Lukewarm Debut for Vishnusurya Projects and Infra Limited Shares

Lukewarm Debut for Vishnusurya Projects and Infra Limited Shares

VoM News Desk | October 10, 2023 | 11:52 AM IST | Breaking News | Follow on Google News

Lukewarm Debut for Vishnusurya Projects and Infra Limited Shares

Lukewarm Debut for Vishnusurya Projects and Infra Limited Shares

In an underwhelming market debut, Vishnusurya Projects and Infra Limited saw its shares listed on the NSE SME exchange today. The opening bell revealed a listing price of ₹73 per share, representing a modest 7.4% increase over the issue price of ₹68.

Vishnusurya Projects and Infra Limited’s initial public offering (IPO) featured a price band of ₹68 per equity share, with each share having a face value of ₹10. The lot size for the IPO was set at 2000 equity shares, with multiples of 2000 equity shares available thereafter. The subscription window for the IPO opened on September 29 and closed on October 5.

Exploring Vishnusurya’s Ambitions

Vishnusurya’s IPO, valued at ₹49.98 crores, comprised a fresh issue of 7,350,000 equity shares, devoid of any offer for sale (OFS) component. Bhavani Jayaprakash, the company’s promoter, spearheaded this endeavor. The funds raised from the IPO are earmarked for several purposes, including meeting working capital requirements, addressing general corporate needs, and potentially repaying existing borrowings.

The IPO’s registrar is Cameo Corporate Services Limited, with Khandwala Securities Limited serving as the book running lead manager. Nikunj Stock Brokers has taken on the role of the market maker for the Vishnusurya Projects and Infra IPO.

Vishnusurya Projects and Infra Limited’s operations encompass mining uncut stones and employing crushing facilities and sand washing units to produce aggregates and manufacture sand. The company also undertakes EPC projects in various industries, including water, rail, transportation, resources, and institutional development. Additionally, it engages in the buying, selling, and provision of integrated drone solutions for surveillance, mapping, and surveying purposes.

Comparing with Peers

According to the Red Herring Prospectus (RHP), Vishnusurya’s listed peers include Rachana Infrastructure Ltd (P/E of 80.90), Sonu Infratech Ltd (P/E of 12.32), and AB Infrabuild Ltd (P/E of 5.60).

Grey Market Premium for Vishnusurya IPO

As of today, the grey market premium (GMP) for Vishnusurya Projects IPO stands at +7. This suggests that the shares are trading at a premium of ₹7 in the unofficial grey market. Taking into account the upper end of the IPO price band and the current GMP, the estimated listing price for Vishnusurya Projects shares is ₹75 apiece, marking a 10.29% increase over the IPO price. The GMP indicates the willingness of investors to pay more than the official issue price.

VoM News Desk

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