Valplast Technologies
- Valplast Technologies is coming out with an initial public offering (IPO) of 52,02,000 equity shares in a price band of Rs 51-54 per equity share.
- The issue will open on September 30, 2025 and will close on October 3, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 5.10 times of its face value on the lower side and 5.40 times on the higher side.
- Book running lead manager to the issue is Fintellectual Corporate Advisors.
- Compliance Officer for the issue is Rajeev Tyagi.
Profile of the company
Incorporated in 2014, the company is a civil engineering & construction company engaged in providing supply and installation of structural waterproofing system, injection grouting solutions for various type of infrastructure projects including underground structures, tunnels, landfills, dam, channel, shafts, canal, reservoirs, building and various other civil engineering projects. Further, it has recently started construction of Tunnels, Pre-Cast Concrete structures and Mechanical, Electrical & Plumbing (MEP) engineering services in tunnels and underground structures. It undertakes a range of construction projects particularly in sectors such as Defense, railway, Civil structures etc. The majority of its service includes civil & structural construction services contracts under sub-contracting by main contractors, who have been allotted the project by a principal employer. Further, it has undertaken a few projects directly as a Contractor for certain private construction companies and government departments.
The company has a presence (including past operation) in 9 states across the country. Over the year, it has steadily expanded its execution capabilities and successfully completed more than 40 projects. The projects are related to Defense, Railway, Road Infrastructure and various sectors. Further, it has increased the scale of its operations by adopting a strategy of expansion across regions and has strategically expanded to geographies where there is a demand for its services. The growth and development of the company during the past years has been the result of its client-centric approach. Its main focus and vision is to sustain profitable growth by executing projects in time to the satisfaction of its clients. The company is an ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified Company issued by Quality Control Certification accredited by ‘Intercert USA’ in compliance with quality management system, Environmental Management System and Occupational Health and Safety Management Systems respectively.
Proceed is being used for:
- Funding the capital expenditure requirements of the company by purchase of Plant and Machinery
- Funding the Working Capital Requirement of the company
- Meeting out the General Corporate Purposes
Industry Overview
Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The $1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. To meet India’s aim of reaching a $5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India’ and the production-linked incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80% of the country's infrastructure spending has gone toward funding for transportation, electricity, and water, and irrigation.
The India Construction Market size was valued at $1.04 trillion in 2024 and is projected to grow to $1.21 trillion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching $2.13 trillion by 2030, with a CAGR of 12.1% from 2025 to 2030. This market is expanding rapidly, supported by strong government-backed initiatives such as the National Investment Pipeline and major infrastructure projects like the Mumbai–Ahmedabad High-Speed Rail and Chennai–Bengaluru Expressway. The sector is further propelled by a growing emphasis on sustainable and smart infrastructure, with substantial investments in metro rail expansion, affordable green housing, and renewable energy. While regulatory complexities and bureaucratic inefficiencies pose challenges by delaying projects and increasing costs, the integration of digital technologies like BIM, AI, and IoT is creating new growth opportunities through enhanced design precision, collaboration, and operational efficiency.
The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India’s engineering sector has witnessed remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production. In FY25, exports of engineering goods reached at Rs 9,86,328 crore ($116.67 billion). The top 5 export destinations for engineering goods during FY25 were USA, UAE, Saudi Arabia, Germany and Italy. Imports of Electrical Machinery in India increased to $12.30 billion in FY24.
Pros and strengths
Strong management team and experienced staff/ trained employees: The company is led by its experienced promoters Mr. Sanjay Kumar & Mr. Rajeev Tyagi, who are supported by its team of senior management, engineers and other personnel. Its Promoters, Mr. Sanjay Kumar & Mr. Rajeev Tyagi, have and experience of 16 and 11 years respectively in the Field of construction and civil engineering. The company have benefited immensely from their experience, long-standing relationship with clients and suppliers and better decision-making power. Its motivated team of management and key managerial personnel along with its internal systems and processes complement each other to enable it to deliver high levels of client satisfaction.
Optimal utilization of resources: The company constantly endeavors to improve its execution process, capabilities, skill upgradation of employees, modernization of plant and machineries to optimize the utilization of resources. It regularly analyses its material procurement policy and project execution process to de?bottle neck the grey areas and take corrective measures for smooth and efficient working thereby putting resources to optimal use.
Diversified revenue from multiple geographies: The primary focus of the company’s business is on providing construction and civil engineering services at various places including Bihar, Kerala, Uttrakhand, Andhra Pradesh, Himachal Pradesh, Odisha, Jammu & Kashmir, Rajasthan etc. Its operational presence in multiple geographies not only helps it in expanding its client base but also helps it by keeping itself in tune with the technological advancements and help it to mitigate risk for any unforeseen circumstances in the domestic market and expand its business operations.
Risks and concerns
Dependent upon few clients: Substantial portion of the company’s revenues have been dependent upon its few clients. For the Fiscal 2025, Fiscal 2024 and Fiscal 2023, its top ten customers accounted for around 77.82%, 94.47% and 87.45% respectively of its revenue from operations. The company gets the majority of the projects on sub-contracting basis from its clients and if its main client does not receive the main contract, it can also miss the opportunity to get the contract on sub-contract basis. If any of its major clients becomes bankrupt or insolvent, it may lose some or all of its business from that client and its receivable from that client would increase and may have to be written off, adversely impacting its income and financial condition.
Dependent on third parties: The company is dependent on third-party suppliers for the procurement of raw materials required for its projects and is exposed to risks arising from fluctuations in commodity prices and potential shortages in supply. It currently does not have any long-term supply agreements with its raw material providers, which may result in volatility in procurement costs and uncertainties in availability. Any disruption or delay in the supply of raw materials could adversely affect its operations, project timelines, and profitability.
Requires significant amount of working capital: The company’s business operations require a significant amount of working capital. In its business, working capital is often required for its day-to-day business operations including Cost of Materials Consumed and other expenses. In the event it is unable to source the required amount of working capital, it might not be able to efficiently satisfy the demand and preferences of its clients in a timely manner or at all. Even if it is able to source the required amount of funds, it cannot assure that such funds would be sufficient to meet its cost estimates and that any increase in the expenses will not affect its business.
Outlook
Valplast Technologies is a civil engineering & construction company engaged in structural waterproofing, injection/grouting services, and precast concrete work. The company offers services such as thermoplastic welding of geomembranes, sheet waterproofing installation, liquid and spray-applied waterproofing, chemical and cementitious grouting/injection works, ground stabilization, and specialized drilling services. The company operates in 9 states, completing over 40 projects in defense, railways, and infrastructure. It strategically expands to regions with high demand, steadily growing its execution capabilities across India. On the concern side, the company derives majority of revenue from undertaking projects on sub-contracting basis and its financial condition would be materially and adversely affected if it fails to obtain new sub-contracts or direct contracts or its current contracts are terminated. Also, the company’s business faces the risk of catastrophic incidents, such as tunnel collapses, which can cause significant harm to individuals and property. Such events expose the company to substantial legal liabilities, including lawsuits and compensation claims, as well as considerable financial losses from repair costs and rising insurance premiums.
The company is coming out with a maiden IPO of 52,02,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 51-54 per equity share. The aggregate size of the offer is around Rs 26.53 crore to Rs 28.09 crore based on lower and upper price band respectively. On performance front, the company’s total income decreased by 1.08% from 6,523.50 lakh for the Financial Year 2024 to Rs 6,453.04 lakh for the Financial Year 2025. Moreover, the company’s restated profit after tax decreased by 6.08% from Rs 650.94 lakh in Fiscal 2024 to Rs 611.35 lakh in Fiscal 2025.
The company intends to continue its focus on enhancing project execution capabilities so as to derive twin benefits of client satisfaction and improvements in operating margins. It will endeavour to leverage its operating skills to increase productivity and maximize asset utilization in its ongoing projects. It intends to continue its focus on performance and project execution ability in order to maximize its operating margins. It has presence in almost 9 states across India. It intends to expand its geographical footprint and grow its business by increasing orders from other states of India. Through an increasingly diversified portfolio, it hopes to broaden its revenue base and also hedge against risks in specific areas or projects and protect itself from fluctuations resulting from business concentration in limited geographical areas.
