VR Infraspace's IPO opened for subscription on Monday, March 4th and closes on Wednesday, March 6th. The price range for VR Infraspace's IPO has been set at ₹85 each in face value of ₹10 each. The lot size of VR Infraspace's IPO consists of 1,600 shares. Investors can bid for at least 1,600 shares and multiples thereof. The issue price is 8.50 times the nominal value.
VR Infraspace Limited is a construction and real estate development company based in and around Vadodara, Gujarat, specializing in construction and development of residential and commercial buildings.
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The company has launched initiatives for both middle and upper class consumers. The portfolio of residential apartments offered by the company includes a range of different sizes and types of housing. The company's focus is on creating luxurious yet affordable residential properties.
According to Red Herring Prospectus (RHP), the company's listed competitors are Samor Reality (with a P/E ratio of 135.23) and Laxmi Goldorna House Ltd (with a P/E ratio of 343.68).
Between March 31, 2022 and March 31, 2023, VR Infraspace Limited's profit after tax (PAT) increased by 229.16% while revenue increased by 35.16%.
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VR Infraspace IPO details
IPO of VR Infraspace, which is worthwhile ₹20.40 crore, comprising a fresh issue of 2,400,000 equity shares of face value ₹10. This is a completely new problem and there is no offer component.
The net proceeds from the new offering will be used for the following purposes: meeting working capital requirements, financing of the subsidiary M/s Narnarayan Enterprise, meeting issue expenses and general corporate purposes.
The registrar for the IPO of VR Infraspace is Link Intime India Private Ltd and the book running lead manager of the offering is Beeline Capital Advisors Pvt Ltd. Spread X Securities is the market maker for VR Infraspace's IPO.
VR Infraspace IPO subscription status
VR Infraspace's IPO subscription status is 14.66x on the second day so far. According to chittorgarh.com, the issue received positive response from retail investors whose subset was subscribed 24.85 times and non-institutional buyers whose subset was subscribed 4.46 times.
According to chittorgarh.com, the company has received offers for 3,34,09,600 shares against 22,78,400 shares on offer as of 5:12 pm IST.
VR Infraspace's IPO subscription status was 4.58x on the first day.
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VR Infraspace IPO GMP today
VR Infraspace IPO GMP or gray market premium is +30. This suggests that VR Infraspace's share price was trading at a premium of ₹30 on the gray market, according to www.investorgain.com
Taking into account the upper end of the IPO price range and the current gray market premium, the estimated listing price of VR Infraspace shares is ₹115 per piece, which is 35.29% higher than the IPO price of ₹85.
“Gray market premium” indicates investors’ willingness to pay more than the issue price.
VR Infraspace IPO review
“The company operates in the real world and builds affordable housing projects in and around Vadodara. The company operates in a highly competitive and fragmented segment. When it comes to financial performance, the company reported record profits for FY23, suggesting that inflated valuations are a bit of a window dressing. Based on FY24 annualized returns, the price of the issue appears to be exorbitant. “There is no harm in skipping this high-risk/low-reward bet,” said Dilip Davda, editor at Chittorgarh.
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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.
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