Vdeal System IPO Opens; Check Price Band, Day 1 Subscription Status And Lot Size

The Vdeal System Ltd. IPO, a fixed-price issue, opened for subscription starting today, August 27. The SME IPO comprises a total issue size of Rs 18.08 crores, with the entire issue being a fresh allotment of 16.14 lakh shares.

The IPO price is fixed at Rs 112 per share. Investors can apply for a minimum lot size of 1,200 shares, requiring an investment of Rs 1,34,400. High Net-Worth Individuals are required to apply for a minimum of 2 lots, totaling 2,400 shares, which amounts to Rs 2,68,800.

Affinity Global Capital Market Private Ltd. is the book-running lead manager for the SME IPO, while Cameo Corporate Services Limited serves as the registrar. Black Fox Financial has been appointed as the market maker for the issue.

As per the company's red herring prospectus, of the total 16,14,000 shares offered - 47.47% is reserved for non-institutional investors and 47.47% reserved for retail investors. 5.06% has been reserved as market maker portion.

The subscription period will conclude on August 29, 2024, with the allotment expected to be finalised on August 30, 2024. The shares are slated to list on the NSE SME platform, with a tentative listing date set for September 3, 2024.

The IPO was subscribed 4.51 times at on Tuesday.

• Non-institutional investors: 1.22 times.

• Retail Investors: 7.80 times.

Founded in December 2009, Vdeal System Ltd. is a provider of integrated electrical and automation solutions. The company specialises in a range of products including Smart Low Voltage (LV) panels, Smart Medium Voltage (MV) panels, Smart Variable Frequency Drive (VFD) panels, Medium Voltage (MV) Soft Starters, Energy Management Systems (EMS), and Smart Programmable Logic Controller (PLC) panels.

Additionally, Vdeal System offers air-insulated and sandwich bus ducts. The company is known for its in-house product design and development, manufacturing, system integration, and servicing of automation solutions and smart electrical control panels, all adhering to high international IEC standards for quality and safety.

The proceeds from the IPO will be utilised for several key purposes including working capital requirements. Prepayment and repayment of certain secured and unsecured loans availed by the company and for general corporate purposes.

For the fiscal year ending March 31, 2024, the company reported a 26% increase in revenue compared to the previous year. Additionally, Profit After Tax surged by 183% during the same period.