Vilas Transcore IPO oversubscribed by 195 times on day 3; Check latest subscription, GMP

Vilas Transcore IPO has started for subscriptions on Monday, May 27, and will end on Wednesday, May 29. Vilas Transcore IPO price band has been fixed between ₹139 and ₹147 per equity share with a face value of ₹10 each. The lot size for the Vilas Transcore IPO is 1,000 shares. A minimum of 1,000 equity shares must be applied for, with further shares applied for in multiples of 1,000. 

According to the Red Herring Prospectus (RHP), the firm primarily serves the power engineering and distribution sectors. Their offerings, which include slit coils, CRGO laminated core, and CRGO core, are among the most crucial components of various power, distribution, and other current transformer types. A transformer's core is a crucial component that ensures the transformer operates correctly. Laminated sheets are utilised to reduce current losses in the transformer core, while CRGO steel is used to reduce hysteresis losses. It also offers a low reluctance channel for electromagnetic flux and supports the transformer's main and secondary windings.

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Due to their interference with the effective transmission of energy from the primary coil to the secondary coil, these currents are minimised via lamination of the core. Given the significance of the core, several considerations are made throughout the design and production of the laminations, including economy, longer service life, functional dependability, and manufacturing. The transformer's effectiveness also much depends on the usage of the right material and shape optimisation.

At the moment, they run their business out of their two production plants in Por, close to Vadodara, Gujarat. 

As per RHP, There are no listed companies in India that are engaged in the business line similar to that of the company, thus it is not possible to provide an industry comparison in relation to the company.

Between March 31, 2022, and March 31, 2023, Vilas Transcore Limited's profit after tax (PAT) climbed by 12.89% and its revenue by 21.09%, respectively.

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Vilas Transcore IPO subscription status

Vilas Transcore IPO subscription status is 204.77 times, on day 3.

The retail portion was subscribed 151.42 times, and NII portion was booked 449.21 times. Qualified Institutions Buyers was booked 114.64 times.

The company has received bids for 88,23,60,000 shares against 43,09,000 shares on offer, according to data on chittorgarh.com.

Vilas Transcore IPO subscription status was 10.77 times, on day 1.

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Vilas Transcore IPO details

Vilas Transcore IPO, which is worth about ₹95.26 crore, consists of a fresh issue of 6,480,000 equity shares with a face value of ₹10. There is no offer-for-sale component.

The company plans to use the issue proceeds for the following purposes: general corporate purposes, funding capital expenditures for the purchase and installation of additional plant and machinery, financing capital expenditures for building a factory, financing capital expenditures for strategic investments and acquisitions, and issue expenses.

The Vilas Transcore IPO's registrar is Bigshare Services Pvt Ltd, and the book running lead manager is Hem Securities Limited. Hem Finlease is the market maker for the public offering of Vilas Transcore.

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Vilas Transcore IPO GMP today

Vilas Transcore IPO grey market premium is +109. This indicates Vilas Transcore share price were trading at a premium of ₹109 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, Vilas Transcore IPO expected listing price was indicated at ₹256 apiece, which is 74.15% higher than the IPO price of ₹147.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Vilas Transcore IPO review

“The company is engaged in the manufacturing of components needed for power distribution and transmission sector. For the reported periods it marked growth in its top and bottom lines, but posted pressure on net margins. Based on FY24 annualized earnings, the issue appears fully priced. Well-informed investors may park funds for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.