CaseStudy-07

Case Study - 07

Industry
Activity
About the Company Challenges Faced by the Company
VGro Assignment
Result
Summary of the Transaction

Industry

Services (ITES)

Activity

One of the Largest System Integrator in the country and major works in State Govt and Central Govts.

About the Company

The company is headquartered in Chennai is one of the leading system Integrators and Turnkey Solution Provider delivering cutting age Technology solutions in Various E Governance, IT, ITes Education and other business verticals.

80% of the revenue are from e-Governance business Verticals. With The state of art and infrastructure, 1300+ Qualified Technical Engineers, Certified Project Manager, Architect, highly trained Filed Engineers.

Company has successfully complete EPDS project in Tamil Nadu and Uttar Pradesh and current executing with Maharashtra PDS and UP Excise project.

Company is having present order book of more than 500 Crores.

Challenges Faced by the Company

The company was banking under Consortium where Collateral Security was not shared equally. Due to which Members banks were charging additional Rate of interest.

Existing banking Cost was high.

VGro Assignment

Arrange Funds simultaneously with better terms Under MBA and Close the Consortium limit parallel from internal accrual and subsequently close all the limit of Consortium and collect No Due certificate and convert banking system under MBA.

Result

VGRO managed to onboard bank with better term under MBA. This has enabled the company to reduce BG margin as well as Rate of interest and reduction in Collateral coverage.

Summary of the Transaction

Due to completion of the transaction, company has able to complete security perfection and got relief of high interest cost burden which was charge by some of consortium banker for long.

Also save Interest cost and Margin enabling Higher ROE

Case Study

CASE STUDY 1

VGRO facilitated the procurement of ₹250 Crore in working capital limits from a leading bank for a renowned South Indian conglomerate's civil engineering firm, unlocking cash margins and ensuring seamless project execution for government contracts.

CASE STUDY 2

VGro facilitated the transition of a 50-year-old EPC company from sole to multiple banking arrangements, securing over ₹650 Crore in working capital limits and an "A" credit rating, enabling participation in high-value projects and projecting revenues of ₹1,400 Crore in FY25.

CASE STUDY 3

VGro facilitated the transformation of a 15-year-old family-run civil contracting firm, led by two brothers and partners, from low-value projects to high-value endeavors by securing project- specific working capital limits and subsequently amplifying them to ₹60 crore, catalyzing a revenue surge to ₹200+ Crore in FY24.

CASE STUDY 4

VGro facilitated the gradual reduction of limits with the existing lender, enabling the release of collaterals for new lenders, ultimately onboarding four lenders, including private and PSU banks, to secure higher limits and SBLC facilities for a 30-year- old civil contracting company.

CASE STUDY 5

VGro facilitated the onboarding of banking channels without collateral security for a 30-year leader in auto finance, securing ₹25 crore limits from a private and PSU lender. This assistance led a 40+ year-old NBFC to double its AUM from ₹48+ crore to ₹100+ crore by resolving overdue/security issues and obtaining facilities from both private and PSU bankers.

CASE STUDY 6

VGro facilitated structured finance of over 100 Crore for a startup warehouse construction company, leveraging the promoter's real estate expertise, without requiring collateral. Through strategic planning and research, VGro secured initial disbursement of ₹30 Crore, enabling progress toward the project's completion.

CASE STUDY 7

VGRO facilitated fund acquisition under MBA, enabling a leading system integrator to reduce banking costs and collateral requirements. By closing the Consortium limit and transitioning to MBA, the company achieved lower interest rates, decreased BG margins, and improved ROE, while completing security perfection and reducing interest burden.

CASE STUDY 8

VGRO facilitated funds for a leading psychiatric hospital's expansion from 67 to 180 beds, overcoming challenges of non-conventional industry and new lender reluctance. Additionally, VGRO assisted in securing margin money for the promoter individually, after a two- year pursuit for project funding.

CASE STUDY 9

VGRO facilitated reduced BG margin from 25% to 15% and collateral coverage from 50% to 35% for a civil construction company, saving nearly 5 Crores in BG margin while reducing ROI and BG commission. Despite a 15-month struggle for additional working capital, VGRO enabled smoother project execution, alleviating cash crunch concerns.