VVIP Infratech IPO

Established in 2001, VVIP Infratech Limited, originally incorporated as Vibhor Builders Private Limited, is a leading infrastructure company in India. As a Class ‘A’ civil and electrical contractor, the company boasts over 2 decades of experience in executing and constructing various infrastructure projects. These include sewerage systems, sewage treatment plants, water tanks, water treatment plants, sector development works, electrical distribution and substations up to 33 kVA, and projects under the Jal Jeewan Mission.

VVIP Infratech emphasises quality work, on-time delivery, and competitive pricing. The company is supported by a team of experienced and qualified engineers and technicians committed to providing the best possible services to clients. Notably, in 2013, the company successfully constructed two 56 MLD sewage treatment plants using Sequential Batch Reactor (SBR) technology.

Primarily operating in Uttar Pradesh, Uttarakhand, NCR Delhi, and other northern regions of India, VVIP Infratech is a rapidly growing company with a strong focus on innovation and quality. As of January 31, 2024, the company has an order book of ₹477.62 Crores, including an Operation and Maintenance (O&M) order book of ₹126.19 Crores. Additionally, the company has submitted bids worth ₹182.00 Crores for tenders in Roorkee, Uttarakhand.

With a workforce of 466 employees as of September 30, 2023, VVIP Infratech is well-positioned to play a key role in the development of India’s infrastructure sector, particularly in sewage treatment plants. The significant increase in the company’s order book value highlights its strong execution capabilities and potential for future growth.

VVIP Infratech IPO Strengths

• Strong order book: ₹47,762 lakhs in outstanding orders.
• Outstanding O&M work: ₹12,619 lakhs in UP Jal Nigam projects.
• High-quality work, on-time delivery, and competitive pricing.
• Expertise in constructing 56 MLD STP using SBR technology.
• Eligible for single tenders up to 90 MLD STP projects.
• Experience with Namami Gange and AMRUT sewerage projects.
• Qualified engineers and technicians for urban sector development.
• Capability to handle ₹235 crore sewerage network tenders.

VVIP Infratech IPO Risks

• Pending litigation risks: ₹944.97 lakhs in indirect tax cases.
• Director litigation risk: Vibhor Tyagi faces ₹50.50 lakhs ongoing case.
• Subcontractor dependency impacts project timelines and quality.
• Negative cash flow risk in financial year 2021 and beyond.
• Working capital requirement of ₹40 crores for ongoing projects.
• Customer payment delays increase working capital and reduce profits.
• Top 10 suppliers contribute 44% of purchases, impacting revenue.
• High promoter control: 67.99% post-issue equity share capital.