Popular Foundations Limited is coming up with an IPO consisting of a fresh issue of 53,70,000 shares worth INR 19.87 crores. The company aims to repay borrowings, fund working capital, and support general corporate purposes.
Popular Foundations IPO – Important Dates
| Popular Foundations Limited IPO Date | September 13, 2024 to September 19, 2024 |
| Popular Foundations Limited IPO Listing Date | September 24, 2024 |
| Popular Foundations Limited IPO Price | INR 37 per share |
| Popular Foundations Limited IPO Lot Size | 3000 Shares |
| Popular Foundations Limited IPO Total Issue Size | INR 19.87 crores |
| Popular Foundations Limited IPO Basis of Allotment | September 19, 2024 |
| Popular Foundations Limited IPO Initiation of Refunds | September 20, 2024 |
| Popular Foundations Limited IPO Credit of Shares to Demat | September 20, 2024 |
| Popular Foundations Limited IPO Issue Type | Fixed Price Issue IPO |
| Popular Foundations Limited IPO Listing At | BSE SME |
Read more Popular Foundations Limited IPO GMP
Popular Foundations Limited IPO – Company Profile
Popular Foundations Limited, with over 25 years of experience, specializes in civil construction, focusing on non-residential and non-governmental projects. It provides end-to-end solutions for factories, educational institutions, and commercial projects in and around Chennai.
With expertise in engineering, architecture, and fit-outs, the company has completed projects across Tamil Nadu and beyond. Its strong reputation stems from customer loyalty, goodwill, and a commitment to delivering high-quality construction solutions.
The company leverages its experience and brand image by relying on tenders to secure projects. The company excels in the institutional and hospitality sectors, consistently earning repeat orders, reflecting its client retention and project acquisition strength.
Popular Foundations Ltd IPO Fundamental Analysis
Popular Foundations Limited’s financial analysis reveals a mixed performance. Revenue increased over the years while profitability, equity, and assets improved. Reduced debt reliance, higher EPS, and RoNW indicate solid financial growth and liquidity.
- Revenue Trend: The revenue decreased from ₹2,589.40 lakhs in March 2022 to ₹4,709.55 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 5,181.90 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹48.08 lakhs in March 2022 to ₹347.76 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.38 in March 2022 to ₹2.41 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 3.47% to 15.03%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Popular Foundations IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 2,589.40 | 4,709.55 | 5,181.90 |
| Equity (₹ in lakhs) | 1,384.08 | 1,483.69 | 2,313.11 |
| Expenses (₹ in lakhs) | 2,591.94 | 4,731.49 | 4,653.42 |
| Profit and Loss After Tax (₹ in lakhs) | 48.08 | 119.61 | 347.76 |
| Diluted EPS only (₹) | 0.38 | 0.96 | 2.41 |
| Return on Net Worth (%) | 3.47 | 8.06 | 15.03 |
| NAV per Equity Share (₹) | 11.07 | 11.87 | 16.06 |
| Total Assets (in lakhs) | 4,929.49 | 4,864.70 | 6,354.87 |
| Total Liabilities (in lakhs) | 3,545.41 | 3,381.01 | 4,041.76 |
| Debt Equity Ratio | 1.33 | 1.18 | 0.68 |
| Current Ratio (in times) | 1.72 | 1.71 | 1.76 |
Popular Foundations Limited IPO Peer Comparison
Popular Foundations Limited demonstrates vital financial metrics with a higher return on net worth and earnings per share than NCC Limited and Hindustan Construction Company Limited, which exhibit larger scale but lower profitability and returns.
| Company | Type of Financial | Total income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per share (₹ in lakhs) | Book value per share (₹ in lakhs) |
| Popular Foundations Limited | Standalone | 5,191.00 | 10 | 15.35 | 2.41 | 15.03 | 16.06 | 16.06 |
| NCC Limited | Standalone | 18,31,441 | – | 31.90 | 10.06 | 9.62 | 108.51 | 108.51 |
| Hindustan Construction Company Limited | Standalone | 5,04,300.00 | – | 40.19 | 1.06 | 19.39 | 6.09 | 6.09 |
Popular Foundations Ltd IPO Objective
The main objective of Popular Foundations Limited is to prepay or repay outstanding borrowings and fund its working capital requirements.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company: The company intends to utilize INR 4.94 crores from the Net Proceeds for prepayment or scheduled repayment of borrowings, aiming to reduce debt, improve its debt-equity ratio, and support future business growth and expansion.
- Funding the company’s working capital requirements: The company plans to utilize INR 11.86 crores from the Net Proceeds to fund its working capital requirements in Fiscal 2025, supporting future growth. It typically funds working capital through internal accruals and financing facilities.
- General Corporate Purposes: In line with the board’s policies, the company will deploy the balance, INR 1.08 crores, to general corporate goals, including operating expenses, initial project development, business development, marketing, and addressing unforeseen exigencies.
Popular Foundations IPO Risks And Challenges
Popular Foundations Limited’s risk includes regulatory changes, machinery breakdowns, and material supply fluctuations. To address these, the company ensures compliance, implements preventive maintenance, diversifies suppliers, and updates procurement strategies to manage potential impacts.
- The company complies with health, safety, and employment regulations, but changes in laws could increase costs and delay projects. Proactive measures include stringent compliance, regular assessments, and capital allocation for sustainable practices and remediation efforts.
- The company blends owned and leased machinery for efficiency but depends on third parties for specialized equipment maintenance. It implements preventive maintenance, diversifies suppliers, invests in insurance, and conducts regular risk assessments to mitigate risks.
- The company sources materials locally and conducts quality checks, but it faces risks from third-party suppliers and material price fluctuations. It will explore alternative suppliers, assess market capacities, and update procurement strategies to mitigate these risks.
Popular Foundations Ltd IPO – Industry & Market Potential
India’s real estate market is projected to grow significantly, reaching $5.8 trillion by 2047. Key trends include rising demand for office spaces, data centers, and commercial investments, with increased foreign and domestic investment shaping the sector’s future.
Prefabrication involves off-site assembly of building components, which are then affixed to the structure. The global modular construction market, valued at $91 billion in 2022, is expected to grow to $120.4 billion by 2027.
India’s real estate market is projected to grow at a 9.2% CAGR from 2023 to 2028. Key drivers include urbanization, rising rental demand, and steady property price appreciation, particularly in major cities.
Popular Foundations Limited IPO – Type of Offer
Popular Foundations Limited is coming up with an IPO consisting of a fresh issue of 53,70,000 shares worth INR 19.87 crores. The company aims to repay borrowings, fund working capital, and support general corporate purposes.
Popular Foundations IPO Offer Size
The offer size of Popular Foundations Limited is INR 19.87 crores, consisting of a fresh issue of 53,70,000 shares. The company seeks funds to repay borrowings, fund working capital, and support general corporate purposes.
Popular Foundations Limited IPO Allotment Structure
Popular Foundations Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 270,000 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 270,000 shares for this purpose.
How to apply for the Popular Foundations IPO?
To apply for the Popular Foundations Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Popular Foundations Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Popular Foundations Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Popular Foundations IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Popular Foundations Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Popular Foundations Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Popular Foundations Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Popular Foundations Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Popular Foundations Ltd IPO Offer Registrar
The registrar for the Popular Foundations Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor,
Pinnacle Business Park, Next to Ahura Center,
Mahakali Caves Road, Andheri East,
Mumbai – 400 093
Tel No: +91-22-62638200
Email: [email protected]
Website: www.bigshareonline.com
Popular Foundations IPO – FAQs
The allotment date of the Popular Foundations Limited IPO is September 19, 2024.
The price band of the issue is INR 37 per share.
The offer size of Popular Foundations Limited is INR 19.87 crores, consisting of a fresh issue of 53,70,000 shares. The company seeks funds to repay borrowings, fund working capital, and support general corporate purposes.
The listing date of Popular Foundations Limited’s IPO is September 23, 2024.
