Varindera Constructions Ltd. IPO Details
Varindera Constructions Ltd. was incorporated on December 15, 1987. The company is an integrated EPC firm with experience in constructing residential and commercial buildings, railway stations, hospitals, high courts, and libraries, along with infrastructure projects like metro depots, aircraft hangars, and roads
| Bidding Dates |
|---|
| To Be Announced |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | 0 | - | - | ₹12,000.0 M | DRHP DOC |
Varindera Constructions Ltd. issue details
Varindera Constructions Ltd. IPO issue size is ₹ 12,000.0 M
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 35% | 15% | 50% |
Varindera Constructions Ltd. IMPORTANT IPO DATES
| Issue Open Date | - |
| Issue close Date | - |
| Allotment Date | - |
| Refund Date | - |
| Demat Account Credit Date | - |
| Listing Date | - |
| Listing on Exchange(s) | NSE and BSE |
Varindera Constructions Ltd. NUMBER OF SHARES ON OFFER
Varindera Constructions Ltd. FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| FY24 | 1,433.8 | 13,889.3 | 416.7 | -300.9 | 17.3% |
| FY23 | 1,090.1 | 10,485.5 | 539.1 | -98.8 | 15.7% |
| FY22 | 761.5 | 9,943.3 | -520.2 | -579.1 | 12.0% |
Varindera Constructions Ltd. INFORMATION ON IPO ISSUE
About Varindera Constructions Ltd.
Varindera Constructions Ltd. was incorporated on December 15, 1987. The company is an integrated EPC firm with experience in constructing residential and commercial buildings, railway stations, hospitals, high courts, and libraries, along with infrastructure projects like metro depots, aircraft hangars, and roads
Object of the Issue
- Capital expenditure towards the purchase of equipments
- Working capital funding by the company
- Repayment/prepayment in full or in part, of certain outstanding borrowings availed by the company
- General corporate purposes
Varindera Constructions Ltd. - PROMOTERS
| Name |
|---|
| Varinder Kumar Garg |
| Sushma Garg |
| Vivek Garg |
Varindera Constructions Ltd. Book Running Lead Manager
ICICI Securities Limited
varindera.ipo@icicisecurities.com
Equirus Capital Private Limited
vcl.ipo@equirus.com
IIFL Securities Limited
varindera.ipo@iiflcap.com
Varindera Constructions Ltd. Registrar to the Offer
Link Intime India Private Limited
varindera.ipo@linkintime.co.in
Varindera Constructions Ltd. Strengths
Leading construction company
The company is one of the fastest-growing construction firms with a strong track record in building construction. With over 30 years of experience, primarily with central government projects, it has developed efficient systems for bidding, project management, equipment utilization, and cost-effective procurement
Consistent financial performance
The company's business growth has strengthened its financial position. Its integrated execution, efficient project management, and equipment ownership have resulted in consistent revenue and net profit growth, along with improved financial metrics like PAT margin and return on equity
Strong order book
In the construction industry, an order book indicates future performance by reflecting expected revenue. The company's order book was valued at Rs 38,447.9 million in FY24 which provides clarity on future revenue and workload. The company has strong order book sources from NHAI, South Western Railway, South Central Railway and more
Varindera Constructions Ltd. Risks
Capital-intensive business
The business is capital-intensive. Insufficient cash flows or limited access to suitable financing for debt payments and working capital needs could negatively impact operational results
Revenue concentration in government clients
Over 90% of the company's revenue in the last three fiscal years came from clients affiliated with the central government. The financial condition could be significantly impacted if new contracts are not obtained or if current contracts are terminated
Dependent on third-party suppliers
The company relies on third-party suppliers for key components, materials, and customer support services, including product repairs and returns. Any supply shortfall or increase in costs for components or raw materials could negatively affect product pricing, supply, and overall business performance
IPO FAQs
The promoters of the company are Varinder Kumar Garg, Sushma Garg and Vivek Garg.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.