Vishal Bearings Ltd BSE SME IPO review (Subscribe)

Review By Dilip Davda on Sep 24, 2015

Vishal Bearings Ltd (VBL) is engaged in manufacturing of taper rollers, cylindrical rollers, spherical rollers and certain components of taper rollers and are one of the key players in the list of finished roller manufacturers in India. It is identified as ¨DDirect Online Supplier¡¬ for cold headed components-Rollers by National Engineering Industries Limited, Jaipur (NBC Bearings Limited), a CK Birla Group Company where VBL’s products go directly for manufacturing of bearings without checks on quality and specifications.

The company supplies  finished Bearing rollers and products across India to reputed bearing manufactures and OEMs in domestic market for end users in diverse industries such as rail, light vehicles, off-highway, heavy trucks, industries classified as ‗automobile industries‘, and heavy industries, industrial processes, gear drives, energy and industrial distribution, as segments within the ‘process industries‘ and also export its products to customers based outside India for end users in diverse industries. VBL also exports cylindrical roller which cater the requirements of international customers in Germany, Hungary, Turkey etc. in diverse industries such as, automotive and Hydraulics. It has also ventured into power generation business by installing wind mill in year 2010-11 at KotdaPitha in Amreli, Gujarat with a commissioned capacity of 0.25MW and is currently used for its captive consumption.

To meet its working capital requirements, the company is coming out with a maiden IPO of 1296000 equity shares of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 3.24 crore. Issue opens for subscription on 28.09.15 and will close on 30.09.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Hem Securities Ltd is the lead manager and Karvy Computershare Pvt Ltd is the registrar to this IPO.  It issues equity at par since inception till 2012 and issued bonus shares in the ratio of 13 for 1 in May 2015.Post IPO its current paid up equity capital of Rs. 3.50 crore stand enhanced to Rs. 4.80 crore.

On performance front, the company has posted an average EPS of Rs. 4.20 and RONW of 42.86% for last three fiscals. For FY 15 it has earned net profit of Rs. 1.70 crore on a turnover of Rs. 28.16 crore translating into an EPS of Rs. 4.85 on existing equity.  If we attribute these earnings on fully diluted equity post IPO then EPS would be around Rs. 3.54 thus asking price is at a P/E of 7 against industry composite of 30 plus. Thus it augurs well.

On merchant banker’s front, this is 19th SME IPO from its stable and earlier mandates have given average returns.


Conclusion / Investment Strategy

Well informed and fund surplus investors may park investment for long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 24, 2015

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Vishal Bearings IPO FAQs

  1. 1. Why Vishal Bearings IPO?

    The initial public offer (IPO) of Vishal Bearings Ltd offers an early investment opportunity in Vishal Bearings Ltd. A stock market investor can buy Vishal Bearings IPO shares by applying in IPO before Vishal Bearings Ltd shares get listed at the stock exchanges. An investor could invest in Vishal Bearings IPO for short term listing gain or a long term.

  2. 2. How is Vishal Bearings IPO?

    Read the Vishal Bearings IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Vishal Bearings IPO what should investors do?

    Vishal Bearings IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Vishal Bearings IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Vishal Bearings IPO good?

    Our recommendation for Vishal Bearings IPO is to subscribe.

  5. 5. Is Vishal Bearings IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Vishal Bearings IPO.

  6. 6. When will Vishal Bearings IPO allotment status?

    The Vishal Bearings IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Vishal Bearings IPO allotment status to check.

  7. 7. When will Vishal Bearings IPO list?

    The Vishal Bearings IPO will list on Thursday, October 15, 2015, at BSE SME.








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