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

Vishnu Prakash R Punglia, an infrastructure business, has set August 24 as the start date for its initial public offering, with a price range of Rs 94–99 per equity share.

There are no previously issued shares included in the 3.12 billion new shares being offered to the public.

Employees were offered a discount of Rs 9 per share off the final offer price thanks to a quota of 3 lakh equity shares reserved for them as part of the offering.

The engineering, procurement, and construction firm located in Rajasthan is hoping to collect Rs 308.88 crore through a public issue, targeting the high end of the pricing range.

We plan to use the money from the offering to meet our working capital needs of Rs 150 crore and our capital expenditure needs of Rs 62.18 crore, primarily for the purchase of equipment and machinery. The funds remaining after deducting issue costs will be used for the corporation's general operational objectives.

On August 23, the anchor book will be open for one day before closing on the offer the following day, on August 28.

Bids must be a minimum of 150 equity shares and subsequent bids must be in increments of 150 shares. Institutional investors will be able to purchase 50% of the issuance, high-net-worth individuals 15%, and the general public will be able to purchase 35%.

Vishnu Prakash R Punglia has in-house teams for projects from concept to completion and a fleet of 499 construction equipment and vehicles. The company's expertise lies in the planning and construction of infrastructure projects throughout the water supply, railway, road, and irrigation network segments.

It has more than seventy-five WSPs under its belt and operates with a laserlike focus on this sector. In addition, there are now 38 WSPs being implemented.

Since its inception, the company has successfully completed over 85 projects for a wide range of government agencies at the federal, state, and local levels, with another 51 projects currently underway in 9 states and 1 territory.

Its order book is worth Rs 3,799.53 crore as of 15 July, 2023.

In comparison to the previous year, the construction firm's net profit for the fiscal year ending in March FY23 was Rs 90.64 crore, up from Rs 44.85 crore. A healthy order book across a variety of business areas and geographic regions contributed to a 48.7 percent increase in revenue from operations, which totaled Rs 1,168.4 crore over the same time and a compound annual growth rate of 55.10 percent from fiscal years (FY) 21 through fiscal year (FY) 23.

EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 80.2% YoY to Rs 156.6 crore in FY23, with a margin expansion of 234 bps to 13.4%.

The company's debt, meanwhile, has ballooned within the same time period, rising from Rs 176.6 crore in FY22 to Rs 250.4 crore in FY23 and from Rs 110.8 crore in FY21 to Rs 250.4 crore in FY23.

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

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