About the Company:
V-Marc India Ltd is engaged in the business of manufacturing and marketing of wires and cables under the brand name “V-Marc”.
Company manufactures and sells a diverse range of wires and cables.
Company’s key products are single & multistrand cables, CCTV cables, LAN cables, coaxial cables, telephone switchboard cables, power cables (LT and HT cables upto 33kv grade), flexible & control cables, core flat cables, solar cables, wires and aerial bunched cables.
Company’s products are also certified as compliant with various quality standards including Bureau of Indian Standards (“BIS”) and Certiva Limited (“CE”).
Company has completed 40, 25 and 19 government contracts during the financial year ended March 31, 2020, 2019 and 2018, respectively.
Company’s operating history of more than a decade, and have supplied its products for various industries including power, real estate, telecom, and railways.
Company’s Promoter Vikas Garg commenced business in a partnership firm in 2006 as a manufacturer and distributor of PVC insulated wires and cables and have over the years, evolved, expanded and diversified to become an established manufacturer of wires and cables with a total income of Rs.171.6 crores in Fiscal 2020.
Company sells its products through a diversified sales & distribution mix, majorly by
- 1) securing government tenders for supply to government projects.
- 2) supply to EPC contractors for turnkey projects.
- 3) dealer & distribution network and direct sales to few private companies.
Company’s Product Portfolio:
- Power Cables.
- Connection Cables.
- Single/ Multistrand Cables
Company’s Distribution Network:
Company has an established supply chain comprising our network of authorized dealers and distributors.
As on December 31, 2020 company has a dealer network of more than 650 dealers, (out of which we have billed to around 354 dealers during the nine months period ended December 31, 2020) who are spread over 12 states.
Company supplies its products directly to authorized dealers and distributors who in turn supply the products to various retail outlets in India. As on December 31, 2020, company has 1 warehouse and 5 sales depots to manage the supply chain operations.
Company’s Manufacturing Facilities:
Company has two manufacturing facilities which are located at Haridwar, Uttarakhand. Currently company has a combined installed production capacity of 71,100 km p.a.
Capacity and Capacity Utilization:
Company’s New Manufacturing Facility:
Company proposes to set-up a new manufacturing facility with an additional installed capacity of 11,520 km p.a. With the proposed manufacturing facility, company aims to expand the manufacturing capabilities by way of installation of Catenary Continuous Vulcanization (CCV) Technology as well as increase the installed capacities for our existing product portfolio.
Company has a diverse customer base comprising government companies, PSUs, retailers, distributors, dealers and contractors in a range of industries including power, real estate, telecom and railways.
Competitors for the Company:
Among listed companies of similar size and product portfolio, Company face competition from listed companies like Cords Cables Industries Ltd, Ultracab (India) Ltd and CMI Ltd.
- Mr. Vikas Garg (Designation: Chairman & Managing Director)
- Mrs. Meenakshi Garg (Designation: Non-Executive director)
Objectives of the Issue:
Fresh Issue: (Rs.23.4 cr)
“Funding capital expenditure of proposed new manufacturing facility which is being set up:
- to enable us to manufacture high voltage cables, produced by dry/nitrogen gas cure technology by way of installation of Catenary Continuous Vulcanization (CCV) line;
- expanding existing installed capacities”
- Funding the working capital requirements of the Company.
- General corporate purposes.
Financials of the Company:
|(in Crores)||FY 18||FY 19||FY 20||31st Dec 2020|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|V–Marc India Ltd||10||2.91||13.40||13.60%||21.43|
|Cords Cables Industries Ltd||10||8.16||5.61||7.64%||108.07|
|Ultracab (India) Ltd||10||0.82||153.90||4.94%||16.50|
|Issue Opens on||25th March 2021|
|Issue Closes on:.||31st March 2021|
|Issue Price||Rs.37 – 39|
|Minimum Lot||3000 Shares|
|Issue Size||Rs.23.4 cr|
|Market Cap||Rs.88.86 cr|
|Listing at||NSE SME|
|Equity Shares Offered||60,00,000|
|Equity Shares Prior to the Issue||1,67,85,696|
|Equity Shares after the issue||2,27,85,696|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||on or Before 6th April 2021|
|Initiation of Refunds||on or Before 7th April 2021|
|Credit of Equity Shares:||on or Before 8th April 2021|
|Listing Date:||on or Before 9th April 2021|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|V-Marc India Limited
Plot No. 3, 4, 18, 20A, Sector IIDC,
Tel: +91 1334-239638
|IPO Registrar Info:|
|BIGSHARE SERVICES PRIVATE LIMITED
1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis,
Makwana Road, Marol, Andheri East
Mumbai – 400 059, Maharashtra
Tel: +91 22 62638200
|Lead Manager to the Issue:|
|PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED
406-408, Keshava Premises, Behind Family Court,
Bandra Kurla Complex, Bandra East, Mumbai – 400 051,
Tel: +91-22 6194 6700