Pratham EPC Projects Limited’s IPO consists of a fresh issue of 48,00,000 shares aggregating to INR 36.00 crores. The company plans to utilize net proceeds to purchase new machinery and meet the working cycle requirement.
Pratham EPC Projects Ltd IPO – Important Details
| Pratham EPC IPO Date | March 11, 2024 to March 13, 2024 |
| Pratham EPC IPO Listing Date | March 18, 2024 |
| Pratham EPC IPO Price | INR 71 to 75 per share |
| Pratham EPC IPO Lot Size | 1600 Shares |
| Pratham EPC IPO Total Issue Size | INR 36.00 crores |
| Pratham EPC IPO Basis of Allotment | March 14, 2024 |
| Pratham EPC IPO Initiation of Refunds | March 12, 2024 |
| Pratham EPC IPO Credit of Shares to Demat | March 15, 2024 |
| Pratham EPC IPO Issue Type | Book Built Issue IPO |
| Pratham EPC IPO Listing At | NSE SME |
Pratham EPC IPO – Company Profile
Based in Ahmedabad, Pratham EPC Projects Limited is an integrated engineering, procurement, construction, and commissioning company in the business of end-to-end service providers to Oil & Gas distribution companies in India. Founded by visionary Promoters Mr. Pratikkumar Maganlal Vekariya and Mr. Nayankumar Manubhai Pansuriya, have a combined experience of over 30 years in the engineering industry.
The company has an Oil & Gas pipeline infrastructure service provider in India, focused on laying pipeline networks along with the construction of associated facilities and providing Operations & Maintenance services to the City Gas Distribution (“CGD”) Companies in India. The company has an integrated EPC company offering a diversified range of pipeline and allied services for the oil & gas industry.
The company derives revenue from the following two business verticals:
a) Gas & Oil Pipeline Projects
b) Water Pipeline Projects
Pratham EPC Projects Limited IPO – Fundamental Analysis
Pratham EPC Projects Ltd’s IPO financials depict steady revenue, significant profit growth, and strong equity increases, highlighting its potential as a robust investment in the EPC sector, despite increased leverage, showcasing operational efficiency and market resilience.
Revenue Stability:
The company’s revenue has shown a slight decrease in FY2023 compared to FY2022, but overall, it demonstrates growth from FY2021, indicating resilience and stable market demand for its services.
Equity Growth:
Equity has seen a significant increase, more than tripling from FY2021 to FY2023, reflecting strong investor confidence and possibly successful reinvestment strategies to support further growth.
Profitability:
Profit after tax has shown remarkable growth, indicating the company’s increasing operational efficiency and profitability. The jump to ₹1,017.04 lakhs in FY2023 underscores its growing financial health.
Return on Net Worth (RoNW):
The RoNW remains impressively high at 42.50% in FY2023, slightly down from FY2022, demonstrating the company’s efficient profit generation from shareholders’ equity.
Diluted EPS:
The Diluted EPS has significantly increased, highlighting the company’s growing earnings power per share, which is beneficial for investors.
Asset and Liability Management:
Total assets have more than doubled, indicating business expansion and investment in operational capacity. The increase in liabilities suggests leveraging but is proportionate to the asset growth.
Debt to Equity Ratio:
The debt to equity ratio has increased in FY2023 to 0.79, indicating higher leverage which could pose increased financial risk but also reflects investment in growth.
Inventory Turnover Ratio:
A drastic improvement in inventory turnover indicates more efficient management and faster conversion into revenue, which is critical for operational efficiency.
Net Profit Ratio:
The net profit ratio’s increase to 15.22% in FY2023 highlights the company’s growing profitability relative to its size, which is a positive sign for potential investors.
Current Ratio:
The current ratio shows a stable liquidity position, ensuring the company can cover its short-term obligations.
Pratham EPC Projects Ltd IPO Financial Information
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in lakhs) | 3,058.23 | 5,046.84 | 5,020.35 |
| Equity (₹ in lakhs) | 592.41 | 1,033.73 | 1,797.86 |
| Expenses (₹ in lakhs) | 2,933.50 | 4,473.33 | 4,150.25 |
| Profit and Loss After Tax (₹ in lakhs) | 151.53 | 589.33 | 1,017.04 |
| RoNW (%) | 19.05% | 42.69% | 42.50% |
| Diluted EPS only (₹) | 0.87 | 3.41 | 5.90 |
| NAV per Equity Share (₹) | 4.57 | 7.98 | 13.87 |
| Total Assets (in lakhs) | 2,041.93 | 2,850.17 | 4,849.75 |
| Total Liabilities (in lakhs) | 1,449.52 | 1,816.44 | 3,051.89 |
| Debt to Equity Ratio (in times) | 0.34 | 0.24 | 0.79 |
| Inventory Turnover Ratio (in days) | 98.89 | 40.96 | 10.51 |
| Net Profit Ratio (in %) | 3.69 | 8.74 | 15.22 |
| Current Ratio (in times) | 1.10 | 1.28 | 1.21 |
Pratham EPC Projects Limited IPO Peer Comparison
Pratham EPC Projects Limited, with revenue of ₹5,020.35 lakhs and a RoNW of 42.50%, demonstrates exceptional profitability and operational efficiency compared to Likhitha Infrastructure, which shows higher revenue but lower RoNW and EPS, highlighting Pratham’s strong financial health and growth potential.
| Company | Total Revenue (₹ in lakhs) | P/E Ratio (Times) | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Pratham EPC Projects Limited | 5,020.35 | NA | 5.90 | 42.50% | 13.87 |
| Likhitha Infrastructure Limited | 35,076.61 | 15.47 | 15.22 | 24.01% | 63.39 |
Pratham EPC Projects IPO Objective
The main objectives of Pratham EPC’s IPO is to purchase advanced machinery (INR 8.83 crores) to enhance infrastructural development capabilities and to meet capital-intensive working capital needs (INR 15.15 crores).
- To purchase machinery: The company tends to invest in the latest equipment and technology, wherever necessary. To increase the equipment fleet, the company intends to purchase the latest machinery from reputed manufacturers and continue with the strategy of placing minimum reliance on hired or leased machinery. Accordingly, the company proposes to utilize INR 8.83 crores towards the purchase of XZ3600 to strengthen its core Infrastructural Development capabilities.
- To meet working capital requirements: The business of the company is capital intensive, and to meet the working capital requirement, the company plans to utilize INR 15.15 crores from the raised funds.
Pratham EPC IPO Risks And Challenges
The company’s risk includes outstanding legal proceedings that could adversely affect business and financial conditions. Failure to meet client standards may lead to loss of business or compensation. Dependency on a few large customers poses revenue and profitability risks.
- There are outstanding legal proceedings involving the company. Any adverse decision in such proceedings may have a material adverse effect on the business, results of operations, and financial condition.
- The failure to perform in accordance with the standards prescribed in the client’s work order could result in loss of business or compensation payment.
- The Company is dependent on a few customers for sales. The loss of any of these large customers may affect revenues and profitability.
Pratham EPC Projects Limited IPO – Industry & Market Potential
As of April 2022, India’s oil refining capacity stood at 251.21 million metric tonnes per annum (MMTPA), making it the second-largest refiner in Asia and the fourth-largest in the world. Private companies owned about 35% of the total refining capacity. India is planning to double its refining capacity to 450-500 million tonnes by 2030.
India aims to commercialize 50% of its SPR (strategic petroleum reserves) to raise funds and build additional storage tanks to offset high oil prices. In September 2021, the Indian government approved oil and gas projects worth Rs. 1 lakh crore (US$ 13.46 billion) in Northeast India.
These projects are expected to be completed by 2025. In February 2021, Prime Minister Mr. Narendra Modi announced that the Government of India plans to invest Rs. 7.5 trillion (US$ 102.49 billion) on oil and gas infrastructure in the next five years.
Pratham EPC Projects Ltd IPO – Type of Offer
Pratham EPC Projects Limited’s IPO consists of a fresh issue of 48,00,000 shares aggregating to INR 36.00 crores. The company plans to utilize net proceeds to purchase new machinery and meet the working cycle requirement.
Pratham EPC IPO Offer Size
The offer size of Pratham EPC Limited’s IPO is INR 36.00 crores. The company plans to utilize net proceeds to purchase new machinery and meet the working cycle requirement.
Pratham EPC Projects Limited IPO Allotment Structure
Pratham EPC’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the issue is reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers, 15% for Non-Insitutional Buyers, and 35% for Retail Individuals. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Marker Reservations: A portion of the issue up to 5% of the issue, i.e., 2,40,000 shares, are reserved for the market makers.
How to apply for a Pratham EPC Projects Ltd IPO?
To apply for the Pratham EPC IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Pratham EPC 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 Pratham EPC 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 Pratham EPC 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 their 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 Pratham EPC 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 Pratham EPC 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, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Pratham EPC IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Pratham EPC 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.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. 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.
Pratham EPC Ltd IPO Offer Registrar
The registrar for the Pratham EPC Limited IPO is Link Intime India Private Limited They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg,
Vikhroli (West), Mumbai, Maharashtra, India – 400 083.
Tel. Number: +91 22 4918 6200
Email Id: [email protected]
Website: www.linkintime.co.in
Pratham EPC Limited IPO – FAQs
1. What is the allotment date of the Pratham EPC IPO?
The allotment date of the Pratham EPC IPO is March 14, 2024.
2. What is the price band of the Pratham EPC IPO?
The price band of the issue is INR 71-75 per share.
3. What is the size of the Pratham EPC IPO?
Pratham EPC Projects Limited’s IPO consists of a fresh issue of 48,00,000 shares aggregating to INR 36.00 crores. The company plans to utilize net proceeds to purchase new machinery and meet the working cycle requirement.
4. What is the listing date of the Pratham EPC IPO?
The listing date of Pratham EPC IPO is Mach 18, 2024.
