Valplast Technologies IPO

About Valplast Technologies IPO

Valplast Technologies Limited IPO is an IPO of up to 52,02,000 equity shares. It consists of a fresh issue of up to 52,02,000 equity shares. The price range and lot size are TBA.

The shares will be allotted on TBA. The listing of the shares will take place on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Valplast Technologies IPO

• Funding the capital expenditure requirements of the company through the purchase of plant and machinery.
• Funding the working capital requirement of the company.
• To meet the general corporate purposes.

Industry Outlook

Infrastructure is a key enabler in helping India become a US$26,00,000 crore economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increasing efficiency and reducing costs. The government's focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$1,30,000 crore national master plan for infrastructure, Gati Shakti, has been a forerunner in bringing about systemic and effective reforms in the sector, and has already shown significant headway.

The GoI has given a massive push to infrastructure by allocating about $1,40,000 crore for infrastructure to be invested until 2025. The market for roads and highways in India is projected to exhibit a CAGR of 36.16% during 2016-2025, on account of growing government initiatives to improve transportation infrastructure in the country. The highways sector in India has been at the forefront of performance and innovation. The government has successfully rolled out over 60 road projects in India worth over $1,000 crore based on the Hybrid Annuity Model (HAM). HAM has balanced risk appropriately between private and public partners and boosted PPP activity in the sector.

The construction industry in India is expected to reach $1,40,000 crore by 2025. By 2030, cities are expected to generate 70% of India's GDP (MGI, 2011). The construction industry market in India works across 250 sub-sectors with linkages across sectors. An estimated 60 crore people are likely to be living in urban centres by 2030, creating a demand for 2.5 crore additional mid-end and affordable units. Under NIP, India has an investment budget of $1,40,000 crore on infrastructure – 24% on renewable energy, 18% on roads & highways, 17% on urban infrastructure, and 12% on railways. Schemes such as the revolutionary Smart City Mission (target 100 cities) are expected to improve quality of life through modernised, technology-driven urban planning.

Company Information

Incorporated in 2014, Valplast Technologies Limited is a civil engineering & construction company engaged in providing the supply and installation of a structural waterproofing system and injection grouting solutions for various types of infrastructure projects, including underground structures, tunnels, landfills, dams, channels, shafts, canals, reservoirs, buildings, and various other civil engineering projects. Further, they have recently started the construction of tunnels, pre-cast concrete structures, and Mechanical, Electrical & Plumbing (MEP) engineering services in tunnels and underground structures. They undertake a range of construction projects, particularly in sectors such as defence, railways, and civil structures, etc. The majority of their services include civil & structural construction services contracts under sub-contracting by main contractors, who have been allotted the project by a principal employer. Further, they have undertaken a few projects directly as a contractor for certain private construction companies and government departments.

Risks of Valplast Technologies IPO

• Their company is dependent on third parties for the supply of raw materials required for their projects and is exposed to risks relating to fluctuations in commodity prices and shortage of raw material. Further, they do not have any long-term supply agreements with the raw material providers : Raw material costs are dependent on commodity prices, which are subject to fluctuations. There can be no assurance that strong demand, capacity limitations or other problems experienced by their suppliers will not result in occasional shortages or delays in their supply of raw materials. If they experience a significant or prolonged shortage of raw materials from any of their suppliers and cannot procure the raw materials from other sources, they would be unable to meet their project execution schedules in a timely fashion, which would adversely affect their sales, margins and customer relations.

• Their business is exposed to significant risks, including catastrophic incidents like tunnel collapses, which can lead to legal liabilities, financial losses, and reputational damage. Additionally, they do not carry insurance for their projects, relying instead on coverage obtained by the main contractor : Their business faces the risk of catastrophic incidents, such as tunnel collapses, which can cause significant harm to individuals and property. Such events expose the company to substantial legal liabilities, including lawsuits and compensation claims, as well as considerable financial losses from repair costs and rising insurance premiums. Moreover, the reputational damage resulting from a collapse can undermine client trust and impede future business opportunities, while increased regulatory scrutiny may lead to stricter oversight and potential fines.

• Their business is seasonal in nature and depends upon the weather conditions of the project sites. Adverse weather conditions may lead to disruptions and work stoppages, ultimately causing delays in work completion : Their company operates within the civil engineering and construction sector, where their business is inherently seasonal and significantly influenced by weather conditions at project sites. Adverse weather, such as heavy rain, snow, or extreme temperatures, can lead to work disruptions and stoppages, resulting in delays in project completion. These delays may not only impact their timelines and cost management but could also affect client relationships and their overall reputation in the industry. Unpredictable weather patterns may exacerbate these challenges, further complicating project scheduling and resource allocation.

IPO Registrar and Book Running Lead Managers

Book running lead managers : Fintellectual Corporate Advisors Private Limited

Registrar for the IPO : Bigshare Services Private Limited

Business Model

The company earns its revenue through the following sources:

Providing the supply and installation of a structural waterproofing system and injection grouting solutions for various types of infrastructure projects, including underground structures, tunnels, landfills, dams, channels, shafts, canals, reservoirs, buildings, and various other civil engineering projects.

Company Growth Trajectory

Total income for the year that ended on 31 March 2024 stood at ₹65.24 crore. Total income for the year that ended on 31 March 2023 stood at ₹27.34 crore, representing an increase of 138.60%. During the year that ended on 31 March 2024, revenue from operations was ₹64.94 crore, while during the year that ended on 31 March 2023, revenue from operations of their company was ₹27.21 crore. This represents an increase of 138.63%. During the year that ended on 31 March 2024, other income was ₹0.29 crore. During the year that ended on 31 March 2023, the other income of their company was ₹0.13 crore. This represents an increase of 130.95%. Their restated Profit After Tax for the year that ended on 31 March 2024 was ₹6.51 crore, which was 9.98 percent of the total income for the year. Restated Profit After Tax for the year that ended on 31 March 2023 was ₹1.28 crore, which was 4.69 percent of the total income for the year.

Company Market Position

They have a presence (including past operations) in 9 states nationwide. Over the years, they have steadily expanded their execution capabilities and successfully completed more than 40 projects. As of 31st March FY24, their Revenue from Operations, EBITDA, and Profit after Tax were ₹ 64.941 crores, ₹ 9.980 crores, and ₹6.524 crores, respectively.

How To Check Allotment Status of Valplast Technologies IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Valplast Technologies Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Bigshare Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Valplast Technologies Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Valplast Technologies Limited IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.