The last few months have been brilliant for IPO investors. More than 16 mainstream companies have successfully raised over Rs. 100 billion through their Initial Public Offerings (IPOs) since February 2023. The month of August also follows suit, with a slew of IPOs being launched one after the other.
An infrastructure designing and construction company – Vishnu Prakash R Punglia Limited – is poised to launch its IPO for public subscription on 24 August 2023. The company plans to raise Rs. 309 crores to fund its working capital requirements and general corporate purposes. Continue reading to know in detail about this IPO and decide if you should subscribe to it or not.
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Incorporated in 1986, Vishnu Prakash R Punglia Limited is in the business of designing and constructing infrastructure projects for state and central governments, autonomous bodies, and private institutions. The company’s business operations can be classified into four broad categories – Water Supply Projects (WSP), Railway Projects, Road Projects, and Irrigation Network Projects.
As of 31 March 2023, the company’s business spans nine states and one Union Territory across India. It owns a fleet of around 484 construction equipment assets, including excavators, loaders, crushers, dozers, paver machines, cranes, tractors, concrete mixtures, and transport vehicles. As of 15 July 2023, the company's total order book stood at Rs. 3,800 crores.
The table below highlights the key financials of Vishnu Prakash R Punglia Ltd. for the last three financial years. All data as per the company’s Draft Red Herring Prospectus (DRHP):
*Amount in Crores
Here are a few takeaways from the financials of Vishnu Prakash R Punglia Ltd:
|Particulars||As of and For FY Ending March 31|
|Revenue From Operations||1168||786||486|
|Profit After Tax||91||45||19|
|Earnings Per Share (Diluted)||10||5||2|
|Net Asset Value (In Rs/share)||36||19||13|
|Return on Equity||38%||33%||18%|
|Return on Capital Employed||34%||30%||19%|
The Vishnu Prakash R Punglia IPO opens for public bidding on Thursday, 24 August 2023, and closes on Monday, 28 August 2023. As an investor, you can bid for a minimum of 150 shares (one lot) and in multiples thereof in the price band of Rs. 94 to Rs. 99 per share. The IPO comprises an entirely fresh issue of up to 3.12 crore equity shares without an offer-for-sale (OFS) component.
With the money raised, the company plans to:
50% of the offer will be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and 35% for retail investors. Refer to the table below for more details:
|IPO Date||24 Aug to 28 Aug 2023|
|Face Value||Rs. 10 per share|
|Price Band||Rs. 94 to Rs. 99 per share|
|Lot Size||150 shares|
|Total Issue Size||31,200,000 shares (aggregating up to Rs. 308.88 crores)|
|Fresh Issue||31,200,000 shares|
|Employee Discount||Rs. 9 per share|
|Issue Type||Book-built IPO|
|Listing At||NSE, BSE|
Considering the impressive valuation, strong order book, and profit-churning ability of the company, it makes sense to ‘subscribe’ to the Vishnu Prakash R Punglia Limited IPO. The current Grey Market Premium (GMP) also reflects a strong listing on the bourses.
If you want a Demat account to invest in this IPO, you can open it for free with Motilal Oswal.
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