Viney Corporation designs, manufactures, supplies, and exports a variety of automotive component products for various vehicles, including 2-wheeler, 3-wheeler, passenger, and commercial vehicles. Their product portfolio includes steering wheel switches, gear shifting paddles, light control units, brake pedal switches, sensors, multimedia plugs, and airbag on/off switches. They are a Tier-1 supplier for original equipment manufacturers (OEMs) for both Mechatronic Products and Connective Products, and Tier-2 and Tier-3 suppliers for OEMs for Connective Products. The company supplies Mechatronic Products and Connective Products for both internal combustion engine (ICE) vehicles and electric vehicles (EVs).
As of March 31, 2024, one out of every six two-wheelers in India is fitted with one of their device wiring harnesses. As of March 31, 2024, they are among the few Indian switch manufacturers with in-house capabilities to design and manufacture switches catering to both high-end vehicles and mass-market vehicles. Their products are designed in India and Italy, manufactured in India, Italy, and Romania, and supplied and distributed across India, Europe, USA, and Brazil.
Viney Corporation Limited IPO Objective
As per the draft red hearing prospects, the IPO issue consists only of offer for sale.
- The OFS consists of up to 22,213,852 shares aggregating up to Rs. XXXX million. Nothing from those proceeds of OFS will be allotted to company.
- Viney Corporation IPO offer has fresh issue of Rs. 150 crores. As per the draft, the company aims to utilize IPO proceedings majorly towards payment of certain borrowing.
| Particulars | Estimated Amount |
| Payment of certain borrowings availed by the company | 1225.21 |
| General corporate purposes | XXXX |
(₹ Million)
IPO Details of Viney Corporation Limited:
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹10 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | XXXX Equity shares |
| Aggregating up to XXXX Million | |
| Fresh Issue | XXXX Equity shares |
| Aggregating up to ₹1, 500 million | |
| Offer For Sale | Upto 22,213,852 Shares |
| Aggregating up to XXXX million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Issue Price & Size: Viney Corporation Limited IPO
The issue price of Viney Corporation Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has both fresh issue of Rs. 150 crores as well as offer for sale of up to 22,213,852 Shares.
Launch Date of Viney Corporation Limited IPO
The IPO opening date of Viney Corporation hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Viney Corporation Limited Financial Statements
| Particulars | FY24 | FY23 | FY22 |
| Income | |||
| Revenue from operations | 12457.86 | 11200.64 | 10353.74 |
| Other income | 214.97 | 141.4 | 495.44 |
| Total income | 12672.83 | 11342.04 | 10849.18 |
| Expenses | |||
| Cost of materials consumed | 6306.29 | 5778.52 | 5321.13 |
| Purchases of stock-in-trade | 46.18 | - | 128.84 |
| Change in inventories of finished goods, stock-in-trade | 61.39 | -55.34 | -39.05 |
| Employee benefits expense | 2594.87 | 2200.84 | 2009.54 |
| Finance costs | 461.07 | 209.46 | 321.56 |
| Depreciation and amortisation expense | 753.71 | 712.24 | 739.88 |
| Other expenses | 2005.17 | 1817.07 | 1612.96 |
| Total expenses | 12228.68 | 10662.79 | 10094.86 |
| Profit before exceptional items and tax | 449.32 | 681.25 | 756.12 |
| Profit/(loss) for the year | 278.92 | -374.95 | 337.02 |
| Particulars | Viney Corporation | Uno Minda | Minda Corporation | Motherson Sumi Wiring India |
| Financial KPI | ||||
| Revenue from Operation | 12457.86 | 140308.9 | 46511 | 83282.5 |
| Growth in revenue from Operation | 11.22% | 24.87% | 8.16% | 17.83% |
| Gross Profit | 6044 | 49671.3 | 17273 | 28745 |
| Growth in gross profit[ | 10.34% | 23.81% | 13.43% | 17.99% |
| EBITDA | 1449.13 | 17973.1 | 5164 | 10132 |
| EBITDA Margin | 11.63% | 12.81% | 11.10% | 12.17% |
| Operational EBITDA | 1449.13 | 17706.9 | 5144 | 10132 |
| Operational EBITDA Margin | 11.63% | 12.62% | 11.06% | 12.17% |
| Debt to Equity | 0.98 | 0.3 | 0.18 | 0.01 |
| Fixed Asset Turnover Ratio | 3.11 | 4.73 | 4.43 | 22.1 |
| Operational KPI | ||||
| Revenue split (in %) | ||||
| India | 24.48% | 86% | 87% | N.A. |
| Outside India | 75.52% | 14.00% | 13.00% | N.A. |
Viney Corporation Limited Promoters & Shareholding
As of date, there are two promoters of the company.
The promoter along with promoter group in aggregate collectively holds 74.7% of the paid-up share capital of company.
| Name of Shareholder | No. of Equity Shares held | % of total pre-offer paid up Equity Share capital | Selling Shareholders |
| Promoters | |||
| Brijesh Aggarwal | 2,64,17,620 | 28.71 | Up to 5,283,524 Equity Share |
| VL-Auto Ancillary Private Limited | 4,23,11,950 | 45.99 | Up to 11,006,397 Equity Share |
| Total | 6,87,29,570 | 74.7 | |
| Promoter Group | |||
| Priyanka Aggarwal | 81,60,000 | 8.87 | Up to 1,632,000 Equity Share |
| Vansh Aggarwal | 4,65,015 | 0.51 | |
| Rakesh Kumar Aggarwal | 1,06,17,815 | 11.54 | Up to 2,833,834 Equity Share |
| Brijesh Agarwal HUF | 3,50,000 | 0.38 | |
| Aren Capsules Private Limited | 36,80,100 | 4 | Up to 1,458,097 Equity Share |
| Total | 2,32,72,930 | 25.3 | |
Should You Subscribe to Viney Corporation Limited IPO or Not
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Viney Corporation Limited:
Leading manufacturer with diverse range of products
Viney Corp is a leading manufacturer and exporter of automotive components. They offer a diverse product range of over 500 Mechatronic Products and 2,500 Connective Products. As of FY24, one out of every six two-wheelers sold in India is fitted with one of their device wiring harnesses. They are among the few Indian switch manufacturers with in-house capabilities to design and manufacture switches catering to both high-end and mass-market vehicles.
The company has established four manufacturing facilities in India, two in Italy, and one in Romania. The manufacturing facilities are strategically built keeping in mind geographical location of customers, allowing us to efficiently understand and meet their requirements.
Long-term customer relationships
Over the years, the company has built strong relationships with clients, including mechatronic products and connective products, and has expanded its customer base by partnering with new OEMs. The company also presents its EV product portfolio to automotive OEMs of ICE vehicles to encourage their transition from ICE to EV. Revenue from international market has been on a increasing side over the years.
| Customers | Revenue for Fiscal 2024 | As a % of Revenue from Operations | Revenue for Fiscal 2023 | As a % of Revenue from Operations | Revenue for Fiscal 2022 | As a % of Revenue from Operations |
| India | 2842.36 | 22.82% | 2754 | 24.59% | 2534.5 | 24.48% |
| Outside India | 9615.5 | 77.18% | 8446.64 | 75.41% | 7819.24 | 75.52% |
R&D focus
The company supplies Mechatronic Products and Connective Products for both ICE vehicles and EVs, making it a segment agnostic technology-driven company. The manufacturing process is significantly automated, reducing manpower cost and dependency on manpower.
The mobility industry is experiencing increased complexity due to the global shift towards electrification. With end customer’s rising demand for EVs, demand for terminals and connectors might rise because of complex electrical systems and innovative products. The company conducts in-house R&D at their manufacturing facilities in Milan, Italy, and Gurugram, Haryana, India. Their R&D focus focuses on new product development, design prototyping, tool development, and product upgrades.
| Particulars | Amount for FY24 | As a % of Revenue from Operations (in %) | Amount for FY23 | As a % of Revenue from Operations (in %) | Amount for FY22 | As a % of Revenue from Operations (in %) |
| R&D Expenditure | 174.4 | 1.40% | 184.67 | 1.65% | 192.42 | 1.86% |
Cost efficiencies
The company has achieved backward integration in its Mechatronic Products and Connective Products, reducing raw material costs, exploring large-scale projects and making it competitive. They are involved in assessing feasibility, adapting designs, developing local suppliers, and ensuring OEM standards through prototyping, pilot production, testing, and mass production.
Future strategies
- Diversifying its customer base by acquiring new customers and implementing cross-selling strategies.
- Establishing manufacturing facilities in markets with growing product demand.
- Strengthens their position as a preferred partner with existing and new customers.
- Grow inorganically through acquisitions and target segments where their existing expertise can be leveraged.
- Improve operational efficiency through backward integration in several of their products.
Risk Factors of Viney Corporation Limited:
Dependence on top clients
Their business operations are heavily reliant on its top customers. Their top 10 customers contribute significantly to its revenue. As can be seen from table below, company’s top client contributed to nearly 28% to its total revenue. Loss of any top customer or economic slowdown, could lead to a decrease in demand for products, affecting our volume and timing of sales. This could have a material adverse impact on business fundamental and financial conditions.
| Particulars | Revenue for FY24 | % of Revenue from Operations | Revenue for FY23 | % of Revenue from Operations | Revenue for FY22 | % of Revenue from Operations |
| Top customer | 3714.77 | 29.95% | 3102.66 | 27.75% | 2918.86 | 28.33% |
| Top five customers | 7415.57 | 59.79% | 6895.5 | 61.73% | 6737.9 | 65.39% |
| Top 10 customers | 8643.34 | 69.68% | 8032.61 | 71.90% | 7721.78 | 74.94% |
As the customer income increases and industry shifts to more advanced system. If the company couldn’t continue innovating products with advanced features that might loss to competitors or loss market share.
| Product Categories | Revenue for Fiscal 2024 | % of Revenue from Operations | Revenue for Fiscal 2023 | % of Revenue from Operations | Revenue for Fiscal 2022 | % of Revenue from Operations |
| Mechatronic Products | 9395.21 | 75.75% | 8238.56 | 73.75% | 7785.98 | 75.56% |
| Connective Products | 3008.31 | 24.25% | 2932.69 | 26.25% | 2518.14 | 24.44% |
Revenue from exports
The business relies on the global automotive sector's performance, with products designed in India and Italy, manufactured in India, Italy, and Romania, and supplied and exported across India, Europe, USA, and Brazil. The company generates a significant portion of its revenue from customers outside India. The company faces potential risks such as decreased performance, decreased demand for products and services, default, and potential customer loss. Geopolitical tensions and trade restrictions could also affect business outside India. As can be seen from table, share of revenue from international customers has been on a rise in FY24.
| Product Categories | Revenue for FY24 | % of Revenue from Operations | Revenue for FY23 | % of Revenue from Operations | Revenue for FY22 | % of Revenue from Operations |
| India | 2842.36 | 22.82% | 2754 | 24.59% | 2534.5 | 24.48% |
| Outside India | 9615.5 | 77.18% | 8446.64 | 75.41% | 7819.24 | 75.52% |
Dependency on of raw materials
The company's raw material costs can be substantially impacted by the volatility in commodity prices. If the prices of raw material increases and the company on its part aren’t able to pass on the price increase to clients, it may impact its profitability. Demand, economic and political conditions, import duties, tariffs, and other factors beyond the company's control can result in volatile raw material pricing. The business could also be adversely affected by supply interruptions caused by rapid fluctuations in commodity prices. The company's centralized procurement division in India and Europe is responsible for standardizing processes and contracts, as well as reducing pricing variations.
| Particulars | FY24 | FY23 | FY22 | - | ||
| % of Total Expenses | % of Revenue from Operation | % of Total Expenses | % of Revenue from Operation | % of Total Expenses | % of Revenue from Operation | |
| Cost of materials consumed | 51.57% | 50.62% | 54.19% | 51.59% | 52.71% | 51.39% |
Development of advanced systems
The future of any organization is hinged upon the development and introduction of new products that are sustainable, viable, and innovative. With rising end user income and changing taste, the automotive industry has to deal with likelihood for current technologies to become obsolete due to the rapid advancement of technology. In-house research and development is conducted at its manufacturing facility in Milan, Italy, and a R&D center in Gurugram, Haryana.
The R&D teams primarily focus on new product development, design prototyping, tool development, and product upgrades. If R&D efforts fail, the company may face write-offs, adversely affect its business fundamentals, financial condition, and results of operations, and negatively affect its competitive position.
Machinery breakdown
The company has four manufacturing facilities in India, two in Italy, and one in Romania. They also have three assembly units in India and are in the process of setting up a manufacturing facility in Mexico.
The company's manufacturing facilities may experience disruptions due to machinery breakdowns. These disruptions could lead to delays in product shipments, potentially causing temporary or long-term closures. The company's ability to maintain profitability depends on capacity utilization, which can be affected by changes in demand and product customization and also because of machinery uptime.
Viney Corporation Limited Grey Market premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Viney Corporation Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
