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.
Table of Content
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 date | August 24, 2023 |
| IPO closing date | August 28, 2023 |
| Total issue size | 31,200,000 shares (Rs. 308.88 Crore approx.) |
| Fresh issue size | 31,200,000 shares |
| Issue type | Book Built Issue IPO |
| Listing at | BSE, NSE |
| Face value | Rs. 10 per share |
| Price range | Rs. 94 to Rs. 99 per share |
| Lot size | 150 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 date | Wednesday, August 23 2023 |
| IPO opening date | Thursday, 24 August 2023 |
| IPO closing date | Monday, 28 August 2023 |
| Cut-off time for UPI mandate | 5 PM on 28 August 2023 |
| Basis of allotment | Thursday, 31 August 2023 |
| Date of refund initiation | Friday, 1 September 2023 |
| Credit of shares to Demat | Monday, 4 September 2023 |
| Listing date | Tuesday, 5 September 2023 |
IPO Lot Size
The following table shows the minimum and maximum lot sizes for various investor categories:
| Application type | Number of Lots | Amount |
| 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.
| Particulars | For the financial year ending (in Rs. million) | ||
| 31st March, 2023 | 31st March, 2022 | 31st March, 2021 | |
| Total assets | 8,254.83 | 4,978.12 | 3,310.45 |
| Total liabilities | 5,109.76 | 3,391.22 | 2,174.31 |
| Total expenses | 10,490.25 | 7,270.06 | 4,619.95 |
| Total revenue | 11,714.64 | 7,873.87 | 4,876.73 |
| Profit after tax | 906.43 | 448.47 | 189.82 |
| EBITDA | 1,596.43 | 886.41 | 473.21 |
| Earnings per share (basic and diluted) | 10.41 | 5.31 | 2.25 |
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.
