Vivid Electromech Ltd. IPO

Vivid Electromech

• Vivid Electromech is coming out with an initial public offering (IPO) of 23,52,000 shares in a price band of Rs 528-555 per equity share. 
• The issue will open on March 25, 2026 and will close on March 30, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 52.8 times of its face value on the lower side and 55.5 times on the higher side.
• Book running lead manager to the issue is Hem Securities.
• Compliance Officer for the issue is Chaitali Rajesh Shah.

Profile of the company

The company is an ISO 9001:2015 certified manufacturer of Low-Voltage (LV) and Medium-Voltage (MV) electrical panels and automation systems. The company is engaged in panel manufacturing and system integration, offering electrical and automation solutions that cover engineering, design, fabrication, assembly, testing, and commissioning of control and automation systems. Its products are intended for applications in power distribution, load management, process control, and industrial automation across multiple sectors.

It manufactures a range of LV electrical panels, including Power Control Centre (PCC) Panels, Intelligent Motor Control Centre (IMCC) Panels, Soft Starter Panels, Motor Control Centre (MCC) Panels, DG Synchronisation Panels, Power Distribution Boards and Units, Automatic Power Factor Correction (APFC) Panels, Variable Frequency Drive Panel, PLC Automation system and Outdoor Panels. Its MV electrical panel product range covers 3.3 kV to 33 kV panels and includes specialised products such as 11 kV DG Synchronisation Panels, Control and Relay Panels, 11kV/33kV Vacuum Circuit Breaker and Vaccum Contactor Panels, Ring Main Gear Panel and MV Automatic Power Factor Correction (APFC) Panels. All its products are type-tested in accordance with applicable standards including IEC 61439-1 & 2, IEC 61641, and IEC 62271-200. In addition to its manufacturing operations, it is engaged in the trading of certain electrical goods, GI Sheet and busducts. It also provides installation, testing and commissioning services tailored to specific customer requirements.

Its products cater to sectors such as Data Centre & Technology, Infrastructure, Construction & Real Estate including Metro Projects, Solar & Renewable Energy, Industrial Manufacturing and Machinery etc. It maintains OEM associations with ABB, Lauritz Knudsen Electrical & Automation (LK), and Schneider Electric. It is licensed by ABB India to manufacture and integrate ArTu K low-voltage switchboards using ABB components. 

Proceed is being used for:

• Funding the capital expenditure requirements towards setting up of a new manufacturing unit.
• Repayment of certain borrowings availed by the company.
• Meeting working capital requirements
• General corporate purpose

Industry overview

India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. Capital Goods sector contributes 1.9% to overall India’s GDP. The heavy engineering and machine tools sector is a vital component of the capital goods industry. The electrical equipment market share in India is expected to increase from $52.98 billion in 2022 to $125 billion by 2027, implying a robust CAGR of 11.68%. India’s Engineering Research and Development Services market size is estimated at Rs 11,42,819 crore ($133.71 billion) in 2025 and is expected to reach Rs 18,62,391 crore ($217.90 billion) by 2030, at a CAGR of 10.26% during the forecast period (2025-30).

The Government’s ‘Vision Plan 2030’ proposed an action plan to become a manufacturing and export hub for construction equipment and propel the development of world-class infrastructure in the country. The Indian electrical equipment market is set to experience significant growth in the coming years, with a forecasted incremental growth of Rs 6,44,533 crore ($76.24 billion) at a compound annual growth rate (CAGR) of 14.3% from FY24 to FY28. India switchgear market size was estimated at $9.75 million in 2022 and is expected to grow at CAGR of 7.12% reaching a value of $18.23 million by 2029.

Pros and strengths

Integrated manufacturing facilities: It operates fully integrated manufacturing units in Navi Mumbai and Pune, covering over 34000 sq. ft. These facilities enable it to carry out the entire production process in-house including design, engineering, fabrication, assembly, wiring, and testing. This setup allows it to maintain consistent product quality, reduce turnaround time, and adapt to specific client requirements. Its equipment includes CNC turret punching machines, CNC bending machines, PU gasketing machines, a powder coating plant, CNC busbar bending machines, and CNC busbar punching machines, supporting precise and efficient operations. It also undertakes in-house testing to ensure compliance with industry standards. In-house manufacturing reduces dependence on third-party vendors and allows greater control over production timelines and quality.

Diverse product portfolio with wide geographic reach: Its product offerings include LV and MV electrical switchboards and automation systems for industrial and infrastructure applications across India and selected international markets. The LV electrical panel product range comprises PCC Panels, IMCC Panels, Soft Starter Panels, MCC Panels, DG Synchronisation Panels, Power Distribution Boards and Units, APFC Panels, Variable Frequency Drive Panel, PLC Automation system and Outdoor Panels. It also manufactures MV panels comprising up to 3.3 kV to 33 kV panels and includes specialised products such as 11 kV DG Synchronisation Panels, Control and Relay Panels, 11kV/33kV Vacuum Circuit Breaker and Vaccum Contactor Panels, Ring Main Gear Panel and MV Automatic Power Factor Correction (APFC) Panels. It provides both standard and customised panels based on client specifications. Its products are deployed in segments such as Data Centre & Technology, Infrastructure, Construction & Real Estate including Metro Projects, Solar & Renewable Energy, Industrial Manufacturing and Machinery etc. Its distribution footprint spans in more than 15 Indian states, with limited exports to international clients.

Commitment to quality control and safety: It maintains quality control and safety procedures across all stages of its manufacturing operations, from procurement of raw materials to final inspection and dispatch. Its operations are ISO 9001:2015, ISO 14001: 2015 and ISO 45001: 2018 certified, and its products are fully type-tested in accordance with standards such as IEC 61439-1 & 2, IEC 61641 and IEC 62271-200. Its inhouse testing facilities are equipped with a 6000 Amp current Primary Injection Test setup, High Voltage Test Kits (75KV, 5KV and 2.5KV), Winding Resistance Meter, Contact Resistance Meters, Conductivity Meter, CT Polarity Test Kit, Coat Gauge etc. It also operates a powder coating lab equipped for surface treatment testing. It carries out quality control through inspections, testing, and documentation to ensure compliance with specifications and consistency in performance.

Risks and concerns

Supply chain disruption risk due to supplier and regional concentration: The company is dependent on a limited number of suppliers located within a concentrated geographical region for the supply of its raw materials, and it does not have long-term agreements with most of its suppliers. Its top 10 suppliers accounted 73.13%, 73.00% 67.35% and 73.27% of its total purchases for the period ended September 30, 2025, and for the period ended March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Further, a significant portion of its raw material purchases are concentrated in the state of Maharashtra, which accounted for 61.10%, 52.36%, 61.48% and 62.15% of its total purchases for the period ending September 30, 2025 and in Fiscals 2025, 2024 and 2023, respectively. Any adverse political, social, economic, or environmental developments in Maharashtra including labor unrest, civil disruptions, natural disasters, transportation strikes, or changes in state policies could disrupt its supply chain. Such disruptions may result in shortages of raw materials, production delays, increased logistics and transportation costs, and difficulties in meeting customer demand, all of which may adversely affect its business operations and reputation.

Revenue dependence on key customers and absence of long-term contracts: The company derives a significant portion of its revenue from a limited number of customers, with its top 10 customers contributing 57.02%, 69.90%, 55.12%, and 62.08% of total sales for the period ended September 30, 2025 and for Fiscal 2025, 2024, and 2023, respectively.  Its reliance on a limited number of customers exposes it to risks arising from order reductions, delays, cancellations, or changes in terms by these customers. The loss of one or more of these customers, or a significant decline in the volume of business from them, may adversely impact its revenues and profitability. Further, it does not have any long-term commitments from customers and any failure to continue its existing arrangements could adversely affect its business and results of operations.

Dependence on demand from key industries: Its business is dependent on demand from key industries such as electrical, infrastructure, renewable energy, and manufacturing. It manufactures LV and MV electrical panels and automation systems, which are used across various sectors including Data Centre & Technology, Infrastructure, Construction & Real Estate including Metro Projects, Solar & Renewable Energy, Industrial Manufacturing and Machinery etc. The demand for its products is closely linked to the growth, investment cycles, and regulatory environment of these industries. Accordingly, any downturn in these sectors, whether due to reduced project activity, economic slowdowns, delays in infrastructure execution, regulatory changes, funding constraints, or supply chain disruptions, could adversely affect its order inflows, revenues, and profitability.

Outlook

Vivid Electromech is engaged in the business of manufacturing electricity distribution and control apparatus [electrical apparatus for switching or protecting electrical circuits (e.g. switches, fuses, voltage limiters, surge suppressors, junction boxes etc.) for a voltage exceeding 1000 volts; similar apparatus (including relays, sockets etc.) for a voltage not exceeding 1000 volts; boards, panels, consoles, cabinets and other bases equipped with two or more of the above apparatus for electricity control or distribution of electricity including power capacitors]. On the concern side, its business is significantly dependent on the availability and cost of key raw materials such as CRCA sheets, GI sheets, aluminum, copper, and switchgears. Volatility in their prices or disruption in supply may adversely affect its business, financial condition, results of operations, and cash flows. Further, its business is dependent on the continuous and efficient operation of its manufacturing units.

The company is coming out with a maiden IPO of 23,52,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 528-555 per equity share. The aggregate size of the offer is around Rs 124.18 crore to Rs 130.54 crore based on lower and upper price band respectively. On performance front, total income for the financial year 2024-25 stood at Rs 15577.05 lakh whereas in financial year 2023-24 the same stood at Rs 8954.83 lakh representing an increase of 73.95%. The company reported Restated profit after tax for the financial year 2024-25 of Rs 2024.40 lakh in comparison to Rs 428.00 lakh in the financial year 2023-24, marking an increase of 372.99%.

Meanwhile, the company’s strategy focuses on building and maintaining long-term and cordial relationships with both its customers and suppliers. Consistent and timely delivery of quality products and services has helped it gains customer confidence and repeat business. Its long-standing engagement with suppliers contributes to the stability of its supply chain and procurement processes. Furthermore, retention of experienced employees supports operational continuity and efficiency, which in turn strengthens its relationships across the value chain. Moreover, it seeks to enhance its business operations by expanding its customer base through marketing initiatives. Its marketing approach is based on understanding customer requirements and providing products in line with industry standards. It also uses the Government e-Marketplace (GeM) portal and other digital platforms to reach a wider customer base and increase visibility of its electrical control panels and automation solutions. Its marketing efforts are focused on highlighting product features such as safety, reliability, and efficiency to potential customers.

Liotech Industries

• Liotech Industries is coming out with an initial public offering (IPO) of 11,22,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 321 per equity share.
• The issue will open on June 17, 2026 and will close on June 19, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 32.1 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Wealth Mine Networks.
• Compliance Officer for the issue is Pooja Nakul Jain.

Profile of the company

Liotech Industries specializes in the production of hardware structures and accessories, including door kits, a wide range of hinges (including cut & butt, parliament, W, Z, and duck hinges), gate hooks, aldrop, locks, handles, tower bolts, and shelf bottoms. It offers a diverse selection of products, with over 150 distinct specifications, that cater to various industries such as housing, infrastructure, agriculture, automotive, electricity, cement, mining, solar energy, and general engineering. It adheres to a business-to-business (B2B) operational framework. Aside from its production operations, it also engages in the trading of supplementary products such as door stoppers, magnets, table brackets, bed lifters, and bell magnets.

It owns and operates a manufacturing unit located in Rajkot, Gujarat, spanning 12,632 square feet. This facility is strategically situated to offer locational advantages, enabling it to meet its customers' just-in-time delivery schedules, achieve economies of scale, and provide logistical benefits to its customers, thereby protecting them from local supply disruptions. It provides end-to-end product solutions that include designing, manufacturing, quality testing, packaging, and logistics under the B2B model. It has installed a diverse array of plant and machinery at its manufacturing facility to facilitate the fabrication and production of a diverse selection of products. 

Its manufacturing facilities are furnished with modern equipment, an engineered architecture that incorporates process controls, and the necessary automation to guarantee productivity and quality. The facility has been certified with ISO 9001:2015, which confirms that it adheres to its Quality Management System for the design and manufacture of hardware products. These products include aldrop, handles, door kits, hinges, tower bolts, gate hooks, screws, door stops, magnets, table chains, universal brackets, bed dadi, brass cam bolts, table brackets, basket trolleys, bed lifters, bed sockets, and bell magnets. The company has also been awarded a certificate of compliance from UK Certificate and Inspection for the above listed products. These products are in compliance with the Construction Products (CPD/CPR) Council Directive 89/106/EEC (CPD) / Regulation (EU) No 305/2011 (CPR). Its quality control team, which is comprised of experienced personnel, guarantees that both raw materials and finished products undergo rigorous testing to ensure that they meet the necessary market standards. 

Proceed is being used for:

• Funding capital expenditure requirements towards acquiring machinery in the manufacturing unit
• Funding towards repayment of loan
• Funding working capital requirement
• Funding expenditure for general corporate purpose

Industry Overview

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a country's economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy. The Indian steel industry is classified into three categories - major producers, main producers, and secondary producers. 

India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India's manufacturing output. The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels. 

The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India. With the industry accounting for about 2% of the nation's GDP, India ranks as the world's second-largest producer of steel and is poised to overtake China as the world's second-largest consumer of steel. Both the industry and the nation's export manufacturing capacity have the potential to help India regain its favourable steel trade balance. The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31. Huge scope for growth is offered by India's comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.

Pros and strengths

Compliance with quality standards & consistency in quality and service: It adheres to stringent quality standards in all its manufacturing units to ensure that its products meet the necessary requirements. Its manufacturing units are ISO 9001: 2015 certified, which confirms that its products conform to the Quality Management System Standard. Additionally, the company has obtained a certificate of compliance from UK Certificate and inspection confirming adherence to the requirement of Construction Products (CPD/CPR) Council Directive 89/106/EEC (CPD) / Regulation (EU) No 305/2011 (CPR) for its products. Further, its quality control team led by experienced Personnels ensure that its raw materials as well as end products are tested on all quality parameters to ensure that it is compliant with the required market standards. 

Wide range of product portfolio: It manufactures various hardware accessories and engineering products like door kits, cut & butt hinges, parliament hinges, W, Z & duck hinges, gate hook etc. It manufactures such products (combined) of more than 150 different specifications and caters, directly and indirectly, to customer requirements in various sectors such as housing, infrastructure, agriculture, automotive, power, cement, mining, solar power and engineering. Further, its product portfolio includes all types of aldrop, latch, handle, tower bolt, shelf bottom etc. The company is also involved in trading activities of products such as door stopper, magnet, table bracket, bed lifter, bell magnet etc. Its key differentiator is its range of product specifications in terms of thickness, length, quality, availability and customised products. It offers customization facilities to all the customers as per their particular requirements and specifications. Its manufacturing teams focus on the precise demand of the customer and design the products accordingly. This provides complete satisfaction to its customers and enables it to expand its business from existing customers and also address a larger base of potential new customers.

Experienced & qualified team: Its skilled management team and Promoters exhibit numerous years of experience in the marketing and distribution of products within this industry. With more than a decade of experience in the iron and steel industry, Hitesh Mansukh Bhuva, its Promoter, has played a critical role in the development of its business strategy and growth. He is actively engaged in the company's daily operations, administration, and marketing. The experience and industry knowledge of its management team will help it capitalize on current and future opportunities. 

Risks and concerns

Volatile demand and pricing environment: Steel prices fluctuate based on a number of factors, such as, the availability and cost of raw material inputs, fluctuations in domestic and international demand and supply of steel and steel products, international production and capacity, fluctuation in the volume of steel imports, transportation costs, protective trade measures and various social and political factors, in the economies in which the steel producers sell their products and are sensitive to the trends of particular industries, such as, the infrastructure, construction, automotive and machinery industries. When downturns occur in these economies or sectors, it may experience decreased demand for its products, which may lead to a decrease in steel and steel product prices, which may, in turn, have a material adverse effect on its business, results of operations, financial condition and prospects.

Reliance on external suppliers for raw materials: It is highly dependent on S.S. Rods, S.S. Sheets, S.S. Coil and S.S. Patta Patti, stainless steel and other hardware items which are the prime raw material for its products. It procures its supply of raw materials from various vendors from local market. It has not entered into any long-term supply agreement for supply of major raw materials. Currently, it has been able to secure timely supply of required raw material for its existing activity. Raw materials are easily available in the domestic market and no difficulty is envisaged in sourcing of the raw material. In case of any disruption in supply of raw materials from these suppliers or its procurement of raw materials in terms are not favorable to it; it will adversely affect its operations and financial cost. Further in case the company is unable to procure the requisite quantities of raw materials well in time and at competitive prices, the performance of it may be affected, thus adversely affecting its business, prospects, results of operations and financial condition. Moreover, it is dependent upon third parties for supply of its raw materials and any disruption in their supply could disrupt its business and adversely affect its financial results. For year ended March 31, 2025, 2024 and 2023, its top 10 suppliers contributed around 96.25%, 98.21% and 99.38% respectively of its total purchases.

Key revenue reliance on limited number of customers: Its top ten customers have contributed 91.43%, 97.87% and 98.45% of its revenues for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively based on Restated Financial Statements. However, its top customers may vary from period to period depending on the demand and thus the composition and revenue generated from these customers might change as it continues to add new customers in normal course of business. In addition, it has not entered into any long-term agreements with its customers and the success of its business is accordingly significantly dependent on maintaining good relationships with them. The loss of one or more of these customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition, and cash flows.

Outlook

Liotech Industries is mainly engaged in the business of manufacturing and trading all types of door Al drops, window hinges, Butt hinges, pin hinges and all types of door locks and all type of fastenings to doors and window. Its key differentiator is its range of product specifications in terms of thickness, length, quality, availability and customised products. It offers customization facilities to all the customers as per their requirements and specifications. Its manufacturing teams focus on the precise demand of the customer and design the products accordingly. This provides complete satisfaction to its customers and enables it to expand its business from existing customers and also address a larger base of potential new customers. On the concern side, its manufacturing unit is based in Gujarat, specifically in the district of Rajkot. Due to its processing unit is concentrated in this region, it is vulnerable to local, regional, and environmental factors including social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events. These disruptions could lead to damage or destruction of its processing capabilities, significant transport delays for its products and raw materials, loss of key personnel, and other adverse effects on its business, financial condition, and operations. 

The company is coming out with an IPO of 11,22,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 321 per equity share to mobilize Rs 36.02 crore. On performance front, its revenue from operations increased by 45.99% to Rs 4,067.78 lakh for FY 2025 from Rs 2,786.30 lakh for FY 2024. Profit after tax has increased by 42.30% from Rs 292.61 lakh for FY 2024 to Rs 416.39 lakh for FY 2025.

The company is presently serving to around 9 states and Union Territories in India of which the majority portion of the revenue comes from the state of Gujarat. Its distribution channels developed over the years have been critical to its growth. It intends to continue developing and nurturing existing markets and creating new distribution channels in under and non-penetrated geographies. It aims to further develop its domestic sales networks in those territories where there are lower transportation costs having a significant demand of its products, where it can sell at price-points that can effectively offset higher transportation costs. Going forward, it constantly endeavours to improve its productivity levels by optimum resource utilization, improvement in manufacturing process, skill upgradation of its workers, modernization of machineries to achieve better asset turnover. From the net proceeds, it intends to deploy funds for factory infrastructural development and setting up new machineries to increase the efficiency of the workforce.