Vishal Nirmiti
IPO Size: Rs. 178 cr
- Fresh Issue of Rs. 145 cr (25% dilution) for (i) working capital Rs. 65 cr (ii) repaying Rs. 20 cr of Rs. 88 cr gross debt as of 31.7.26
- Offer for Sale (OFS) of Rs. 33 cr by promoter (73% stake to drop to 49% post IPO)
Price band: Rs. 208-220 per share
M cap: Rs. 581 cr (IPO is 31% of m cap)
IPO Date: Wed 30th Sep to Mon 5th Oct 2026, Listing Thu 8th Oct 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Sleeper Manufacturer and Railways EPC Company
Vishal Nirmiti is a 32-year-old Pune based manufacturer of Pre-Stressed Concrete (PSC) railway sleepers, MS Pipes and a sub-contractor for railways, power and industrial sector. Indian Railways is company’s largest customer, accounting for 40% of Rs. 340 cr topline.
It has 6 manufacturing plants in Maharashtra, Jharkhand, Madhya Pradesh, Gujarat, Himachal Pradesh, with annual installed capacity of 11 lakh units of sleepers (utilized 65% in FY26) and 1.54 lakh MTPA of MS pipe (utilised 40% in FY26 as capacity rose from 81,000 MTPA in FY25).
No Growth in Sleeper Division
Vishal Nirmiti’s topline has grown at only 8% CAGR between FY23 and FY26. Even in FY26, revenue growth was barely 6% YoY to Rs. 339 cr. Of this, sub-contracting and job work accounted for 1/4th topline and balance came from manufacture of sleepers for Indian Railway (40% of topline), sleepers for private sector (20%) and MS Pipes (10%). Revenue from sleeper, company’s largest segment, has remained flat in the past 3 years, at Rs. 215 cr in FY26, up just 10% from Rs. 195 cr in FY24.
Financial Margins
EBITDA margin excluding other income is 15%, with Rs. 51 cr EBITDA in FY26, PAT was Rs. 25 cr, leading to 7.4% net margin. On equity of Rs. 19.8 cr (face value Rs. 10 each), EPS was Rs. 12.6. Although inventory holding is nearly 4 months, working capital is well-managed at nearly 2 months.
Nano-Cap Stock
M cap of Rs. 581 cr and Enterprise Value of Rs. 641 cr leads to a historic PE multiple of 17x and EV/EBITDA multiple of 12.5x. On FY27E estimated EPS of Rs. 13, the current year PE is close to 17x. Post heavy dilution of 25%, FY26 RoE of 33% will shrink to low teens, post IPO. Also, small size of topline and unimpressive revenue growth record makes the valuation multiples fully priced.
