The SME initial public offering (IPO) of Vilas Transcore, a power distribution and transmission components manufacturer, will open for subscription on May 27. The company aims to raise Rs 95.26 crore. The IPO comprises only a fresh issue of 64.8 lakh equity shares with no offer-for-sale component.
The price band for the book-built issue, which concludes on May 29, has been set at Rs 139-147 per share.
Retail investors can bid for a minimum and maximum of 1,000 equity shares, valued at Rs 1.47 lakh at the upper price band, ensuring they stay within their investment limit of Rs 2 lakh.
The company, which manufactures electrical lamination products used in power and distribution transformers, will spend Rs 5 crore out of the fresh issue proceeds for strategic investment and acquisitions, and Rs 20.1 crore for construction of factory building, and Rs 45.2 crore for acquiring and installing additional plant & machinery. The remainder of the fresh issue funds will be utilised for general corporate purposes and IPO expenses.
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The Gujarat-based company recorded 12.9 percent year-on-year growth in net profit at Rs 20.2 crore for the year ended March FY23, up from Rs 17.9 crore in the previous year. Revenue from operations during the same period surged by 21.3 percent to Rs 282.6 crore.
On the operational front, EBITDA (earnings before interest, tax, depreciation, and amortisation) for the year grew by 9.7 percent to Rs 29.3 crore, although margins experienced a slight decline to 10.4 percent from 10.5 percent year-on-year.
For the nine-month period ended December FY24, the company recorded a profit of Rs 16.8 crore on revenue of Rs 235.74 crore.
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Established in 2006, Vilas Transcore specialises in manufacturing electrical lamination products such as cold-rolled grain-oriented (CRGO) lamination core, CRGO slit coils, CRGO stacked (assembled cores), CRGO wound core, and CRGO toroidal core, primarily utilized in power transformer, distribution transformer, dry-type transformers, high voltage/medium voltage, and low voltage current transformers. It serves the power distribution and power engineering industry through its two manufacturing facilities located at Por, near Vadodara.
Hem Securities is the sole merchant banker for the SME public issue, while its equity shares will list on the NSE Emerge.
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