Vishnu Prakash R Punglia IPO subscribed 87.82x with aggressive bids from institutional investors

• Non-institutional investor and QIB portion subscribed over 100x.
• The IPO is completely a fresh issue of 31.2 million shares.
• The Jodhpur-based EPC company specializes in water supply projects.

The initial public offer of construction company Vishnu Prakash R Punglia was subscribed 87.82 times on the last day of the issue.

The issue saw aggressive bidding from institutional investors with Qualified Institutional Buyers (QIB) and non-institutional investor portions were subscribed over 100 times. Retail investors also showed good interest in the issue.

The issue was priced at ₹94-99 per equity share. The company intended to raise ₹308.88 crore, from a complete fresh issue of 31.2 million shares, without an offer-for-sale component.

The Jodhpur-based company is an integrated engineering, procurement and construction (EPC) company, which specializes in water supply projects.

Choice Capital Advisors Private and Pantomath Capital Advisors are the book running lead managers and Link Intime India is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.


Source: BSE

About the company

The company owns a fleet of about 484 construction equipment assets like crushers, excavators, loaders, dozers, paver machines, ready mix concrete plants, concrete mixtures, cranes, tractors and transportation vehicles.

Its major activities include constructing, designing, building, implementing, operating, maintaining and developing water supply projects including water treatment plants along with pumping stations and laying of pipelines for supply of water.

It also takes up other projects such as roads, bridges, tunnels, warehouses, buildings, railway buildings including platforms, stations, quarters, administrative buildings, rail-over-bridges and wastewater treatment plants. It also undertakes operations and maintenance services.

Financials & Risk factors

The company’s revenue from operations has been growing at a compounded annual growth rate (CAGR) of 55%. As on July 15, 2023, it has an order book of ₹3,799.53 crore.

Most of the company’s business is concentrated in Rajasthan, and orders in the state constitute 61.5% of its order book — which can be risky as any adverse impact in the region can impact its business and financial condition.

A significant portion of its revenues, around 83% from its top five clients, and their loss can have an adverse effect on its business. Its projects are exposed to various implementation and other risks, including risks of time and cost overruns, and uncertainties.

Its promoters, promoter group and third parties mortgaged their personal properties and provided personal and/or corporate guarantees for the company’s borrowings to secure our credit facilities. Its business can be adversely affected if these guarantees are revoked by them.

The company has taken up six material civil litigations, three criminal proceedings and one tax proceeding, while it has four criminal proceedings against it and one against its promoters and directors.