Visa Steel IPO
Visa Steel IPO — date, price band, lot size & details 2006
Visa Steel listed on 17 Mar 2006 at ₹57, flat to the ₹57 issue price.
Visa Steel is a Visa group company that was moving from trading into making steel, planning a 0.5 MTPA special and stainless steel plant in Orissa. Its total income was Rs 263.36 crore in FY2005.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 23 Feb 2006
- Close 27 Feb 2006
- Allotment TBA
- Refund/credit TBA
- Listing 17 Mar 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 23 to 27 Feb, 2006 |
|---|---|
| Price Band | ₹52 – ₹57 |
| Face Value | ₹10 |
| Lot Size | 100 Shares |
| Issue Size | ₹199.5 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 5,700 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 100 shares at the ₹57 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 100 | ₹5,700 |
| Retail (max) | 35 | 3,500 | ₹1,99,500 |
| S-HNI (min) | 36 | 3,600 | ₹2,05,200 |
| S-HNI (max) | 175 | 17,500 | ₹9,97,500 |
| B-HNI (min) | 176 | 17,600 | ₹10,03,200 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income rose from Rs 91.17 crore in FY2004 to Rs 263.36 crore in FY2005, and was Rs 347.20 crore in nine months to December 2005.
- 02Profit after tax rose from Rs 1.57 crore in FY2004 to Rs 10.29 crore in nine months to December 2005.
- 03Net worth rose from Rs 23.99 crore in FY2004 to Rs 94.39 crore in December 2005.
- 04The promoters contributed 5,000,000 shares as part of the issue.
Risks · 5
- 01It had limited experience in manufacturing and was a new entrant in special and stainless steel, planning a 0.5 MTPA plant.
- 02Almost all its export sales, Rs. 223.02 million of Rs. 225.58 million, went to a promoter group company.
- 03A promoter group company, Visa Coal, made a loss of Rs. 4.80 million.
- 04Profit after tax was thin at Rs 6.56 crore on income of Rs 263.36 crore in FY2005.
- 05Promoter holding fell from 100% before the issue to 72.73% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Visa Steel offer document.
| Metric | 31 Dec 2005 | 31 Mar 2005 | 31 Mar 2004 | 31 Mar 2003 | 31 Mar 2002 | 31 Mar 2001 |
|---|---|---|---|---|---|---|
| Assets | 484.98 | 260.96 | 46.65 | 32.18 | 9.82 | 6.98 |
| Total Income | 347.20 | 263.36 | 91.17 | 28.04 | 5.08 | 6.49 |
| Profit After Tax | 10.29 | 6.56 | 1.57 | 0.57 | 0.05 | 0.26 |
| NET Worth | 94.39 | 84.09 | 23.99 | 7.18 | 3.29 | 3.24 |
| Reserves and Surplus | 19.41 | 9.12 | 2.35 | 2.23 | 0.40 | 0.37 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Visa Steel RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Visa Steel IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹0.87 | ₹1.25 |
| P/E Ratio (x) | 65.15 | 45.71 |
| Market Cap at Offer Price (₹ Cr) | ₹674.17 | ₹469.22 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹57 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹66.88 Cr of the issue is earmarked to named objects.
About the company
It planned an integrated 0.5 MTPA special and stainless steel plant and was a new entrant in that market, with limited experience in manufacturing.
Most of its export sales in nine months to December 2005, Rs. 223.02 million of Rs. 225.58 million, were to Visa Comtrade AG, a promoter group company.
The IPO was Rs 199.5 crore at Rs 57, the top of the Rs 52 to Rs 57 band, including a promoter contribution of 5,000,000 shares.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Visa Steel IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Axis Capital
260 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
JM Morgan Stanley Pvt. Ltd
22 issues handledBest listing: Infrastructure Development Finance Co (+76.5%). Weakest: House of Pearl Fashions (-9.1%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Visa Steel?
The current Grey Market Premium is ₹0.
What is the Visa Steel IPO price band?
₹52 to ₹57, on a face value of ₹10.
When is the allotment?
The basis of allotment is TBA, with listing on 17 March 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
