IPO listed on 5 Sep'23
Vishnu Prakash R Punglia Ltd
Minimum Investment
₹ 14,850 / 150 shares
Grey market premium
₹ 54 (55% premium)
Issue price
₹ 99
Listing price
₹ 165
% since launch
Listing on
September 5, 2023
Our Verdict:
Subscribe
- The company exhibits a strong growth trajectory in terms of both its revenues and earnings, complemented by impressive return ratios and decent margins.
- From a valuation standpoint too, the IPO seems fairly priced. The P/E multiple works out to 13.6x on post-issue capital, which is lower than its peers. Additionally, the grey market premium (GMP) for the issue indicates a premium listing, making it appealing for investors seeking listing gains.
- Given the company's sturdy order book, efficient operational capabilities, sound financial health and strong industry tailwinds, it would be prudent for investors to subscribe to this IPO for the long term.
About the company
Founded in
14 Aug'86
Managing director
Manohar Lal Punglia
- Vishnu Prakash R Punglia Ltd (VPRPL) is an ISO 9001:2015 certified EPC (engineering, procurement and construction) entity, skilled in designing and building diverse infrastructure undertakings for Central and State Government, independent organizations, and private entities spanning 9 Indian States and 1 Union Territory.
- The company operates through the following segments: (i) Water Supply Projects; (ii) Railway Projects; (iii) Road Projects and (iv) Irrigation Network Projects.
STRENGTHS
- Robust Financial Performance: Between FY21-23, VPRPL exhibited a commendable growth with a CAGR of 55% in Revenue, 86% in EBITDA, and 119% in PAT.
- Strong Order Book: As of July 15, the company boasts an order backlog of Rs 3,799.53 crore. This is approximately 3.2 times its FY23 turnover, providing strong revenue visibility.
- Excellent Return Ratios: For FY23, the company posted an impressive Return on Equity at 38.3% and a Return on Capital Employed of 33.7%.
RISK FACTORS
- Regional Instability: Nearly 10% of VPRPL’s order backlog originates from the state of Manipur, which is currently experiencing ethnic disputes and unrest. This could potentially result in project postponements and challenges in invoice settlements, consequently affecting the company's operational efficiency.
- Cash flow Concerns: The company has reported negative cash flow from operations in FY22 and FY23. Prolonged negative cash flows could significantly hinder its operational capabilities and the execution of growth strategies.
Issue details
Issue type
Mainstream
Issue size
₹ 308.88 crore
Fresh Issue
₹ 308.88 crore
OFS
₹ -
Price range
₹ 94 - 99
Lot size
150 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Funding capex requirements for purchase of equipment/machinery;
- Funding the working capital requirements of the company; and
- General corporate purposes.
Dates
Bidding open
24 Aug'23
Bidding close
28 Aug'23
Allotment date
31 Aug'23
Refund date
1 Sep'23
Listing
5 Sep'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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