Vishnu Prakash R Punglia Ltd is the 6th company to launch an IPO in August 2023.
When Budget 2023 was announced in February 2023, the highlights of the budget included the highest ever allocation to capital expenditure that was to the tune of Rs.10 lakh crores. This tremendous push and the long-term view of capital investments are set to see a rapid increase in infrastructure developments across the country incentivising the construction and manufacturing industry. Investors have the opportunity to be part of this growth story in the form of a new IPO from the construction sector.
Vishnu Prakash R Punglia Limited IPO will open for subscription from 24th August 2023 to 28th August 2023.
Here are all the important details of Vishnu Prakash R Punglia Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: All About Infrastructure Investment Trusts (InvITs)
IPO Details
The key details of Vishnu Prakash R Punglia Limited are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 24th August 2023 |
| IPO Closing Date | 28th August 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 94 – Rs. 99 per share |
| IPO Size | Rs. 309 crores |
| Offer for Sale | – |
| Fresh Issue | Rs. 309 crores |
- IPO Dates
The important dates for Vishnu Prakash R Punglia Limited IPO are highlighted below:
| Event | Date |
| Opening date | 24th August 2023 |
| Closing Date | 28th August 2023 |
| Allotment date | 31st August 2023 |
| Refund Date | 1st September 2023 |
| Share Credit Date | 4th September 2023 |
| Listing Date | 5th September 2023 |
- IPO Lot Sizes
Investors can subscribe to Vishnu Prakash R Punglia Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,100 – 14,850 Maximum – Rs. 1,93,050 |
| Shares | Minimum – 150 Maximum – 1950 |
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
Vishnu Prakash R Punglia Limited Objectives
This IPO is entirely a fresh issue and the proceeds for the issue will be utilised in the following manner.
- The primary purpose of this IPO is to fund the capital expenditure in the purchase of equipment/machinery.
- Following this the IPO proceeds will also be used to meet the working capital requirements of the company.
- The company intends to utilize the balance proceeds for general corporate purposes.
Top things to know about Vishnu Prakash R Punglia Limited IPO
Established in 1986, Vishnu Prakash R Punglia Limited is actively involved in designing and executing infrastructure projects for governmental, autonomous, and private entities across 9 Indian states and 1 Union territory. The company’s primary focus areas are divided into four categories
- Water Supply Projects (WSP)
- Railway Projects
- Road Projects
- Irrigation Network Projects.
VPRP has been a regular participant in various construction projects as a registered contractor with various government departments and agencies like Jodhpur Development Authority, Jodhpur (Class AA), Rajasthan, Public Health Engineering Department, Rajasthan, (Class AA), Water Resources Department, Rajasthan (Class AA), roads and Building Department, Gujarat (Class AA), South Western Command, Military Engineering Services (MES), Jaipur (Class ‘S’), Rajasthan, Public Works Department, Chhattisgarh (Class A), Public Works Department, Rajasthan (Class AA), Public Works Department, Madhya Pradesh, Bhopal (Civil works).
A significant milestone was achieved in 2021 when VPRP secured a substantial ₹4332.90 million contract from the Public Health Engineering Department in Manipur for a Water Supply Project. This achievement marked a remarkable progression from a previous WSP contract it received from PHED Rajasthan in 2002, valued at ₹19.80 million when it was a partnership firm.
Financials of the company
Vishnu Prakash R Punglia Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit after Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 825 | 1168 | 91 | Rs.10.41 | 38.31% |
| Mar-2022 | 498 | 785 | 45 | Rs.5.31 | 32.94% |
| Mar-2021 | 331 | 486 | 19 | Rs.2.25 | 18.24% |
(Source: RHP)
Strengths of the company
Some of the key strengths of Vishnu Prakash R Punglia Limited IPO that investors can take note of are
| Category | Details |
| Business model | VRPR has an in-house integrated model and is a focused player in the WSP segment of the business. They have a successful track record of their completed projects and have showcased visible growth across their business segments. |
| Other merits | VRPR has established relationships with key customers and a committed group of promoters, Board of Directors and Management. |
Risks of investment
Here are some of the risks that investors of Vishnu Prakash R Punglia Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company’s heavy emphasis on WSP exposes them to concentration risks that could negatively impact their overall operations.VRPR has a significant operational focus in Rajasthan and any adverse events in the region could detrimentally impact their business, financials, and operationsVRPR projects are susceptible to various risks including time overruns, cost increases, and uncertainties, which could harm their overall financial prospects.The company faces potential business and reputation consequences due to ongoing litigations that could negatively affect operations. |
| Other concerns | VRPR’s financial health and profitability might be unfavourably influenced if contingent liabilities become actual liabilities.They operate in a diverse industry with competition from both large and small domestic players. |
What is the Grey Market Premium (GMP) of Vishnu Prakash R Punglia Limited IPO?
As of August 24th, 2023, the grey market premium for the shares of Vishnu Prakash R Punglia Limited IPO is Rs. 65 as per market observers. This means the shares are expected to list at a premium of Rs. 65 per share over the listing cap price of Rs. 108.
Should you apply to Vishnu Prakash R Punglia Limited IPO?
Vishnu Prakash R Punglia Limited is an EPC (engineering, procurement and construction) company with a significant presence across the country. The robust order book and financial performance of the company showcase its sound business model and industry presence. However, investors need to apply for this IPO after a thorough analysis of the company fundamentals and risk analysis.
Is buying IPO always profitable?
Buying an IPO is a good investment opportunity but is not always guaranteed to be profitable as the performance of IPOs can vary widely based on market conditions, company fundamentals, and investor sentiment.
How to apply for Vishnu Prakash R Punglia Limited?
Investors can invest in this IPO through the Fisdom app.
