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14 Nov 2024
Vrundavan Plantation IPO: Cultivating Growth in Green Ventures
Introduction:
Vrundavan Plantation IPO, a fixed-price issue of Rs 15.29 crores, brings forth a green initiative in the financial landscape. The entire issue comprises 14.16 lakh fresh shares, emphasizing the company's dedication to fostering sustainable practices. The IPO bidding phase unfolded from October 30, 2023, to November 1, 2023. The allotment was concluded on Sunday, November 5, 2023, with the shares making their debut on BSE SME on November 6, 2023.
Financial Landscape:
The IPO is priced at ₹108 per share, with a minimum lot size of 1200 shares. This sets the minimum investment for retail investors at ₹129,600. High Net Worth Individuals (HNI) have a minimum lot size of 2 lots (2,400 shares), requiring an investment of ₹259,200.
Market Performance Snapshot:
As of December 20, 2023, the stock was trading at ₹52.20, reflecting a 0.99% increase. The opening and closing values were ₹51.25 and ₹53.86, respectively. The 52-week range oscillated between ₹51.00 and ₹107.00.
Key IPO Statistics:
- - IPO duration: October 30, 2023, to November 1, 2023
- - Listing Date: November 6, 2023
- - Face Value: ₹10 per share
- - Price: ₹108 per share
- - Lot Size: 1200 Shares
- - Total Issue Size: 1,416,000 shares, aggregating up to ₹15.29 Cr
- - Fresh Issue: 1,416,000 shares, aggregating up to ₹15.29 Cr
- - Issue Type: Fixed Price Issue IPO
- - Listing At: BSE, NSE
Equity Landscape:
Pre-issue, Vrundavan Plantation held 3,916,728 shares. Post the IPO, the figure increased to 5,332,728 shares.
IPO Reservation Dynamics:
The IPO allocated shares as follows: 5.08% to Market Makers, 47.46% to Non-Institutional Investors (NII), 47.46% to Retail Individual Investors (RII). Notably, Retail and NII categories each received 672,000 shares.
IPO Timeline Highlights:
- - IPO Open Date: Monday, October 30, 2023
- - IPO Close Date: Wednesday, November 1, 2023
- - Basis of Allotment: Sunday, November 5, 2023
- - Initiation of Refunds: Monday, November 6, 2023
- - Credit of Shares to Demat: Monday, November 6, 2023
- - Listing Date: Monday, November 6, 2023
- - Cut-off time for UPI mandate confirmation: 5 PM on November 1, 2023
Lot Size Landscape:
Investors could bid for a minimum of 1200 shares and in multiples thereof. The table below outlines the investment parameters for retail investors and HNIs:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹129,600 |
| Retail (Max) | 1 | 1200 | ₹129,600 |
| HNI (Min) | 2 | 2400 | ₹259,200 |
Promoter Holdings:
The promoter of Vrundavan Plantation is Upendra Tiwari. Pre-issue, the promoter held 85.29% of shares, which decreased to 62.65% post the issue.
Company Profile:
Incorporated in 1997, Vrundavan Plantation is involved in the nursery business, focusing on Landscape Development, Horticulture/Plantation/Landscape maintenance Works, Irrigation works, and Nursery Business. The company's vision is centred around protecting, restoring, and increasing Indian forest cover, aligning with climate change goals. Notable strengths include diverse service offerings, organisational stability, and strong client relationships.
Financial Performance Overview:
As of May 31, 2023:
- - Assets: ₹2,321.67 Lakhs
- - Revenue: ₹180.68 Lakhs
- - Profit After Tax: ₹17.33 Lakhs
- - Net Worth: ₹413.82 Lakhs
- - Total Borrowings: ₹17.47 Lakhs
Key Performance Indicators:
- - P/E (x): 34.62
- - Post P/E (x): 27.69
- - Market Cap: ₹57.59 Crores
- - ROE: 8.35%
- - ROCE: 6.71%
- - Debt/Equity: 0.47
- - EPS (Rs): 0.52
- - RoNW: 4.19%
Objects of the Issue:
The Net Proceeds from the IPO are designated for:
1. Repayment of Working capital and unsecured loan.
2. Working Capital Requirement.
3. General Corporate Purpose.
4. Meeting Public Issue Expenses.
Expert Analysis:
Well-informed investors are encouraged to consider the IPO for potential medium to long-term rewards.
IPO Subscription Status:
As of November 1, 2023, the Vrundavan Plantation IPO was subscribed 18.57 times. The retail category saw a subscription of 25.51 times, while the NII and QIB categories were oversubscribed 11.60 times and 29.31 times, respectively. The total number of applications reached 16,416, reflecting a subscription of 29.31 times.
Note: All financial figures are in INR (Indian Rupees), and market-related data is as of December 20, 2023.
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