VVIP Infratech
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
- ₹93 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹61.21 Cr
- Market cap at offer price
- ₹232 Cr
- Promoter holding
- 92.34% → 68.00% pre-issue → post-issue
- ISIN
- INE0MNP01016
- Registrar
- Maashitla Securities Pvt.Ltd.
- Lead managers
- Share India Capital Services Pvt.Ltd.
- Registered office
- Fifth Floor, VVIP Style, Nh-58 Raj Nagar Extension, Uttar Pradesh
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 | 18,72,000 | — | — |
| Market maker | 3,38,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹93
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,11,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,23,200 |
| S-HNI (max) | 8 | 9,600 | ₹8,92,800 |
| B-HNI (min) | 9 | 10,800 | ₹10,04,400 |
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 (₹) | 11.26 | 8.29 |
| P/E (×) | 8.26 | 11.22 |
| Price to book (×) | 0.87 | — |
| Market cap | — | ₹232 Cr |
Key performance indicators
- Return on net worth
- 18.73%
- ROCE
- 19.00%
- Debt / equity
- 0.40
- PAT margin
- 7.31%
- NAV per share
- ₹107.22
- Price to book
- 0.87
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About VVIP Infratech
VVIP Infratech Limited (formerly Vibhor Vaibhav Infra Private Limited) was incorporated on August 10, 2001 and converted from private to public limited company on January 4, 2024. The company is a Class A civil and electrical contractor specializing in infrastructure development projects such as sewerage systems, sewerage treatment plants (STPs), water tanks, water treatment plants, sector development work, electrical distribution and substations up to 33 KVA, and Jal Jeewan Mission work. The company has constructed two 56 MLD STPs using Sequential Batch Reactor (SBR) technology in 2013. It operates on projects sourced through government or semi-government tenders and works as a principal contractor or sub-contractor on major projects including water and sanitation initiatives in Uttar Pradesh.
Company Analysis
from RHPVVIP Infratech Limited is a Class A civil and electrical contractor engaged in construction of water and sewerage infrastructure projects including treatment plants, distribution systems, and related installations.
VVIP Infratech Limited (formerly Vibhor Vaibhav Infra Private Limited) was incorporated on August 10, 2001 and converted from private to public limited company on January 4, 2024. The company is a Class A civil and electrical contractor specializing in infrastructure development projects such as sewerage systems, sewerage treatment plants (STPs), water tanks, water treatment plants, sector development work, electrical distribution and substations up to 33 KVA, and Jal Jeewan Mission work. The company has constructed two 56 MLD STPs using Sequential Batch Reactor (SBR) technology in 2013. It operates on projects sourced through government or semi-government tenders and works as a principal contractor or sub-contractor on major projects including water and sanitation initiatives in Uttar Pradesh.
Objects of the Issue
- Working Capital Requirement ₹4000.00 lakhs p.19
- Capital Expenditure ₹1049.78 lakhs p.19
- General Corporate Purpose p.19
- Capital Expenditure ₹1049.78 Lakhs p.87
- Working Capital Requirement ₹4000.00 Lakhs p.87
- General Corporate Purpose p.87
- Issue Expense p.87
- Not specified in this extract
Issue Structure
- Total Issue
- ₹[●] Lakhs (65,82,000 Equity Shares at ₹[●] per share)
- Fresh Issue
- 65,82,000 Equity Shares aggregating up to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹91 to ₹93 per share
- Lot Size
- 1200 equity shares (Bid Lot)
- Face Value
- ₹10 per share
Business Model
The company operates as a project-based civil and electrical contractor, executing infrastructure construction contracts awarded through competitive government tender methods. Revenue is generated from the execution and construction of infrastructure projects including sewerage systems, treatment plants, water supply systems, and electrical distribution work. The business model involves bidding for government tenders, executing projects either as principal contractor or sub-contractor (often through joint ventures), and fulfilling contractual obligations within specified timeframes and quality specifications. Income is derived from rendering construction services to government and semi-government entities.
Business Segments
SWOT Analysis
- • Class A civil and electrical contractor with established infrastructure project execution capabilities(p.19)
- • Proven technical expertise in wastewater treatment using advanced SBR technology(p.19)
- • Revenue growth trajectory with consolidated total income increasing from ₹18,526.04 lakhs (FY 2022) to ₹28,588.31 lakhs (FY 2024)(p.53)
- • Profitability improvement with consolidated PAT growing from ₹452.96 lakhs (FY 2022) to ₹2,071.23 lakhs (FY 2024)(p.54)
- • Strong net worth position with consolidated net worth of ₹11,061.17 lakhs as of March 31, 2024(p.21)
- • Strong revenue growth trajectory(p.98)
- • Improving profitability and margins(p.98)
- • Strong return on equity(p.98)
- • Improved capital efficiency(p.98)
- • Strong order book and project pipeline(p.95)
- • Experienced management team(p.95)
- • Strong order book and large project capacity(p.138)
- • Proven execution track record in large sewage treatment plants(p.138)
- • High eligibility for large single tenders(p.138)
- • Experienced team of qualified engineers and technicians(p.138)
- • Emphasis on quality, on-time delivery and competitive pricing(p.118)
- • Diverse infrastructure project portfolio across multiple sectors(p.186)
- • Strong revenue growth trajectory year-over-year(p.205)
- • Improved profitability with increasing net profit margins(p.190)
- • Positive operational cash generation(p.184)
- • Class A Civil & Electrical contractor with 20+ years of experience in infrastructure construction(p.284)
- • Strong order book and proven project execution capability(p.284)
- • Demonstrated revenue growth and improved profitability over three years(p.283)
- • Experience with advanced STP technology and construction of large-scale treatment plants(p.284)
- • Improved return on equity and capital efficiency(p.282)
- • Reduced financial leverage with declining debt-to-equity ratio(p.282)
- • High dependence on unsecured loans from directors repayable on demand, totaling ₹3,137 lakhs as of March 31, 2024(p.37)
- • Significant trade receivables representing 26.67% of total consolidated income (FY 2024), indicating customer payment delays(p.34)
- • Top ten suppliers contribute substantial portion of purchases (44% in Sept 2023, 53.43% in March 2022), creating supplier concentration risk(p.35)
- • Substantial contingent liabilities in form of bank guarantees totaling ₹4,286.92 lakhs as of March 31, 2024(p.21)
- • Negative operating cash flows in FY 2022 (₹-87.48 lakhs) on consolidated basis, indicating historical working capital challenges(p.35)
- • Pending litigation with tax authorities involving ₹944.97 lakhs in indirect tax claims against the company(p.30)
- • Subsidiary involved in multiple pending civil and consumer commission cases affecting company reputation and operations(p.33)
- • Work sublet without formal sanction letter from Chief Engineer for Farrukhabad and Rampur tenders, risking contract cancellation(p.36)
- • Declining cash position(p.62)
- • Increased working capital requirements(p.62)
- • Rising short-term borrowings(p.61)
- • Working capital intensity of business(p.92)
- • High dependence on government contracts and tender process(p.138)
- • Reliance on limited geographical presence(p.118)
- • Concentration risk in ongoing projects through joint ventures(p.119)
- • Challenges with unskilled manpower(p.138)
- • Dependency on related party transactions for significant revenue(p.211)
- • High short-term borrowings relative to total debt(p.217)
- • Significant inventory concentration in work-in-progress(p.201)
- • Trade receivables collection challenges with aging(p.203)
- • Substantial contingent liabilities from bank guarantees(p.211)
- • High dependence on few major customers for significant portion of revenues(p.290)
- • Outstanding tax liabilities and ongoing disputes(p.296)
- • Significant subsidiary litigation and real estate project-related disputes(p.296)
- • Promoter face personal tax litigation(p.299)
- • Expanding water and wastewater treatment market with expected CAGR of 10.78% from 2023-2028(p.19)
- • India's extensive road network (63.73 lakh kilometres) providing connectivity and infrastructure development opportunities(p.19)
- • Government focus on infrastructure development as critical enabler for India's growth trajectory and economic transformation(p.19)
- • Diversified project portfolio including Sewer Treatment Plants, Water Treatment Plants, Jal Jeewan Mission projects, and Sector Development Work(p.19)
- • Large order book from multiple ongoing government projects at Kasganj, Etawah, Farrukhabad, Rampur, and Shahjahanpur with total contract values exceeding ₹750 crores(p.36)
- • Government focus on infrastructure development(p.111)
- • Major highway and road construction programs(p.110)
- • Growth in water and wastewater treatment sector(p.112)
- • Jal Jeevan Mission creating drinking water infrastructure demand(p.116)
- • Swachh Bharat Mission funding for wastewater treatment(p.113)
- • Government focus on rural and urban infrastructure development(p.138)
- • Growth through Jal Jeewan Mission(p.119)
- • Continued government spending on infrastructure(p.138)
- • Urban sector development needs(p.138)
- • Emerging focus on railway and road sector(p.138)
- • Expansion in Jal Jeevan Mission projects(p.205)
- • Growing electrification and transmission infrastructure development(p.186)
- • Entry into building construction segment(p.205)
- • Real estate sector involvement through subsidiary(p.187)
- • Significant growth in Jal Jeevan Mission (water supply) projects(p.283)
- • Planned expansion to states beyond current operational base(p.284)
- • Strong positioning in sewerage and water treatment sector(p.283)
- • Operation and Maintenance (O&M) business as recurring revenue stream(p.284)
- • Regulatory and compliance risks including potential shifts in government policies on environment and water treatment(p.39)
- • Government policy changes and economic liberalization uncertainties could adversely affect business conditions(p.47)
- • Global economic instability and financial market volatility could materially affect operational performance(p.48)
- • Risk of project delays and cost overruns due to factors beyond company control including force majeure events(p.39)
- • COVID-19 and other communicable disease outbreaks could disrupt operations, workforce, and customer/supplier activities(p.39)
- • Liquidity damages and performance guarantee risks if project completion timelines are not met(p.39)
- • Natural calamities such as earthquakes, floods could negatively impact Indian economy and company operations(p.47)
- • Terrorist attacks and civil unrest could adversely affect financial markets and business operations(p.47)
- • Slowdown in economic growth in India and globally could reduce business opportunities and customer demand(p.48)
- • Joint venture partner non-performance could lead to project delays, penalties, and breach of contract liabilities(p.35)
- • High cost of water treatment infrastructure(p.112)
- • Stringent environmental regulations(p.113)
- • Global economic slowdown affecting construction(p.105)
- • Inflation and rising costs impacting project economics(p.104)
- • Vulnerability to commodity price volatility(p.93)
- • Volatility in raw material and input costs(p.138)
- • Delays in obtaining regulatory clearances and execution(p.138)
- • Environmental preservation requirements(p.138)
- • External events affecting project timelines(p.121)
- • Project-specific revenue concentration risk(p.210)
- • Working capital cycle pressures from large receivables base(p.203)
- • Interest rate exposure on floating rate borrowings(p.227)
- • Regulatory compliance dependencies in infrastructure sector(p.186)
- • Concentration risk in government contracts(p.205)
- • Cyclicality and dependence on government spending for infrastructure projects(p.280)
- • Regulatory changes and compliance requirements in multiple jurisdictions(p.280)
- • Project delays and execution risks in infrastructure construction(p.280)
- • Inflation and cost volatility affecting project margins(p.280)
- • Competitive pressure in infrastructure development sector(p.290)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Praveen Tyagi | Promoter | 56.97% | 41.95% |
| Vibhor Tyagi | Promoter | 17.68% | 13.02% |
| Vaibhav Tyagi | Promoter | 17.68% | 13.02% |
| Suman Tyagi | Promoter Group | 0.0005% | 0.0004% |
| Prapti Tyagi | Promoter Group | 0.0005% | 0.0004% |
| Prakshi Tyagi | Promoter Group | 0.0005% | 0.0004% |
| Maya Prakash Tyagi | Promoter Group | 0.0005% | 0.0004% |
| Praveen Tyagi | Promoter | 56.97% | 41.95% |
| Vibhor Tyagi | Promoter | 17.68% | 13.02% |
| Vaibhav Tyagi | Promoter | 17.68% | 13.02% |
| Praveen Tyagi | Promoter | 56.97% | — |
| Vaibhav Tyagi | Promoter | 17.68% | — |
| Vibhor Tyagi | Promoter | 17.68% | — |
| Praveen Tyagi | Promoter | 62.95% | — |
| Vaibhav Tyagi | Promoter | 18.52% | — |
| Vibhor Tyagi | Promoter | 18.52% | — |
| Vibhor Tyagi | Promoter & Whole Time 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.