Key details on Vdeal System’s IPO, including dates, price, and allotment information
Vdeal System Ltd. is a technology company that offers a range of IT services, software development, and digital transformation solutions. The company has published that its IPO is going to be open on 27th August 2024 and will end on 29th August. It aims to gather INR 18.08 crore with a price range of INR 112 per share and a market lot of 1,200 shares.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Vdeal System IPO
- Allotment Dates for Vdeal System IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Registrar for Vdeal System IPO
- Offer Lead Manager
- Company Address
Company Overview
Vdeal System Ltd. is a specialist in electrical panels, process instrumentation, industrial automation, and industrial IoT. They specialize in developing, producing, and installing high-performance electrical panels for different industries and also provide the most accurate measurement and control for improving the enhancement of industries. Additionally, the company’s industrial automation services improve organizational performance through the development of special systems for their clients. to enhance their productivity. Furthermore, it offers industrial IoT services and solutions, including smart manufacturing, which is in tandem with Industry 4.0 to promote greater productivity and efficient use of time.
Company Strategy
The company aims to provide customized B2B electrical and automation products such as smart panels and energy management systems that are compliant with international quality standards. Its strategic management focuses on increasing its market stature by acquiring new strategic partnerships and advising firms on the deployment and integration of advanced technologies such as AI, ML, and IoT systems that will help in the organization’s growth. It also intends to diversify its markets to enhance sales and re-invest in IPOs to support working capital.
Details on IPO Date and Price Band
| IPO Open Date: | August 27, 2024 |
| IPO Close Date: | August 29, 2024 |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR 112 Per Share |
| Issue Size: | Approx INR 18.08 Crores (16,14,000 Equity Shares) |
| Fresh Issue: | Approx INR 18.08 Crores (16,14,000 Equity Shares) |
| Offer for Sale: | N/A |
| Issue Type: | Fixed Price Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | 50% |
| QIB Quota: | 0% |
| NII Quota: | 50% |
IPO Objective:
The company seeks an IPO to accomplish several important goals, such as providing the necessary working capital to cover ongoing and expected future business needs. Further, part of the funds is planned to be used for the early redemption and repayment of some of the secured and unsecured loans, which will help to decrease the company’s debt and thus make it more financially secure. Furthermore, the company aims to utilize its IPO for working capital to cater for other general corporate needs that may arise from time to time or are likely to present the company with other good business opportunities and meet operational costs.
Market Lot Information on Vdeal System IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1,200 shares) for INR 1,34,400
- Retail Maximum: 1 lot (1,200 shares) for INR 1,34,400
- S-HNI Minimum: 2 lots (2,400 shares) for INR 2,68,800
Allotment Dates for Vdeal System IPO
Vdeal System IPO open date is August 27 and the IPO close date is August 29. The IPO allotment date is August 30 and the listing date is September 3.
| IPO Open Date: | August 27, 2024 |
| IPO Close Date: | August 29, 2024 |
| Basis of Allotment: | August 30, 2024 |
| Refunds: | September 2, 2024 |
| Credit to Demat Account: | September 2, 2024 |
| IPO Listing Date: | September 3, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Vdeal System. On the other hand, the IPO forms are also available for download on the NSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Revenue | Expense | Profit After Tax | Assets |
| 2022 | 16.24 | 15.93 | 0.23 | 11.42 |
| 2023 | 20.75 | 19.27 | 1.10 | 15.44 |
| 2024 | 26.25 | 21.99 | 3.11 | 27.28 |
Vdeal Systems Ltd. has shown notable financial growth over the past three years. From 2022 to 2024, the company’s revenue increased significantly from INR 16.24 crores to INR 26.25 crores. While expenses also rose from INR 15.93 crores to INR 21.99 crores, the company effectively managed costs, leading to a substantial increase in profit after tax, which grew from INR 0.23 crores in 2022 to INR 3.11 crores in 2024. Additionally, the total assets expanded from INR 11.42 crores in 2022 to INR 27.28 crores in 2024, reflecting a strong financial position and potential for future growth.
IPO Valuation (FY 2024)
The company’s EPS stands at a value of INR 9.50 with a Return on Net Worth (RoNW) of 49.52% and a Net Asset Value (NAV) per share of INR 19.19 in the financial year 2024. The IPO price band range of INR 112 with the issue of 16,14,000 equity shares to raise INR 18.08 crores and a face value of INR 10 per share to meet working capital needs, repay loans, support general corporate purposes, and cover offer expenses to enhance financial stability and growth.
| Earnings Per Share (EPS): | INR 9.50 |
| Price/Earning P/E Ratio: | 11.79 |
| Return on Net Worth (RoNW): | 49.52% |
| Net Asset Value (NAV): | INR 19.19 |
Competitor Analysis
Here is the competitor of Vdeal Systems:
Akanksha Power and Infrastructure Limited
Akanksha Power and Infrastructure Limited is an India-based multifaceted power company functioning in the power generation, transmission, and power infrastructure sectors. As a company specializing in turnkey energy solutions for efficient and sustainable energy generation, the company offers products in four major categories; renewable energy solutions, thermal power solutions, smart solutions as well and smart grid technologies. The company is also involved in developing large-scale infrastructure development projects in partnership with different stakeholders where the company provides integrated design and build services, with emphasis on innovation and sustainability, the company has the vision of making a significant impact in the energy sector.
Saakshi Medtech and Panel Limited
Saakshi Medtech and Panel Limited is an organization that operates in the fields of medical technology and electrical panels. It delivers sophisticated medical equipment and technologies useful in the diagnosis and treatment of diseases. Also, Saakshi Medtech and Panel Limited are involved in the manufacturing and supply of electrical panels for different uses in industries, emphasizing quality and efficiency. It will also focus on improving the delivery of healthcare services as well as contributing to efficiency improvements in the industry through medtech and electrical engineering technologies and services.
Offer Lead Manager
Affinity Global Capital Market Private Limited
Affinity Global Capital Market Private Limited is a financial service provider company dealing with capital market services such as advisory services, market research, strategic and financial planning services, etc. It provides solutions to complicated financial environments and assists clients in distinct areas of their finances, as well as the management of funds. Specializing in overseas markets and potential investment areas, Affinity Global Capital Market offers valuable advice and effective solutions as a means of achieving commercial profits and development.
Conclusion
Vdeal System Ltd.’s upcoming IPO, scheduled from August 27-29, 2024, aims to raise INR 18.08 crores with a fixed price of INR 112 per share. The company, specializing in industrial automation, electrical panels, and IoT solutions, intends to use the funds to strengthen its financial position by reducing debt, supporting working capital, and pursuing corporate growth opportunities. With robust financial growth and strategic market positioning, Vdeal System Ltd. is poised for future success as it continues to innovate in the technology sector.
