Vigor Plast Launches IPO to Raise Rs 25.10 Crore, Targets Expansion
Vigor Plast India, a CPVC and UPVC pipe manufacturer, opens its IPO to raise Rs 25.10 crore. The issue includes fresh shares and an OFS, with a price band of Rs 77-81 per share. The IPO closes on September 9, with listing scheduled for September 12 on NSE SME platform. The company reported Rs 46.02 crore revenue and Rs 5.15 crore profit in recent results. Funds will be used for debt repayment, a new warehouse in Ahmedabad, and general corporate purposes.
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Vigor Plast India, a manufacturer of CPVC and UPVC pipes and fittings, has opened its Initial Public Offering (IPO) for subscription. The company aims to raise Rs 25.10 crore through this public issue, which includes both fresh shares and an Offer for Sale (OFS).
IPO Details
- Price Band: Rs 77-81 per share
- Issue Size: 31 lakh shares (25 lakh fresh shares + 6 lakh OFS shares)
- Subscription Period: Open now, closes on September 9
- Listing Date: Scheduled for September 12 on NSE SME platform
Company Overview
Vigor Plast India operates from Gujarat and has established a strong distribution network of 440 distributors across 25 states in India. The company specializes in the manufacturing of CPVC (Chlorinated Polyvinyl Chloride) and UPVC (Unplasticized Polyvinyl Chloride) pipes and fittings.
Financial Performance
The company has shown robust growth in its recent financial results:
| Metric | Amount | Growth |
|---|---|---|
| Revenue | Rs 46.02 crore | 8% increase |
| Profit After Tax | Rs 5.15 crore | 76% surge |
Utilization of IPO Proceeds
The funds raised through this IPO will be allocated as follows:
- Debt Repayment: Rs 11.39 crore
- New Warehouse: Rs 3.80 crore for setting up a new facility in Ahmedabad
- General Corporate Purposes: Remaining amount
Market Expansion
With the establishment of a new warehouse in Ahmedabad, Vigor Plast India aims to expand its market presence and improve its distribution capabilities.
Investors interested in the SME sector and the construction materials industry may find this IPO noteworthy. However, as with any investment decision, it is advisable to carefully review the company's prospectus and consult with financial advisors before participating in the IPO.
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