Varindera Constructions IPO

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To be announced
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About Varindera Constructions

Established in 1984 under the leadership of Mr. Varinder Kumar Garg, Varindera Constructions (VCL) is a Gurugram-based engineering, procurement, and construction (EPC) company specializing in large-scale infrastructure projects across India. With a portfolio encompassing residential complexes, metro and railway infrastructure, healthcare facilities, industrial and aviation structures, as well as roads and highways, VCL has executed over 45 housing projects across more than 30 cities. Notable projects include the High Court Building in Jodhpur, the main runway at INS Hansa in Goa, and a ₹532 crore contract for Smartworld’s Sky Arc project in Gurugram.

Financials of Varindera Constructions

*All figures are in ₹ Crores.

Issue size

Funds Raised in the IPO Amount
Overall ₹1200 crores
Fresh issue ₹900 crores
Offer for sale ₹300 crores

Utilisation of proceeds

Purpose INR crores (%)
Funding capital expenditure 160 (17.7%)
Repayment of borrowings  360 (40%)
Working capital requirement 155 (17.2%)
General corporate purposes 225 (25%)

Strengths

  • Over four decades of experience in executing diverse infrastructure projects nationwide.
  • Robust financial performance with a 32% year-on-year revenue growth in FY2024.
  • Strong order book of approximately ₹4,700 crore as of September 2024, ensuring revenue visibility.
  • Successful execution of high-profile projects, enhancing credibility and market position.
  • Strategic collaborations and adherence to environmental standards, demonstrating commitment to sustainable practices.

Risks

  • High dependency on government contracts, making revenues susceptible to policy and budgetary changes.
  • Working capital-intensive operations may affect liquidity during project execution.
  • Exposure to regulatory and environmental compliance risks in infrastructure projects.
  • Potential delays in project execution due to unforeseen site conditions or approvals.
  • Concentration risk if a significant portion of revenue is derived from a few large clients.