Visaman Global had a modest start in the stock market today, with shares listed at ₹45.10 on the NSE SME platform, marking a 5% premium over its IPO price of ₹43. Despite this flat debut, the IPO garnered significant attention, particularly from retail investors.
The SME IPO, valued at ₹16.05 crore, opened for subscription from June 24 to June 26, 2024, and was entirely a fresh issue of 37.3 lakh newly issued shares, without any offer-for-sale component. The subscription response was overwhelming, with an overall subscription of 42 times. Retail investors led the charge, subscribing 51.54 times, while other investor categories also showed strong interest with a subscription of 29.12 times.
Visaman Global plans to use the funds raised through the IPO for several strategic initiatives. A significant portion of the proceeds will be directed towards establishing a manufacturing facility in Rajkot, Gujarat. This facility is expected to bolster the company’s production capabilities and meet the growing demand for its products. Additionally, the funds will support the company’s working capital requirements and other general business purposes.
The company operates in the steel industry, supplying a wide range of products, including round pipes, square pipes, rectangle pipes, structural steels, BGL coils, GP (GI) coils, HR coils, CR coils, color-coated coils, MS sheets, GP and GC sheets, CR sheets, HR sheets and plates, color-coated sheets, and roofing and wall PUF panels. This extensive product portfolio positions Visaman Global as a key player in the steel supply market.
One of the unique aspects of Visaman Global’s business model is its value-added services. The company provides credit facilities to existing customers with strong financial records, allowing them to pay later.
This service not only enhances customer loyalty but also helps in maintaining steady business operations. Furthermore, Visaman Global offers customization options to meet specific customer requirements regarding size, length, breadth, and thickness of its products. The company works closely with manufacturers to fulfill these custom orders, and when necessary, outsources the process to third-party houses to ensure timely delivery.
Another strength of Visaman Global is its diversified sales and distribution mix. The company sells its products through various channels, including business-to-consumer (B2C), business-to-channel (B2CH), and business-to-business (B2B) models. This diversified approach helps the company reach a broader market and reduces dependency on any single sales channel.
Despite the flat market debut, the strong subscription rate indicates confidence among investors, especially retail investors who showed significant enthusiasm. The company’s strategic plans for the IPO proceeds and its robust business model suggest a promising future.
In comparison, Mason Infratech, another recent IPO on the NSE SME, saw its shares list at a much higher premium of 37.5% at ₹88 apiece. This contrast highlights the variability in market reception for different companies and the importance of investor perception and market conditions.
Visaman Global’s focus on expanding its manufacturing capabilities, enhancing customer services, and diversifying its sales channels positions it well for future growth. As the company continues to execute its strategic plans, it will be interesting to see how its stock performs in the coming months and whether it can achieve a higher market valuation.
