V.L. Infraprojects, a company focused on water infrastructure and irrigation projects, is set to launch its IPO on the NSE SME platform. This blog explores the details of the offering, helping you decide if it aligns with your investment goals.
About VL Infraprojects
- Founded in 2014, V.L. Infraprojects specialises in planning, construction, and commissioning of government water supply and wastewater projects.
- The company operates primarily in Gujarat, Karnataka, Telangana, and Madhya Pradesh, with a focus on backward integration, including civil works and equipment installation.
- V.L. Infraprojects has experienced significant revenue and profit growth in the last financial year.
VL Infraprojects IPO fundamentals
- Issue Size: ₹18.52 crore (fresh issue only)
- Price Band: ₹39 - ₹42 per share
- Minimum Lot Size: 3000 Shares (₹117,000 minimum investment)
- Listing: NSE SME (tentative date: July 30, 2024)
VL Infraprojects financials
- Revenue: Increased by 149.72% compared to FY23
- Profit After Tax (PAT): Increased by 175.76% compared to FY23
- Market Capitalization: ₹65.99 Cr
Key considerations for the VL Infraprojects IPO
- SME Listing: V.L. Infraprojects IPO is listing on the NSE SME platform, which caters to smaller companies with typically lower liquidity compared to the main NSE board.
- Growth Potential: The Indian government's focus on infrastructure development, particularly in water supply and irrigation, could benefit V.L. Infraprojects.
- Order Book: The company's order book details as of July 2024 are not readily available. A healthy order book would indicate a strong project pipeline.
Who should consider the VL Infraprojects IPO?
- Investors with a High-Risk Tolerance: SME IPOs generally involve higher risks. Investors comfortable with such risk can consider the opportunity of the VL Infraprojects IPO.
- Long-Term Investors: Given the SME listing, liquidity might be lower. This IPO investment is suitable for those with a long-term perspective.
- Thematic Investors: Those interested in investing in the water infrastructure sector in India might find this IPO appealing.
Further research
- Read the VL Infraprojects IPO DRHP (Draft Red Herring Prospectus) for a detailed understanding of its business model, financials, risk factors, and order book details (if available).
- Look for analyst reports and news articles to gain insights into the competitive landscape of the water infrastructure sector in India.
Conclusion
V.L. Infraprojects' IPO offers an opportunity to invest in a growing water infrastructure company. However, the SME listing platform, inherent risks in the construction sector, and the lack of readily available order book information necessitate careful consideration. Thorough research and a high-risk tolerance are essential before subscribing to this IPO.
Disclaimer: This blog is for informational purposes only and should not be considered financial advice. Investing in the stock market carries inherent risks, and it's essential to conduct thorough research or consult with a qualified financial advisor before making any investment decisions.
