Pratham EPC Projects Ltd. IPO: Review, Valuation, Date & GMP

Pratham EPC Projects Limited IPO  - Complete Overview

Established in 2014, Pratham EPC Projects Limited is an integrated engineering, procurement, construction, and commissioning company that provides end-to-end services to oil and gas distribution firms in India. 

The company specializes in various gas pipeline projects, handling activities such as mainline welding, tie-in, coating, hydro testing, and pipeline commissioning. 

Pratham excels in oil and gas pipelines for both cross-country distribution and city gas distribution. Additionally, it undertakes offshore projects for water distribution, particularly in project bidding and management.

The company is recognized for its commitment to quality and compliance, holding ISO 10002:2018 certified for customer satisfaction and complaint management systems, ISO 14001:2015 certified for environment management systems, ISO 18001:2007 certified for Occupational Health and Safety management systems, and ISO 9001:2015 certified for quality management system.

Having completed over 12 projects, with major completed projects totalling approximately ₹13,184.10 Lakhs, Pratham currently has eight significant ongoing projects. 

Out of these, seven projects worth around ₹29,666.33 Lakhs have been confirmed based on the Letter of Allocation/Purchase Order, with project execution worth ₹24,015.61 Lakhs pending. 

Additionally, one project has been finalized with a Purchase Order valued at approximately ₹40,667.29 Lakhs, indicating a robust order book for the company as of February 23, 2024.

Pratham EPC Projects Limited IPO Overview:

Pratham EPC Projects Limited IPO date is slated to be open for subscription from March 11, 2024, to March 13, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Pratham EPC Projects Limited IPO price is set in the range of Rs.71 to Rs.75 per share. 

The total issue size of this IPO amounts to Rs.36.00 Cr. out of the total issue the company has allocated 35% for retail investors, 50% for institutional investors, and 15% for non-institutional investors. 

Contract-wise Revenue Breakup

(Amount in Lakhs)

Particulars	30-09-2023	31-03-2023	31-03-2022
Direct Contract	2,850.53	3,460.78	4,866.17
Subcontract	579.78	1,559.57	180.66
Total	3,430.31	5,020.35	5,046.84

 

Company Financial

Compared to the previous fiscal year, Pratham EPC Projects Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased, while there was an increase in total borrowings.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	4,643.75	4,849.75	2,850.17
Total Revenue	3,581.37	5,167.29	5,062.66
PAT	523.41	764.12	441.32
Net worth	2,321.26	1,797.86	1,033.73
Reserve & Surplus	1,025.26	1,716.86	952.73
Total Borrowings	952.27	1,418.83	246.26

Geography-wise Revenue Breakup

(Amount in Lakhs)

Particular	30-09-2023	31-03-2023	31-03-2022
Gujarat	744.58	2,017.05	2,319.28
Rajasthan	59.32	456.64	1,069.07
Orissa	1,937.66	1,481.98	180.67
Punjab	-	539.70	1,477.82
West Bengal	688.76	524.98	-
Total	3,430.31	5,020.35	5,046.84

 

Entity Wise Revenue Breakup

(Amount in Lakhs)

Particular	30-09-2023	31-03-2023	31-03-2022
Non-Government	800.96	3320.60	2427.22
Government	2,629.35	1699.75	2619.62
Total	3,430.31	5,020.35	5,046.84

Product Wise Revenue Breakup

(Amount in Lakhs)

Particular	30-09-2023	31-03-2023	31-03-2022
Oil & Gas	3,427.38	5020.35	5041.40
Operation & Maintenance	2.93	-	5.45
Total	3,430.31	5,020.35	5,046.84

 

 

 

The Objective of the Issue

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 

1. Purchase of Machinery. 

2. To Meet Working Capital Requirements. 

3. General Corporate Purpose. 

Peers of Pratham EPC Projects Limited IPO

Name of the Company	Face Value (₹)	EPS (₹)	P/E Ratio
Pratham EPC Projects Limited	10	5.90	-
Likhitha Infrastructure Limited	5	15.22	15.47

 

Evaluation

The IPO is priced within the range of Rs.71 to Rs.75 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 5.9 from the last year, the resulting P/E ratio is 12.72x.

• Taking into account the weighted EPS of Rs 4.23 for the last three years, the P/E ratio amounts to 17.73x.
  
  

Comparative Analysis with Listed Peers

• The industry's average P/E is 15.47x.

As a result, the IPO price range, with a P/E ratio ranging from 12.72x to 17.73x, seems neutral in comparison to the industry average of 15.47x.

 

 

IPO's Strengths 

• Seasoned promoters and a skilled management team with extensive experience.

• Comprehensive capabilities in end-to-end execution.

• Efficient utilization of resources to maximize output.

• Demonstrated growth evident in a strong and diverse order book.

• Established and enduring relationships with its clientele.
  
  

IPO weaknesses 

• The company is currently involved in unresolved legal proceedings.

• Dependency on a limited number of suppliers for product purchases.

• Revenue from projects is unpredictable and susceptible to seasonal fluctuations.

• Operations are conducted under various statutory permits, licenses, and approvals.

• While the current order book indicates potential future income, there is no guarantee of full realization due to possible modifications, cancellations, delays, holds, or partial payments for some orders.
  
  

IPO GMP Today  

The Latest GMP of Pratham EPC Projects Limited IPO is Rs.27.

 

Pratham EPC Projects Limited IPO timetable (Tentative)

Pratham EPC Projects Limited IPO is scheduled from March 11 to March 13, 2024, with allotment on March 14, refund initiation on March 15, and listing on March 18, 2024.

Events	Date
IPO Opening Date	March 11, 2024
IPO Closing Date	March 13, 2024
IPO Allotment Date	March 14, 2024
Refund initiation	March 15, 2024
IPO Listing Date	March 18, 2024

 

Pratham EPC Projects Limited IPO Details 

Pratham EPC Projects Limited IPO, with a face value of Rs.10 per share, opens on March 11 and closes on March 13, 2024, offering 4,800,000 shares at Rs.71 to Rs.75 per share, with a lot size of 1600 shares, aiming to raise Rs.36.00 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 11, 2024 to March 13, 2024
Face value	₹10 per share
Issue Price	₹71 to ₹75 per share
Lot Size	1600 Shares
Price of 1 lot	₹120,000
Issue Size	4,800,000 shares (aggregating up to ₹36.00 Cr)
Fresh issue	4,800,000 shares (aggregating up to ₹36.00 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

 

 

Pratham EPC Projects Limited IPO Lot Details 

For Pratham EPC Projects Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.120,000 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.240,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Pratham EPC Projects Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

Promoters and Management of Pratham EPC Projects Limited

• Mr. Pratikkumar Maganlal Vekariya 

• Mr. Nayankumar Manubhai Pansuriya

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding	72.97%

 

Pratham EPC Projects Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd

Dividend Policy

The company didn’t pay dividends in the past three fiscal years and the future payment of the dividend depends on several factors like profits, past dividend trends, and other relevant considerations evaluated by the Board

 

 

 

Conclusion

Pratham EPC Projects Limited is emerging as a key player in the gas pipeline infrastructure sector, showing promising momentum in its growth trajectory. Moreover, the company's financial performance has been consistently improving year over year. Investors are encouraged to consider bidding for the upcoming IPO after conducting a thorough analysis of all relevant factors.

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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 RHP.

 

 

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