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About Vasuki Global Industries Limited IPO
Vasuki Global Industries Limited IPO is an IPO of up to 14,000,000 equity shares. It consists of an offer for sale of TBA and a fresh issue of up to 14,000,000 equity shares. The shares will be allotted on a date TBA. The credit of shares to the demat account will take place on a date TBA and the initiation of refunds will take place on a date TBA.
Objective of Vasuki Global Industries Limited IPO
- Funding capital expenditure requirements of the logistics division of the company towards the purchase of goods transportation vehicles.
- Investment in the subsidiary, Vasuki Cement Private Limited (VCPL) for part-financing its capital expenditure requirements in relation to the setting up of the proposed facility.
- General corporate purposes.
Vasuki Global Industries Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | - |
Fresh Issue | Up to 14,000,000 equity shares aggregating up to amount TBA |
EPS (₹) | 4.39 (FY23) |
Vasuki Global Industries Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIB Shares Offered | Not more than 50% of the Net Issue |
Retail Shares Offered | Not less than 35% of the Net Issue |
NIIs Shares Offered | Not less than 15% of the Net Issue |
Industry Outlook
Coal sector is the backbone of domestic energy production. Coal-fired power plants meet over 70% of India’s electricity demand. This sector also aids the requirements of steel, cement, fertilizer, and brick kilns. The performance of the coal sector is crucial for economic development and GDP growth. It is a significant contributor to primary energy consumption and power generation to meet India’s growing needs.
The domestic coal consumption in India is expected to reach 1,350 MT in FY27 growing at a CAGR of 5% from 1,132 MT in FY23. Coal demand is expected to grow at a faster pace in FY24 supplemented by increased demand from the power generation sector. Consumption growth is subsequently expected to moderate from FY25 to FY27 due to increase in share of renewable energy in the power sourcing mix of the country.
The industry will be a key beneficiary of economic growth as it is a key enabler for most industries. The Government of India has introduced various initiatives such as Make in India, PLI scheme, Atmanirbhar Bharat, etc., which are expected to boost manufacturing activity. Driven by these factors, total freight volumes in India are expected to almost double by 2031 compared to 2019 levels, as estimated under the National Rail Plan released by the Ministry of Railways.
Strengths of Vasuki Global Industries Limited IPO
Long-standing client relationships with some of their customers.
Their ability to integrate procurement and logistic services has enabled them to provide quality solutions and establish longstanding relationships with some of their customers. With focus on quality, providing customised solution to their customers and timely delivery of their service offerings has helped them establish and maintain long term relationships with their customers.
Integrated inward and outward procurement and logistical solutions provider.
Through their inward and outward solutions, they have crafted services that offer convenience to their customers by ensuring the reduction of supply chain intermediaries and creating a single point of contact for their supply and logistic needs at different supply points. Their decades of experience enable them to collate and study the data for route optimization and thereby allowing them to be cost-efficient for their customers.
Diversified business model.
They have developed a diversified business model with their offerings ranging from procurement services to logistical services with respect to various types of imported as well as domestic coal, petroleum products, refractory materials, raw materials as well as finished products used in cement, steel and construction industry. They offer solutions to their customers engaged in various industries like metals and minerals, cement, steel and construction, and therefore, they serve a diverse mix of end markets across several industry sectors.
Owned fleet of transportation vehicles.
The company’s owned fleet of vehicles offers lighter and longer bodies enabling higher payload capacity. Operating owned vehicles enables them to significantly reduce hiring and operational costs and also helps them in reducing their dependency on third parties for sourcing outsourced vehicles, thereby reducing the risk of facing a shortage of outsourced vehicles during periods of high demand.
Risks of Vasuki Global Industries Limited IPO
The company’s business and profitability are substantially dependent on the availability of coal at affordable prices. Any disruption to the timely and adequate supply of coal, or volatility in the prices of coal may adversely impact their business, results of operations, cash flows and financial condition.
The company generates a major portion of sales from their operations in certain geographical regions. Any adverse developments affecting their operations in these regions could have an adverse impact on their revenue and results of operations.
The company’s business is dependent on the performance of certain industries, particularly cement, steel and construction industries. Any adverse changes in the conditions affecting these industries can adversely impact their business, results of operations, cash flows and financial condition.
Vasuki Global Industries Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Vasuki Global Industries Limited | Agarwal Industrial Corporation Ltd | Orient Cements Limited |
|---|---|---|---|
Revenue From Operations for the year ended March 31, 2023 (₹ in crores) | 732.175 | 2015.014 | 2937.546 |
P/E (based on Diluted EPS) | - | 1.274 | 3.408 |
EPS (Basic) | 4.39 | 63.78 | 5.99 |
Return on Net Worth for equity shareholders (%) | 38.54% | 26.42% | 7.85% |
NAV per share (₹) | 13.58 | 279.1 | 78.28 |
Anchor Investor Information
The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers: Unistone Capital Private Limited
Registrar for the IPO is Bigshare Services Private Limited
Business Model
The company earns its revenue through the following sources:
- Offering procurement and processing solutions primarily with respect to various types of imported as well as domestic coal, including but not limited to Indonesian coal, Australian steam coal, Mozambique steam coal, South African coal, U.S. coal and Russian coal, etc.
- Logistics services by way of surface transportation.
Company Growth Trajectory
Revenue from operations and PAT have grown from ₹515.416 crores and ₹5.795 crores in fiscal 2021 to ₹732.175 crores and ₹13.499 crores in fiscal 2023, registering a CAGR of 19.19% and 52.62% in three years, respectively.
Their procurement services accounted for ₹251.704 crores, ₹673.074 crores, ₹855.460 crores and ₹471.577 crores representing 91.12%, 91.93%, 94.17% and 91.49% of their total revenue for the period ended September 30, 2023, and for the fiscal 2023, 2022 and 2021, respectively.
Company Market Position
The company offers procurement and processing solutions either directly to their customers engaged in various industries, including but not limited to metals and minerals, cement, steel and construction, or through their agents. Their customers also include small-scale traders. Over the years, they have established longstanding relationships with a diverse set of customers. Their ability to maintain quality standards while diversifying their service offerings to meet evolving industry requirements has resulted in longstanding relationships with their key customers. As of March 31, 2023,44 customers have been associated with the company for longer than six years. As of March 31, 2023, the company served a total of 766 customers.
Vasuki Global Industries Limited Company Profit & Loss
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Total Income (₹ crores) | 516.260 | 908.589 | 733.61 |
Profit before tax (crores) | 7.843 | 19.678 | 18.405 |
Net Profit (₹ crores) | 5.795 | 14.669 | 13.499 |
EBITDA (₹ crores) | 13.489 | 29.242 | 32.940 |
EPS (₹) basic | 1.88 | 4.77 | 4.39 |
Vasuki global Industries Limited Cash Flow Statement
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Profit before tax (₹ crores) | 7.843 | 19.678 | 18.405 |
Net Cash used in Operating Activities (crores) | 6.501 | 8.484 | 10.332 |
Net Cash used in Investing Activities (crores) | (11.185) | (7.881) | (13.581) |
Net Cash used in Financing Activities (crores) | 3.990 | (1.108) | 3.311 |
Cash and Cash Equivalents (₹ crores) | 1.091 | 0.586 | 0.648 |
How To Check Allotment Status of Vasuki Global Industries Limited IPO?
You can check the allotment status of shares either on the website of the Bombay 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 Vasuki Global Industries 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
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Vasuki Global Industries Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Vasuki Global Industries Ltd IPO?
Here are the steps to apply for Vasuki Global Industries Ltd 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.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vasuki global industries ltd IPO FAQs
What is the Vasuki Global Industries Limited IPO?
The Vasuki Global Industries Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Vasuki Global Industries Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
