Vruddhi Engineering Works
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Mar 2024 – 28 Mar 2024
- Listing date
- 03 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹4.76 Cr
- Market cap at offer price
- ₹17.67 Cr
- Promoter holding
- 98.63% → 72.05% pre-issue → post-issue
- ISIN
- INE0OMZ01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Office No 603, 6th Floor, Cello-The Plaza, V P Road, Vile Parle West, 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 | 36,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
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 (₹) | 4.09 | 2.99 |
| P/E (×) | 17.11 | 23.41 |
| Price to book (×) | 0.10 | — |
| Market cap | — | ₹17.67 Cr |
Key performance indicators
- Return on net worth
- 16.20%
- ROCE
- 15.53%
- Debt / equity
- 1.19
- PAT margin
- 4.38%
- NAV per share
- ₹399.67
- Price to book
- 0.10
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vruddhi Engineering Works
Vruddhi Engineering Works Limited, incorporated on October 27, 2020, is engaged in offering mechanical splicing solutions to the real estate, construction and infrastructure industry by designing, engineering and supplying of rebar couplers. The company's offering includes supply of rebar couplers as per customer needs, on-site threading services, and trading in threading machines and spares. The company believes it offers an end-to-end mechanical splicing solutions ranging from design, manufacturing, testing, logistics and rebar threading, positioning rebar couplers as an alternative to conventional splicing methods in construction.
Company Analysis
from RHPVruddhi Engineering Works Limited designs, manufactures, and supplies mechanical rebar couplers for the real estate, construction, and infrastructure industries.
Vruddhi Engineering Works Limited, incorporated on October 27, 2020, is engaged in offering mechanical splicing solutions to the real estate, construction and infrastructure industry by designing, engineering and supplying of rebar couplers. The company's offering includes supply of rebar couplers as per customer needs, on-site threading services, and trading in threading machines and spares. The company believes it offers an end-to-end mechanical splicing solutions ranging from design, manufacturing, testing, logistics and rebar threading, positioning rebar couplers as an alternative to conventional splicing methods in construction.
Objects of the Issue
- Funding the working capital requirements of our Company ₹260.00 lakhs p.25
- General corporate purposes p.25
- To meet working capital requirements Up to ₹260.00 lakhs p.72
- General Corporate Purpose p.74
- —
Issue Structure
- Total Issue
- ₹476.00 lakhs
- Fresh Issue
- Up to ₹476.00 lakhs
- Offer for Sale
- N.A.
- Price Band
- ₹66 (Floor Price) to ₹70 (Cap Price)
- Lot Size
- 2,000 equity shares and in multiples thereof
- Face Value
- ₹10.00 per equity share
Business Model
The company operates as a trading and manufacturing company engaged in the sale and distribution of rebar couplers and steel products. It procures rebar couplers from third-party manufacturers based on quality and technical specifications, supplies them to customers in construction, real estate and infrastructure sectors, and also provides on-site threading services and trades in threading machines and spares.
Business Segments
SWOT Analysis
- • Diversified customer base(p.78)
- • Diversified and established product portfolio(p.78)
- • Quality assurance systems in place(p.78)
- • Experienced promoter and director with extensive domain knowledge(p.78)
- • Diversified and established product portfolio across construction verticals(p.108)
- • ISO certifications demonstrating quality and safety compliance(p.101)
- • Experienced promoter with over 5 years in steel industry(p.100)
- • Well-diversified customer base reducing single-customer dependency(p.108)
- • Strong quality assurance through rigorous testing protocols(p.109)
- • End-to-end mechanical splicing solutions from design to installation(p.100)
- • Revenue growth trajectory from ₹0.44 Lakh (FY2021) to ₹1,307.69 Lakh (FY2023), representing 49,611% growth over two years(p.179)
- • Strong profitability in recent periods with PAT of ₹75.34 Lakhs (FY2023) and positive return on equity of 35.51%(p.175)
- • Positive EBITDA margins of 10.33% in FY2023 indicating operational efficiency(p.175)
- • Early-stage company with limited operational history(p.32)
- • High supplier concentration risk(p.32)
- • Negative operating cash flows in prior periods(p.33)
- • Loss in first year of operation(p.33)
- • No long-term supply agreements(p.32)
- • Unsecured loans repayable on demand(p.33)
- • Rented premises without ownership security(p.34)
- • High customer concentration(p.37)
- • Trademark application objected(p.32)
- • Related party revenue concentration(p.32)
- • Statutory non-compliance issues(p.36)
- • High dependence on short-term borrowings(p.48)
- • Significant trade receivables concentration(p.48)
- • Limited operating history and scale compared to peers(p.81)
- • Negative cash flow from operations in prior years(p.50)
- • Heavy concentration in top customer base creating customer dependency(p.108)
- • Minimal insurance coverage exposing to operational risks(p.112)
- • Reliance on third-party manufacturers for rebar coupler production(p.104)
- • Small employee base limiting operational flexibility(p.112)
- • Significant working capital requirements from dependence on credit terms(p.111)
- • Significant customer concentration with top 10 customers accounting for 95.27% of revenue as of September 2023(p.181)
- • High supplier concentration with top 10 suppliers representing 65.03% of purchases(p.181)
- • Significant increase in finance costs from ₹0.10 Lakh (FY2022) to ₹14.04 Lakhs (FY2023), a 14,093% increase(p.179)
- • High debt-to-equity ratio of 1.19 as of September 30, 2023(p.186)
- • Trade receivables aging showing ₹9.08 Lakhs overdue 6 months to 1 year and ₹3.12 Lakhs overdue 1-2 years as of September 30, 2023(p.161)
- • Provision for doubtful debts of ₹7.66 Lakhs indicating collection risk(p.162)
- • Growing construction and real estate sector demand(p.25)
- • Infrastructure development as key growth enabler(p.25)
- • Offer end-to-end mechanical splicing solutions(p.25)
- • Potential for geographic expansion(p.34)
- • Working capital expansion to support incremental business growth(p.71)
- • Listing on BSE SME platform to enhance corporate visibility and brand recognition(p.71)
- • Strong government infrastructure investment initiatives creating sector tailwinds(p.90)
- • Growing demand for construction materials and steel products(p.88)
- • Migration to Main Board contingent on capital growth(p.58)
- • Expand market share through domestic geographic penetration(p.109)
- • Pursue export and international market expansion(p.109)
- • Cross-selling and upselling to existing customer base through product diversification(p.109)
- • Develop advanced, technology-driven products for higher margins(p.109)
- • Capitalize on construction industry growth and innovation(p.109)
- • Revenue growth opportunity demonstrated by 492.65% increase from FY2022 (₹220.65 Lakhs) to FY2023 (₹1,307.69 Lakhs)(p.178)
- • Access to public capital markets through IPO on SME Platform to fund growth and reduce leverage(p.186)
- • Post-issue capital structure allowing debt reduction from ₹301.90 Lakhs pre-offer(p.186)
- • Cyclical nature of steel industry(p.33)
- • Monsoon season impact on construction demand(p.33)
- • Dependence on Indian economic growth(p.40)
- • Volatile commodity prices and FX fluctuations(p.41)
- • Regulatory and policy changes(p.41)
- • Disease outbreak disruptions(p.40)
- • Terrorism and geopolitical risks(p.41)
- • License and permit renewal risks(p.31)
- • Volatility in steel product prices and input costs affecting margins(p.71)
- • Competition from larger established steel trading and coupler companies(p.80)
- • Dependence on proprietary business acquisition for growth trajectory(p.82)
- • High promoter concentration creates governance risk(p.66)
- • Regulatory changes in GST and income tax affecting business economics(p.87)
- • Intense competition from organized and unorganized players(p.111)
- • Exposure to global commodity price and FX fluctuations(p.111)
- • Regulatory compliance and licensing requirements(p.115)
- • Dependence on credit availability and banking relationships(p.159)
- • Industry cyclicality tied to construction sector performance(p.100)
- • Dependency on limited customer base creates risk of significant revenue loss if top customers reduce purchases(p.174)
- • Market demand and supply volatility affecting business performance(p.174)
- • Competition from existing and new companies affecting revenues and profitability(p.174)
- • Macroeconomic sensitivity and political risks to Indian business operations(p.174)
- • Exposure to natural and man-made disasters affecting operations(p.174)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bindi Kunal Mehta | Promoter | 96.34% | — |
| Vedant Mukesh Mehta | Promoter Group | 0.27% | — |
| Jahanvi Hardik Doshi | Promoter Group | 0.82% | — |
| Varsha Mukesh Mehta | Promoter Group | 0.55% | — |
| Mukesh Pranlal Mehta | Promoter Group | 0.55% | — |
| Kunal Hemant Mehta | Promoter Group | 0.09% | — |
| Bindi Kunal Mehta | Promoter | 96.34% | — |
| Vedant Mukesh Mehta | Promoter Group | 0.27% | — |
| Jahanvi Hardik Doshi | Promoter Group | 0.82% | — |
| Varsha Mukesh Mehta | Promoter Group | 0.55% | — |
| Mukesh Pranlal Mehta | Promoter Group | 0.55% | — |
| Kunal Hemant Mehta | Promoter Group | 0.09% | — |
| Bindi Kunal Mehta | Promoter | 96.34% | — |
| Bindi Kunal Mehta | Promoter/Director | — | — |
| Vedant Mukesh Mehta | 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.