Vigor Plast Makes Modest Debut with 5% Premium, Extending to 10% Gains

Vigour Plast India Limited, the CPVC and UPVC pipes manufacturer, made a modest debut on NSE SME on September 12, 2025. After closing its IPO bidding between September 4-9, 2025, the company commenced trading with a 4.94% premium at ₹85, later extending gains to ₹8,9, representing nearly 10% upside from the issue price of ₹81, reflecting cautious but positive investor sentiment towards the pipe manufacturing sector.

Vigor Plast Listing Details

Vigor Plast India Limited launched its IPO at ₹81 per share with a minimum investment of 3,200 shares costing ₹2,59,200. The IPO received a moderate response with a subscription of 3.88 times - NII leading at 7.03 times, QIB at 3.94 times, and individual investors at 2.49 times, indicating mixed investor confidence with stronger institutional participation than retail interest in the pipe manufacturing business.

First-Day Trading Performance Outlook

Listing Price: The Vigor Plast share price opened at ₹85 on NSE SME, representing a premium of 4.94% from the issue price of ₹81, later rising to ₹89 (nearly 10% gain), delivering modest returns for investors and demonstrating steady market reception.
Growth Drivers and Challenges

Growth Drivers:

• Strong Financial Performance: Revenue increased by 8% to ₹46.02 crore in FY25 with PAT surging 76% to ₹5.15 crore, reflecting improved operational efficiency and demand for piping solutions.
• Outstanding Profitability Metrics: Exceptional ROE of 59.39%, solid ROCE of 28.24%, healthy PAT margin of 11.30%, and strong EBITDA margin of 26.51% indicating superior operational performance and market positioning.
• Comprehensive Product Portfolio: Wide range of CPVC, UPVC plumbing pipes, SWR pipes, PVC agricultural pipes, and fittings serving diverse applications across plumbing, sewage, agriculture, and industrial sectors.
• Strong Distribution Network: Established network of 440 distributors and dealers across 25 Indian states with a modern Android-based ordering system and strategic warehouse locations in Gujarat.

Challenges:

• Profit Sustainability Concerns: A Sudden 76% jump in profits raises questions about the consistency and repeatability of such exceptional performance in the competitive pipe manufacturing market.
• High Financial Leverage: Debt-to-equity ratio of 1.39, creating moderate financial leverage concerns affecting cash flow management and expansion capabilities.
• Fragmented Market Environment: Operating in a highly competitive and fragmented pipe manufacturing segment with pricing pressures from established players like Astral Poly and Prince Pipes.
• Aggressive Valuation Metrics: Price to Book Value of 4.97 and post-IPO P/E ratio of 16.28, indicating premium pricing requiring sustained exceptional performance to justify.

Utilisation of IPO Proceeds

• Debt Reduction: ₹11.39 crore for repayment of secured borrowings, improving capital structure and reducing financial leverage burden.
• Infrastructure Expansion: ₹3.80 crore for the development and construction of a new warehouse in Ahmedabad, Gujarat, enhancing distribution capabilities.
• General Corporate Purposes: Remaining funds for general corporate purposes supporting business operations and strategic initiatives.

Financial Performance of Vigor Plast

• Revenue: ₹46.02 crore for FY25, showing steady growth of 8% from ₹42.52 crore in FY24, reflecting consistent demand for CPVC and UPVC piping solutions. 
• Net Profit: ₹5.15 crore in FY25, representing strong growth of 76% from ₹2.93 crore in FY24, indicating significant operational improvement, though raising sustainability questions. 
• Financial Metrics: Outstanding ROE of 59.39%, solid ROCE of 28.24%, high debt-to-equity ratio of 1.39, strong RoNW of 59.39%, healthy PAT margin of 11.30%, robust EBITDA margin of 26.51%, high Price to Book Value of 4.97, and market capitalisation of ₹83.85 crore.