(MENAFN- KNN India)
New Delhi, Jul 30 (KNN) VL Infraprojects, a government-approved contractor specialising in water infrastructure and irrigation projects, listed on the National Stock Exchange's Small and Medium Enterprises (NSE SME) platform on Tuesday with a significant premium.
The stock opened at Rs 79.8, marking a 90 per cent increase from its initial public offering (IPO) price of Rs 42.
The company's IPO, consisting of a fresh equity issuance of 44.1 lakh shares, garnered substantial interest from investors, being oversubscribed by more than 600 times.
This strong demand was primarily driven by retail and non-institutional investors (NIIs). Prior to the listing, shares of VL Infraprojects were trading at a grey market premium of approximately Rs 60 in the unlisted market.
Proceeds from the public offering are earmarked for funding working capital requirements and general corporate purposes, according to company statements.
VL Infraprojects holds an 'AA' class contractor status and is registered with various state governments. The company's core business involves the design, construction, and commissioning of government projects, with a particular focus on water supply and sewerage infrastructure.
Their services encompass pipe procurement, laying, joining, and commissioning, along with associated civil engineering works and maintenance services for water distribution pipelines.
Initially concentrating on water pipeline projects in Gujarat, the company has expanded its portfolio to include road construction, irrigation, and environmental projects across multiple states.
To date, VL Infraprojects has completed approximately 30 projects valued at Rs 104.86 crore. As of July 13, 2024, the company reports 15 ongoing projects with a combined worth of around Rs 338.8 crore.
The infrastructure sector is viewed as a critical component in India's economic growth trajectory, with investments in this area seen as essential for enhancing efficiency and reducing costs.
These developments align with the country's ambitious goal of becoming a USD 26 trillion economy.
For the fiscal year ending March 2024, VL Infraprojects reported total revenues of Rs 114 crore and a net profit of Rs 6.14 crore.
(KNN Bureau)
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