Vishnu Prakash IPO

Vishnu Prakash IPO

Vishnu Prakash R Pungalia Limited IPO is issuing fresh shares worth 298 to 308 crores. The company aims to utilize these funds for purchasing machinery and equipment and to meet the working capital requirements. 

Vishnu Prakash IPO  – Important Details

Vishnu Prakash IPO Date 24th August to 28th August 2023
Vishnu Prakash IPO Listing Date 5th September 2023
Vishnu Prakash IPO Price INR 94-99 per share
Vishnu Prakash IPO Lot Size 150 Shares
Vishnu Prakash IPO Total Issue Size INR 298-308 crores
Vishnu Prakash IPO Basis of Allotment 31st August 2023
Vishnu Prakash IPO Initiation of Refunds 1st September 2023
Vishnu Prakash IPO Credit of Shares to Demat 4th September 2023
Vishnu Prakash IPO Issue Type Book Built Issue IPO
Vishnu Prakash IPO Listing At BSE, NSE

Vishnu Prakash IPO  – Company Profile

The company is an ISO-certified integrated engineering, procurement, and construction company (EPC) with experience in the design and construction of various infrastructure projects of central and state government. 

The business of the company can be classified into 4 segments: 

  1. Water supply projects
  2. Railway projects
  3. Roadway projects
  4. Irrigation network projects

Vishnu Prakash R Punglia IPO Fundamental Analysis

Revenue Growth:

There’s a consistent growth in revenue, nearly tripling from ₹4,857.31 million in March 2021 to ₹11,684.04 million in March 2023.

Profitability:

Profit After Tax (PAT) has also seen a significant increase, growing from ₹190.95 million to ₹913.17 million over the same period.

Return on Net Worth (RoNW):

The RoNW has improved from 18.24% to 38.31%, indicating better efficiency in generating profits from equity.

Earnings Per Share (EPS):

The diluted EPS has increased from ₹2.25 to ₹10.41, which is a positive indicator of the company’s earning potential on a per-share basis.

Net Asset Value (NAV) per Equity Share:

The NAV per equity share has also seen a substantial increase, indicating a growth in the company’s intrinsic value.

Asset and Liability Management:

Total assets have increased significantly, while liabilities have also grown but not at an alarming rate, indicating good asset and liability management.

Summary:

The financials of Vishnu Prakash R Punglia Limited depict a strong growth trajectory and improved profitability, which are positive indicators for potential investors. However, investing in an IPO involves risks and should be based on a comprehensive analysis of the company’s financials, the industry it operates in, and the broader economic environment. It’s advisable to consult with a financial advisor to understand the risks and rewards better before making an investment decision in the IPO.

Vishnu Prakash R Punglia IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in Million) 4,857.31 7,856.13 11,684.04
Equity (₹ in Million) 1,136.14 1,586.90 3,145.07
Expenses (₹ in Million) 4,619.95 7,270.06 10,490.25
Profit and Loss After Tax (₹ in Million) 190.95 450.76 913.17
RoNW (%) 18.24% 32.94% 38.31%
Diluted EPS only (₹) 2.25 5.31 10.41
NAV per Equity Share (₹) 13.45 18.79 36.11
Total Assets (in millions) 3,310.45 4,978.12 8,254.83
Total Liabilities (in millions) 2,174.31 3,391.22 5,109.76

Vishnu Prakash IPO Peer Comparison

Vishnu Prakash R Punglia Limited has a lower total income than its peers but boasts a high RoNW of 38.31%. Despite lower EPS, its NAV per share is competitive. The company’s financials suggest a strong equity efficiency but a lesser income generation capacity.

Company Total Income (₹ in millions) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) EPS (Diluted) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
Vishnu Prakash R Punglia Limited 11,714.64 10.00 NA 10.41 10.41 38.31% 36.11
PNC Infratech Ltd 80,367.12 2.00 13.48 25.67 25.67 16.64% 167.03
H.G. Infra Engineering Ltd 46,402.38 10.00 12.56 75.68 75.68 29.38% 294.90
NCC Limited 157,010.00 2.00 16.24 9.77 9.77 10.98% 98.22
Rail Vikas Nigam Ltd 212,780.40 10.00 18.22 6.81 6.81 20.70% 35.13
ITD Cementation India Ltd 51,195.33 1.00 25.62 7.23 7.23 10.53% 72.04

Vishnu Prakash IPO Objective

The Vishnu Prakash IPO aims to fund capital expenditure by investing INR 62 crores in new equipment and technology, allocate INR 150 crores for working capital needs for FY ending March 2024, and utilize remaining funds for general corporate purposes, including business expansion.

  • Funding capital expenditure: To fuel our growth and expand operations, the company intends to invest in the latest equipment and technology. To increase its equipment fleet, the company intends to purchase the latest equipment and machinery. The company proposes to utilize INR 62 crores for this.
  • Funding the working capital requirement: The Company proposes to utilize INR 150.00 crores from the Net Proceeds towards funding its working capital requirements in the Financial Year ending March 31, 2024.
  • General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business, such as strategic initiatives including the advancement of information technology, meeting future branch and business expansion, etc.

Vishnu Prakash R Punglia IPO Risks And Challenges

Vishnu Prakash IPO faces risks from pending litigations with a cumulative sum of INR 107 crores, geographical concentration in Rajasthan accounting for 61.54% of ongoing projects, and negative operating cash flow reported over the last two years, posing financial and operational challenges.

  • Pending litigations: There are material criminal proceedings filed by the company and its directors. If the cases materialize not in the company’s favor, it will have a significant impact on the company as the cumulative sum involved is around INR 107 crores.
  • Dependency Risk: Despite having a diversified geographical presence, the company’s business is concentrated in Rajasthan. As of 15th July 2023, ongoing projects worth INR 2338 crores, representing 61.54% of the pending order book value, is from the state of Rajasthan. 
  • Negative operating cash flow: The company reported a negative operating cash flow in the last 2 years.

Vishnu Prakash R Punglia IPO –  Industry & Market Potential

Despite the global growth uncertainties, the Indian economy is relatively better placed. The major headwinds to economic growth are escalating geopolitical tensions, volatility in global commodity prices, and shortages of key inputs. However, the bright spots for the economy are continued healthy demand, support from Government capital expenditure, and improving business confidence.

The infrastructure sector is a key driver of the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. The infrastructure includes power, bridges, dams, roads, and urban infrastructure.

To become a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour. The Government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India’ and the production-linked incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80% of the country’s infrastructure spending has gone towards funding for transportation, electricity and water & irrigation.

Vishnu Prakash R Punglia IPO – Type of Offer

Vishnu Prakash R Punglia’s IPO consists of a fresh issue worth INR 298 to 308 crores. The main agenda for the issue is the purchase of equipment, machinery, and working capital requirements. 

Vishnu Prakash R Punglia Limited IPO Offer Size

Vishnu Prakash R Punglia’s IPO consists of a fresh issue worth INR 298 to 308 crores. The price band for the issue is INR 94-99 per share.

Vishnu Prakash IPO Allotment Structure

The Vishnu Prakash IPO allotment is structured with 50% shares for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 35% for Retail Individual Investors, as per SEBI regulations. A portion is also reserved for eligible employees.

  •  Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. 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. A portion of IPO is also reserved for eligible employees.

How to apply for a Vishnu Prakash  IPO through Alice Blue?

To apply for the Vishnu Prakash  IPO through Alice Blue, you would typically 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.

  1. Check for IPO Details: Once your account is active, you can check for the Vishnu Prakash  IPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Vishnu Prakash IPO at Alice Blue</