Viaz Tyres SME IPO subscription is opening up on 16th February 2023. According to the prospectus, the IPO consists of a fresh issue of 32,26,000 Equity Shares aggregating approx INR 20 Crore. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each. The retail allocation is 50% of the total size.
Viaz Tyres SME IPO – The Company Business Description
Viaz Tyres Limited manufactures rubber tubes for bicycles, two and three-wheelers, passenger vehicles, and heavy-load industrial vehicles. The company also deals in ancillary products like Off The Road (OTR) Tyre tubes and Animal Driven Vehicle (ADV) Tubes. Viaz Tyres recently engaged in Engine Oil and Grease on white labeling bases. The company sells bicycle tyres and other ancillary products under the brand name Viaz.
Viaz is also trading Tyres through an exclusive distributorship of Maxxis Rubbers Private Limited tyres for Turkey.
- The company has an installed capacity of manufacturing 7,00,000 Tube per Month.
- Manufacturing plants located at Nandasan near Ahmedabad, Gujarat India.
- Viaz Tyres Limited has 15 distributors across India.
- The company has a distribution network across 19 states of India.
- Viaz is also present in 5 countries namely the United States of America, Turkey, Romania, the United Arab Emirates, and Colombia.
- The company has 7 international distributors for the sale of rubber tubes and tyres.
Viaz Tyres Limited Founders and Leadership team
Mr. Janakkumar Mahendrakumar Patel is one of the Promoters and Chairman cum Managing Director of the Company. Mr. Rajeshkumar Prabhudasbhai Patel is one of the Promoters and Whole Time Director of the Company.
Mr. Parichaykumar Maganbhai Patel is also one of the Promoters of the Company. He has over 4 years of experience in the rubber industry.
Mrs. Himaben Janakkumar Patel, Mrs. Nirmaben Rajeshkumar Patel, and Mrs. Kenaben Parichaykumar Patel are also Promoters of the company.
Viaz Tyres Limited Revenue and Profit
The total income of the company remains flat from INR 2,917.26 lakh in 2021 to INR 2,933.04 lakhs in the fiscal year 2022. The total revenue has gone up from INR 1,994.37 lakhs in FY2020 to INR 2,379.10 by the period ended 30th, Sep 2022.
Viaz Tyres Limited Financial Snapshot
| All amounts in INR Lakhs (Year ended March 31) | 2020 | 2021 | 2022 |
| Revenue Operation | 1,986.51 | 2,914.00 | 2,919.61 |
| Total Income | 1,994.37 | 2,917.26 | 2,933.04 |
| EBITDA | 232.46 | 389.02 | 454.61 |
| Profit After Tax | 14.51 | 60.64 | 146.91 |
| Adjusted EPS – Diluted | 0.18 | 0.71 | 1.72 |
| Net Cash from Operating Activities | (1,066.44) | 447.46 | (114.09) |
| Return on Equity Ratio (in %) | 6.79 | 13.09 | 25.91 |
| Return on Net Worth (% | 3.35 | 12.29 | 22.94 |
| Debt-Equity Ratio | 4.38 | 4.15 | 3.12 |
| Inventory turnover ratio | 0.58 | 2.23 | 2.64 |
Objective Behind the Viaz Tyres Limited IPO
- Out of the net proceeds of this IPO, the company is planning to spend INR 950 lakhs to repay or Prepay or partly repay the existing loan.
- The company would utilize INR 500 lakhs to meet the Working Capital Requirements.
Viaz Tyres Limited IPO: Do you invest?
- Viaz Tyres registered a revenue growth of over 45% from FY2020 to FY2021. However, the growth was stagnant over FY2022 from FY2021.
- The company has witnessed significant growth in PAT from INR 14.51 lakh in FY 2020 to INR 60.64 lakh in FY 2021 to reach INR 146.91 lakhs in FY 2022.
- Adjusted EPS has also gone up from 0.39 in FY 2020 to 3.46 in FY2022.
- However, net cash flow from operating activities was negative for FY 2020 and FY 2022.
- The company has total borrowing of INR 2,003.36 lakhs by the end of September 30, 2022. The only good news is the repayment of INR 950 lakhs out of the net proceeds of this IPO.
- Global growth is forecast slow during 2023 and 2024, with a slowdown in Auto Industries. China opening up may be helpful to this industry.
- Looking at the financials and factors mentioned above, I would prefer to avoid this SME IPO at the moment.
Viaz Tyres IPO Details
| Viaz Tyres IPO Details | Viaz Tyres IPO Price, subscription Date and other details |
| IPO Opening Date | Feb 16, 2023 |
| IPO Closing Date | Feb 21, 2023 |
| IPO Price | ₹62 per share |
| IPO Allotment date | Feb 24, 2023 |
| Refunds Initiation date | Feb 27, 2023 |
| Credit of Shares to Demat Account | Feb 28, 2023 |
| Listing Date | Mar 01, 2023 |
| Offer for Sale | Nil |
| Issue Size (Fresh Issue) | 3,226,000 shares of ₹10 (aggregating up to ₹20.00 Cr) |
| Minimum bid (lot size) For retail investor | 2000 Shares (₹124,000) |
| Retail Shares Offered | 50% of the Net Issue |
| HNI (Min) | 4000 Shares (₹248,000) |
| NII (HNI) Shares Offered | 50% of the Net Issue |
| Face Value | INR 10 per share |
| Listing on | NSE SME |
Viaz Tyres Limited IPO: Lead Managers and Contact
| Contact Details | Lead Managers |
| 915/916, Maple Trade, Near Surdhara Circle, SAL Hospital Road, Thaltej, Ahmedabad, Gujarat, India – 380 059 Tel No: 079-46016174; Email Id: cs@viaztyres.com https://www.viaztyres.com/ | 1. Beeline Capital Advisors Private Limited |
Viaz Tyres SME IPO Allotment Status
Viaz Tyres SME IPO Allotment status will be available on Link intime Limited website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Email: viaztyres.ipo@linkintime.co.in, Tel. No: +91 810 811 4949
Viaz Tyres IPO FAQs
When Viaz Tyres IPO Issue Opens?
Viaz Tyres IPO issue opens on 16th Feb 2023 and closes on 21st Feb 2023
What is the Viaz Tyres IPO Issue Size?
Viaz Tyres offer size is about ₹ 20 Crore or 3,226,000 shares with a face value of ₹10
What is Viaz Tyres IPO Issue Price and Lot size?
Viaz Tyres IPO Issue Price is ₹62 and Lot size is 2000 equity shares per lot.
What is Viaz Tyres IPO Quota?
Viaz Tyres IPO Issue retail quota fixed to 15,32,000 number of shares, Non-retail quota is 15,32,000 number of shares, and Market Maker quota is 1,62,000 number of shares.
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