Vasuki Global Industries Files for IPO to Raise Funds for Expansion

1 Apr 2024 , 12:37 PM

Procurement and processing firm Vasuki Global Industries is gearing up to secure funds through an initial public offering (IPO) after submitting draft papers to the Securities and Exchange Board of India (SEBI).

According to the initial documents filed on March 28, the IPO will solely consist of a fresh issue of 1.4 Crore equity shares by the company, without any offer-for-sale component.

The Mehta family, who are the promoters of the company, currently holds an 86.67% stake, while the remaining 13.33% is publicly owned.

Headquartered in Gujarat, Vasuki Global specializes in procuring both imported and domestic coal, along with providing logistics services. It plans to allocate ₹18.8 Crore from the fresh issue proceeds towards acquiring goods transportation vehicles, and ₹66.3 Crore for establishing a cement manufacturing facility through its subsidiary, Vasuki Cement. The remainder of the funds will be earmarked for general corporate purposes.

Additionally, Vasuki Global extends procurement solutions for various petroleum products such as oil and liquefied petroleum gas, as well as refractory materials, and raw materials and finished products utilized in the cement and construction sectors.

The company serves a diverse range of industries including metals, minerals, cement, steel, and construction. As of March 2023, it boasted a clientele of 766 customers.

In the fiscal year ending March FY23, the procurement solutions segment accounted for approximately 92% of the company’s revenue, with the remaining 8% contributed by logistics services.

Despite facing an 8% year-on-year decline in standalone profit, recording ₹13.5 Crore in FY23, Vasuki Global experienced a 19.4% decrease in revenue, amounting to ₹732.2 Crore compared to the previous fiscal year.

Unistone Capital has been appointed as the exclusive book-running lead manager for the IPO.