V R Infraspace Limited IPO Message Board (Page 4)

Sir I am satisfied with 5 percent gain also. Do you think there is no chance of negative listing?

​@investormahesh  Though it may list in positive gains at the time of listings, given the low GMP, if there are only sellers at the time of listing, it will end up in -5% lower cirucit and you may not get a chance to exit. If you have never got SME allotment and not figured out in your trading account to sell at pre-open, suggest to skip given such risks.

​@rohiitian for some reason there are two separate websites https://vrinfraspace.in/ (as given in RHP) https://vrinfraspace.com/ (based on internet search)
The second website has the details of the project you mentioned first website (official one as per the RHP) doesn't seem to have that.
Need to dig a bit more.

Btw, one thing I didn't understand 15 Cr will be invested in their subsidiary Daxon Realty for the construction of VR Vivanta.
But they just hold 51% of that subsidiary, will the remaining 49% shareholders of the subsidiary get this benefit coming from this 15 Cr for free 🤔

kitne jyada subsidiary, utna jayda gadbad karne ke chance hote hai promoters ke paas.. me to kehta hu sebi ko naya rule banana chahiye ki listed company ko 100% subsidiary hi rakhni chahiye. loss ho ya profit sabhi parent company me ana chahiye

I guess the website vrinfraspace.in itself acts as a hyperlink for some projects mentioned on vrinfraspace.com @rohiitian 

​@GrayIsTheNewBlack  The investment by the parent (VR Infra) in the subsidiary is apportioned to NCI (Non controlling interest) in the consolidated books of VR Infra. On the other hand the amount appears as capital contribution in standalone statements of Daxon Realty and is not directly attributed to shareholders of Daxon other than VR Infra. Only when Daxon (subsidiary) is able to complete projects and recognise revenue as per completion % of the said project, the associated profits, if any gets attributed to NCI or shareholder in Daxon other than VR Infra. These shareholders already would have made capital contributions in Daxon, so the amount realised later on from operations of Daxon is their return for their investment.

The auditor had qualified their financials 4 times in a row for not accounting for inventories, which when rectified in 2023, leaves a behind a host of backlog inventory. Though the existing projects are completed so realization of units from this backlog could be fruitful. But on the contrary, operating margins of VR Infra, both EBITDA and PAT against the so-called peers appears too stretched. No non-compete agreement between VR Infra and subsidiary / associate means there is possibility of collusion provided VR Vivanta is the first project of the subsidiary, though its mentioned the other partners of subsidiary already have a vast prior experience. Almost 2 crores for 6 months ended Sep 23 have been resorted to taking "permissions" for the project with only 5% of estimated completion fulfilled. The completion timeline is almost 6 years plus, probably due to the size.

They have already directed funds to directors via company loans, which is against rules there is a slight outright possibility in using proceeds of IPO for the same in future.

The sector is in demand, be it plots or commercial constructed properties and with the likes of token money received, the revenues should be good but the realization of same may not happen until near future, due to less booking amounts received from customers in the initial stages of the project.

​@MuStrFc I share a similar concern around revenue visibility. The 2 upcoming projects in the RHP indicate conservatively ~250 Cr of revenue over next 5-6 years at 5k / sqft (assuming 100% of 1st project and 50% of 2nd), but there will be a lag before bookings come in. The other ongoing projects like Hillcrest, Lake View can contribute to revenue in the interim, but I've no clue if they will be attributed to this company or not, or have any details of them.

​@GrayIsTheNewBlack Yes I also noticed that. Wish someone interviewed these SME founders ahead of listings, a lot of clarity comes from such conversations

Maybe Fatigue and no interest at all. Let first the open IPOs close, this being the least interesting one, no one is paying attention at all

Dilip Davda gave Avoid rating/review for Owais Metal and Mineral Processing SME IPO also. But it's listing happened with premium around 185%. I think his reviews are not reliable.

​@IPOs User Sir, DD sir's reviews are not for listing gains. It is for medium term and long term. I strictly condemn your views on him.

​@IPOs User I differ from your comments on DD Sir.. His reviews are of great help. He is focused on fundamental analysis and not grey market activities. He provides detailed analysis which is of great help to CG Forum members. We don't get such deep and alround analysis at any other place

​@IPOs User Sab log Bhagwan nahi hote per dd sir k review k vajah se bohat se bad IPO me apply karne se bache he

​@IPOs User: Bhai, the whole purpose of DD sir review is to generate wealth and not temporary gain. There are two kind of people, traders and investors, DD sir's review are for the latter ones. And, comparing result of one IPO listing vs its review by DD sir is unfair to other level, if you want to see, analyze all his review and what was the gain/loss that IPO made; you may get your answer.