Vilas Transcore Limited IPO: Price, Lot Size, Strengths and Risks

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Vilas Transcore Limited IPO

Vilas Transcore Limited, an emerging company in the power sector, is gearing up for an SME IPO. Starting on May 27, 2024, you will have an opportunity to invest in a company specialising in manufacturing and supplying crucial components for power distribution and transmission. The bidding for its issue will close on May 29, 2024.

Priced between Rs. 139 and Rs. 147 per share with a minimum investment of 1,000 shares, this IPO offering aims to raise Rs. 95.26 crores through the issuance of fresh shares. For more insights into the Vilas Transcore Limited IPO, continue reading this blog.

IPO Details

Here is a brief overview of Vilas Transcore Limited IPO. 

IPO Launch Date

May 27, 2024, to May 29, 2024

Issue Type

Book Built IPO

Listed at

NSE Emerge

Price Band 

Rs. 139 to Rs. 147 per share

Face value 

Rs. 10 per share

Minimum Lot Size

1,000 shares (Retail Investors) 

Fresh Issue Size

64,80,000 shares

OFS Size

NIL 

Total Issue Size 

Rs. 95.26 crore

Shareholding Pre-Issue

1,80,00,000

Shareholding Post-Issue

2,44,80,000

About the Company

Established in 2006, Vilas Transcore Limited specialises in manufacturing and supplying various components essential to the power distribution and transmission sector, selling transformer and other power equipment manufacturers in India and abroad. Its product range includes various electrical lamination cold-rolled grain-oriented (CRGO) lamination cores, CRGO slit coils, toroidal cores, wound cores and assembled cores.

Operating 2 manufacturing facilities near Vadodara, Gujarat, the company boasts a combined installed manufacturing capacity of 12,000 MT. Its manufacturing facilities adhere to ISO quality management system standards.

Over the years, Vilas Transcore Limited has cultivated long-standing relationships with several renowned Indian and global transformer manufacturers. Its customer base is well-diversified across the transformer and power equipment manufacturing sectors. Major customers include prominent companies such as Voltamp Transformers Limited, Electrotherm India Limited, Atlas Transformers India Limited and Shilchar Technologies Limited.

Additional Read: How to Invest in an IPO Online

IPO Timeline

Here is the tentative timeline and some key dates associated with the launch of Vilas Transcore Limited IPO. 

Open Date 

Monday, May 27, 2024

Close Date 

Wednesday, May 29, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on May 29, 2024

Basis of Allotment Date 

Thursday, May 30, 2024

Initiation of Refunds Date 

Friday, May 31, 2024

Date of Credit of Shares to Demat

Friday, May 31, 2024

Listing Date 

Monday, June 3, 2024

IPO Lot Sizes

Investors can place bids starting at a minimum of 1,000 shares, with additional bids in multiples thereof. The table below details the minimum and maximum investments for retail investors and HNIs, both in terms of shares and total investment amount. 

Application

Lots

Shares

Amount

Retail (Minimum)

1

1,000

Rs. 1,47,000

Retail (Maximum)

1

2,000

Rs. 1,47,000

HNI (Minimum)

2

4,000

Rs. 2,94,000

Company Financials 

Let us have a look at the company’s financials before applying for the IPO.

Particulars

For the Financial Year Ending (In Rs. Lakhs)

 

March 31, 2024 

March 31, 2023

March 31, 2022

Total Assets

18,879.83

17,265.64 

14,266.28

Total Liabilities

5,181.95

5,514.41

4,236.97

Total Expenses

25,756.7

21,112.85

12,781.28 

Total Revenue

28,478.14 

23,518.05

13,485.41

Profit/Loss After Tax

2,016.23 

1,791.49 

523.42

EBITDA

2,851.31 

2,546.85 

798.95

EPS (Basic and Diluted) 

11.20

9.95

2.91

Strengths of the Company

Assessing the key strengths of a company before investing in its IPO is crucial. Not only does it aid in making informed investment decisions, but it also provides insights into the company's potential.

Take a look at the strengths of Vilas Transcore Limited below: 

  • The company has solidified its position in precision component manufacturing and is well-positioned to capitalise on the anticipated growth in transformer components driven by rising power demand in India. 
  • Vilas Transcore Limited has developed an efficient, technology-driven manufacturing process enabling it to produce products tailored to customer requirements and specifications cost-effectively.
  • It has built strong, long-term relationships with both Indian and global transformer manufacturers. In addition, the company has expanded its customer base between 2021 to 2023.
  • The company's workforce, along with its management team, demonstrates a strong dedication and commitment to delivering quality work.
  • The company boasts a robust balance sheet, with a net worth of Rs. 14,403.43 lakh as of July 31, 2023, and maintains a low debt level.

Risks Involved 

Besides strengths, it is crucial to understand the risk factors that could potentially impact a business's profitability before making an investment decision. Here are the notable risks involved with Vilas Transcore Limited:

  • Its business relies heavily on sales to key customers. Losing any of these customers or experiencing significant reductions in sales to them could have an adverse impact on the company's business, financial condition and operational results.
  • Customers exerting pricing pressure may negatively impact the company's gross margin, profitability and ability to raise prices. 
  • The company typically avoids firm supply agreements with customers. However, if customers opt not to procure equipment from the company, it will have an adverse impact on its business and operational results.

Summing Up 

Before investing in the upcoming Vilas Transcore Limited IPO, it is crucial to carefully review its RHP. This document will enable you to analyse whether the company's plans with its net proceeds align with your investment objectives. Following this, you can start devising your investment strategy accordingly.

Keep an eye on our website in order to learn how to invest in the Vilas Transcore Limited IPO, set to launch on May 27, 2024. Moreover, you can open a demat and trading account with us to kickstart your investment journey.

Additional Read: Difference Between NFO and IPO

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

When will the bid issue of Vilas Transcore Limited IPO open and close?

Answer Field

The bids for Vilas Transcore Limited IPO are scheduled to open on May 27, 2024, and will close on May 29, 2024.

Is there any subsidiary company of Vilas Transcore Limited?

Answer Field

No, Vilas Transcore Limited does not have any subsidiary company as defined under Section 2(6) of the Companies Act 2013.

Which category does the Vilas Transcore Limited IPO fall under?

Answer Field

Vilas Transcore Limited IPO falls under the SME IPO category and comprises a fresh issue of 64.8 lakh shares.

Who are the book-running lead managers of Vilas Transcore Limited IPO?

Answer Field

Hem Securities Limited is the sole book-running lead manager of the Vilas Transcore IPO.

Who is the registrar of Vilas Transcore Limited IPO?

Answer Field

Bigshare Services Private Limited is the registrar of Vilas Transcore Limited IPO.

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