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Vishnu Prakash R Punglia made a stellar debut on the bourses today, September 5. The stock listed at ₹165 on NSE, a 66.67 percent premium to issue price of ₹99. Meanwhile, on BSE, the stock listed at ₹163.20, a premium of 64.95 percent to IPO price.
The ₹308.88-crore initial public offering (IPO) was open for subscription between August 24 and August 28 at a price band of ₹94-99. It was an entirely fresh offering of up to 3.12 crore equity shares. The net proceeds from the issue are to be utilised towards funding capital expenditure requirements for the purchase of equipment and machinery, the working capital requirements of the company and general corporate purposes.
The public offer was subscribed to a stellar 87.82 times. The portion for qualified institutional bidders was booked 171.69 times, while the non-institutional investors' category was subscribed to 111.03 times. Meanwhile, the retail investors' quota was subscribed to 32.01 times.
Incorporated in 1986, Jodhpur-based Vishnu Prakash R Punglia is an ISO 9001:2015 certified integrated engineering, procurement, and construction (EPC) enterprise. It is engaged in the business of designing and constructing infrastructure projects for the central and state governments, autonomous bodies, and private bodies across nine states and one union territory in India. The company is mainly focused on water supply projects (WSPs) which constitute 78 percent of its outstanding order book. It is also present in projects related to railways, roads, and irrigation.
The company's topline has grown consistently for the past 3 years at a CAGR of 55 percent while EBITDA witnessed an 86 percent CAGR growth over FY21-23. Its EBITDA margins also improved from 9.3 percent in FY21 to 13.4 percent in FY23.
The company's net profit has doubled for FY23 to ₹90.6 crore from ₹44.8 crore in FY22, aided by solid execution and operational efficiency.
Most brokerages recommended subscribing to the stock on the back of a healthy order book, industry tailwinds, a track record of strong growth, and attractive valuations for the investors. However, dependency on government projects and increasing competition are some key challenges for the firm.
