VL Infraprojects shares list at 90% premium over issue price on NSE SME platform

Ahead of the listing, the company’s shares traded with a GMP of around Rs 60 in the unlisted market.

The IPO, which was completely a fresh equity sale of 44.1 lakh shares, was booked over 600 times driven by a strong response from retail and NII investors.

The net proceeds from the public offer will be used for funding working capital requirements and general corporate purposes.

VL Infraprojects is a government-approved contractor in the “AA” class with licenses and registrations from various state governments. The company provides designing, construction, and commissioning of various types of government projects especially in the water infrastructure and irrigation segment.The company is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurement of pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering. It also provides operations and maintenance services for water distribution pipelines.The company began its operations focusing on water pipeline projects in Gujarat but has since expanded services to encompass all aspects of road construction, irrigation, water infrastructure, and environmental projects.Over the years, on a material basis, VL Infraprojects has successfully executed around 30 projects worth Rs 104.86 crore. As of July 13, 2024, it has 15 ongoing projects worth approximately Rs 338.8 crore.

Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increasing efficiency and costs.

For the year ended March 2024, the company clocked total revenues of Rs 114 crore and net profit of Rs 6.14 crore.