Popular Foundations IPO: Review, valuation, Date & GMP

Popular Foundations IPO - Complete Overview

Popular Foundations IPO an SME IPO is a fixed price issue of Rs.19.87 crore by Popular Foundations Ltd. which was founded in 1998. The company provides comprehensive end-to-end solutions for the construction industry with a focus on engineering and construction services.

The organization is committed to providing construction services for a range of industries, including factories, schools, and residential and commercial projects. In and around Chennai, the corporation, however, mostly concentrates on non-residential and non-government construction projects. The company has successfully completed projects in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore in addition to Chennai.

This new SME IPO is to be launched on 13 September 2024, and its ‘initial public offering’ will end on 19 September 2024.

Popular Foundations IPO Overview

The Rs.19.87 crore Popular Foundations Ltd. IPO consists of an entirely fresh issue of 53.7 lac Shares.

This SME IPO date is from September 13-September 19, 2024. The expected IPO listing date is Tuesday, September 24, 2024, on BSE and SME. Popular Foundations IPO price is Rs.37 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company's revenue grew by 7% and PAT rose by 191% between the FYs concluded 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.6,354.87 lac.

• The total revenue of the company is Rs.5,191 lac.

• The company’s PAT is Rs.347.76 lac.

• The net worth of the company is Rs.2,313.11 lac.

• The company’s EBITDA is Rs.710.04 lac.

(Amount in lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	6,354.87	4,864.7	4,929.49
Total Revenue	5,191	4,866.89	2,630.17
PAT	347.76	119.61	48.08
Net Worth	2,313.11	1,483.69	1,384.08
Total Reserves & Surplus	812.31	1,383.69	1,284.08
Borrowings	1,578.4	1,753.99	1,835.37

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities	31 Mar 2024	31 Mar 2023	31 Mar 2022
Net Cash Flow Operating Activities	-427.49	713.86	-12.80
Net Cash Flow Investing Activities	264.86	0.08	-188.39
Net Cash Flow Financing Activities	161.43	-700.50	194.37

 

Customer-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

Particulars	FY 2023-2024		FY 2022-2023		FY 2021-2022
Institution	3579.85		2,548.87		626.38
Hospital	637.54		1,318.35		1,611.75
Admin	602.40		228.27		-
Commercial	136.98		306.99		46.43
Hotel	138.74		260.51		279.01
Others	86.38		46.57		25.82
Total	5,181.90		4,709.55		2,589.40

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Full or partial prepayment of some outstanding loans that the company has taken out

• Meeting the company's needs for working capita

• General corporate purposes.

 

Peers of Popular Foundations Ltd. 

Company Name	EPS (Rs.)	P/E (x)
NCC Limited	10.06	31.9
Hindustan Construction Co. Ltd.	1.06	40.19

Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 31 March 2024.

 

Evaluation

Popular Foundations IPO Share price is Rs.37 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.41 from the last year, the resulting P/E ratio is 15.35x.

Considering the weighted EPS of Rs.1.59 for the last three years, the P/E ratio is 23.27x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 36.05x.

Particulars	P/E Ratio (x)
Highest	40.19
Lowest	31.90
Average	36.05

 

IPO's Strengths

• The company management team is in charge of the expansion of operations and the company's financial performance. They have experience in the industry.

• The business gives customers the power to make educated decisions by making sure that projects are finished on schedule.

• Furthermore, timely project completion provides the business with a competitive edge by enhancing its standing in the industry.

• The company's dedication to superior design makes it stand out from the competition and guarantees that the properties are aesthetically pleasing and functionally exceptional.

• The business model of the organization is a complete structure that prioritizes fair pricing, client orientation, and strategic market placement.

• The business builds trust with clients by providing them with extra value. In addition to helping the firm succeed, the company's reputation and brand have set it up for future commercial prospects.

 

IPO’s Weaknesses

• Any manufacturing flaw or inadequate maintenance procedures could put stress on its equipment and postpone the completion of its projects.

• The company's operations, financial performance, and future prospects could be significantly and negatively impacted by a delay or non-occurrence in obtaining materials, services, and completed goods from outside sources at reasonable costs and quality, or at all.

• The company is exposed to a number of risks in relation to its engineering and construction business, such as, but not limited to, cost overruns and overruns that result in lower profits or losses, changes in the scope of work, and, in certain situations, contract cancellation.

• A labor-intensive industry may have major setbacks in terms of operations, financial performance, and expansion if there are strikes, work stoppages, or if workers in the company or its suppliers' companies demand higher wages.

• The construction industry may be impacted by challenging surroundings and work sites, which could lead to delays and extra expenses.

Popular Foundations IPO GMP Today

Popular Foundations IPO GMP today is Rs.0 as of 12 September 2024. With a price band of Rs.37, the Popular Foundation IPO listing price (estimated) is Rs.37.

IPO Timetable (Tentative)

The Popular Foundations IPO date is from September 13 to September 19, 2024, with allotment on September 20, refund initiation on September 23, and the Popular Foundations IPO listing date on September 24, 2024.

Events	Date
IPO Opening Date	September 13, 2024
IPO Closing Date	September 19, 2024
IPO Allotment Date	September 20, 2024
Refund Initiation	September 23, 2024
IPO Listing Date	September 24, 2024

 

Popular Foundations IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 13, 2024, close on September 19, 2024, and offer a total issue size of 5,370,000 Shares (aggregating up to Rs.19.87 Cr.).

IPO Opening & Closing date	September 13, 2024 to September 19, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.37.
Lot Size	3000 Shares
Issue Size	5,370,000 Shares (aggregating up to Rs.19.87 Cr.).
Offer for Sale	N.A
Fresh Issue	5,370,000 Shares (aggregating up to Rs.19.87 Cr.).
Listing at	BSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd.

 

Popular Foundations IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.1,11,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.2,22,000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Popular Foundations IPO Reservation

Other’s Portion	50%
Retail’s Portion	50%

 

 

Promoters And Management of Popular Foundations Ltd.

• Mr. Ananthanarayanan Sankaralingam Venkatesh

• Mrs. Vinita Venkatesh

 

Pre-Issue Promoter Shareholding	83.36%
Post-Issue Promoter Shareholding	61.39%

 

IPO Lead Managers

• Srujan Alpha Capital Advisors Llp.

 

Dividend Policy

The company has paid a dividend of Rs.0.3 per Share and Rs.2 per Share in FY 2024 and FY 2023 respectively.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. so this blog will be very useful to you if you are looking for information about the upcoming IPO since it will give you reliable data about the company's insights, financials, and past performance. if this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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