Upcoming IPO: The National Stock Exchange (NSE), has approved the Draft Red Herring Prospectus (DRHP) of VL Infraprojects Limited, paving the way for the company to launch its initial public offering (IPO). The company had submitted its papers with the Indian exchange to launch its SME IPO for listing on the NSE SME Emerge Platform. As per the company's claims, the company has proposed to launch up to 44,10,000 company shares with a face value of ₹10 per equity share in this upcoming IPO.
In the pre-IPO phase, the company's total paid-up capital is 1,13,02,500, which will go up to 1,57,12,500 equity shares after listing this NSE SME IPO. Currently, the company promoters and promoters group owns 1,02,75,000 equity shares, which is 90.91 percent of the company's total paid-up capital. The company has public shareholding as well. As per the information shared by the company, net public shareholding in VL Infraprojects Limited is 10,27,500 equity shares, which is 9.09 percent of the company's total paid-up capital. The company has said in its DRHP that net proceeds of the NSE SME IPO will be utilized to fund the company's working capital requirements.
At the end of the September 2023 quarter, the company's ROE stood at 26.57, a significant increase from 25.41 in FY23. This growth trend is promising, with the company reporting a rise in ROE in FY22 and FY23. The company's ROE grew from 14.41 to 16.37 during FY22, which further grew at 25.41 in FY23.
The company reported ROCE at 22.02 at the end of the September 2023 quarter. In FY23, the company's ROCE stood at 22.97. Its ROCE in FY22 stood at 18.41. The company's debt-equity ratio at the end of the September 2023 quarter stood at 1.04, whereas the company's debt service coverage ratio stood at 3.33 in September 2023.
In FY23, the company's revenue diversification strategy was evident, with 95.59 per cent of its revenue coming from its top five clients, a significant increase from 91.97 per cent in FY22 and 86.86 per cent in the previous year. This steady growth in revenue from top clients is a testament to the company's strong client relationships and its potential for sustained growth.
The company's business is diversified into water pipeline construction, irrigation projects, road construction, building construction, power and civil, etc. In FY23, the company's revenue diversification strategy was successful, with nearly 73 per cent of its total revenue coming from water pipeline construction, including O&M service. This diversification showcases the company's resilience and its ability to generate revenue from multiple sources, instilling confidence in its financial stability.
The company is a Government-Approved Contractor in "the AA" Class with " the th" Government of Gujarat and holds various licenses and registrations in Karnataka, Telangana, and Madhya Pradesh.
