Vruddhi Engineering Works (BSE SME)
Mar 26, 2024 - Mar 28, 2024
| Price | ₹66 - ₹70 |
| Premium | ₹0 |
|---|---|
| Lot size | 2000 |
| Allotment | Apr 1, 2024 |
| Listing | Apr 3, 2024 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 2000 | 140000 | 113 |
| HNI | 2 | 4000 | 280000 | 48 |
Last updated on 28 Mar 2024 | 05:57:15 PM
| Category | Offered | Applied | Times |
|---|---|---|---|
| QIBs | 322000 | 358000 | 1.11 |
| HNIs | 96000 | 3940000 | 41.04 |
| Retail | 226000 | 4824000 | 21.35 |
| Total | 644000 | 9122000 | 14.16 |
| Total Application : 3,063 | |||
| HNI Interest Cost Per Share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹3.86 | @8% ₹4.41 | @9% ₹4.96 | @10% ₹5.51 | @11% ₹6.06 | @12% ₹6.61 |
Vruddhi Engineering works established in 2020, has swiftly positioned itself as a leading provider of mechanical splicing solutions within the real estate, construction, and infrastructure sectors. Specializing in the development, design, and supply of reinforcement couplers, the company offers a comprehensive range of services tailored to meet the specific needs of its diverse clientele. These services include the supply of rebar couplers customized to customer requirements, on-site threading of the couplers for seamless integration, and the trading of threading machines and spare parts. With a customer base comprising construction contractors, real estate developers, and infrastructure companies, Vruddhi engineering works has successfully served approximately 84 clients in the mechanical splicing vertical and supplied steel products to over 2 customers in the trading sector as of March 31, 2023. Backed by a dedicated team of over 20 employees at its warehouse and head office as of June 30, 2023, the company demonstrates a commitment to excellence in delivering high-quality solutions and building lasting partnerships within the industry.
Vruddhi Engineering Works IPO Details
| Issue Size | 680,000 shares (aggregating up to ₹4.76 Cr) |
| Fresh Issue | 680,000 shares (aggregating up to ₹4.76 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 1,843,584 |
| Share holding post issue | 2,523,584 |
Vruddhi Engineering Works IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Vruddhi Engineering Works IPO Lead Manager(s)
- Fedex Securities Pvt Ltd
Key Performance Indicator
| KPI | Sep-23 | Mar-23 | Mar-22 |
|---|---|---|---|
| ROE | 16.20% | 35.51% | 98.76% |
| ROCE | 15.53% | 21.57% | 22.26% |
| D/E | 1.19 | 9.12 | - |
| RONW | 16.20% | 35.51% | 98.74% |
| EPS (basic & Diluted) Pre-Bonus | 64.74 | 242.29 | 94.42 |
| P/E (pre ipo) | 17.13 | ||
| P/BV | 0.1 |
Company Financials
Vruddhi Engineering Works Limited Financial Information (Restated)
Vruddhi Engineering Works Limited's revenue increased by 493.53% and profit after tax (PAT) rose by 697.99% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period | Sep 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Assets | 808.58 | 782.33 | 100.14 | 3.02 |
| Revenue | 935.36 | 1,309.62 | 220.65 | 0.44 |
| Profit | 41.01 | 75.33 | 9.44 | -0.88 |
| Net Worth | 253.13 | 212.12 | 9.56 | 0.12 |
| Reserves | 68.77 | 118.55 | 8.56 | -0.88 |
| Borrowing | 301.91 | 323.37 | 47.49 | 2.22 |
| Amount in ₹ Lakhs | ||||
Strength Factors
Diversified Customer Base: The company benefits from having a diverse customer base across multiple industries or sectors. This diversification helps mitigate risks associated with dependency on a single market segment, reducing vulnerability to fluctuations in specific industries and enhancing overall stability.
Diversified and Established Product Portfolio: Offering a diversified range of products strengthens the company's market position and competitiveness. Having a varied product portfolio allows the company to cater to a broader range of customer needs and preferences, thereby expanding its market reach and potential revenue streams.
Experienced Promoter and Director with Extensive Domain Knowledge: The presence of experienced promoters and directors with in-depth domain knowledge provides the company with strategic direction, valuable insights, and leadership guidance. Their expertise enables informed decision-making, effective risk management, and innovation, which are crucial for long-term business success and growth.
Risk Factors
Legal Proceedings Involving Company, Promoters, Directors, and Group Companies: Being involved in legal proceedings can pose significant risks to the company, its promoters, directors, and associated group entities. Adverse decisions in these proceedings could lead to financial liabilities, reputational damage, and disruptions to business operations, potentially impacting the company's business, results of operations, and financial condition.
Unsecured Loans Repayable on Demand: Availing unsecured loans that are repayable on demand exposes the company to the risk of sudden repayment demands. Any such demands could strain the company's cash flows, leading to liquidity challenges, financial instability, and potential disruptions to business operations.
Lack of Ownership of Office and Godown Premises: The Company’s reliance on leased or non-owned premises for its registered office, corporate office, and godown poses risks related to lease agreements, including potential disputes, rent increases, or the inability to renew leases. Any disruption in access to these premises could impact the company's operations, logistics, and overall business continuity.
Vruddhi Engineering Works IPO Lead Manager(s)
- Fedex Securities Pvt Ltd
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://ipo.bigshareonline.com/ipo_status.html