Vilas Transcore IPO: Price Band Set at ₹139-₹147 Per Share – Key Details Inside

<ul>
    <li>The Vilas Transcore Ltd IPO price band has been set at Rs 139-147 per equity share of face value of ₹10.</li>
    <li>The IPO opens for subscription on Monday, May 27, 2024, and will be available until Wednesday, May 29, 2024.</li>
    <li>"The allotment for the Vilas Transcore IPO is anticipated to be completed by Thursday, May 30, 2024," according to company sources.</li>
</ul>
<p><strong>Discover the key details and financial insights of Vilas Transcore Ltd's upcoming IPO, including subscription dates, issue size, and objectives.</strong></p>
<h2><strong>Key Dates for Vilas Transcore Ltd IPO</strong></h2>
<p>The small and medium enterprises (SME) Vilas Transcore initial public offering opens for subscription on Monday, May 27, 2024, and will be available for subscription until Wednesday, May 29, 2024. The allotment for the IPO is anticipated to be completed by Thursday, May 30, 2024, with the proposed listing date set for Monday, June 3, 2024, on NSE SME.</p>
<h3><strong>Issue Size and Structure</strong></h3>
<p>The Vilas Transcore IPO is a ₹95.26 crore book-built offering, consisting of a completely new issue of 64.8 lakh equity shares. There is no Offer for Sale (OFS) from the promoter and promoter group. Applicants must apply for a minimum of 1000 shares, which is the lot size. At the upper end of the price band, retail investors are required to invest a minimum of ₹147,000. Not less than 35% of the issue is reserved for retail participants. High Net-worth Individuals (HNIs) will need to make a minimum investment of two lots, or 2,000 shares, totaling ₹294,000.</p>
<h3><strong>Objectives of the Issue</strong></h3>
<p>The proceeds from the IPO will be utilized for various strategic purposes. Vilas Transcore Ltd plans to allocate ₹5 crore for funding strategic acquisitions and investments, ₹20.09 crore for capital expenditures related to the company's factory building, and ₹45.20 crore for financing capital expenses for the purchase and installation of new equipment and machines. Additionally, funds will be used to meet IPO-related expenses and for general corporate purposes.</p>
<h2><strong>Company Background and Financials</strong></h2>
<p>Founded in 2006 and based in Vadodara, Vilas Transcore Limited produces and distributes power distribution and transmission components, primarily catering to Indian and international producers of transformers and other power equipment. The company reported a profit of ₹20.22 crores in FY23, marking a 12.90% increase from the previous year's ₹17.91 crores. Revenue from operations during FY23 increased significantly to ₹282.60 crores from ₹233.03 crores in the previous year, an increase of 21.27%, primarily due to an increase in domestic revenue and job work charges received. For the nine months ended December 31, 2023, revenue from operations stood at ₹235.74 crores, and profit after tax was ₹16.79 crores.</p>
<h3><strong>Grey Market Premium (GMP)</strong></h3>
<p>According to investorgain.com data, the Vilas Transcore IPO GMP, or grey market premium, is currently ₹45 per share. This indicates that the equity shares of Vilas Transcore IPO are currently selling on the grey market at ₹192 per share, which is ₹45 more than the issue price, reflecting a premium of 30.61%.</p>
<h3><strong>Conclusion</strong></h3>
<p>The Vilas Transcore Ltd IPO presents a significant opportunity for investors, with a well-defined issue size and clear objectives for the use of proceeds. The company's strong financial performance and strategic plans for growth make it an attractive proposition. Investors should consider the key dates and financial metrics when making their investment decisions.</p>