V R Infraspace Limited IPO Key Highlights
- Objective: Raise ₹20.40 crores for investments in subsidiary, working capital, and general corporate purposes.
- Dates: Open Mar 4, 2024, Close Mar 6, 2024, Listing Mar 12, 2024 (tentative).
- Price & Lot: Fixed price ₹85 per share, Min 1600 shares (₹136,000).
- Listing: NSE SME.
- Financials: Revenue growth YoY, significant PAT growth YoY, but sustainability is a concern. Limited financial history.
Analyst Opinions: Mixed. Some advise caution due to high competition, recent profit surge, and high issue price.
Additional Considerations: Promoter holding will reduce to 72.97% post-IPO.
V R Infraspace Limited IPO Overview
Objective of the Issue
Investment in Subsidiary: A significant portion of the proceeds will be directed towards investing in their subsidiary, M/s Daxon Realty (formerly known as Narnarayan Enterprise). This could involve funding ongoing projects or future ventures undertaken by the subsidiary.
Working Capital Requirements: The company aims to use a part of the IPO proceeds to meet its working capital needs. This ensures they have sufficient funds for day-to-day operations, smooth project execution, and timely payments to vendors and staff.
General Corporate Purposes: The IPO funds will also be allocated for general corporate purposes. This might include expenses related to expansion plans, marketing initiatives, technological upgrades, or even debt repayment.
Issue Expenses: A portion of the raised capital will be used to cover the costs associated with the IPO process itself, such as underwriting fees, legal fees, and marketing expenses.
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V R Infraspace IPO Date & Price Band Details
IPO Dates
| IPO Open Date: | March 4, 2024 |
| IPO Close Date: | March 6, 2024 |
| Basis of Allotment: | March 7, 2024 |
| Refunds: | March 11, 2024 |
| Credit to Demat Account: | March 11, 2024 |
| IPO Listing Date: | March 12, 2024 |
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Issue Details
IPO Type: Fixed price issue
Size of Issue: ₹20.40 crores
Issue Price: ₹85 per share
Lot Size: Minimum 1600 shares (₹136,000)
Listing: NSE SME (tentative listing date – March 12, 2024)
Retail Quota: 50% of the net offer
NII Quota: 50% of the net offer
V R Infraspace IPO Lot Size
The minimum number of shares you can apply for in a single bid during the V R Infraspace IPO is 1600 shares. Since the issue price is ₹85 per share, the minimum investment amount for a retail investor applying for one market lot will be ₹136,000 (1600 shares * ₹85 per share).
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1600 | ₹136,000 |
| Retail (Max) | 1 | 1600 | ₹136,000 |
| HNI (Min) | 2 | 3,200 | ₹272,000 |
V R Infraspace Limited Financial Information
| Period Ended/ Amount in ₹ Lakhs | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 6,117.91 | 4,328.38 | 4,920.59 | 5,479.20 |
| Revenue | 732.41 | 1,875.53 | 1,387.65 | 1,348.70 |
| Profit After Tax | 89.54 | 262.47 | 79.74 | 72.04 |
| Net Worth | 1,290.10 | 1,211.86 | 949.39 | 869.65 |
| Reserves and Surplus | 642.10 | 563.86 | 301.39 | 221.65 |
| Total Borrowing | 661.36 | 971.87 | 1,038.55 | 1,676.31 |
Revenue:
Growth: The company has shown revenue growth of 35.16% year-over-year (YoY), which is a positive indicator. This suggests increasing demand for their projects or an expansion of their operations.
Profitability:
Profit After Tax (PAT): V R Infraspace Limited has shown significant growth in PAT, with a jump of 229.16% YoY. This is encouraging; however, it’s important to analyze if this growth is sustainable or due to temporary factors.
Other Considerations:
Limited Financial History: Since the company was incorporated in December 2015, the available financial data covers a relatively short period. This makes it challenging to assess long-term financial trends and stability.
Recent Revenue Dip: While full-year financials show revenue growth, it’s crucial to note that revenue for the six-month period ending September 30, 2023, has decreased compared to the previous fiscal year. This could indicate a potential slowdown in business or market conditions.
V R Infraspace IPO Promoter Holding
The promoters of V R Infraspace are Mr. Vipul Devchand Rupareliya and Mrs. Sumitaben Vipulbhai Rupareliya with holding as follow:
| Share Holding Pre Issue | 100% |
| Share Holding Post Issue | 72.97% |
V R Infraspace IPO Strength and Weakness
V R Infraspace, a Vadodara-based real estate developer, is considering an IPO. Here’s a breakdown of its potential strengths and weaknesses to help you decide:
Strengths:
- Established brand and experience: V R Infraspace has a strong reputation in Vadodara, built on years of experience in the local market. This brand recognition can be an advantage in attracting customers.
- Focus on affordable housing: The company focuses on developing residential projects for middle and high-income groups, which is a large and growing segment in India.
- Land ownership: V R Infraspace constructs projects on its own land, reducing dependence on external parties and potentially offering more control over project timelines and costs.
- Profitable operations: The company has shown profitability in recent years, with high net profit margins.
Weaknesses:
- Limited geographical presence: V R Infraspace operates primarily in Vadodara, which limits its growth potential compared to pan-India developers.
- Volatile financials: Revenue and profit have fluctuated in recent years, with a decline in the first half of FY24 compared to the previous year. This inconsistency could be a concern for investors.
- Competitive market: The real estate sector in India is highly fragmented and competitive, with established players and new entrants vying for market share.
Overall, V R Infraspace’s IPO could be attractive to investors, particularly its focus on affordable housing and established brand. However, the recent decline in financials and limited geographical presence are noteworthy weaknesses.
Expert Opinions on V R Infraspace IPO
Analyst opinions on the IPO are mixed. Some analysts recommend caution due to:
- Competitive and fragmented real estate sector
- Recent surge in profits raising concerns about inflated valuations
- High issue price compared to projected earnings
Disclaimer: The information provided on this website is for general informational purposes only and should not be construed as financial advice, investment recommendations, or guarantees of any kind. This information is not intended as a substitute for professional financial advice. You should always seek the advice of a qualified financial advisor before making any investment or financial decisions.
