Vivid Electromech IPO

About Vivid Electromech IPO

Vivid Electromech IPO opens on March 25, 2026 and closes on March 30, 2026. The allotment of shares will take place on April 1, 2026. The credit of shares to the Demat account will take place on April 2, 2026. The initiation of refunds will also take place on April 2, 2026. The listing of shares will take place on April 6, 2026.

The IPO of Vivid Electromech comprises a fresh issue aggregating up to ₹104.56 crores. The offer for sale (OFS) aggregates to ₹25.97 crores. The lot size of shares in the IPO is 1 lot (240 Shares) and the price band of shares is ₹528 to ₹555 per share. The minimum investment amount required by a retail investor is ₹2,66,400 based on the upper band price. The minimum lot for retail investors is 2 lots (480 shares).

Vivid Electromech is an electrical equipment company that is into the manufacture of low voltage (LV) and medium voltage (MV) electrical panels and automation systems. Its service offering includes cover engineering, design, fabrication, assembly, and commissioning and control of automation systems. Its products are meant for use in power distribution, load management process control and industrial automation across various sectors. Its client sectors include data centres, metro projects, construction companies, real estate developers, renewable energy (RE) companies etc.

Objectives of Vivid Electromech IPO

The company proposes to utilise the IPO fresh proceeds for:

• Funding capex needs of setting up new manufacturing unit

• Repayment of borrowings availed by the company

• Meeting working capital needs of the business

• General corporate purposes

Industry Outlook

The electrical equipment market in India is expected to touch $125 billion by 2027 while engineering research and development services are slated to touch $218 billion by 2030. Electrical equipment market is slated to grow at a CAGR of 14.3% between FY24 and FY28. The construction equipment market is also slated to grow at a CAGR of 15% till FY28, opening up huge opportunities in this space.

Electrical equipment market is seeing robust demand growth from key user sectors. Auto components have grown 9.6% in FY25 to $80 billion. Power transmission is likely to see investments of $34 billion in interstate networks. Indian machine tools market is slated to touch $3.2 billion by 2032. The other major user industries like data centres and cloud are likely to be big growth stories in India.

About Vivid Electromech

Vivid Electromech manufactures LV and MV electrical panels for user industries like data centres, construction, real estate, metro projects, renewable energy projects, industrial machinery etc. Its key panel products include Power Control Centres (PCC) panels, IMCC panels, soft starter panels, MCC panels, DG Synchronization panels, APFC Panels, Relay Panels etc. The company operates 2 manufacturing facilities based out of Pune and Navi Mumbai. Nearly 97.2% of revenues come from the domestic market with just about 2.8% coming from exports in the latest financial year.

If you look at the revenue break-up for FY25; 35.8% of revenues came from data centres, 24.9% from construction & real estate, 20.8% from solar & renewable, and 16.3% from industrial machinery. Electrical panels are also referred to as distribution boards or switchboards. It serves as a central point for managing and distributing electrical power within a facility, ensuring safe and controlled power flow. More than 80% of its revenues come from LV panels and the balance from MV panels and others.

Strengths of Vivid Electromech

1. Vivid Electromech has a dominant position in the fast-growing data centres business

2. With mega data centres coming up by players like Reliance and Google, the opportunity is big

3. The company is an authorized partner for global names like L&T and ABB

4. The company has consistently maintained a high commitment to quality and safety

5. The promoters and KMP have extensive experience in the specific line of business

6. Long term relationships with customers allow scaling up of the business

Risks of Vivid Electromech

1. The business is dependent on key inputs like CRCA sheets, aluminium, copper etc

2. All these commodities are subject to global price fluctuations and supply constraints

3. The company has dependency on a limited number of suppliers

4. Top 5 suppliers account for more than 62% of the input supplies

5. The company does not have long-term contracts and is more on an order basis

6. Nearly 52% of revenues come from top 5 customers, making the company highly dependent on a concentrated customer base

7. The current expansion plan is subject to time and cost overruns

8. Its agreement with L&T and ABB also make it dependent on a limited number of OEM partners

9. Quality requirements are stringent and any shortfall can lead to monetary and reputation loss

Anchor Investor Bidding Date

Anchor portion of the IPO – Anchor bidding will be on March 24, 2026 (carved out of QIB quota)

IPO Registrar and Book Running Lead Managers

• Registrar: MUFG Intime India Private Ltd

• Book Running Lead Managers: Hem Securities Ltd

Business Model

The business model of Vivid Electromech is based on leveraging the growing demand for electric panels in high growth sectors like data centres, technology, construction, real estate, renewable energy etc. Its model is based on a diverse product portfolio with a wide geographic reach. It has also knitted strategic partnerships with big brands like ABB and Larsen & Toubro.

Its big focus is on the high growth data centre business, and that is already the biggest source of revenue for the company. With its latest manufacturing facility likely to go on stream, the company will also have a more scalable business model.

Company Growth Trajectory

The revenue from operations of Vivid Electromech has grown sharply in the last 3 years from ₹59.33 crore to ₹155.29 crore. In this period between FY23 and FY25, the PAT has grown from ₹0.06 crore to ₹20.24 crore. EBITDA has grown from ₹1.76 crore to ₹28.39 crore.

Over the last 3 years between FY23 and FY25, the EBITDA margins have grown from 2.96% to 18.28%, while the PAT margins have also grown from 0.11% to 13.04%.

Market Position

Vivid Electromech is positioned as a preferred electrical panel and related equipment manufacturer for high growth segments. The focus is largely on the data centre and technology business, which is likely to see geometric growth. The company also has a strong footprint in the construction, real estate, industrial equipment, and renewable energy business.

The products cater to sectors that are highly demanding, fast growing, and require a scalable business model. The company has obtained an ISO 9001:2015 certification, ISO/IEC 14001:2015 certification, and ISO 45001: 2018 certification.

How to Apply for Vivid Electromech IPO?

• Log in to your Kotak Neo Demat account - Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.

• Specify IPO details - Enter the number of lots and the price you wish to apply for.

• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.

• Mandate Notification - Your UPI app will receive a mandate notification to block funds.

• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.