V L Infraprojects opened its IPO subscriptions on Tuesday, July 23, and the response has been overwhelmingly positive. The IPO, which will close on Thursday, July 25, has set a price band of ₹39 to ₹42 per share, with a face value of ₹10. Investors can bid for a minimum of 3,000 shares and in multiples of that amount, drawing substantial attention from various investor categories.

The IPO has been structured to allocate shares across different investor groups. QIB have been allotted up to 8,34,000 shares, NII up to 6,27,000 shares, Retail Individual Investors up to 14,61,000 shares, and Market Makers up to 2,40,000 shares. This diverse allocation strategy aims to balance the investor base and provide ample opportunity for both large and small investors to participate.

V L Infraprojects specializes in the planning, implementation, and completion of government projects, with a focus on water infrastructure and irrigation. The company’s portfolio includes water supply and sewerage infrastructure projects, which encompass pipe procurement and installation, civil works construction, electromechanical equipment installation, and operations and maintenance of water distribution pipelines.

Holding numerous permissions and registrations in Karnataka, Telangana, and Madhya Pradesh, V L Infraprojects is also recognized as a Government Approved Contractor in the “AA” Class by the Gujarat government.

The IPO has garnered significant attention, reflected in the subscription status. As of day three, the IPO was subscribed 415.79 times. The retail portion saw particularly high interest, being subscribed 618.30 times, while the NII portion was booked 418.56 times.

QIBs showed substantial interest as well, with their portion being subscribed 58.96 times. The company received bids for 1,21,49,46,000 shares against the 29,22,000 shares on offer, according to data from chittorgarh.com at 14:09 IST.

The strong subscription numbers are a clear indicator of the market’s positive reception. On the first day, the IPO was subscribed 62.22 times, and by day two, the figure had jumped to 179.22 times. These impressive numbers highlight the confidence investors have in V L Infraprojects’ business model and growth prospects.

Valued at ₹18.52 crore, the IPO includes a fresh issuance of 4,410,000 equity shares with a face value of ₹10. There is no “offer for sale” component, meaning that all proceeds from the new issuance will be utilized for the company’s working capital requirements and general corporate purposes.

Beeline Capital Advisors Pvt Ltd is serving as the book-running lead manager for the IPO, with Skyline Financial Services Private Ltd acting as the registrar. Spread X Securities is the market maker for the V L Infraprojects IPO.

Market sentiment surrounding the IPO has been further buoyed by its GMP. Currently, the GMP stands at +55, indicating that V L Infraprojects shares are trading at a premium of ₹55 in the grey market. This premium suggests that the estimated listing price of the shares could be around ₹97 apiece, which represents a 130.95% increase from the upper end of the IPO price band of ₹42.

The robust investor interest and high subscription rates reflect the market’s optimism about V L Infraprojects’ potential. The company’s focus on government infrastructure projects, particularly in the water and irrigation sectors, positions it well for growth in the coming years. The capital raised from the IPO will enable V L Infraprojects to expand its operations and strengthen its market position.

Investors looking for opportunities in the infrastructure sector have clearly recognized the potential in V L Infraprojects. The company’s strong fundamentals, coupled with its strategic focus on essential government projects, make it an attractive proposition. As the IPO subscription period comes to a close, all eyes will be on the final numbers and the subsequent listing performance, which is expected to reflect the significant market interest seen over the past few days.