Schedule of VVIP Infratech
| Issue open date | 23 Jul 2024 |
| Issue close date | 25 Jul 2024 |
| UPI mandate deadline | 25 Jul 2024 (5 PM) |
| Allotment finalization | 26 Jul 2024 |
| Refund initiation | 29 Jul 2024 |
| Share credit | 29 Jul 2024 |
| Listing date | 30 Jul 2024 |
| Mandate end date | 09 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 26 Aug 2024 |
| Lock-in end date for anchor investors (remaining) | 26 Oct 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About VVIP Infratech
Established in 2001, VVIP Infratech is an infrastructure company in India. With over two decades of experience, The company is a Class “A” Civil and Electrical contractor in the field of execution and construction of infrastructure projects such as Sewer, Sewer treatment plants, Water tanks, Water treatment plants, Sector development work, Electrical distribution and Sub stations upto 33 kVA, Jal Jeewan mission work, etc. With an experienced team, The company constructed two 56 Minimal liquid discharge sewer treatment plants (MLD STPs) using Sequential Batch Reactor (SBR) technology in the year 2013.
The company mainly undertakes projects in Uttar Pradesh, Uttarakhand, NCR Delhi, and other northern regions of India. As of January 31, 2024, the company’s order book amounted to Rs. 477.62 crores, which includes an Operation and Maintenance (O&M) order book valued at Rs. 126.19 crores. Additionally, the company has lodged bids amounting to Rs. 182 crores for tenders in Roorkee, Uttarakhand, which are currently in the process of being opened.
Financials of VVIP Infratech
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹61.21 crores |
| Fresh issue | ₹61.21 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 10.5 (17.15%) |
| Working capital requirements | 40 (65.3%) |
| General corporate purposes | 10.71 (17.55%) |
*All figures except EPS are in ₹ crores
Strengths
- Strong project portfolio: VVIP Infratech boasts an impressive order book of projects. As of January 31, 2024, the company holds outstanding orders worth Rs. 477.62 crores. These are primarily associated with the implementation of various rural water supply projects, which also include operation and maintenance for 10 years in the districts of Rampur and Farrukhabad, UP. These projects are under the auspices of the Jal Jeevan Mission and the State Water & Sanitation Mission.
- Strong high-quality work, on-time delivery, and competitive pricing: The company’s capabilities qualify it for bidding single tenders of up to 90 MLD Sewer Treatment Plants (STP) projects. These are particularly suited for catering to the needs of urban cities and account for almost 75% of STP sizes in Indian cities. In addition, the company is actively involved in assignments under the Namami Gange Scheme & AMRUT (Atal Mission for Rejuvenation and Urban Transformation) for sewerage and STP tasks. VVIP Infratech holds eligibility for single tenders of up to 200 km of Sewerage Network Lines varying in diameter. The financial cap for a single tender extends up to Rs. 235 crore.
Risks
- Working capital-intensive business: The company operates in a working capital-intensive industry. If it experiences insufficient cash flows to meet required payments, there may be an adverse effect on the results of the operations and financial condition.
- Creditworthiness of the customers: The company’s business model exposes it to the risk of customer payment delays or defaults. As it supplies the products directly to customers without requiring advance payments or security deposits, payment delays may necessitate increased working capital investments. If a customer defaults on a significant order, or if such an order is delayed, cancelled, or fails to materialize, it could have a material adverse impact on the company’s financial condition and operating results.
- Reliance on Top 10 suppliers: The company relies significantly with nearly 45% of total purchases on top 10 suppliers. Any disruption in relations with them might adversely affect the company’s business, financial condition, and operating results.
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by July 27, 2024, on the registrar’s website and the NSE website.