Jodhpur-based Vishnu Prakash R Punglia Ltd has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds via an Initial Public Offering (IPO).
The public offering, which has a face value of ₹10 per equity share, is a full fresh issuance of up to 31.20 million shares without an offer for sale component. The offer also permits eligible employees to reserve a subscription.
The company is an integrated Engineering, Procurement, and Construction (EPC) firm with ISO certification that focuses on water supply projects. With ongoing projects in nine states, it has experience in the design and implementation of large infrastructure projects for the federal and state governments, autonomous authorities, and private bodies.
Through the book building process, the offer is being made, with a maximum allocation of 50% going to qualified institutional buyers, a minimum allocation of 15% going to non-institutional investors, and a minimum allocation of 35% going to retail individual investors.
The DRHP states that ₹58.64 crore of the proceeds from the fresh issue will be utilised for capital equipment purchases, ₹140 crore for meeting the company's working capital needs, and the remaining amount for general corporate purposes.
The company, which has been executing infrastructure projects for more than three decades, is led by Promoter Vishnu Prakash Punglia and has a solid operational expertise.
As per the DRHP, the company’s revenue from operations increased from ₹373.15 crore in FY 2019-20 to ₹785.61 crore in FY 2021-22 at a Compounded Annual Growth Rate (CAGR) of 45.10%.
The profit for the year increased from ₹12.66 crore in FY 2019-20 to ₹44.85 crore in FY 2021-22 at a CAGR of 88.25%.
For the nine months ended December 31, 2022, revenue from operations stood at ₹712.70 crore and profit after tax stood at ₹50.74 crore, whereas earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin stood at 13.13%.
The book running lead managers are Choice Capital Advisors Private Ltd and Pantomath Capital Advisors Private Ltd. It is proposed that the equity shares will be listed on both the BSE and NSE.
