Vruddhi Engineering Works debuts at marginal premium over IPO price

The IPO, which was completely a fresh equity issue of 7.21 lakh shares, received decent response from investors with a subscription of 12 times at close.

The net proceeds from the public offer will be used for funding the working capital requirements of the company and general corporate purposes.

The company is mainly engaged in offering mechanical splicing solutions to the real estate, construction and infrastructure industry by designing, engineering and supplying rebar couplers.

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Its offerings under this vertical include supply of rebar couplers, on-site threading services of the couplers and trading in threading machines and spares.

Vruddhi Engineering believes that it offers end-to-end mechanical splicing solutions ranging from design, manufacturing, testing, logistics and rebar threading.

The rebar couplers offered by it is an alternative to the conventional splicing methods followed in the construction industry. Its revenue from the sale of rebar couplers is Rs 2.69 crore for the period ended September 2023.

The company also supplies mechanical splicing solutions to construction contractors, real estate developers and infrastructure companies.

The real estate sector comprises four sub-sectors - housing, retail, hospitality, and commercial. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

For the six months ended September 2023, the company clocked revenues of Rs 9.35 crore and net profit of Rs 41 lakh.

Fedex Securities acted as the lead manager to the issue and Bigshare Services was the registrar.