Vishnu Prakash R Punglia IPO Subscribed 10.63 Times On Day Two
The IPO has been subscribed to 10.63 times as of 5 p.m. on Friday.
Vishnu Prakash R Punglia Ltd. is holding its initial public offering between Aug. 24 and 28. The IPO was subscribed 3.77 times on day one.
Vishnu Prakash R Punglia is an integrated engineering, procurement, and construction firm with experience in the design and construction of various infrastructure projects for the Union and state governments.
Issue Details
Issue price: Rs 94–99 apiece.
Issue opening: Aug. 24.
Face Value: Rs 10 per share
Offer for Sale: Nil
Business
The company has design and engineering, procurement, project management, and quality management teams, along with a fleet of 499 construction equipment and vehicles.
It has in-house teams to deliver projects from design to completion. This reduces their dependency on third parties for key materials, such as ready-mix concrete, stone aggregates, and bitumen, and services like design and engineering, transportation, and logistics required in the development and construction of projects.
The scope of their services includes detailed engineering of the project, procurement of key materials, and project execution at the sites, with overall project management up to the commissioning of these projects.
Use Of Proceeds
Funding capital expenditure: Rs 62.2 crore.
Funding the working capital: Rs 150 crore.
Risk Factors
The business is concentrated in Rajasthan. As of July 15, the ongoing projects in the state constitute Rs 2,338 crore, or 61.54%, of the pending order book.
Any adverse impact in this region may adversely affect the business, results of operations, and financial condition.
A significant portion of the projects executed are in the water supply segment. Focusing on water supply projects may expose it to risks associated with business concentration.
A significant portion of the revenue is concentrated on a limited number of clients. The loss of any of the significant clients may have an adverse effect on the business.
Subscription Status: Day 2
The IPO has been subscribed to 10.63 times as of 5 p.m. on Friday.
Institutional investors: 0.35 times or 35%.
Non-institutional investors: 19.39 times.
Retail individual investors: 12.88 times.
Employee reserved: 5.69 times.
