Vectus Industries IPO – Review, Allotment, Subscription, GMP, Date & more
Last Updated Date: Sep 01, 2023Vectus Industries is one of the leading B2C focussed water storage and piping solutions provider in India, catering to residential, commercial,industrial, infrastructure and agricultural sectors.The Company has issued 850 million.
Let’s have a detailed review of the company and analytics of the Vectus Industries IPO release date, IPO offer price, subscription, Vectus Industries IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
Vectus Industries IPO Review & Ratings
| Vectus Industries IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.3/10 |
| Industry Ranking | 8.3/10 |
| Company Background | 8.1/10 |
| Company Reputation | 8.4/10 |
| Competitive Edge | 8.4/10 |
| Financial Statements | 7.5/10 |
| Popularity Index | 8.2/10 |
| Promoters Reputation | 7.3/10 |
| Retail Appetite | 7.2/10 |
| Top Brokers Review | 8.3/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
Summary of Vectus Industries IPO
Vectus Industries Limited manufactures and sells water storage and piping products in India. It provides water tanks, such as overhead and underground tanks; pipes and fittings, including chlorinated poly vinyl chloride pipes and fittings, poly vinyl chloride pipes, composite pipes and fittings, polypropylene random copolymer pipes and fittings, and high density polyethylene pipes and polyethylene manholes; and household plastics and others comprising buckets, dustbins, stools, planters, tubs, mugs, and milk cans. The company offers its products under the Vectus, Waterwell, and Ganga brands. Vectus Industries Limited serves customers in residential, commercial, industrial, infrastructure and agricultural sectors through dealers and distributors. The company was founded in 2004 and is based in Noida, India.
The Issue comprises of a Public Issue of Rs.850 million, besides, an offer for sale of up to 38,98,575 equity shares by the existing shareholders, according to the draft papers filed with the Securities and Exchange Board of India (SEBI). Private equity firm Latinia Ltd will sell 28,46,829 equity shares through this IPO, 6,57,341 equity shares will be offered by Ashish Baheti and up to 3,94,405 equity shares by Atul Ladha. According to merchant banking sources, the IPO is expected to fetch Rs 500 crore.
From FY 2014-15 to FY 2017-2018, as per the Restated Financial Statements:
- Its revenue from operations was Rs.6,287.87, Rs.6,156.77, Rs.5,676.20 and Rs.4,959.29 respectively and net profit was Rs.355.01 , Rs.288.73, Rs.249.65 and Rs.143.51 respectively.
- The Other Income of the company was Rs.355.01, Rs.288.73, Rs.249.65 and Rs.143.51 respectively.
The Promoter of this company are Ashish Baheti and Atul Ladha.. The lead manager to the issue are Edelweiss Financial Services Limited,ICICI Securities Limited and IDFC Bank Limited and the Registrar to this issue is Karvy Computershare Private Limited.
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Vectus Industries IPO Date
The opening and the closing date of IPO of Vectus Industries is not known yet.
Vectus Industries IPO Subscription
| Subscription | |
| Day 1 | X |
| Day 2 | X |
| Day 3 | X |
| Day 4 | X |
| Day 5 | X |
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Vectus Industries IPO Allotment Status
The allotment status will be known once the IPO is subscribed.
Vectus Industries IPO Price Band
The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed.
Vectus Industries IPO Equity Share Offering
The Issue comprises of a Public Issue of Rs.850 million,besides, an offer for sale of up to 38,98,575 equity shares by the existing shareholders, according to the draft papers filed with the Securities and Exchange Board of India (Sebi). Private equity firm Latinia Ltd will sell 28,46,829 equity shares through this IPO, 6,57,341 equity shares will be offered by Ashish Baheti and up to 3,94,405 equity shares by Atul Ladha.
Vectus Industries Limited – Company Overview
Vectus Industries Limited is a water storage and piping solutions provider company in India, catering to residential, commercial, industrial, infrastructure and agricultural sectors. They operate across three distinct product verticals namely Water tanks (overhead and underground) Pipes and fittings (including manholes) Household plastics and others. They manufacture a diverse range of products using a variety of polymers, including linear Low Density Polyethylene (“LLDPE”), .Highly Density Polyethylene (“HDPE”), Chlorinated Polyvinyl Chloride (“CPVC”), Polypropylene Random Copolymer (“PPR”) and Polyvinyl Chloride (“PVC’).The Company has a network of over 4300 dealer and distributors across 24 states in India. They have state-of- the-art ISO 9001:2015 certified manufacturing facilities at 13 strategic locations across India.
Promoters of the Company, Ashish Baheti and Atul Ladha have significant experience in the water storage and piping solutions industry and had set up their own separate water tank businesses in 1990 and 1993 respectively. It is a digitally driven company and were the first company to introduce SAP S/4 HANA 1511 Digital core Enterprise Management Solution (“SAP HANA”) in the plastic industry in India.
Competitive Strengths of Vectus Industries Limited:
- Comprehensive product portfolio with a focus on customer-centric solutions.
- Market leadership and strong brand recall.
- Strategically located manufacturing facilities.
- Geographically spread distribution network.
- Digitally driven business.
- Strong track record of robust financial performance.
- Strong Management team backed by experienced promoters.
Business strategies of Vectus Industries Limited:
- Expansion of product portfolio.
- Expansion of geographical footprint.
- Increase focus on brand building.
- Expansion of manufacturing capabilities and enhance capacity utilization.
Vectus Industries Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Lakhs) | |||||
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 3,820.06 | 3,374.45 | 3,175.76 | 2,495.19 | 1,848.24 |
| Total Revenue | 6,314.66 | 6,172.82 | 5,688.56 | 4,977.55 | 4,079.72 |
| Total Expense | 5,826.05 | 5756.97 | 5,340.31 | 4,739.92 | 3,827.07 |
| Profit After Tax | 355.01 | 288.73 | 249.65 | 143.51 | 213.90 |
Earnings per Equity Share (in Lakhs)
| 31-March-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Basic and Diluted | 26.21 | 21.30 | 18.31 | 13.44 | 26.20 |
From the above statements, one could find that the Vectus Industries Limited may perform well.
Vectus Industries IPO – Promoters
The Promoter of this company are:
- Ashish Baheti.
- Atul Ladha.
List of Related Parties (Key Managerial Personnel)
- Chandra Shekhar Singh.
- Mr. Mahipal Singh.
Interest in promotion of the Company
Promoters are interested in the Company to the extent that they have promoted the Company and to the extent of their respective shareholding in the Company, their Directorship in the Company and the dividends payable, if any, and any other distributions in respect of their respective shareholding in the Company.
Property Interest
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
Vectus Industries IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | [●] Equity Shares of Rs 10/- each at an Issue Price (yet to be disclosed). |
| Of which: | |
| Fresh Issue | Up to [●] Equity Shares, aggregating up to Rs. 850.00 million |
| Offer for Sale | Up to 3,898,575 Equity Shares, aggregating up to Rs [●] million |
| Equity Shares outstanding prior to the Issue | 13,146,829 Equity Shares of Rs 10/- each |
| Equity Shares outstanding after the Issue | [●] Equity Shares of Rs 10/- each |
Vectus Industries IPO Issue Object
These are the IPO Issue Objects of the company
- Prepayment/repayment of all or a portion of the outstanding working capital facilities availed by our Company
- Purchase of equipment for our manufacturing facilities
- General corporate purposes.
List of Upcoming IPOs in 2018
| Pommys Garments IPO | Indo US Biotech IPO | Medibios Laboratories IPO | Shree Vasu Logistics IPO |
| R R Industrial IPO | Sorich Foils IPO | 20 Microns IPO |
Vectus Industries IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Comprehensive product portfolio with a focus on customer-centric solutions
- Market leadership and strong brand recall
- Strategically located manufacturing facilities
- Geographically spread distribution network
- Digitally driven business
- Strong track record of robust financial performance
- Strong management team backed by experienced Promoters
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-16 | 18.31 | 10.57% | – |
| 31-Mar-17 | 21.30 | 10.54% | – |
| 31-Mar-18 | 26.21 | 11.87% | 220.89 |
- Competitive Peers:
Particulars Face Value Revenue from Operations EPS P/E ratio RoNW(%) NAV per Equity Share Vectus Industries Limited 10 6287.87 26.21 11.87 220.89 Peer Group Sanginita Chemicals Limited 10 21388.7 14.62 68.97 x 17.19% 85.02 India Gelatin and Chemicals 10 49662.9 33.99 38.07 x 20.96% 149.17 Meghmani Organics Limited 10 – – 53.52 x 19.08% 117.1
List of Latest IPOs of 2018
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| Nazara Technologies IPO | Genius Consultants IPO | Rail Vikas Nigam IPO | Verroc Engineering IPO |
Vectus Industries IPO Lead Managers
| Lead Managers |
| Edelweiss Financial Services Limited,
ICICI Securities Limited, and IDFC Bank Limited |
Vectus Industries IPO Registrar to offer
| Registrar to the Offer |
| Karvy Computershare Private Limited Karvy Selenium, Tower B, Plot Nos. 31 – 32, Gachibowli Financial District, Nanakramguda, Hyderabad 500 032 Telangana Tel: +91 40 6716 2222, Fax: +91 40 2343 1551 E-mail: vectus.ipo@karvy.com,Investor grievance e-mail:einward.rti@karvy.com Website: www.karisma.karvy.com Contact Person: Muralikrishna M SEBI Registration No.: INR000000221 |
Other Details:
- Statutory Auditor – Walker Chandiok & Co LLP, Chartered Accountant
- Bankers to the Company – The Hongkong and Shanghai Banking Corporation Limited, State Bank Of India, Yes Bank Limited.
- Legal Counsel- Cyril Amarchand Mangaldas.
Vectus Industries IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 6.5/10 | 6.6/10 | 6.6/10 | 6.4/10 | 6.4/10 |
| Sharekhan | 6.7/10 | 6.4/10 | 6.6/10 | 6.1/10 | 6.2/10 |
| Kotak Securities | 6.7/10 | 6.7/10 | 6.7/10 | 6.4/10 | 6.3/10 |
| ICICI Direct | 6.6/10 | 6.3/10 | 6.7/10 | 6.5/10 | 6.5/10 |
| IIFL | 6.4/10 | 6.7/10 | 6.8/10 | 6.4/10 | 6.7/10 |
| Edelweiss | 6.7/10 | 6.4/10 | 6.4/10 | 6.3/10 | 6.7/10 |
| Zerodha | 6.5/10 | 6.4/10 | 6.7/10 | 6.4/10 | 6.5/10 |
| 5Paisa | 6.7/10 | 6.4/10 | 6.3/10 | 6.7/10 | 6.5/10 |
| Karvy | 6.8/10 | 6.3/10 | 6.7/10 | 6.4/10 | 6.0/10 |
| Motilal Oswal | 6.6/10 | 6.4/10 | 6.6/10 | 6.6/10 | 6.4/10 |
The ratings would be updated once the financials and the other details of the IPO are released.
Vectus Industries IPO Grey Market Premium
The Vectus Industries IPO Grey Market Premium is yet to be announced. It will be updated as soon as the premium rates are announced.
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Vectus Industries IPO News
News 1 – IPO ISSUE OPENS SOON (Download Prospectus)
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