Teerth Gopicon Ltd. IPO: Review, Valuation, Date & GMP

Teerth Gopicon Limited IPO  - Complete Overview

Established in 2019, Teerth Gopicon Limited operates as an engineering, construction, and development firm primarily focused on projects such as road construction, sewerage systems, and water distribution in Madhya Pradesh. 

Additionally, it has undertaken sub-contracting roles, including the construction of residential towers in Indore. 

As a registered civil contractor for various government entities like ISCDL, IMC, USCL, UMC, MPJNM, and private sector clients, the company has executed diverse civil engineering projects including building construction, water supply systems, sewerage networks, treatment plants, road infrastructure, and lake rejuvenation efforts. 

In the fiscal year 2023, the company recorded a revenue of INR 3,914.87 lac.

Teerth Gopicon Limited IPO Overview

Teerth Gopicon Limited IPO date is slated to be open for subscription from April 8, 2024, to April 10, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Teerth Gopicon Limited IPO price is fixed at Rs.111 per share. 

The total issue size of this IPO amounts to Rs.44.40 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Teerth Gopicon Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased while the total borrowing decreased.

(Amount in Lakhs)

Period	31 Jan 2024	31 Mar 2023	31 Mar 2022
Total Assets	13,719.79	4,743.30	4,277.16
Total Revenue	6,970.02	3,914.87	3,120.77
PAT	784.04	179.22	15.27
Net worth	1,572.74	788.70	609.49
Reserve & Surplus	772.74	288.70	109.49
Total Borrowings	937.18	337.98	1,365.50

 

Segment-wise Revenue Break up

(Amount in Lakh)

Operation	January 31, 2024	March 31, 2023	March 31, 2022
Sewerage Work	0.00	676.69	2874.68
Parking Construction work	238.36	196.08	0.00
Road Construction work	44.94	2150.57	242.16
Water Distribution work	6535.07	0.00	0.00
Rejuvenation of Lake	144.55	884.32	0.00
Total Revenue from Operation	6962.92	3907.66	3116.84

Revenue from Government and Non-Government sector

(Amount in Lakh)

Particulars	January 31, 2024	March 31, 2023	March 31, 2022
Central Government/State Government and Local Authorities	6962.92	3466.09	1798.18
Non-Government Sector		441.57	1318.65
Total	6962.92	3907.66	3116.83

 

 

 

The Objective of the Issue

The company intends to allocate the net proceeds from the issue towards the following purposes:

1. Supporting the working capital needs of the company.

2. Meeting general corporate requirements.

Peers of Teerth Gopicon Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Teerth Gopicon Limited	10.00	3.58	31.01
Conart Engineers  Limited	10.00	6.29	13.65
Brahmaputra  Infrastructure Limited	10.00	3.76	18.42
MBL Infrastructure Ltd	10.00	0.55	103.27
Tarmat Limited	10.00	3.57	28.35

 

Evaluation

The IPO is priced fixed at Rs.111 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 2.24 from the last year, the resulting P/E ratio is 49.55x.

• Taking into account the weighted EPS of Rs 1.28 for the last three years, the P/E ratio amounts to 86.71x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 103.27x.

As a result, the IPO price range, with a P/E ratio ranging from 49.55x to 86.71x, seems fully priced to the industry average of 103.27x.

 

 

 

IPO's Strengths 

• Demonstrated expertise in effectively managing and delivering projects within designated timelines and budgetary constraints.

• Established significant presence and influence in the Madhya Pradesh region.

• Consistent emphasis on owning and maintaining essential equipment.

• Specialized focus on Water Supply projects (WSP).

• Strong network and partnerships with suppliers, facilitating advantageous negotiations and access to superior-grade materials.

• Notable growth with a strong order book.
  
  

IPO weaknesses 

• The company's operations are primarily focused within Madhya Pradesh, therefore, any negative developments in the state could adversely affect its business.

• Operating within a highly competitive landscape, the company faces challenges in maintaining market position.

• A significant portion of the company's revenue is derived from a limited client base.

• The company relies on subcontractors and external agencies for the execution of various projects.

• Revenue streams from projects are susceptible to seasonal fluctuations, making revenue prediction challenging.

• The company is obligated to obtain and periodically renew registrations, licenses, and permits from government and regulatory bodies.

• Compliance with environmental, health, and safety laws and regulations is integral to the company's operations.

 

IPO GMP Today 

The Latest GMP of Teerth Gopicon Limited is Rs.16.

Teerth Gopicon Limited IPO timetable (Tentative)

Teerth Gopicon Limited IPO is scheduled from April 8 to April 10, 2024, with allotment on April 12, refund initiation on April 15, and listing on April 16, 2024.

Events	Date
IPO Opening Date	April 8, 2024
IPO Closing Date	April 10, 2024
IPO Allotment Date	April 12, 2024
Refund initiation	April 15, 2024
IPO Listing Date	April 16, 2024

Teerth Gopicon Limited IPO Details 

Teerth Gopicon Limited IPO, with a face value of Rs.10 per share, opens on April 8 and closes on April 10, 2024, offering 3,999,600 shares at Rs.111 per share, with a lot size of 1200 shares, aiming to raise Rs.44.40 Cr, and will be listed on NSE SME.

IPO opening & closing date	April 8, 2024 to April 10, 2024
Face value	₹10 per share
Issue Price	₹111 per share
Lot Size	1200 Shares
Price of 1 lot	₹133,200
Issue Size	3,999,600 shares (aggregating up to ₹44.40 Cr)
Fresh issue	3,999,600 shares (aggregating up to ₹44.40 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

Teerth Gopicon Limited IPO Lot Details 

For Teerth Gopicon Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.133,200 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.266,400.

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

 

 

Teerth Gopicon Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

Promoters and Management of Teerth Gopicon Limited

• Maheshbhai Kumbhani

• Chandrikaben Kumbhani

• Pallav Kumbhani

Pre-issue Promoter shareholding	96.5%
Post-issue Promoter shareholding	64.33%

 

Teerth Gopicon Limited IPO Lead Managers

• Interactive Financial Services Ltd 
  
  

Dividend Policy

The company did not distribute dividends in the previous fiscal year, and any future dividend payments will be contingent upon the overall financial performance of the company.

 

 

Conclusion

The company operates in a competitive segment, and the sudden growth in its revenue has raised doubts. However, the company claims it has a strong order book of more than Rs. 904 crores. Considering this, investors may invest in the issue after evaluating all the factors for optimal future gains.

 

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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