IPO Details
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IPO Size
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Schedule of Viney Corporation Ltd
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Allotment of bids
Refund Initiation
Listing on exchange
About Viney Corporation Limited IPO
Viney Corporation Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 22,213,852 equity shares and a fresh issue aggregating up to ₹150 crores. The shares will be allotted 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 Viney Corporation Limited IPO
- Re-payment and/or pre-payment, in full or in part, of certain borrowings availed by the company.
- General corporate purposes.
Viney Corporation Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 22,213,852 equity shares |
Fresh Issue | Aggregating up to ₹ 150 crores |
EPS(₹) For the year ended March 31, 2024 | 3.03 |
Viney Corporation Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share | Not less than 75% of the Issue |
Non-Institutional Investors (NIIs) | Not more than 15% of the Issue |
Retail Individual Investors | Not more than 10% of the Issue |
Industry Outlook
India is the largest motorised two-wheeler market in the world, with domestic sales of 1.84 crore units in fiscal 2024. Two-wheeler sales constituted 73% of the total auto market comprising two-wheelers, three-wheelers, passenger vehicles (PVs), commercial vehicles (CVs) and tractors by volume in fiscal 2024.The passenger vehicle segment contributed around 17% to the Indian auto industry while CVs contributed about 4% and three-wheelers and tractors contributed 3% each.
In fiscal 2023, the PV industry grew at a rate of 27% y-o-y, which was more than double the rate of 13% y-o-y witnessed during fiscal 2022, owing to the healthy pent-up demand created by two years of slump in sales volume. The order books of auto OEMs were further supported by several new launches in the growing SUV category, which saw higher traction, along with multiple facelifts of existing models and an easing supply of semiconductors. Overall wholesale volume reached a historic high of 0.39 crore units in the fiscal.
Commercial vehicle production is expected to grow by 3-5% CAGR between fiscal 2024 and 2029 on account of improvement in infrastructure expenditure and lower penetration in light commercial vehicles.
Industry growth will be driven by the EV segment which is projected to clock a healthy CAGR of 40-42% over the long term. While the ICE vehicle segment will grow at a subdued pace of 1-3% CAGR, the faster growth in EVs will help the EV penetration to reach 28-30% of the industry sales by fiscal 2029 and 33-37% of the industry sales by fiscal 2031.
Company Information
Viney Corporation Limited designs, manufactures, supplies and exports a wide array of automotive component products for two-wheeler vehicles, three-wheeler vehicles, passenger vehicles and commercial vehicles. Their product portfolio includes steering wheel switches, gear shifting paddles, light control units, brake pedal switches and sensors, multimedia plugs and airbag on/off switches (either visible switches or hidden switches) (Mechatronic Products) and wiring harnesses, fuse boxes, wires, cables, terminals, and connectors (Connective Products). They are a Tier-1 supplier of original equipment manufacturers (OEMs) for both Mechatronic Products and Connective Products, and a Tier-2 supplier and Tier-3 supplier for OEMs for Connective Products.
They have in-house product development and production capabilities. They conduct in-house research and development at their manufacturing facility in Milan, Italy. They also have an R&D centre located at Gurugram, Haryana. Their R&D teams primarily engage in new product development, design prototyping, tool development, and product upgrades.
Their products are designed in India and Italy, manufactured in India, Italy, and Romania, and are supplied and distributed across India, Europe, USA and Brazil.
Viney Corporation Ltd Strengths
One of the leading manufacturers, suppliers and exporters of automotive components with a diverse range of products.
They are one of the leading manufacturers, suppliers and exporters of automotive components i.e., Mechatronic Products and Connective Products. As of March 31, 2024, one out of every six two-wheelers sold in India are fitted with one of their device wiring harness(Source: CRISIL Report, included in the “Industry Overview” section on page 139). As of March 31, 2024, they are amongst one of the few Indian switch manufacturers with in-house capabilities to design and manufacture switches catering to both high-end and mass-market vehicles (Source: CRISIL Report, included in the “Industry Overview” section on page 139).
They also have a diverse product range. As of March 31, 2024, they had a product range of over 500 Mechatronic Products and over 2,500 Connective Products.
Strong and long-term customer relationships with cross-selling opportunities and increased global presence.
They have fostered strong and long-term relationships with their customers over the years. They typically have long-term agreements with Mechatronic Products’ customers for a period of three to seven years. They have also been associated with an automotive company forming part of a large European automotive company group for over 21 years and a French automotive company for over 19 years. Their business expansion approach has led to the addition of new OEMs to their customer base, such as a British multinational automotive company, a German automotive company, and a Japanese automotive company, supplying components for both ICE vehicles and EVs.
Segment agnostic business model with the ability to adapt and innovate through R&D.
Most of their mechatronic products and connective products are supplied for both ICE vehicles and EVs. Hence, they are a segment-agnostic technology-driven company. Further, they can transition the products initially manufactured by them for the luxury vehicle market to cater to mass-market vehicles. In terms of technology, they use software such as CREO, ANSYS, Catia Mechanical Design, Catia FreeStyle Shaper -Collaborative 3D Designer for product designing. They have advanced processes such as SMT for surface mounting of electronic components, and 2K/3K moulding technology which can handle multiple plastic materials simultaneously.
Risks of Viney Corporation Limited IPO
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They’ve derived 77.18%, 75.41% and 75.52% of their revenue from operations for fiscals 2024, 2023 and 2022, respectively from their customers situated outside India. Any instability in the business or financial performance of their customers situated outside India could materially affect their business, financial condition, and results of operations.
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Their business and profitability are dependent on the availability and cost of the raw materials, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact their business, results of operations and financial condition.
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Their business is dependent on the performance of the automotive sector globally, including in their key markets such as India and Europe. Any adverse changes in the conditions affecting these markets can adversely impact their business, results of operations and financial condition.
All Financial Information about Viney Corporation
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Viney Corporation Limited | Minda Corporation Limited | Motherson Sumi Wiring India Limited |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 1245.786 | 4651.100 | 8328.250 |
P/E | - | 56.70 | 47.92 |
EPS (Basic) (₹) | 3.03 | 9.65 | 1.44 |
Return on Net Worth (%) | 6.60% | (9.39%)% | 7.55% |
NAV per share (₹) (crores) | 29.64 | 82.84 | 3.79 |
Anchor Investor Information
The Anchor Investor Biding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
ICICI Securities Limited Axis Capital Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
- Designing, manufacturing, supplying and exporting a wide array of automotive component products for two-wheeler vehicles, three-wheeler vehicles, passenger vehicles and commercial vehicles.
Company Growth Trajectory
Their revenue from operations increased at a CAGR of 10.16% between fiscals 2022 to 2024.
Company Market Position
The company is one of the leading manufacturers, suppliers and exporters of automotive components i.e., Mechatronic Products and Connective Products. (Source: CRISIL Report)
As of March 31, 2024, one out of every six two-wheelers sold in India were fitted with one of the company’s device wiring harnesses.
As of March 31, 2024, they were amongst one of the few Indian switch manufacturers with in-house capabilities to design and manufacture switches catering to both high-end vehicles and mass-market vehicles. (Source: CRISIL Report)
Viney Corporation Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 1035.374 | 1120.064 | 1245.786 |
Profit/ loss Before Tax (₹ crores) | 47.342 | (15.048) | 44.932 |
Net profit / (loss) (₹ crores) | 33.702 | (37.495) | 27.892 |
EBITDA (₹ crores) | 103.94 | 62.982 | 144.913 |
EPS (₹) | 3.66 | (4.08) | 3.03 |
Comparison with peers
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit/(loss) before tax (₹crores) | 47.342 | (15.048) | 44.932 |
Net Cash from Operating Activities (₹ crores) | 0.835 | 143.848 | 167.895 |
Net Cash from Investing Activities (₹ crores) | (93.760) | (69.411) | (138.166) |
Net Cash from Financing Activities (₹ crores) | 43.668 | (75.857) | (41.419) |
Cash and Cash Equivalents (₹ crores) | 57.253 | 70.800 | 65.276 |
How To Check Allotment Status of Viney Corporation 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 Link Intime India 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 Viney Corporation 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 Link Intime India Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Viney Corporation Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
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.
Viney Corporation Ltd IPO FAQs
What is the Viney Corporation Limited IPO?
The Viney Corporation Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Viney Corporation Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
