Vigor Plast India IPO Opens Today: Know the Key Details, Anchor Allocation and Risks

Mumbai, 4 September – Vigor Plast India Limited has opened its Initial Public Offering (IPO) today, aiming to mobilise ₹25 crore through a combination of fresh issue and offer for sale. The Jamnagar-based manufacturer of PVC, uPVC, and cPVC pipe and fittings will keep the issue open for subscription until September 9, 2025, with shares scheduled to list on NSE Emerge on September 12.

Vigor Plast India began as a trading company in 2014, but has now become a manufacturer with a 160,000 sq. ft. BIS-certified facility based in Jamnagar. Vigor has five warehouses in India and operates in many segments such as plumbing, irrigation, and SWR systems.

IPO Key Details

The bid and offer price range for the issue has been set between ₹77-81/share with a face value of ₹10. There is a minimum lot size of 1,600 shares (₹1,29,600 each application on the upper band). The issue size is 30,99,200 shares (totalling ₹25 crore), of which ₹24,99,200 is a fresh issue, and ₹6,00,000 is an OFS. Alacrity Securities has been named the market maker, with Unistone Capital as lead manager and KFin Technologies as the registrar.

Anchor Allocation

The company finalised its anchor book on September 3, 2025, issuing 873,600 shares to anchor investors at ₹81 for proceeds of around ₹708 crore. This established a solid foundation for the company, providing credibility and assurance in the IPO before its opening.

The anchor investor with the largest pick-up was Silver Stride India Global Fund, which bought 2,78,400 shares for ₹2.25 crore, followed by Nova Global Opportunities Fund PCC, which purchased 190,400 shares for ₹1.54 crore. Venus Investments VCC, Venus Stellar Fund, Aarth AIF Growth Fund and Smart Horizon Opportunity Fund bought 155,200 shares and 124,800 shares, respectively.

IPO Timeline

The IPO will run from September 4, 2025, to September 9, 2025. The UPI requirement cutoff is at 5 PM on the closing date. The shares allotment will be completed on September 10, with refunds and credits to demat accounts on September 11. Vigor Plast India IPO is scheduled for September 12, 2025. Anchor investors will have 50% of their holdings allocated on October 10, with the other 50% released on December 9, 2025.

Key Risks from RHP

The Red Herring Prospectus contains several risks to the prospective investors. One of these was supplier and customer concentrations, as their 10 largest suppliers made up 66% of raw material purchases in FY25, whereas their 10 largest customers made up 27% of their revenue. The operational risks are attributable to dependence on a single manufacturing facility located in Jamnagar and all warehouses situated in Gujarat. As a result, the entire business can be impacted due to local disruptions. The company also has a very high debt exposure with borrowings of 1.772 lakh and a debt-equity ratio of 1.39.

Other risks analyzed included regulatory uncertainties, such as possible bans on plastics, and risks related to influencer endorsement (celebrity endorsements), compliance issues in the past, and a history of not paying dividends over the past 5 years.

Financial Performance and Fund Usage

The company has demonstrated strong financial performance, with total revenues growing by 8% to ₹46.02 crore and a 76% increase in profit after tax (PAT) to ₹5.15 crore for the financial years ending March 2024 and March 2025.

The company plans to deploy the net proceeds from the issue primarily towards repayment of secured borrowings worth ₹11.39 crore. In addition, ₹3.80 crore has been earmarked for setting up a new warehouse in Ahmedabad, Gujarat, while the balance will be utilised for general corporate purposes.

Investors Takeaway

The IPO of Vigor Plast India presents an opportunity for investors to be a part of the growing plastic pipes market in India. While Vigor Plast has demonstrated strong revenue and profitability growth, investors should carefully consider supplier dependency, increased debt levels and regulatory challenges before deciding to invest.

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