Last day to apply for Vishnu Prakash R Punglia IPO; what should you do?

Vishnu Prakash R Punglia's initial public offer, worth an estimated Rs 309 crore, closes later in the day. Should you subscribe to it? Read on to find out.

Vishnu Prakash R Punglia is an EPC company. | Image: vprp.co.in

Vishnu Prakash R Punglia, a Jodhpur-based engineering, procurement and construction (EPC) company, launched an initial public offer (IPO) on Thursday, August 24. The IPO comprises fresh issuance of shares worth up to Rs 309 crore.

The IPO will close for subscription at 5 pm on Monday.

Here are some of the key things to know about the Vishnu Prakash R Punglia IPO:

Subscription status: By 12:20 pm on Monday, the final day of the bidding process, the Vishnu Prakash R Punglia IPO received bids for 52.1 crore shares against the 2.2 crore shares on offer, translating to an overall subscription of 23.8 times, according to provisional exchange data.

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Here's how various categories of investors responded to the issue so far:

Category	Reservation	Subscription (No. of times the equity reserved)
Qualified institutional buyers (QIB)	50%	6.3
Non-institutional investors (NII) or high net-worth investors	15%	52.2
Retail investors	35%	21.9
Overall		23.8

Important dates: The basis of the allotment of shares is likely to take place on August 31. Winning bidders are likely to get the shares credited to their accounts on September 4.

Vishnu Prakash R Punglia shares will be listed, on stock exchanges BSE and NSE, tentatively on September 5.

Issue price: Under the IPO, Vishnu Prakash R Punglia shares will be 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.

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

Financials: The company 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, according to the RHP.

Should you subscribe to the Vishnu Prakash R Punglia IPO?

Zee Business Managing Editor Anil Singhvi recommends applying for the issue for "big listing gains". Here is a list of key points about the company highlighted by him:

Positives:

Experienced promoters
Impressive growth record
Strong growth outlook with a healthy order book
Reasonable valuation leaves scope for good listing gains

Negatives:

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

What does Vishnu Prakash R Punglia do?

Incorporated in 1986, Vishnu Prakash R Punglia is in the business of designing and constructing infrastructure projects for the central and state governments, autonomous bodies, and private bodies in several parts of the country.

Its principal business operations are divided into four main categories: