Visaman Global Sales IPO Review

 
Visaman Global Sales IPO Review

IPO Open Date: June 24, 2024

IPO Close Date: June 26, 2024

IPO Price: ₹43 per share

Lot Size: 3000 Shares

Listing: July 01, 2024

Visaman Global Sales is scheduled to hit the market on June 24, 2024 and close on June 26, 2024. Visaman Global Sales plans to raise around ₹16.05 Cr through an IPO with a sale of up to 3,732,000 equity shares of ₹10 each.

Visaman Global Sales Limited, established in June 2019, provides a diverse range of products such as round pipes, square pipes, rectangle pipes, various structural steels, coils, sheets, plates, and PUF panels. They specialize in offering customized solutions to meet individual customer requirements regarding product size and dimensions. The company holds ISO 9001:2015 certification and operates from a stockyard in Gujarat along with warehouses located in Gujarat and Madhya Pradesh.

With a total of 41 dedicated staff members as of March 15, 2024, Visaman Global Sales Limited ensures efficient operations at its offices and stockyards. Their commitment to quality and customer satisfaction underscores their position as a reputable organization in the industry.

Visaman Global Sales



Visaman Global Sales IPO Details

Visaman Global Sales IPO opens on June 24, 2024, and closes on June 26, 2024. The Listing date for Visaman Global Sales IPO is on July 01, 2024. The price band for IPO is ₹43 per share and lot size of 3000 Shares.

IPO DateJune 24, 2024 to June 26, 2024
Listing DateJuly 01, 2024
Price₹43 per share
Lot Size3000 Shares
Issue Size₹16.05 Cr
Face Value₹10 per share

Visaman Global Sales IPO Tentative Timetable

Visaman Global Sales opening date is June 24, 2024 and close date is June 26, 2024. The IPO allotment date is June 27, 2024. The refund initiation of IPO is on June 28, 2024. The credit of shares in demat account is on June 28, 2024. The listing date is on July 01, 2024.

EventDate
IPO OpeningJune 24, 2024
IPO ClosingJune 26, 2024
IPO Allotment DateJune 27, 2024
Refund InitiationJune 28, 2024
Shares Credit to DematJune 28, 2024
Lisiting DateJuly 01, 2024

Visaman Global Sales IPO Lot Size

Lot Size of this IPO is 3000 shares. A retail-individual investor can apply for up to 1 lots (3000 shares or ₹129,000).

CategoryLotsSharesAmount
Retail(Minimum)13000₹129,000
Retail(Maximum)13000₹129,000
S-HNI (Minimum)26000₹258,000

Visaman Global Sales IPO Promoter Holding

Pre Issue Share Holding100.00%
Post Issue Share Holding72.98%

Visaman Global Sales IPO Review

VGSL has shown high revenue growth but with very low profit margins, indicative of its “High Volume – Low Margin” business model. For FY21, the company reported a total income of Rs. 136.36 crore and a net profit of Rs. 0.34 crore. In FY22, revenue increased to Rs. 324.07 crore with a net profit of Rs. 0.95 crore, and in FY23, revenue further grew to Rs. 376.05 crore with a net profit of Rs. 1.13 crore. For the nine months ending December 31, 2023, VGSL achieved a net profit of Rs. 1.02 crore on a total income of Rs. 206.91 crore. Despite the significant revenue, the profit margins remain very slim. For the last three fiscals, VGSL has reported an average EPS of Rs. 1.03 and an average RoNW of 11.46%. The issue is priced at a P/BV of 3.96 based on its NAV of Rs. 10.87 as of December 31, 2023, and at a P/BV of 2.34 based on its post-IPO NAV of Rs. 18.38 per share. If we attribute annualized FY24 earnings to its post-IPO fully diluted paid-up capital, the asking price is at a P/E of 43.87, indicating that the issue is aggressively priced.

VGSL’s IPO aims to raise Rs. 16.05 crore by issuing 3,732,000 equity shares at a fixed price of Rs. 43 per share. The proceeds will be used for capex on a new manufacturing facility (Rs. 7.22 crore), working capital (Rs. 7.00 crore), and general corporate purposes (Rs. 0.22 crore). Post-IPO, the company’s paid-up equity capital will increase from Rs. 10.08 crore to Rs. 13.81 crore, targeting a market capitalization of Rs. 59.39 crore at the upper price band. The issue constitutes 27.02% of the post-IPO paid-up capital. The IPO is managed by Shreni Shares Ltd., with Link Intime India Pvt. Ltd. as the registrar. Shreni Shares Ltd. is also the market maker for the company. VGSL's reliance on third-party suppliers and the highly competitive and fragmented nature of the industry present significant risks.

Visaman Global Sales Ltd. operates in a highly competitive and fragmented metal trading industry, relying heavily on third-party suppliers. Despite showing high revenue growth, the company's profit margins are very low, reflecting the “High Volume – Low Margin” nature of its business. Based on FY24 annualized earnings, the IPO appears aggressively priced. Given the inherent risks associated with third-party dependencies and low profit margins, potential investors should approach this IPO with caution. The company’s financial data shows high volume with low margins and average earnings for the reported periods. Considering the aggressive pricing and high-risk nature of the business, well-informed investors may find it prudent to skip this high-risk, pricey issue. Investing in VGSL's IPO may not be advisable unless one has a high risk tolerance and a clear understanding of the market dynamics and competitive landscape in which the company operates.

Visaman Global Sales IPO Subscription Status (Bidding Details)

Table not found

Visaman Global Sales IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Visaman Global Sales IPO FAQs

What is Visaman Global Sales IPO?

Visaman Global Sales is issuing 3,732,000 equity shares with a face value of ₹10 each, totaling up to ₹16.05 Cr. The shares are being offered at a price of ₹43 each, with a minimum order quantity of 3000 shares.

Link Intime India Private Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Visaman Global Sales IPO will open?

Visaman Global Sales will open on June 24, 2024 for QIB, NII, and Retail Investors.

When Visaman Global Sales IPO will end?

Visaman Global Sales will end on June 26, 2024.

What is Visaman Global Sales IPO Size?

Visaman Global Sales IPO size is 16.05 Cr.

What is Visaman Global Sales IPO Price Band?

Visaman Global Sales price band is ₹43 per share.

What is the Visaman Global Sales IPO Allotment Date?

Visaman Global Sales allotment date is June 27, 2024.

What is the Visaman Global Sales IPO Listing Date?

Visaman Global Sales listing date is July 01, 2024. The IPO is to be listed on BSE and NSE.

How to Visaman Global Sales IPO through Zerodha?

To apply for the IPO “Visaman Global Sales” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Visaman Global Sales IPO through Upstox?

To apply for the IPO “Visaman Global Sales” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Visaman Global Sales IPO Allotment Status?

For Visaman Global Sales IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Visaman Global Sales IPO GMP?

You can check out here: Visaman Global Sales IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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