Vivid Electromech IPO Opens March 25, Aims to Raise ₹130.5 Crore

Introduction to Vivid Electromech's Public Offering

Vivid Electromech Limited, a Maharashtra-based manufacturer of electrical panels and automation systems, is scheduled to launch its Initial Public Offering (IPO) on March 25, 2026. The company aims to raise approximately ₹130.5 crore at the upper end of the price band. The public issue will be open for subscription until March 30, 2026, with shares expected to be listed on the NSE Emerge platform. With over three decades of experience, the company serves high-growth sectors including data centres, metro projects, and renewable energy, positioning this IPO as a notable event for investors tracking the industrial manufacturing space.

IPO Structure and Offer Details

The total issue size of the IPO is 23.52 lakh equity shares. This is a combination of a fresh issue of 18.84 lakh shares, aggregating to ₹104.56 crore, and an Offer for Sale (OFS) of 4.68 lakh shares by the promoters, amounting to ₹25.97 crore. The promoters participating in the OFS are Sameer Vishvanath Attavar and Meeta Attavar. The company has set a price band of ₹528 to ₹555 per equity share. At the upper price band, the company is valued at ₹493 crore. The anchor investor bidding is set for March 24, 2026, one day prior to the public opening.

Allocation of Shares for Investors

The IPO has a structured allocation for different categories of investors. A portion of up to 6,68,880 equity shares is reserved for the QIB Anchor Portion. For Qualified Institutional Buyers (QIBs), not more than 4,46,400 shares are allocated. The Non-Institutional Investors (NII) category has an allocation of not less than 3,35,520 equity shares. For retail individual investors, a minimum of 7,82,400 equity shares are reserved. Additionally, up to 1,18,800 equity shares are set aside for the Market Maker.

IPO Timeline and Key Dates

Investors should be aware of the key dates associated with the Vivid Electromech IPO to plan their investment strategy. The process begins with the anchor book opening on March 24 and concludes with the stock's listing in early April.

Price Band, Lot Size, and Investment

The price band for the IPO is fixed at ₹528 to ₹555 per share. The lot size is 240 shares. For a retail investor, the minimum application is for one lot, which amounts to an investment of ₹133,200 at the upper price band. Some sources indicate a minimum application of two lots for retail investors, which would require an investment of ₹2,66,400. Investors should confirm the minimum application size with their broker. The face value of each equity share is ₹10.

Utilization of Net Proceeds

Vivid Electromech has outlined a clear plan for the utilization of the net proceeds from the fresh issue. A significant portion, ₹43.8 crore, will be directed towards capital expenditure for setting up a new manufacturing facility in Ambernath, Maharashtra. Another ₹36 crore is earmarked for meeting the company's working capital requirements. Furthermore, ₹9.3 crore will be used for the repayment of certain borrowings. The remaining funds will be allocated for general corporate purposes, providing financial flexibility for future growth and operational needs.

Company Profile and Operations

Founded over three decades ago, Vivid Electromech specializes in manufacturing Low-Voltage (LV) and Medium-Voltage (MV) electrical panels and providing automation systems. The company operates two manufacturing facilities in Maharashtra and has established itself as a key supplier to critical sectors. Its client base includes data centres, infrastructure projects like metros, solar and renewable energy installations, and industrial manufacturing units. The company also has OEM associations with global industry leaders such as ABB and Schneider Electric, which underscores its technical capabilities and market standing.

Financial Snapshot and Valuation

Based on the information provided, the company's Earnings Per Share (EPS) for the financial year 2025 stood at ₹28.90. The revenue for the same period was recorded at ₹155 crore. The IPO values the company at ₹493 crore at the upper price band. These metrics provide a quantitative basis for investors to evaluate the offering in the context of the company's performance and industry benchmarks.

Key IPO Officials

The IPO process is being managed by experienced financial entities. Hem Securities Limited is the Book Running Lead Manager for the issue, responsible for managing the IPO process. The registrar for the issue is MUFG Intime India Private Limited, which will handle share allotment and refund processing.

Market Outlook and Conclusion

The Vivid Electromech IPO enters the market at a time when India is witnessing significant expansion in its data centre, infrastructure, and renewable energy sectors. The company's strategic focus on these high-growth areas provides a strong foundation for its future prospects. The funds raised through the IPO are intended to enhance manufacturing capacity and strengthen the balance sheet, which could support its growth trajectory. The listing on the NSE Emerge platform on April 6, 2026, will be the next significant event for the company and its new shareholders.