The grading is however moderated by the risk attached to high level of product concentration exposing it to any downturn in the investments in the oil and gas sector. We believe that the company's ability to find suitable replacement and to expand senior management bandwidth to meet future demand will be critical in sustaining business growth over the next 5 years.
About the company and the issue
Virgo Engineers Ltd (VEL) was incorporated as Virgo Engineers Private Limited in June 1987 and was changed to a public limited company in February 1995. The company primarily manufactures ball valves and has a small presence in the butterfly valves, gate valves and check valves segment. From a predominantly domestic player, VEL has gradually spread across US, Europe, Middle East and India. US accounts for nearly 40 per cent of the VEL's sales. India accounts for around 20 per cent, while Europe and Middle East accounted for 22 per cent and 15 per cent respectively.
VEL aims to raise around Rs 1.8 - Rs 1.9 billion by this proposed public issue of 2,430,000 equity shares.
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