Vishnu Prakash R Punglia LTD. IPO - Review, Valuation, Date & GMP

Vishnu Prakash R Punglia Limited - Complete Overview

Established in 1986, Vishnu Prakash R Punglia Limited is engaged in the business of integrated Engineering, Procurement, and Construction (EPC) projects. It has rich experience in executing diverse infrastructure projects for Central and State Governments, autonomous bodies, and private entities across 9 Indian States and 1 Union Territory.

The company's core operations can be categorized into four primary segments: (i) Water Supply Projects (WSP), (ii) Railway Projects, (iii) Road Projects, and (iv) Irrigation Network Projects.

Vishnu Prakash R Punglia Limited has acquired numerous contractor registrations across diverse departments and agencies. These include prestigious accreditations such as Class AA from the Jodhpur Development Authority, Jodhpur, Rajasthan; Class AA from the Public Health Engineering Department, Rajasthan; Class AA from the Water Resources Department, Rajasthan; Class AA from the Roads and Building Department, Gujarat; Class 'S' from the South Western Command, Military Engineering Services (MES), Jaipur, Rajasthan; Class A from the Public Works Department, Chhattisgarh; Class AA from the Public Works Department, Rajasthan; and Civil works recognition from the Public Works Department, Madhya Pradesh, Bhopal. 

In the year 2021, the company secured a Water Supply Project (WSP) from the Public Health Engineering Department (PHED) in Manipur, with a substantial value of Rs.4332.90 million. This achievement stands in contrast to a prior WSP contract awarded to VPRP (as a partnership firm) by PHED in Rajasthan in 2002 of Rs.19.80 million.

 

What does the company do? 

Vishnu Prakash R Punglia Limited is offered integrated Engineering, Procurement, and Construction (EPC) services to Central and State Governments, autonomous bodies, and private entities.

 

 

Company Products

The company's core operations can be categorized into four primary segments: (i) Water Supply Projects (WSP), (ii) Railway Projects, (iii) Road Projects, and (iv) Irrigation Network Projects.

 

IPO Overview

The upcoming IPO of Vishnu Prakash R Punglia Limited is set to open on August 24th and close on August 28th, 2023. The expected date for the IPO's listing is September 5th, 2023.

The total issue size of the IPO is Rs 308.88 Crore. The IPO issue price is set within the range of Rs.94 to Rs.99 per share, considering a face value of Rs.10 per share.

The shares are slated to be listed on both the NSE and BSE exchanges. The company has allocated 35% of the offering to retail investors, 15% to non-institutional investors, and 50% to institutional investors.

 

Vishnu Prakash R Punglia Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	24 August 2023
IPO Closing Date	28 August 2023
IPO Allotment Date	31 August 2023
Refund initiation	01 September 2023
IPO Listing Date	05 September 2023

 

Vishnu Prakash R Punglia Limited IPO Details

IPO Opening & Closing Date	24 August to 28 August 2023
Face Value	Rs.10 Per Share
Issue Price	Rs. 94 to Rs. 99 Per Share
Lot Size	150 Shares
Price of 1 Lot	Rs. 14,850
Issue Size	31,200,000 Shares (aggregating up to Rs. 308.88 Cr)
Fresh Issue	31,200,000 Shares (aggregating up to Rs. [.] Cr)
Employee Discount	Rs. 9 per share
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Vishnu Prakash R Punglia Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Vishnu Prakash R Punglia Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	331.05	497.81	825.48
Total Revenue	487.67	787.39	1171.46
PAT	18.98	44.85	90.64
Net Worth	113.61	158.69	314.51
Reserve & Surplus	85.24	130.11	219.96
Total Borrowings	110.78	176.58	250.37

 

Revenue from projects undertaken in the state of Rajasthan

(Amount in Millions)

Particular	FY 23	FY 22	FY 21
Total Revenue from operations	11,684.04	7,856.13	4,857.31
Revenue from projects in Rajasthan	7,812.43	4,016.78	2,814.68

 

The breakup of segmental revenues for the last three financial years

(Amount in Millions)

Segments	FY 23	FY 22	FY 21
Water Supply Projects	9,976.72	6,740.41	3,839.05
Railway Projects	789.80	885.38	804.67
Road Projects	724.44	-	-
Irrigation Network & Other Projects	115.51	189.77	200.77
Other Miscellaneous Revenue	77.57	40.57	12.82
Total	11,684.04	7,856.13	4,857.31

 

Revenue generated from top clients

(Amount in Millions)

Particular	FY 23	FY 22	FY 21
Revenue from Top 5 Clients	9,454.86	6,436.11	4,030.74
Revenue from Top 10 Clients	10,920.44	7,393.46	4,449.37

 

Objective of the Issue

The company intends to use the proceeds from the Issue for the following purposes:

• Meeting capital expenditure needs related to the acquisition of equipment/machinery.
• Addressing working capital requirements.
• Serving general corporate objectives.

 

Promoters and Management of Vishnu Prakash R Punglia Limited

The Promoters of the Company included Mr Vishnu Prakash Punglia, Mr Manohar Lal Punglia, Mr Sanjay Kumar Punglia, Mr Kamal Kishor Pungalia, and Mr Ajay Pungalia.

Pre-issue Promoters Holding	90.45%
Post-issue Promoters Holding	--

 

Peer Comparison

Following are the listed peers of the company in its DRHP

Company Name	Total Income (Rs. in million)	P/E	EPS (Diluted) (Rs.)
Vishnu Prakash R Punglia Limited	11,714.64	-	10.41
PNC Infratech Ltd	80,367.12	13.48	25.67
H.G. Infra Engineering Ltd	46,402.38	12.56	75.68
NCC Limited	157,010.00	16.24	9.77
Rail Vikas Nigam Ltd	212,780.40	18.22	6.81
ITD Cementation India Ltd	51,195.33	25.62	7.23

 

IPO's Valuations

The Vishnu Prakash Limited share price range is between Rs. 94 to Rs. 99 per share, with an EPS of Rs. 10.41. Even though the company has not specified a PE ratio, calculating based on the upper price band of the IPO for valuation indicates an approximate PE ratio of 9 for the company.

 

Dividend Policy

The company has not paid dividends in the past, and there is no assurance from the company to pay dividends in the future, as stated in the Vishnu Prakash R Punglia Limited DRHP.

 

IPO's Strengths

• Specialized player in Water Supply Projects (WSPs).
• Evident expansion via a strong order book spanning various segments.
• Well-established connections with prominent clientele.
• Proven history of accomplished project deliveries.
• Utilization of an in-house integrated model.
• Dedicated Promoters, Board, and management team.

 

IPO Weaknesses

• The Company is currently involved in several ongoing legal disputes.
• The company's projects are susceptible to a range of implementation and other associated risks.
• The company's operational focus is primarily within the state of Rajasthan.
• A noteworthy portion of the company's executed projects falls within the Water Supply Projects ("WSP") category.
• As of March 31, 2023, and March 31, 2022, the company's free operating cash flow to debt ratio stands in the negative.
• An unsecured loan of ?844.72 million has been secured by the Company, which is subject to repayment upon demand.
• To secure credit facilities for the company, Promoters, Promoter Group, and third parties have mortgaged their personal properties and provided personal and/or corporate guarantees for borrowings.
• Part of the company's operations involves the provision of financial and performance bank guarantees, as well as letters of credit.
• The company relies on its sub-contractors to fulfil various components of awarded contracts.
• There's a risk of potential debarment or ban due to ongoing litigation, which could negatively impact the company's reputation and operations.
• Certain civil writ petitions involving the Company and Military Engineering Services could potentially adversely affect business operations and reputation if determined unfavourably.
• The company requires specific approvals and licenses and must adhere to relevant rules and regulations.
• Entities within the corporate group share similar pursuits, engage in comparable industries, and could pose competition to the company.
   

 

 

IPO GMP Today

Latest GMP of Vishnu Prakash R Punglia IPO is Rs.40. 

 

Conclusion

Vishnu Prakash R Punglia exhibits a strong order book and sound financials. The company is currently enjoying healthy profitability, potentially offering an attractive opportunity for investors. The GMP also signals positive performance. While investors may view this IPO as a chance for substantial gains, it's recommended to conduct a thorough analysis prior to applying for optimal outcomes.

 

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

 

 

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