)
- • Significant dependence on limited number of customers(p.229)
- • High debt burden with substantial interest costs(p.226)
- • Leverage ratio remains elevated post-issue(p.216)
- • Material contingent liabilities from EPCG scheme obligations(p.219)
- • Indian consumer durables market attracting global corporations(p.23)
- • Growing middle class and increasing disposable income in India(p.23)
- • Expansion of customer base through advanced technology products(p.42)
- • Government incentives through Production Linked Incentive Scheme(p.52)
- • Growing Indian consumer durables market expected to double by 2025(p.115)
- • Rising demand for white goods with air conditioner production projected to grow from 65 to 195 lakh units by 2025(p.115)
- • Government PLI scheme providing incentives for electronics manufacturing(p.125)
- • Expansion into new product segments within consumer electronics(p.102)
- • Expansion through new product lines and market segments(p.220)
- • Capital expenditure to enhance manufacturing capacity(p.208)
- • Access to working capital facilities supporting growth(p.209)
- • COVID-19 pandemic impact on business operations and demand(p.29)
- • Customer outsourcing trends may reverse(p.33)
- • Intense competition from other manufacturers and imports(p.36)
- • Volatility in raw material and component prices(p.37)
- • Seasonality in sales due to summer demand for ACs(p.46)
- • Economic downturn in consumer goods industry(p.45)
- • Regulatory and environmental compliance requirements(p.47)
- • Dependence on third-party suppliers for raw materials and delivery(p.48)
- • Regulatory uncertainties and policy changes affecting business operations(p.54)
- • Currency volatility and exchange rate fluctuations(p.54)
- • Macroeconomic risks including interest rate movements and inflation(p.54)
- • Competition from both domestic and international companies in consumer durables(p.113)
- • Risk of natural calamities and force majeure events disrupting operations(p.54)
- • Volatility in raw material prices and supply(p.221)
- • Dependence on customer payment for working capital continuity(p.221)
- • Competitive pressure and pricing challenges(p.221)
- • Ongoing impact of COVID-19 pandemic(p.222)
- • Capital-intensive business with high working capital requirements(p.221)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sukrit Bharati | Promoter | 97.83% | — |
| Vishrut Bharati | Promoter Group | 1.62% | — |
| Nikitha Poddatur | Promoter Group | 0.55% | — |
| Sukrit Bharati | Promoter | 97.83% | 71.91% |
| Vishrut Bharati | Promoter Group | 1.62% | 1.19% |
| Nikitha Poddatur | Promoter Group | 0.55% | 0.40% |
| Sukrit Bharati | Promoter | 97.83% | — |
| Sukrit Bharati | Promoter | — | — |
| Vishrut Bharati | Promoter | — | — |
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.