IPO Details

Opening Date Sep 06, 2024

IPO Note Closing Date Sep 10, 2024
Vision Infra Equipment Allotment Date Sep 11, 2024
Solutions Limited Listing Date Sep 13, 2024
Stock Exchange NSE SME
Recommendation: APPLY!
Lot Size 800 Shares
Issue Price Per Share ₹155 to ₹163
Company Background –
 Vision Infra Equipment Solutions Limited was Issue Size 106.21 Cr.
originally formed and incorporated as a partnership Fresh Issue 106.21 Cr.
firm under the name “M/s Vision Infra” on Oct 28, Offer for Sale -
2015. The registered office is located at Pune, ₹ 1,30,400 (800
Application Amt
Maharashtra. shares)
 The company is a solution provider in the equipment INDUSTRY - Infrastructure, Road, and
space. The portfolio of services includes – renting of Construction
road construction equipment and trading and
KPIs (In Lakhs)
refurbishment of the equipment.
 The company had 51 permanent employees as of KPI’s FY 22 FY 23 FY 24
March 31, 2024.
Revenue 29,457.43 35,980.81 33,274.58

Objects of the Issue - EBITDA 3,449.25 5,596.56 8,237.36

 Funding Capital expenditure towards purchase of Net Profit 927.74 918.43 2,668.51
additional equipment RoCE 11.68% 18.20% 19.58%
 Funding of Working Capital Requirements
ROE 36.90% 30.61% 113.73%
 General Corporate Purposes
P/E 30.41 30.70 10.56
Promoters Name – Promoter Share Holding Pattern
Sachin Vinod Gandhi, Chetan Vinod Gandhi and Sameer
Pre-Issue Post Issue
Sanjay Gandhi
95.44% 70.20%
Rationale for recommendation – Valuation Parameters
 The company’s top line is sustainable going forward. Particulars Pre-Issue Post Issue
 The company has good objective EPS 15.43 10.83
 The management overview is good BVPS 12.94 52.62
 The company has an advantage of first movers in the P/E 10.56 15.05
market. P/BV 12.59 3.10
 The company has P/E of 15 times Post IPO basis. Mkt Cap (In Cr) 295.46 401.67
 The company has good order book

Lead Managers –
Hem Securities Limited

Registrar –
`
Link Intime India Private Limited
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
Business Overview -
The company is a solution provider in the equipment
Product Portfolio –
space. The portfolio of services includes – renting of
1. Rental of Road Construction Equipment –
road construction equipment and trading and
i) Time-Based Pricing - rental business for
refurbishment of the equipment.
construction equipment involves the provision
of heavy machinery, tools, and equipment to
Clientele –
construction companies, contractors, and
The company have large no. of fleet of major OEM’s like
individuals on a temporary basis.
Wirtgen, Case, Luigong, Dynapac, Komatsu, Atlas
ii) Output-Based Pricing – Milling Activity - Milling
Copco, Ashok Leyland, Bharat Benz, Eicher Motors,
in road construction refers to the process of
Volvo, Terex Power Screen, Caterpillar, Metro, BOMAG
removing a layer of the existing pavement
etc which is rented out to infra companies like: Larsen
surface from a roadway. Crushing Activity -
& Toubro, Ashoka Buildcon Ltd, Afcons Infrastructure
Crushing in road construction refers to the
Ltd, NCC Ltd, GMR Infraprojects Ltd, Shapoorji Pallonji,
process of reducing larger-sized materials into
Dilip Buildcon Ltd, Tata Projects Ltd, ITD Cementation
smaller particles that can be used as aggregates
India Limited, HG Infra Engineering Ltd , IRB Infra
in various construction activities, including road
developers Ltd, GR Infra Projects Ltd, etc
building.
2. Trading and Refurbishment of Road
Future Plan –
Construction Equipment – The company is
The company intends to establish its new
involved in the business of Trading in second-
refurbishment unit at Gat No 185 and 186, Ambi,
hand road construction equipment which
Taluka - Maval District- Pune, Maharashtra 410507 for
involves buying, refurbishing if necessary, and
which they have already executed the leave and
reselling used machinery for road construction
license agreement for a period of 5 years.
activities.
Order Book - As of June 15, 2024, the Order Book includes (i) 17 work orders under Crushing Services
aggregating to Rs. 12,038.28 Lakhs (ii) 24 work orders under Milling services aggregating to Rs. 1,290.38
Lakhs. These orders are spread across 13 states in India.
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
As of March 31, 2024, company owns a fleet of 395 road construction equipment
Equipment Age As of March 31, 2024
less than 1-year older equipment 153
less than 3 years older equipment 40
More than 3 years older equipment 202
Total 395

Competition - Business Strategies -

1. Market Competition and Geographic 1. The company intends to expand its business
Landscape: Competition varies by project type, operations to other regions of the country and
location, and value. Larger projects may attract also expand the export sales. The company plans
well-resourced competitors, requiring the to continue the strategy of diversifying and
company to maintain high standards of technical expanding the presence in these regions for the
capability and fleet readiness. growth of the business.
2. Barriers to entry: Low barriers to entry. New 2. The company usually purchase new machinery
entrants with more flexibility may respond and after using the same for a limited number of
faster to market changes two to three years and dispose of the same. The
3. Threat of Substitutes: Moderate. Competitors company continues to focus on building young
offering similar services, both organized and fleet of equipment with quick equipment
unorganized, present substitution threats. turnover.
Bargaining Power of Buyers: High, price 3. The company intends to achieve cost efficiency
remains the deciding factor. Increasing buyer through h long-term partnerships with suppliers
power. who offer competitive pricing without
4. Bargaining Power of Suppliers: High, compromising quality.
Equipment availability and skilled labour are 4. The company intends to focus on timely
critical to project success. Supplier constraints fulfilment of orders.
could impact costs.

PEER ANALYSIS

The company believes they do not have any listed peers for comparison as per the RHP.

Risk Factors –
The top 10 customers contributed to 84.02%, 81.07%, and 62.21% for the FY 2022, 2023, and 2024
respectively. The loss of any one or more of the major clients would have a material adverse effect on the
business operations and profitability.
There are outstanding legal proceedings involving the company amounting to Rs. 797.63 lakhs which may
adversely affect the business, financial conditions, and results of operations.
The company have contingent liabilities amounting to Rs. 387.52 lakhs, if realized, could adversely affect
the financial condition.
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
Road Industry - Construction –

India has the second-largest road network in the The Construction industry in India consists of the
world, spanning over 6.3 million kms. Over 64.5% of Real estate as well as the Urban development
all goods in the country are transported through segment. The Real estate segment covers residential,
roads, while 90% of the total passenger traffic uses office, retail, hotels and leisure parks, among others.
road network to commute. Under the Union Budget While Urban development segment broadly consists
2023- 24, the Government of India allocated Rs. 2.7 of sub-segments such as Water supply, Sanitation,
lakh crore (US$ 33 billion) to the Ministry of Road Urban transport, Schools, and Healthcare.
Transport and Highways.
 United Nations projects India’s population to be
The Roads sector is expected to account for 18% 1.64 Bn by 2047, an estimated 51% of India’s
capital expenditure over FY19-FY25. In FY22 (until population is likely to be living in urban centres.
November 2021) private sector invested Rs. 15,164  One of the leading recipients of FDI in the country;
crore (US$ 1.98 billion) in roads. India's road network construction development sector inflows $32 Bn
has grown 59% to become the second-largest in the (Apr 2000-Sept 2023).
world in the last nine years. India has nearly 64 lakh
km of total road network and the National Highways
network alone stood at 145,240 km in 2022-23
compared to 91,287 km in 2013-14.

 Infrastructure –

In Budget 2023-24, capital investment outlay for

infrastructure is being increased by 33% to Rs.10
lakh crore (US$ 122 billion), which would be 3.3 per
cent of GDP.

Infrastructure Finance Secretariat is established to

enhance opportunities for private investment in
infrastructure that will assist all stakeholders for
more private investment in infrastructure.

The Indian government has introduced various

formats in order to attract private investments,
especially in roads and highways, airports, industrial
parks and higher education and skill development
sectors. Private Equity-Venture Capital firms
invested US$ 3.5 billion (across 71 deals) in Indian
companies in May 2023.

India’s logistics market is estimated to be US$ 435.43

billion in 2023 and is expected to reach US$ 650.52
(Source: rhp)
billion by 2028, growing at a CAGR of 8.3%. The
Ministry of Commerce and Industry, states that the
logistics sector accounts for 5% of India's GDP and
provides jobs for nearly 2.2 crore Indians.
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
Key Management -

Key Management Persons Name - Sachin Vinod Gandhi

Age 41
Designation and No. of years of experience Promoter, Chairman and Managing Director, 19 years in the renting of
road construction equipment and trading and refurbishment of the
equipment.
Qualification B.com
Responsibility Responsible for the overall management of the Company
Other Directorships Canrod India Private Limited

Key Management Persons Name - Chetan Vinod Gandhi

Age 37
Designation and No. of years of experience Promoter and Whole-Time Director, 14 years in the renting of road
construction equipment and trading and refurbishment of the
equipment.
Qualification Master’s in business administration with a specialization in Marketing
Management.
Responsibility Manages refurbishment activities, spearheads sales strategies, and
provides leadership
Other Directorship Canrod India Private Limited

Key Management Persons Name - Sameer Sanjay Gandhi

Age 33
Designation and No. of years of Experience Promoter and Whole-Time Director, 13 years in renting, trading, and
refurbishing road construction equipment, with comprehensive
expertise in equipment sourcing, and maintenance
Qualification B.com
Responsibility Responsible for renting and sales planning.
Other Directorships Vision Infra Equipments Private Limited

Key Management Persons Name - Kamlesh Popatlal Bhandari

Age 39
Designation and No. of years of experience Non-Executive Director, 20 years in trading and souring of sugar, dry
coconut powder and construction materials.
Qualification Secondary school
Other Directorships -

Key Management Persons Name - Akash Manohar Phatak

Age 55
Designation and No. of years of experience Independent Director, 30 years in the chemical industry.
Qualification Bachelor of Chemical Engineering
Other Directorships Markolines Pavement Technologies Limited

Key Management Persons Name - Anjali Vikas Sapkal

Age 48
Designation and No. of years of experience Independent Director, 20 years in the field of Quality Management
System specializing in designing, and implementing management
systems
Qualification Postgraduate program in Financial Management
Other Ventures G M Polyplast Limited, Markolines Pavement Technologies Limited
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
FINANCIAL SNAPSHOT

Statement of Profit and Loss Amt in Lakhs.

Particulars FY 22 FY 23 FY 24
Revenue from Operations 29,457.43 35,980.81 33,274.58
Other Income 1,052.73 908.73 1,691.00
Total Income 30,510.16 36,889.54 34,965.58
Expenses
Cost of Materials Consumed 22,107.55 23,489.13 17,669.21
Cost of Services Provided 3,149.00 4,076.00 5,313.00
Changes in Inventories of finished goods, -812.55 622.50 -1,603.14
work-in-progress
Employee Benefit Expenses 836.56 1,423.03 1,695.93
Finance Cost 1,093.80 1,502.53 1,747.17
Depreciation and Amortisation 2,194.92 3,365.37 4,236.10
Other expenses 727.62 773.59 1,962.22
Total Expenses 29,296.90 35,252.15 31,020.49
EBITDA 3,449.25 5,596.56 8,237.36
EBITDA Margin 11.71% 15.55% 24.76%
Profit/(Loss) before tax 1,213.26 1,637.39 3,945.09
Tax Expense
Current tax 334.12 606.74 1,250.86
Deferred Tax -48.60 112.22 25.72
Total Tax 285.52 718.96 1,276.58
Profit/(Loss) for the year 927.74 918.43 2,668.51
Net Profit Margin 3.15% 2.55% 8.02%

Statement of Assets and Liabilities Amt in Lakhs.

Particulars FY 22 FY 23 FY 24
EQUITY AND LIABILITIES
1. Shareholders’ funds
Share Capital 2,514.12 3,000.37 1,730.00
Reserves and surplus - - 616.31
Total Shareholder's Fund 2,514.12 3,000.37 2,346.31
2. Minority Interest - - 7.54
Total Equity 2,514.12 3,000.37 2,353.85
3. Non-current liabilities
Long-term borrowings 8,202.20 9,203.61 18,008.77
Deferred Tax Liabilities (Net) - 19.86 45.57
Long term provision 20.55 32.70 27.91
Total Non-current liabilities 8,222.75 9,256.17 18,082.25
4. Current liabilities
Short -term borrowings 4,879.89 5,942.09 8,418.89
Trade Payables
(i) Total outstanding dues of MSME 1,430.57 1,694.48 808.61
(ii) Total outstanding dues of creditors other than MSME 1,246.46 853.35 2,530.54
Other Current Liabilities 2,421.45 3,618.21 2,981.51
Short-term provisions 133.54 379.20 959.09
Total Current liabilities 10,111.91 12,487.33 15,698.64
Total Liabilities 18,334.66 21,743.50 33,780.89
Total Equity and Liabilities 20,848.78 24,743.87 36,134.74
ASSETS
1. Non-current assets
Property, Plant & Equipment 10,081.89 16,112.45 19,673.59
Intangible Assets 14.35 10.90 8.08
Capital Work-In-Progress 1,694.14 500.00 27.00
Deferred Tax Assets (Net) 92.36 - -
Long term loans and advances 182.06 168.08 134.05
Other Non- current Assets 31.09 93.34 0.05
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
Particulars FY 22 FY 23 FY 24
Total Non-Current assets 12,095.89 16,884.77 19,842.77
2. Current assets
Inventories 1,741.84 992.53 2,926.13
Trade Receivables 4,431.88 4,439.92 9,585.84
Cash & Cash equivalents 173.69 395.30 1,051.27
Short term loans and advances 829.74 1,111.43 1,459.77
Other Current Assets 1,575.73 919.90 1,268.97
Total Current assets 8,752.88 7,859.08 16,291.98
Total Assets 20,848.77 24,743.85 36,134.75

Cash Flow Statement Amt in Lakhs.

Particulars FY 22 FY 23 FY 24
Net Cash Flow from Operating Activities 1,749.83 7,614.56 181.60
Net Cash Flow from Investing Activities -4,762.80 -7,571.42 -6,079.43
Net Cash Flow from Financing Activities 2,705.10 128.48 6,211.86

Key Ratios

Per Share Data FY 22 FY 23 FY 24 Valuation Ratios (x) FY 22 FY 23 FY 24

Diluted EPS 5.36 5.31 15.43 EV/EBITDA 4.47 3.17 3.37
BV per share 13.87 16.55 12.94 Market Cap / Sales 1.36 1.12 1.21
Operating Ratios P/E 30.41 30.70 10.56
EBITDA Margins 11.71% 15.55% 24.76% Price to Book Value 11.75 9.85 12.59
PAT Margins 3.15% 2.55% 8.02%
Inventory days 21.58 10.07 32.10 Solvency Ratios
Debtor days 54.91 45.04 105.15 Debt / Equity 5.20 5.05 11.26
Creditor days 43.64 39.81 67.71 Current Ratio 0.87 0.63 1.04
Return Ratios Quick Ratio 0.69 0.55 0.85
RoCE 11.68% 18.20% 19.58% Asset Turnover 1.41 1.45 0.92
RoE 36.90% 30.61% 113.73% Interest Coverage Ratio 1.15 1.48 2.29
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
LEAD MANAGER TRACK RECORD -
The lead manager to the issue is Hem Securities Limited. A table has been set below highlighting the details
of the IPO of the last companies handled by the Lead Manager in recent times –

Hem Securities Limited –

Sr. Company Name Issue Size Issue Listing Date CMP*
No. in Cr. Price/Share (INR)
(In INR)

1. Sunlite Recycling Industries Limited 30.24 105.00 Aug 20, 2024 159.30

2. Aprameya Engineering Limited 29.23 58.00 Aug 01, 2024 64.85

3. Chetana Education Limited 45.90 85.00 July 31, 2024 100.90

4. Ganesh Green Bharat Limited 125.23 190.00 July 12, 2024 427.55

5. Aimtron Electronics Limited 87.02 161.00 June 06, 2024 478.65

6. Vilas Transcore Limited 95.26 147.00 June 03, 2024 442.40

7. Aztec Fluids & Machinery Limited 24.12 67.00 May 17, 2024 108.45

8. Premier Roadlines Limited 40.36 67.00 May 17, 2024 127.55

9. Energy-Mission Machineries (India) 41.15 138.00 May 16, 2024 429.50

Limited
10. TGIF Agribusiness Limited 6.39 93.00 May 15, 2024 91.38

The company has handled 49 mandates in the past three years (including the current year).

*CMP for the above-mentioned companies is taken as of 4th Sep 2024.

As per the offer document, the above-mentioned mandates all have opened at a premium on the listing day.
IPO Note – Vision Infra Equipment Solutions Limited
Recommendation: APPLY
Recommendation -
Vision Infra Equipment Solutions Limited has been in the industry since 2015 and has good experience in
the industry. The management overview of the company is satisfactory
The P/E on a post-IPO basis is around 15.05 times which makes it fairly priced based on the performance of
the company.
The company operates in a fragmented segment. The company has seen a sustainable increase in revenue
over the years. The company with a good track record has performed well. The company’s business model
is efficient and sustainable. The company is utilising its net proceeds for the purchase of new equipment
which we believe may impact the growth in the revenue in the near future. The company also has a good
order book which will play a vital role in the growth of the business.
The company also has its own disadvantages such as the sudden growth in the bottom line and has high D/E
ratio. But, based on the management, years of experience, and the good order book we believe the company
can achieve good growth in the future and thus be sustainable.
Thus, one can APPLY to this IPO.

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