Vishnu Prakash R Punglia IPO to open on August 24, price band at Rs 94-99 per share | CPT PPP Coverage

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Infrastructure company Vishnu Prakash R Punglia has decided to open its initial public offering on August 24, with a price band of Rs 94-99 per equity share.

The public issue of 3.12 crore equity shares comprises only a fresh issue by the company.

The issue included a reservation of 3 lakh equity shares for its employees who will get shares at a discount of Rs 9 per share to the final offer price.

The Rajasthan-based engineering, procurement and construction company is planning to raise Rs 308.88 crore via public issue, at the upper price band.

The issue proceeds will be utilised mainly for capital expenditure requirements for the purchase of equipment/machinery amounting to Rs 62.18 crore, and working capital requirements of Rs 150 crore. The remaining amount, barring issue expenses, will be used for general corporate purposes.

The offer will close on August 28, while the anchor book will open for a day on August 23.

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Investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter. Half of the issue size is reserved for qualified institutional buyers, 15 percent for high networth individuals (HNIs) and the remaining 35 percent for retail investors.

Vishnu Prakash R Punglia with experience in the design and construction of various infrastructure projects in water supply, railway, road and irrigation network segments, has in-house teams for projects from design to completion along with a fleet of 499 construction equipment and vehicles.

It is a focused player in water supply projects (WSPs) and has executed more than 75 WSPs to date. Also, it has 38 WSPs under execution.

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With a client base in various departments of the Union and state governments, it has executed more than 85 projects to date, and has 51 ongoing projects in 9 States and 1 Union Territory, forming part of the order book.

As of July 15, 2023, it has an order book of Rs 3,799.53 crore.

The construction company has doubled its net profit for the financial year ended March FY23 to Rs 90.64 crore, from Rs 44.85 crore in the previous year. Revenue from operations during the same period increased by 48.7 percent to Rs 1,168.4 crore and during FY21-FY23, the topline grew at a CAGR of 55.10 percent, with the help of a robust order book across different business segments and geographical regions.

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The operating numbers, too, were strong with EBITDA (earnings before interest, tax, depreciation and amortisation) growing 80.2 percent YoY to Rs 156.6 crore with a margin expansion of 234 bps at 13.4 percent in FY23.

However, the debt on its books has increased considerably in the same period to Rs 250.4 crore in FY23, up from Rs 176.6 crore in FY22 and Rs 110.8 crore in FY21.

Choice Capital Advisors and Pantomath Capital Advisors are the merchant bankers to the issue, while Link Intime India is the registrar.