Home » Vishnu Prakash R Punglia Ltd. IPO: Price, Lot Size, & More

Last Updated on December 26, 2023 by BFSLTeam BFSLTeam

Vishnu Prakash R Punglia Ltd. IPO

Many people might not be familiar with Vishnu Prakash R Punglia Limited or VPRPL, but the company is one of the prominent players in the water supply development industry. With the Central government increasing the funding budget for JJM (National Drinking Water Mission) from Rs. 550 billion to Rs. 700 billion, i.e., the water supply and waste management sector in India has received a 27.3% boost in funding.

This sector acts as a catalyst for the growth and development of the Indian economy. If you are looking forward to leveraging sectoral growth, you can consider investing in Vishnu Prakash R Punglia Ltd. IPO. Check out this article to get a better insight into the same.

IPO Details

Vishnu Prakash R Punglia Ltd. is going public with an objective to raise Rs. 308.88 crores. Listed below are the details of the IPO.

IPO opening dateAugust 24, 2023
IPO closing dateAugust 28, 2023
Total issue size31,200,000 shares (Rs. 308.88 Crore approx.)
Fresh issue size31,200,000 shares
Issue typeBook Built Issue IPO
Listing atBSE, NSE
Face valueRs. 10 per share
Price rangeRs. 94 to Rs. 99 per share
Lot size150 Shares
Minimum investment amount (retail)Rs. 14,850 (1 lot)
Maximum investment amount (retail)Rs. 1,93,050 (13 lots)

Before investing in the IPO, consider researching the financial details and history of the company to assess its value, business model, growth opportunities and other factors. This will allow you to make an informed decision.

About the Company

Vishnu Prakash R Punglia Ltd. is one of the prominent EPC (Engineering, Procurement and Construction) companies associated with the construction and development of water supply projects. It has a robust clientele of central and state governments, private entities and autonomous bodies.

Their service includes designing and developing water treatment plants, overhead tanks, reservoirs, pipeline projects and many more. The company is preparing for an IPO to leverage its industry experience and position to grab new market opportunities through new upcoming ventures.

IPO Tentative Timetable

Anchor allocation dateWednesday, August 23 2023
IPO opening dateThursday, 24 August 2023
IPO closing dateMonday, 28 August 2023
Cut-off time for UPI mandate 5 PM on 28 August 2023
Basis of allotmentThursday, 31 August 2023
Date of refund initiation Friday, 1 September 2023
Credit of shares to DematMonday, 4 September 2023
Listing dateTuesday, 5 September 2023

IPO Lot Size

The following table shows the minimum and maximum lot sizes for various investor categories:

Application typeNumber of LotsAmount
Minimum (retail investors)1 (150 shares)Rs. 14,850
Maximum (retail investors)13 (1950 shares)Rs. 1,93,050
Minimum (S-HNI) 14 (2100 shares)Rs. 2,07,900
Maximum (S-HNI) 67 (10,050 shares)Rs. 9,94,950
Minimum (B-HNI) 68 (10,200 shares)Rs. 10,09,800

Company Financials

Here is the financial summary of Vishnu Prakash R Punglia Ltd. for the last three financial years.

ParticularsFor the financial year ending (in Rs. million)
31st March, 202331st March, 202231st March, 2021
Total assets8,254.834,978.123,310.45
Total liabilities5,109.763,391.222,174.31
Total expenses10,490.257,270.064,619.95
Total revenue11,714.647,873.874,876.73
Profit after tax906.43448.47189.82
EBITDA1,596.43886.41473.21
Earnings per share (basic and diluted)10.415.312.25

Strengths

Listed below are some of the strengths of Vishnu Prakash R Punglia Ltd.:

  • Dedicated Participant in Water Supply Projects

The company has been into the business of water supply projects for more than three decades, offering services like the development and construction of water treatment plants, reservoirs, pipelines, overhead tanks etc. 

Their massive order books, technical expertise, timely performance, quality materials and financial strengths motivate them to head into new ventures and diversify themselves into other potential sectors.

  • Strong rapport with a prominent clientele

The company has a well-established relationship and a strong rapport with a prominent client base. It has been possible by its adaptable nature to the ever-changing client requirements. Some of their prominent clientele includes central and state governments in various segments.

  • Committed and hardworking administrators

Vishnu Prakash R Punglia Ltd. has a team of the most hardworking and committed administrators. Their promoters have a core operational understanding with decades of experience in the field of water supply projects, water treatment plants, water tanks, etc.

Risk Involved

Every business has certain internal and external risk factors. Listed below are some of the risk factors involved with investing in Vishnu Prakash R Punglia. 

  • On-going litigations

Several lawsuits and legal proceedings are pending against the promoter and director of the company. There is a risk of adverse outcomes, and it might adversely impact the promoter, director and the company. The outcomes can be regulatory challenges, legal penalties, etc., which might negatively impact the business and profitability.

  • Businesses concentrated in a specific state

The business of the company is mainly concentrated in the state of Rajasthan. Out of the entire order book, 61.54% of the orders are from Rajasthan. Therefore, an adverse impact on the state can impact the profitability of the company to a greater extent.

  • Negative coverage ratio

The Free Operating Cash Flow to Debt ratio of the company is negative. If the company fails to generate a sufficiently positive operating cash flow in future, it can further deteriorate the ratio resulting in poor profitability, lower liquidity and restricted capital resources.

Summary

Vishnu Prakash R Punglia Ltd. is one of the prominent participants in the infrastructure sector dealing with water supply projects. It has a massive order book revolving around water supply development projects with further plans of diversification in other potential sectors. 

The company is going public with an objective to raise Rs. 308.88 crores with a price band of Rs. 94 to Rs. 99 per share. The minimum lot size is 150 shares which is equivalent to Rs. 14,850.

The IPO offer will last till Monday, 28 August 2023. If you are planning to invest in this IPO, make sure to go through the RHP carefully.

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