VL Infraprojects shares list at 90% premium on NSE SME platform; check details

Infrastructure development company VL Infraprojects Ltd made a stellar trading debut on Tuesday, July 30, with its stock listing at a 90% premium on the NSE SME platform.

Shares of VL Infraprojects opened the session at ₹79.8 apiece on the NSE Emerge platform on Tuesday, up 90% compared to their initial public offering (IPO) price of ₹42 apiece. Within minutes of trade, the stock price rose 5% further to ₹83.75 levels.

The listing has translated into a profit of at least ₹1.13 lakh (₹37.8 x 3,000) for successful bidders who were allotted shares in the VL Infraprojects IPO, as the minimum bid quantity was 3,000 shares.

Markets were expecting VL Infraprojects to start well on stock exchanges as its ₹18.5-crore IPO had seen humongous demand from investors across categories.

The issue, which was open from July 23 till July 25, was oversubscribed by almost 634 times during the three-day bidding period. The company had received bids for more than 185 crore shares against just 29.22 lakh shares on offer.

The retail category was the most in-demand, with an oversubscription of almost 840 times. The portion reserved for non-institutional investors (NIIs) was overbooked by over 726 times, while the qualified institutional buyers (QIBs) segment was oversubscribed nearly 204 times.

The VL Infraprojects IPO was a 100% book-built issue that aimed to raise a total of ₹18.52 crore. The issue was entirely a fresh issuance of 44.1 lakh shares of face value of ₹10 each, with no offer-for-sale (OFS) component.

The price band for the IPO was fixed at ₹39-₹42 per share, with a lot size of 3,000 shares.

Ahead of the IPO's launch, VL Infraprojects also raised ₹5.24 crore through its anchor investor round. The company allocated 12.48 lakh shares to four anchor investors at an average price of ₹42 per equity share. The anchor investors included Astorne Capital VCC—Arven, Saint Capital Fund, VPK Global Ventures Fund—Scheme I, and M7 Global Find PCC—Nolana.

The company plans to use the proceeds from the fresh issue to meet working capital requirements and for general corporate purposes.

Founded in 2014, Ahmedabad-based VL Infraprojects Ltd specializes in residential building, road construction, irrigation, water supply, and gas supply. The company offers planning, construction, and commissioning of various government projects, especially in the fields of water infrastructure and irrigation.

In the water infrastructure segment, the company is engaged in the execution of water supply and wastewater infrastructure projects that mainly include procurement of pipes and their laying, connection, and commissioning with backward integration, including all related civil engineering works such as civil works, pumping stations, and installation of electro-mechanical equipment (pumping machines) for distribution of water supply from river to household. The company also provides operation and maintenance services for water pipelines.