Vishnu Prakash R Punglia Limited (VPRP), a Jodhpur-based integrated Engineering, Procurement and Construction (“EPC”) company that specialises in Water Supply Projects (WSPs) and is ISO-certified, has submitted its Draft Red Herring Prospectus (DRHP) to the capital markets regulator SEBI in order to raise money through an initial public offering (IPO).
A full fresh issuance of shares up to Rs. 3.12 Cr. without an offer to sell is what is being offered in the public offering of equity shares with a face value of Rs. 10 apiece.
The offer is being made through the book building process, with a maximum allocation of 50% going to qualified institutional buyers (QIB), a minimum allocation of 15% going to non-institutional investors (NII), and a minimum allocation of 35% going to retail individual investors (RII). The company’s most recent offering generated a total of 58.64 crore, of which 140 crore would be used to cover the company’s working capital requirements and the remaining amount would be used for general corporate goals.
The book-running lead managers of the Vishnu Prakash R Punglia IPO are Choice Capital Advisors Private Ltd and Pantomath Capital Advisors Private Limited. It is suggested that the IPO list on the BSE and NSE.
It had 51 active projects worth $5,653.43 crore as of December 31, 2022. The remaining sum of 3,836.62 crore was allotted for the execution of WSPs in the states of Rajasthan, Uttar Pradesh, Manipur, Uttarakhand, Gujarat, Assam, and Haryana. Of that total, 1,816.81 crore was spent on work that was completed.
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%, even though 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%.
During the nine months that ended on December 31, 2022, the revenue from operations was Rs. 712.70 crore, the net profit was Rs. 50.74 crore, and the EBITDA margin was 13.13 percent. The company has the highest return on net worth (32.94%) when measured against its listed rivals, PNC Infratech Ltd (17.37%), H.G. Infra Engineering Ltd (30.42%), NCC Ltd (9.17%), Rail Vikas Nigam Ltd (19.66%), and ITD Cementation India Ltd (6.31%).
The company is headed by the promoter, Mr. Vishnu Prakash Punglia, and its main projects include building roads, bridges, tunnels, warehouses, buildings, railway buildings including platforms, stations, quarters, and administrative buildings, as well as developing, implementing, operating, and maintaining water supply projects (WSPs), including water treatment plants (WTPs), along with pumping stations and laying of pipelines for supply of water (WWTPs).
