Vishnu Prakash R Punglia, a company, in the field of Engineering, Procurement and Construction (EPC) that specializes in water supply projects has recently introduced its Initial Public Offering (IPO). The shares are being offered at a price range of Rs 94 99, per share. With performance and a robust order book worth Rs 3,799 crore, the company has achieved an outstanding Compound Annual Growth Rate (CAGR) of 55.1%. It is expected to be listed on both the BSE and NSE exchanges.
Marking a significant financial event, the Initial Public Offering (IPO) by Vishnu Prakash R Punglia is scheduled to commence subscription today. With the offering closing on August 28, it encompasses a fresh equity volume of up to 3.12 crore shares. Prior to this IPO launch, the company’s shares had been trading at an impressive premium of Rs 44 in the unlisted market.
Hailing from Jodhpur, Vishnu Prakash R Punglia is an integrated Engineering, Procurement, and Construction (EPC) enterprise, specializing in water supply projects. Boasting ownership of an expansive fleet comprising approximately 484 construction equipment assets, such as crushers, excavators, loaders, dozers, paver machines, ready-mix concrete plants, concrete mixtures, cranes, tractors, and transportation vehicles sourced from renowned suppliers.
The IPO comes with a price band set at Rs 94-99 per share, allowing investors to bid for a minimum of 150 shares within a single lot, with further multiples. This allocation designates 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
Currently, the company is actively engaged in 51 ongoing projects as of July 15, 2023, with awarded work totaling Rs 6,183 crore. Among this, work worth Rs 2,384 crore has been successfully executed, while the remaining Rs 3,799 crore constitutes the order book. As of March 31, 2023, their equipment fleet encompasses around 499 construction equipment and vehicles, with a collective gross block value of Rs 136 crore.
Analysts indicate that at the upper price band, the company is valued at a P/E ratio of 13x, commanding a post-issue market capitalization of Rs 1,234 crore. Impressively, it showcases a robust return on net worth of 38.3%. The company has also demonstrated remarkable growth, with its revenue from operations surging to Rs 1,168 crore in the fiscal year that culminated in March 2023, showcasing a remarkable CAGR of 55.1% over the FY21-FY23 period.
Underlining its financial prowess, the profit after tax for FY23 stands at a notable Rs 90.6 crore, and the EBITDA margin registers at 13.7% as of the same period. The company’s order book stands tall at Rs 3,799.53 crore as of July 15, 2023.
Spearheading the IPO process are Choice Capital Advisors and Pantomath Capital Advisors, acting as the book-running lead managers, while Link Intime India holds the position of the offer’s registrar. Notably, the equity shares are slated for listing on both BSE and NSE exchanges.
