Upcoming IPO: VL Infraprojects Receives NSE Approval for SME IPO

VL Infraprojects Limited has received approval from the National Stock Exchange (NSE) to launch its SME IPO. The company's Draft Red Herring Prospectus (DRHP) has been cleared, allowing it to list on the NSE SME Emerge Platform.

The proposed IPO includes up to 44,10,000 shares, each with a face value of ₹10.

Before the IPO, the company's total paid-up capital stands at 1,13,02,500, which will increase to 1,57,12,500 equity shares post-listing.

Currently, promoters and the promoter group hold 90.91% of the company's capital, equivalent to 1,02,75,000 shares.

Public shareholding is at 9.09%, totaling 10,27,500 shares. Proceeds from the IPO will be used to meet the company's working capital needs.

In terms of valuations, VL Infraprojects reported a Return on Equity (ROE) of 26.57% for the September 2023 quarter, up from 25.41% in FY23. The company's ROE has shown a steady increase over the past few years.

The Return on Capital Employed (ROCE) was 22.02% in September 2023, compared to 22.97% in FY23 and 18.41% in FY22.

The debt-equity ratio was 1.04, with a debt service coverage ratio of 3.33 as of September 2023. The company's revenue from its top five clients constituted 95.59% in FY23, up from 91.97% in FY22.

The firm's business spans water pipeline construction, irrigation, road construction, building construction, power, and civil projects. Notably, 73% of its FY23 revenue came from water pipeline construction, including operations and maintenance services.

VL Infraprojects is a government-approved contractor in the "AA" class with the Government of Gujarat and holds licenses and registrations in Karnataka, Telangana, and Madhya Pradesh.

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