The initial share sale of engineering, procurement and construction (EPC) company Vishnu Prakash R Punglia Limited (VPRPL) will open for public registration on Thursday, August 24 and end on August 28. .
Jodhpur-based Vishnu Prakash R Punglia has set a price of Rs 94-99 per share for an initial public offering (IPO) of Rs 309 crore. Investors can bid a minimum of 150 equity shares and then multiples of 150 equity shares.Prior to the release, the company’s shares were having a premium of Rs 54 on the unlisted market. The gray market is an informal market in which IPO shares can be bought and sold until listing.
Should investors apply or not?
Analysts mostly rate ‘Register’ for the IPO, as the company’s healthy order book and favorable industry conditions are expected to record high returns in the coming years.
At the higher price, the company is being valued at a P/E (price-to-earnings) of 13 times with a market capitalization of Rs 12,339 million after equity share issuance and return on net worth. is 38.3%.
As of July 23, VPRPL has 51 projects in progress with total work awarded amounting to Rs 6,183 crore, of which Rs 2,384 crore worth of work has been done and the rest amounted to 3,799 .53 Rs crore form the order book.
On the valuation front, Anand Rathi says the company is fairly priced. As a result, the brokerage firm has a ‘Registration – Long Term’ rating for the IPO.
About the offer
This offer includes a new issue of 3.12 crore of equity shares without offering (OFS). This offer also includes pre-booking an eligible employee’s check-in.
This issue will be priced at Rs 293.28 crore and Rs 308.88 crore at the lower and upper end of the price range, respectively.
Proceeds from the new issue will be used to purchase capital equipment, finance the company’s working capital needs, and the balance for general corporate purposes.
Approximately 50% of the offer has been given to qualified institutional buyers, 15% to non-institutional investors and the remaining 35% to retail investors.
Choice Capital Advisors Private Limited and Pantomath Capital Advisors Private Limited are the lead managers in this regard while Link Intime India is the registrar.
Equity shares are proposed to list on both BSE and NSE.
Operating revenue of Vishnu Prakash R Punglia increased to Rs 1168.40 crore in the year ended 31 March 2023, from Rs 785.61 crore in the same period a year earlier.
Founded in 1986, VPRPL is an integrated EPC company with experience in designing and building various infrastructure projects for Central and State Governments, autonomous agencies and private agencies. across 9 States and 1 Union territory in India.
The main business activities of the company are divided into 4 categories: (i) Water Supply Projects (“WSP”); (ii) Railway projects; (iii) Road Project and (iv) Irrigation Network Project.
First published: August 23, 2023 16:44 IST