VVIP Infratech, an infrastructure company focused on projects in North India, is set to launch its IPO on the BSE SME platform. This blog dives into the details of the offering to help you decide if it's the right investment for you.
About VVIP Infratech
- Founded in 2001, VVIP Infratech has over 20 years of experience in constructing infrastructure projects like sewage systems, water treatment plants, and power substations.
- The company operates primarily in Uttar Pradesh, Uttarakhand, NCR Delhi, and other northern regions of India.
- VVIP Infratech has shown consistent growth in revenue and profit after tax in the last financial year.
VVIP Infratech IPO fundamentals
- Issue Size: ₹61.21 crore (fresh issue only)
- Price Band: ₹91 - ₹93 per share
- Minimum Lot Size: 1200 Shares (₹111,600 minimum investment)
- Listing: BSE SME (tentative date: July 30, 2024)
VVIP Infratech financials
- Revenue: Increased by 35.77% compared to FY23
- Profit After Tax (PAT): Increased by 52.56% compared to FY23
- Market Capitalization: ₹232.22 Cr
Key considerations for the VVIP Infratech IPO
- SME Listing: VVIP Infratech is listing on the BSE SME platform, which caters to smaller companies with typically lower liquidity compared to the main BSE board.
- Growth Potential: The infrastructure sector in India is expected to witness growth due to government initiatives. VVIP Infratech's experience and focus on this sector could be beneficial.
- Order Book: As of January 2024, the company's order book stands at Rs. 477.62 crore, indicating a healthy pipeline of projects.
Who should consider the VVIP Infratech IPO?
- Investors with a Long-Term Horizon: Given the SME listing of the VVIP Infratech IPO, liquidity might be lower. This IPO investment is suitable for those with a long-term perspective.
- Investors Bullish on Infrastructure: Those who believe in the growth potential of the Indian infrastructure sector might find the VVIP Infratech IPO interesting.
- High-Risk Tolerance: SME IPOs generally involve higher risks. Investors comfortable with such risk can consider this opportunity.
Further research
- Read the VVIP Infratech IPO DRHP (Draft Red Herring Prospectus) for a detailed understanding of its business model, financials, and risk factors.
- Look for analyst reports and news articles to gain insights into the competitive landscape of the Indian infrastructure sector.
Conclusion
VVIP Infratech's IPO offers an opportunity to invest in a growing infrastructure company. However, the SME listing platform and inherent risks in the infrastructure sector require 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.
