Vision Infra Equipment Solutions shares list at 26% premium on NSE Emerge platform; check details

Shares of small and medium enterprise (SME) Vision Infra Equipment Solutions Ltd made a decent trading debut on Friday, September 13, with the stock listing at a nearly 26% premium on the NSE Emerge platform.

The Vision Infra Equipment Solutions stock opened the session at ₹205, up 25.7% compared to its initial public offering (IPO) of ₹163 apiece. Within minutes after the trade opened, the share price rallied further to hit the 5% upper circuit at ₹215.25 level.

As the minimum bid quantity to apply for the Vision Infra Equipment Solutions IPO was 800 shares, successful bidders who were allotted shares in the primary issue managed listing gains of at least ₹33,600 (₹42 x 800) as soon as the stock started to trade on the exchange.

The ₹106.21-crore Vision Infra Equipment Solutions IPO was open for subscription from September 6 to September 10.

During the three-day bidding period, the IPO was booked over 68 times, with the company receiving bids for 29.48 crore shares as against the 43.26 lakh shares on offer.

The portion reserved for non-institutional investors (NIIs) was the most subscribed at more than 180 times. The qualified institutional buyers’ (QIBs) segment was overbooked by almost 61 times, while the retail investors’ portion was subscribed over 24 times.

The Vision Infra Equipment Solutions IPO was a book-building issue consisting entirely of fresh issuance of 65.16 lakh shares with a face value of ₹10 each.

Shares in the issue were offered to retail investors at a price band of ₹155 to ₹163 apiece in a lot size of 800 shares.

Ahead of the IPO launch, Vision Infra Equipment Solutions also raised ₹30.21 crore in its anchor investor round. The company's board of directors, in its meeting held on September 5, finalised the allocation of almost 18.54 lakh shares to 18 anchor investors at a price of ₹163 per share.

The list of investors included HDFC Bank Ltd, India Ahead Venture Fund, Meru Investment Fund PCC—Cell I, Finavenue Capital Trust, and Beacon Stone Capital VCC, among others.

Vision Infra Equipment Solutions proposed using the net proceeds from the issue to fund capital expenditures, such as the purchase of additional equipment, funding working capital requirements, and general corporate purposes.

Founded in 2015, Vision Infra Equipment Solutions is a leading player in the equipment rental and refurbishment industry. Its service offerings include deployment, operation, and maintenance of road construction machinery.

The company offers services across various sectors, including airports, smart cities, irrigation, buildings and factories, mining, and railroads. Its service portfolio includes the rental of road construction machines as well as the trade and reconditioning of these machines.

The company has a large fleet of equipment from major OEMs, which is leased out to infrastructure companies. As of November 30, 2023, the company owned a fleet of 326 road construction machines.