Procurement and processing agent Vasuki Global Industries is planning to raise funds via initial share sale going ahead as it has filed draft papers with the capital markets regulator SEBI.
As per the preliminary papers filed on March 28, the IPO comprises only a fresh issue of 1.4 crore equity shares by the company, with no offer-for-sale component.
The Mehta family, the promoters of the company, owns 86.67 percent shareholding in the company, and the remaining 13.33 percent shares are held by public.
The Gujarat-based company that offers procurement of imported as well as domestic coal, and logistics services intends to spend Rs 18.8 crore out of fresh issue proceeds for purchase of goods transportation vehicles, and Rs 66.3 crore for setting up cement manufacturing facility by subsidiary Vasuki Cement. And the remaining funds will be used for general corporate purposes.
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Vasuki Global also offers procurement solutions with respect to other petroleum products such as oil and liquified petroleum gas, refractory materials, raw material and finished products used in cement industry as well as construction industry.
Overall, the company caters to several industries such as metals and minerals, cement, steel and construction. As of March 2023, the company served a total of 766 customers.
The procurement solutions business contributed nearly 92 percent to its revenue in FY23 and the rest 8 percent is contributed by logistics services.
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Vasuki Global has recorded 8 percent on-year decline in standalone profit at Rs 13.5 crore in the financial year ended March FY23, and revenue fell 19.4 percent to Rs 732.2 crore compared to previous year.
Unistone Capital is the sole book running lead manager to the issue.
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