Vishnu Prakash R Punglia shares entered the listed space with a bang on Tuesday, September 5. The stock—traded on the bourses with the symbol VPRPL—debuted at Rs 165 apiece on BSE, translating to a premium of 66.7 per cent over the upper end of the price range of the initial public offer (IPO). On NSE, the stock began its journey at Rs 163.3 apiece, a premium of 64.9 per cent. 

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The listing was in line with the expectations of Zee Business Managing Editor Anil Singhvi.   

The IPO of Vishnu Prakash R Punglia, an EPC company headquartered in Jodhpur, Rajasthan, concluded last week with an overall subscription of 87.8 times the equity on offer. The public offer, which comprised fresh issuance of shares worth Rs 309 crore, saw strong participation from various types of investors. 

Category Reservation Subscription (No. of times the shares reserved)
Qualified institutional buyers (QIBs) 50% 171.7
Non-institutional investors (NIIs)/high net-worth individuals 15% 111
Retail investors 35% 32
Total 87.8

EDITOR'S TAKE 

Ahead of the launch of the IPO, Zee Business Managing Editor Anil Singhvi had recommended applying for the issue for "big listing gains", highlighting the following key points about the company:

Positive

  • Experienced promoters
  • Impressive growth record
  • Strong growth outlook with a healthy order book
  • Reasonable valuation 

Negative

  • Highly competitive business with low entry barriers
  • Focus only on Rajasthan-based irrigation projects
  • Cash flow slightly negative in the last two years

Here are some of the key details about the Vishnu Prakash R Punglia (VPRP) IPO: 

Under the IPO, which was open for subscription from August 24 to August 28, Vishnu Prakash R Punglia shares were available for bidding in a price band of Rs 94-99 apiece in multiples of 150, translating to Rs 14,100-14,850 per lot. 

During the three-day bidding process, the IPO received bids for a total of 192.6 crore equity shares against the 2.2 crore equity shares on offer, according to exchange data.   

While up to 50 per cent of the issue was reserved for qualified institutional buyers (QIBs), 15 per cent was meant for non-institutional investors, and the remaining 35 per cent for retail investors.

Vishnu Prakash R Punglia earnings 

Vishnu Prakash R Punglia registered a net profit of Rs 90.6 crore for the year ended March 31, 2023, as against a net profit of Rs 44.8 crore the previous year, according to its red herring prospectus (RHP). Its revenue stood at Rs 1,168.4 crore in the financial year 2022-23 as against Rs 785.6 crore the previous year. 

What does Vishnu Prakash R Punglia do?

Incorporated in 1986, Vishnu Prakash R Punglia operates in the business of designing and constructing infrastructure projects for central and state governments, autonomous bodies, and private bodies in different parts of the country. Its principal business operations are divided into four main categories:

  • Water supply projects 
  • Railway projects
  • Road projects
  • Irrigation network projects  

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