Vishal Nirmiti's IPO opened on 30 September and closes on 5 October 2026, with listing on 8 October. It is a ₹178 Cr issue at ₹208 to ₹220 a share. I like the business. I do not like the price. Here is why.
What the company does
Vishal Nirmiti is a Mumbai company that has been around since 1994 (it used to be called Sejal Farms). It makes pre-stressed concrete sleepers for railway tracks, precast concrete pieces, including some for the Mumbai-Ahmedabad bullet train, and large steel pipes for hydro and pumped-storage projects. It also does some EPC work. Seven plants across Maharashtra, Madhya Pradesh, Himachal Pradesh and Gujarat, about 420 employees.
The plants ran at 85 to 90% capacity in FY26. That matters, because it explains the growth number below.
Who it sells to
This is the first thing to understand. Indian Railways zones gave 40.56% of FY26 revenue, about ₹137 Cr. DFCCIL, L&T, Kalpataru Projects and KEC International are the other big names. The top five customers are 85% of revenue. The top ten are 93%.
That is not a diversified customer base. It is a railway capex business with a few large EPC contractors on the side. When railway track spending is strong, as it has been, the order book fills up. When it slows, there is nowhere else to sell sleepers.
The order book was ₹582 Cr across 70 projects as of 30 June 2026, about 1.7 years of revenue. That is good visibility.
The numbers
| ₹ Cr | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 242.9 | 318.5 | 338.7 |
| EBITDA | 23.1 | 46.5 | 51.1 |
| Profit after tax | 3.5 | 23.6 | 25.0 |
| Cash from operations | 20.7 | 45.0 | 27.2 |
| Net worth | 38.1 | 61.1 | 86.3 |
| Debt | 91.8 | 88.1 | 87.4 |
Two things stand out.
First, the business makes cash. Three years of operating cash flow add up to ₹93 Cr against ₹52 Cr of profit. Receivables are ₹63 Cr, about 68 days of sales, with only ₹5 Cr older than six months. For a company that sells to the government, that is clean.
Second, growth has stopped. Revenue grew 31% in FY25 and 5.9% in FY26. The plants are full. The company is raising ₹75 Cr of working capital to push more volume through them, but the ceiling is physical, not financial.
The jump in profit from ₹3.5 Cr to ₹23.6 Cr in FY25 came from the EBITDA margin going from 9.5% to 14.6% in one year. No public summary explains what drove it. Before paying a growth multiple on ₹25 Cr of profit, I would want to know whether that margin is the new normal or a good year.
Return on net worth is 34%, return on capital employed 28%. Debt is ₹87 Cr against ₹86 Cr of net worth, so debt to equity is about 1. The IPO repays ₹19 Cr of it, which helps but does not change the picture.
The issue
₹145 Cr is fresh money. ₹33 Cr is an offer for sale by Vaman Prestressing Co, which is a promoter group company. The individual promoters, the Tapadiya family, are not selling any personal shares. Their holding falls from 73% to 49% after the issue.
Of the fresh money, ₹75 Cr goes to working capital, ₹19 Cr to debt repayment, and the rest to general corporate purposes. Nothing goes to new capacity, which is the one thing that would restart growth.
The cost at which the promoters or Vaman acquired their shares is not in any public summary I could find, so I cannot tell you what their gain is at ₹220.
The valuation
At ₹220 the post-issue price to earnings ratio is 23.3x FY26 profit. The listed peers named in the RHP trade at about 14x: GPT Infraprojects between 15x and 18x depending on the source, Indian Hume Pipe at 14x, LCC Projects at 14x. That is a premium of 60% or more over the peer group for a company whose revenue grew 5.9% last year.
The market cap at the top of the band is ₹581 Cr. At the peer multiple, the same profit is worth about ₹350 Cr, or around ₹135 a share.
The CBI matter, stated correctly
There is a lot of loose talk about this one, so here is what the RHP actually says.
On 19 February 2025 the CBI filed an FIR, mainly against a company called Dony Polo Udyog and some public servants, under the Prevention of Corruption Act. Vishal Nirmiti, its promoter Pavan Tapadiya and a director, Natraj Ladda, were named in that FIR. The CBI searched the company's Mumbai office the same day and seized ₹39 lakh in cash.
The CBI's charge sheet of 16 April 2025 did not charge Vishal Nirmiti or any of its people. The RHP states there are no criminal matters against the company, its directors or promoters pending at the FIR stage.
What is still open is the ₹39 lakh. The company says it was business cash recorded in the books, backed by audited records and auditor certificates, and has applied to the CBI court in Jaipur to get it back. The next hearing is 14 October 2026, six days after listing.
So this is not an open corruption case against the company. It is a seized-cash recovery proceeding. That is a much smaller thing, but it is still in the prospectus and it still needs to close.
Other litigation is routine: three cases the company has filed worth ₹5.6 Cr, five against it worth ₹2.8 Cr, mostly cheque bounce and one arbitration. Contingent liabilities are ₹21.9 Cr, 92% of which are performance bank guarantees, which every contractor carries.
Why there are no anchor investors
The issue is 70% retail, 29% non-institutional and 1% QIB. One percent of ₹178 Cr is ₹1.8 Cr, and SEBI requires an anchor book to be at least ₹10 Cr. So an anchor book was not possible. Institutions did not refuse; they were not offered a seat.
The consequence is real though. 99% of the shares sold in this IPO have no lock-in. Whoever gets allotment can sell on 8 October.
Where the subscription stands
End of day 2 (1 October): QIB 0.96x, large HNI 0.07x, small HNI 0.46x, retail 0.17x, overall 0.23x. Grey market premium is quoted anywhere from ₹2 to ₹35 depending on the tracker, which means there is no real grey market. Call it a few rupees.
Brokers are split. Anand Rathi, BP Equities, Ventura and Master Capital say subscribe, mostly for the long term. SBI Securities says fairly valued, watch it after listing.
One thing that could change the picture before you apply
🔴 Watch the QIB book until the close on 5 October. Institutions were given only 1% of this issue, about ₹1.8 Cr. That slice is at 0.96x after two days, which is a handful of applications, not a signal. But if that 1% ends up several times oversubscribed by the last day, it means institutions who read the same RHP are willing to pay ₹220 for a tiny allocation, and are likely to buy more on listing day. That would be the one piece of evidence that the business case outweighs the price. Everything else in this note stays as it is; this is the single number that can move my view before the issue closes.
My verdict
Avoid at ₹220.
The business is real. It makes cash, the order book is full, the customers are named and the debt is manageable. If this were priced at 14x like its peers, it would be worth applying for.
But it is not. At 23x you are paying for growth, and the growth has stopped because the plants are full. The IPO money does not build new plants. One customer is 41% of revenue. The float has no lock-in and the book is 0.23x after two days. And there is a court date six days after listing.
Price levels to watch after listing
These are the levels at which the valuation argument changes, not predictions.
₹135 to ₹145. This is where the stock would trade at the peer multiple of 14 to 15x FY26 earnings. At this level you are paying a fair price for a cash-generative railway supplier with 1.7 years of orders. Worth a look.
₹165 to ₹175. Around 17 to 18x, the upper end of where GPT Infraprojects trades. Reasonable only if the FY27 numbers show the margin holding at 15% and new capacity being added.
₹220 and above. The IPO price. Needs 20% plus revenue growth to justify, which the current plants cannot deliver.
Watch the 14 October hearing and the first quarterly result for whether the margin holds. If both come through clean and the stock has drifted into the first band, the case is simple. Until then, it is a good company at the wrong price.
Sources: Vishal Nirmiti RHP as reported by Chittorgarh, IPO Premium, Multibagg and an RHP-based independent analysis; ScanX for day 2 subscription; Business Today for broker views; Business Standard for the DRHP filing. Figures rounded.
For educational purposes only. Not investment advice. Intrynsic.ai is not a SEBI-registered investment adviser.