Popular Foundations IPO Opens For Subscription — Check Price Band, Offer Size And Other Details

The initial public offering of Popular Foundations Ltd. opened on Sept. 13. The fixed-price offering aims to raise Rs 19.87 crore through a fresh issue of 53.7 lakh shares. The IPO bidding window will close on Sept. 18.

The share allotment of the IPO is expected to be finalised by Sept. 19. The company shares are set to be listed on the BSE SME platform on Sept. 23.

The offering is a fixed-price offering with shares priced at Rs 37 apiece. Investors are required to apply for a minimum lot of 3,000 shares, totalling an investment of Rs 1.11 lakh. 

The IPO's registrar is Bigshare Services Pvt., while Srujan Alpha Capital Advisors LLP is acting as the book-running lead manager for the issue.

The market maker for the IPO is Spread X Securities.

The promoters of Popular Foundations Ltd. are Ananthanarayanan Sankaralingam Venkatesh and Vinita Venkatesh. Currently, the promoters hold 83.36% stake in the company, which will come down to 61.39% post-issue.

The IPO was subscribed 1.19 times on Friday.

• Non-Institutional Buyers: 0.90 times

• Retail Investors: 1.48 times

The grey market premium of Popular Foundations is Rs 0 as of 05:57 p.m., implying no over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 37 per share.

GMP is not an official price quote for the stock and is based on speculation. 

The net proceeds from the IPO will be directed towards several key objectives, including the prepayment or repayment of a portion of the company’s existing borrowings, funding its working capital requirements, and addressing general corporate purposes.

Popular Foundations Ltd. was founded in 1998. The company specialises in providing engineering and construction services, offering end-to-end solutions across various sectors. 

While its primary focus remains on non-residential and non-government construction in and around Chennai, the company has expanded its footprint, executing projects in cities such as Pondicherry, Tanjore, Bengaluru, Trichy, Madurai, Vizhuppuram and Coimbatore.

Popular Foundations Ltd. saw an improvement in its financial performance between the financial year ending March 31, 2024, and March 31, 2023. The company’s total income grew by 7%, reaching Rs 51.91 crore in fiscal 2024, compared to Rs 48.66 crore in fiscal 2023. Its profit after tax surged 191%, climbing from Rs 1.2 crore in fiscal 2023 to Rs 3.48 crore in fiscal 2024. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.