Vasuki Global Industries IPO: Check Issue Date, Price, Lot Size & Company Financial

IPO Details

Bidding Dates

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Minimum Investment

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Price Range

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Maximum Investment

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Retail Discount

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Issue Size

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Investor category and sub category

Qualified Institutional Buyers (QIBs) | Non-Institutional Bidders (NIBs) | Retail Individual Bidders (RIBs) |

About Vasuki Global Industries Limited

The company is a vertically integrated procurement and processing agent known for its multifaceted, end-to-end solutions catering to various industries. Its business primarily offers procurement and processing solutions for a diverse range of imported and domestic coal types, such as Indonesian coal, Australian steam coal, Mozambique steam coal, South African coal, U.S. coal, and Russian coal. The company also specialises in logistics services through surface transportation.

Located in the village of Nana Dahisara, Morbi, the company's coal processing and segregating unit can screen and segregate coal into various sizes based on customer requirements. Additionally, the company extends its procurement solutions to other petroleum products like oil and liquified petroleum gas and refractory materials and raw materials used in the cement and construction industries.

The company's customer base is broad, serving industries including metals and minerals, cement, steel, and construction. It caters to both large industries and small-scale traders. As of March 31, 2023, the company had served 766 customers, 44 of whom had been long-term clients for over six years.

To support its procurement and processing segment, the company has developed a surface transportation segment offering bulk truckload and full truckload logistic services, primarily to the cement, steel, and construction industries. The company maintains an in-house preventive maintenance facility for its fleet of 84 vehicles, ensuring timely deliveries and reducing on-road repairs.

The company's strategic move includes establishing a greenfield project through its subsidiary, Vasuki Cement Private Limited, to manufacture various grades of cement in Gujarat, India. This initiative is driven by the availability of essential raw materials and the proximity to developing cities and major ports.

Industry Outlook:

The global economic growth is projected to slow down to 3.0% in CY23 and 2.9% in CY24 due to tightening financial conditions and the ongoing effects of the Russia-Ukraine conflict. This slowdown suggests that external demand for industrial and emerging market products may remain subdued, impacting export-oriented sectors.
India's economy shows resilience, projected to grow at 6.3% annually from CY23 to CY28, outperforming major economies like China and the U.S. This robust growth, supported by strong domestic demand and government capital expenditure, presents opportunities for sectors like services, manufacturing, and construction.

Vasuki Global Industries Limited IPO Details

Vasuki Global Industries Limited IPO Dates

The exact dates are yet to be announced.

Vasuki Global Industries Limited IPO Price Band

The exact price range is yet to be announced.

Vasuki Global Industries Limited IPO Lot Size

The exact lot size is yet to be announced.

Vasuki Global Industries Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

Allocate ₹187.78 million for capital expenditure in logistics to enhance goods transportation.
Invest ₹663.00 million in Vasuki Cement Private Limited for setting up a cement manufacturing facility.
Utilise up to 25% of Gross Proceeds for general corporate purposes.

Peer Details

The companies considered by Vasuki Global Industries Limited as its peers include:

Agarwal Industrial Corporation Limited
Orient Cements Limited

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Contact Details of Vasuki Global Industries Limited IPO

Registered office: Nakshatra Heights Office No. 501, Opp. Telephone Ex. 150ft Road, Rajkot – 360 007, Gujarat, India
Phone: +91 281 257 7298
E-mail:info@vasukigroup.com

IPO Financials

Particulars	For the 6-month period ended September 30, 2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Total Revenue (in ₹ millions)	2,785.03	7,336.19	9,085.89	5,162.60
Profit After Tax (PAT) (in ₹ millions)	86.63	134.99	146.69	57.95
Cash & Cash Equivalents (in ₹ millions)	38.35	6.48	5.86	10.91
Net Worth (in ₹ millions)	505.21	417.72	282.85	137.16
Debt to Equity Ratio(x)	0.79	0.69	0.62	0.98
Return on Equity (%)	18.77%	38.54%	69.85%	53.54%
Return on Capital Employed (RoCE) (%)	25.38%	54.73%	68.71%	67.88%
Diluted Earning Per Share (EPS)-in absolute ₹	2.82	4.39	4.77	1.88

Know before investing

Strengths

The company has established long-term relationships with its customers, with 44 clients associated for over six years, reflecting its focus on quality, customised solutions, and timely delivery across various sectors.
It offers integrated procurement and logistics solutions, enhancing customer convenience by reducing supply chain intermediaries and serving various industries, including metals, minerals, cement, and construction.
The company's consistent financial growth is evident, with revenue from operations and profit after tax growing at CAGRs of 19.19% and 52.62%, respectively, from Fiscal 2021 to 2023.
With a dedicated in-house maintenance facility and an owned fleet of 84 vehicles, the company effectively manages operational costs and ensures reliable and timely delivery, minimising dependency on outsourced transportation.

Risks

Vasuki Global Industries Limited's revenue relies heavily on procurement and processing services, with a decline of 19.40% from Fiscal 2022 to 2023 due to the normalisation of coal prices impacting sales.
The company's dependency on long-term customers poses a risk; any reduction in business from these key clients could significantly affect its operations, as top customers contribute up to 30.15% of revenue.
Vasuki Global Industries Limited faces sector-specific risks, particularly in cement, steel, and construction industries. Adverse changes in these sectors can impact the company's operations and financial condition.
With a limited operating history in logistical services since 2019, Vasuki Global Industries Limited may struggle to identify risks and manage operations effectively, which could impact its growth and financial stability.