Vishnu Prakash R Punglia IPO Details: Opens on August 24, Price Band Rs 94-99
Vishnu Prakash R Punglia, a distinguished infrastructure firm, has unveiled its imminent initial public offering (IPO) scheduled to commence on August 24. The IPO is set within a price band of Rs 94-99 per equity share.
The IPO encompasses the issuance of 3.12 crore equity shares, solely in the form of fresh shares issued by the company. This offering also incorporates a reserved allocation of 3 lakh equity shares, reserved for the company’s employees, who will be granted these shares at a reduced rate of Rs 9 per share compared to the ultimate offer price.
Headquartered in Rajasthan, Vishnu Prakash R Punglia is a notable player in the engineering, procurement, and construction sector. The firm is focused on raising Rs 308.88 crore via this public issuance, considering the upper end of the price range.
The designated funds from this IPO will predominantly be channeled towards capital expenditure requirements for the procurement of equipment and machinery, which totals to Rs 62.18 crore. Additionally, working capital demands amounting to Rs 150 crore will be catered to. The remaining funds, excluding issue-associated expenses, will be allocated for general corporate purposes.
The IPO subscription window will conclude on August 28, whereas the anchor book will be open for a single day on August 23.
Interested investors have the opportunity to place bids for a minimum of 150 equity shares, with subsequent bids being made in multiples of 150 shares. In terms of allotment, 50% of the IPO size is designated for qualified institutional buyers, 15% for high net worth individuals (HNIs), and the remaining 35% for retail investors.
Vishnu Prakash R Punglia boasts extensive experience in designing and executing various infrastructure projects spanning water supply, railways, roads, and irrigation networks. The firm possesses in-house teams that oversee projects from their conceptualization to completion, bolstered by a fleet of 499 construction vehicles and equipment.
The company specializes in water supply projects (WSPs) and has successfully executed over 75 such projects to date. Moreover, it currently has 38 WSPs in progress.
With a client base spanning multiple departments of both Union and state governments, the company has an impressive track record of executing over 85 projects. Presently, it is engaged in 51 ongoing projects across 9 States and 1 Union Territory, all contributing to its robust order book, which as of July 15, 2023, stands at Rs 3,799.53 crore.
The fiscal year ending March FY23 witnessed a notable achievement for the construction firm as its net profit doubled to Rs 90.64 crore, up from Rs 44.85 crore the previous year. In tandem, revenue from operations during the same period soared by 48.7% to reach Rs 1,168.4 crore. Between FY21 and FY23, the company sustained a remarkable compound annual growth rate (CAGR) of 55.10% in its topline, supported by a resilient order book across diverse business domains and geographical regions.
Operational metrics were equally impressive, with the EBITDA (earnings before interest, tax, depreciation, and amortization) experiencing an 80.2% YoY growth to reach Rs 156.6 crore, accompanied by a margin expansion of 234 basis points, settling at 13.4% in FY23.
Nonetheless, it is worth noting that the company’s debt position has shown significant growth over the same period, with the debt on its books increasing to Rs 250.4 crore in FY23, as opposed to Rs 176.6 crore in FY22 and Rs 110.8 crore in FY21.
The IPO is being facilitated by Choice Capital Advisors and Pantomath Capital Advisors as the merchant bankers, while Link Intime India has taken up the role of registrar for the issuance.
About Vishnu Prakash R Punglia:
Vishnu Prakash R Punglia stands as an all-inclusive engineering, procurement, and construction (EPC) enterprise. It holds a wealth of expertise in the planning and execution of diverse infrastructure ventures, catering to both central and state government projects, as well as other independent entities.
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