Vishnu Prakash R Punglia Limited (VPRP) is coming out with an IPO of Rs. 308.88 crores in the price band of Rs. 94 to Rs. 99 per equity share.
The IPO opened on 24th August 2023 for subscription. You can bid in the IPO till 28th August 2023.
Pantomath Capital Advisors and Choice Capital Advisors are the Investment Bankers handling the IPO and Link Intime India Pvt Limited is the Registrar to the IPO.
In the article, you will find all the relevant details that will help you make informed investment decisions in Vishnu Prakash R Punglia Limited IPO.
Vishnu Prakash R Punglia Limited IPO Details
| Particulars | Details |
| IPO Opening date | 24th August 2023 |
| IPO Closing date | 28th August 2023 |
| IPO Price | Rs. 94 to Rs. 99 |
| Lot size | 150 shares |
| Issue size | Rs. 308.88 Cr |
| No. of fresh shares | 31,200,000 shares aggregating to Rs. xx crores |
| Offer for Sale | NA |
| Listing on | BSE and NSE |
You can check the Other upcoming IPOs in 2023.
Vishnu Prakash R Punglia Limited IPO Timetable
| Particulars | Details |
| IPO Opening date | 24th August 2023 |
| IPO Closing date | 28th August 2023 |
| Basis of Allotment date | 31st August 2023 |
| Credit of Share | 04th September 2023 |
| Listing date | 5th September 2023 |
Vishnu Prakash R Punglia Limited GMP
In the past 4-5 days GMP data collected from various sources like reputed financial websites, news channels, stockbrokers, and IPO blogs is under.
Before that, you need to remember that – Grey Market Price (GMP) provides you with a reasonable indication of price upon listing. You should take precautions because GMP is not an official price and only an indicative value.
| Date | GMP |
| 24th August 2023 | Rs. 54 |
| 23rd August 2023 | Rs. 54 |
| 22nd August 2023 | Rs. 44 |
| 21st August 2023 | Rs. 44 |
| 20th August 2023 | Rs. 40 |
| 19th August 2023 | Rs. 42 |
Vishnu Prakash R Punglia Limited Issue Size
Total Issue Size = Rs. 308.88 crores approx.
All the shares are issued as Fresh Shares for an aggregate amount of Rs. 308.88 Crs. There is no OFS in the IPO.
Vishnu Prakash R Punglia Limited Overview
VPRP is an ISO 9001:2015 certified integrated engineering, procurement and construction (“EPC”) company.
It has experience in the design and construction of various infrastructure projects for the Central and State Governments, autonomous bodies, and private bodies across 9 States and 1 Union territory in India.
Their principal EPC business operations are
- Water Supply Projects (“WSP”)
- Railway Projects
- Road Projects and
- Irrigation Network Projects
The project and office location of the company are under
A major of their projects are in the state of Rajasthan.
The company has Rs. 6183.58 cr of orders in its hand. Below is the state-wise break up of the order book.
Industry Overview
In order to achieve a GDP of USD 5 trillion by FY25, India needs to spend about USD 1.4 trillion over these years on infrastructure.
During FYs 2008-17, India invested about USD 1.1 trillion on infrastructure. Keeping this objective in view, National Infrastructure Pipeline (NIP) was launched with a projected infrastructure investment of around Rs. 111 Trillion (USD 1.5 trillion) during FY 2020-2025 to provide world-class infrastructure across the country and improve the quality of life for all citizens.
During the fiscals 2020 to 2025, sectors such as energy (24%), roads (18%), urban (17%), and railways (12%) amount to around 70% of the projected capital expenditure in infrastructure in India.
NIP has involved all the stakeholders for a coordinated approach to infrastructure creation in India to boost short-term as well as potential GDP growth.
The number of projects and the total cost as per NIP for different sectors is under
Vishnu Prakash R Punglia Limited Subscription Data
Subscription data shows the number of times the IPO is subscribed overall and also under each category. The day-wise subscription data is below.
| Date | QIB | NII | Retail | Employee | Total |
| Day – 1 24th August 2023 | 0.05 | 6.26 | 4.88 | 1.91 | 3.77 |
| Day – 2 25th August 2023 | 0.35 | 19.39 | 12.88 | 5.69 | 10.63 |
| Day – 3 28th August 2023 | 171.69 | 111.03 | 32.02 | 12.97 | 87.82 |
Vishnu Prakash R Punglia Limited Promoter Details
The promoters of VPRP are –
- Vishnu Prakash Punglia
- Manohar Lal Punglia
- Sanjay Kumar Punglia
- Kamal Kishor Pungalia and
- Ajay Pungalia
The promoters hold 47,655,000 shares. 11 persons form the promoter group.
Both the promoters and promoter group collectively hold 84,519,000 Equity Shares which is equal to 90.45% of the pre-issue shares issued.
Vishnu Prakash R Punglia Limited Financials
Key financials of Vishnu Prakash R Punglia Limited Ltd for the last 3 completed financial years is under. These include the fiscal years FY23, FY22 and FY21.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 825.48 cr | Rs. 497.81 cr | Rs. 331.04 cr |
| Total Income | Rs. 1171.46 cr | Rs. 787.38 cr | Rs. 487.67 cr |
| Profit After Tax | Rs. 90.6 cr | Rs. 44.8 cr | Rs. 18.9 cr |
| Net Worth | Rs. 314.50 cr | Rs. 158.69 cr | Rs. 113.61 cr |
| Other Equity (including retained earnings) | Rs. 221.06 cr | Rs. 130.54 cr | Rs. 85.46 cr |
| Total Borrowing | Rs. 250.37 cr | Rs. 176.57 cr | Rs. 110.78 cr |
The total income of Vishnu Prakash R Punglia Limited has grown in the last three years from Rs. 487 cr to Rs. 1171 cr. The PAT has also grown 4.5 times from Rs. 18.9 cr to Rs. 90.6 cr during the same period.
The net worth more than doubled from Rs. 113 cr in FY 2021 to Rs. 314 cr in 2023. In the past three years, Vishnu Prakash R Punglia Limited’s long-term borrowings has increased from Rs. 110 cr to 250 cr.
Vishnu Prakash R Punglia Limited Peer Comparison
The below table shows a comparison between Vishnu Prakash R Punglia Limited and other listed companies that are engaged in a similar business.
| Company | P/E | EPS | RoNW | NAV |
| Vishnu Prakash R Punglia Limited Limited | – | 10.41 | 38.31% | 36.11 |
| PNC Infratech Ltd | 13.48 | 25.67 | 16.64% | 167.03 |
| H.G. Infra Engineering Ltd | 12.56 | 75.68 | 29.38% | 294.90 |
| NCC Limited | 16.24 | 9.77 | 10.98% | 98.22 |
| Rail Vikas Nigam Ltd | 18.22 | 6.81 | 20.70% | 35.13 |
| ITD Cementation India Ltd | 25.62 | 7.23 | 10.53% | 72.04 |
Vishnu Prakash R Punglia Limited Objects of the Issue
Vishnu Prakash R Punglia Limited proposes to utilize the Net Proceeds from the Issue for –
1. Funding capital expenditure for the purchase of equipment & machineries
Rs. 62.17 crores is intended to use for purchasing capital equipment like
- earth moving equipment
- construction equipment
- soil compacting equipment
- plant equipment
- material handling equipment and vehicles
2. Funding working capital requirements
Vishnu Prakash R Punglia Limited’s business is highly working capital intensive. They fund a majority of their working capital requirements from banks, financial institutions and our internal accruals.
It has an estimated Rs. 747.06 cr working capital requirement for FY 2024.
Vishnu Prakash R Punglia Limited intends to use a total of Rs. 150 cr from the IPO proceeds to fund the working capital requirements.
3. For General corporate purposes
The rest amount will be spent on general corporate purposes subject to such utilization not exceeding 25% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.
Should You Invest in Vishnu Prakash R Punglia Limited IPO?
VPRP has executed more than 75 Water Supply Projects (WSPs) till the date of RHP.
Its revenue from operations has grown at a CAGR of 55.10% from FY 2020-21 to FY 2022-23.
The company has established a client base of various departments of the Central and State Governments. It has an ongoing project in 9 States and 1 Union territory.
VPRP undertakes construction business in an integrated manner with key competencies and in-house resources to deliver a project from conceptualization to completion. Moreover, their promoters have over 36 years of experience in the construction industry.
The total income of Vishnu Prakash R Punglia Limited has grown in the last three years from Rs. 487 cr to Rs. 1171 cr. The PAT has also grown 4.5 times from Rs. 18.9 cr to Rs. 90.6 cr during the same period.
The net worth more than doubled from Rs. 113 cr in FY 2021 to Rs. 314 cr in 2023. In the past three years, Vishnu Prakash R Punglia Limited’s long-term borrowings has increased from Rs. 110 cr to 250 cr.
The key risk to consider are –
- Criminal cases & Tax proceedings against the company for Rs. 107.45 cr
- Risks of time and cost overruns in project implementation
- Business is concentrated (61.54%) in the state of Rajasthan
- 85% of projects are water supply projects
- Contingent liabilities of Rs. 277 cr
- Negative cash flow from operating activities for the last 2 years
