WAPCOS Limited IPO

Last Updated on October 10, 2023 by BFSLTeam BFSLTeam

WAPCOS Limited is a public sector firm that is fully owned by the Government of India. The Ministry of Jal Shakti administers and monitors this firm on behalf of the Union Government. It provides engineering consultancy services and construction solutions related to water, infrastructure and power sectors to businesses within and outside India. 

WAPCOS Ltd. submitted its draft papers to SEBI in September 2022 with the plan to issue an IPO. However, a year later in September 2023, reports came out that the upcoming WAPCOS IPO is currently kept on hold. 

If you are planning to grow your wealth with WAPCOS Ltd. IPO, this blog is for you. Keep reading till the end to learn the important information about WAPCOS Ltd. from DRHP. 

About the Company

WAPCOS Limited is a public sector company which is wholly owned by the Central Government of India under the administration of Jal Shakti. This company focuses on engineering consultancy services and construction in water, infrastructure and power sectors for businesses in India.

Along with its subsidiary, WAPCOS Limited has actively participated in various projects in major parts of India. This company also has a growing global presence which allows it to analyse ongoing market trends and provide customised solutions. In this way, the company caters to the complex and diverse requirements of both public and private clients from India and overseas.

Presently, WAPCOS Limited has ongoing projects in 30 countries. Some of them are Bangladesh, Cambodia, Botswana, Cuba, Bhutan Burundi, Fiji Islands, Nepal, Uganda, Zimbabwe, Indonesia, Liberia, Lao, Myanmar, Mongolia and Ghana. It has worked with clients such as the Government of Mozambique, Royal Government of Cambodia, Ministry of Water, Tanzania, World Bank, Asian Development Bank and more. 

The company provides a range of concept-to-commissioning certificates from a range of subsectors in its domain. Some of these services involve major projects like building dams, irrigation, reservoir engineering, flood control, hydropower and pump storage, renewable energy engineering and water supply and sanitation posts.

Talking financially, the total revenue from operations of WAPCOS Limited increased from Rs. 25,128.73 million IN FY 2021 to Rs. 27,979.93 million in FY 2023. Meanwhile, the company’s profit after tax grew from Rs. 601.47 million in FY 2021 to Rs. 687.67 million in FY 2022.

IPO Details and Objectives

WAPCOS Ltd. filed its Draft Red Herring Prospectus (DRHP) with SEBI on September 23, 2022, to launch an IPO. The company will offer 3,25,00,000 equity shares as Offer for Sale only. WAPCOS Limited is yet to announce the total worth of the IPO shares that it will offer as an OFS.

According to its DRHP, the upcoming WAPCOS Ltd. IPO will be an entirely book-built issue. This means, the company will accept bid prices at par or above the floor price set by it. To carry out its disinvestment aim, the President of India acting through the Ministry of Jal Shakti, Government of India is offering shares via the OFS as the selling promoter. 

The face value of the upcoming IPO shares is Rs. 10 per equity share. WAPCOS Limited has yet to declare the lot size, price band and opening and closing dates of its IPO shares. 

As per recent reports, WAPCOS Ltd. recently withdrew its plan to go public with an IPO on September 21, 2023. However, the authorities did not disclose the reason behind this withdrawal. Therefore, the upcoming WAPCOS Limited IPO plan is presently on hold. 

Also Read: Cut-Off Price in IPO Application

Strengths

Take a look at some of the strength of WAPCOS Ltd. that makes this company’s IPO worth investing in. 

• WAPCOS Limited holds around 2% of the total market share on a pan-India basis. By March 2022, its business spread its branches to most major states in India. 
• Beyond the boundaries of India, WAPCOS Limited holds a global customer base spread across Asia, Africa, North America, Europe, South America and Oceania. 
• WAPCOS Limited has an established track record of offering engineering consultancies and construction services in core fields for 50+ years. 
• The company functions with advanced machinery to focus on efficient operations and quality control.
• WAPCOS have a strong credit profile and order book resulting from successful execution of projects. This has helped WAPCOS build a strong brand image attracting more customers and retaining the existing ones. 

Risk Associated

Besides the above strengths, you must know a few risks that can hinder WAPCOS Limited’s business flow:

• WAPCOS Limited relies on generating revenue from the Government of India, state governments and foreign government bodies. This exposes the company to certain inherent business risks. As a result, the business flow, operation and financial conditions are highly dependent on external factors outside the company’s direct control.
• The company procures projects through a bidding process. However, there is no assurance whether this company will receive the projects that it bids for. Winning or losing such projects can impact the company’s operation and financial conditions. 

Also Read: How Can You Analyse An IPO?

Summary

Every investor both new and old needs to study the DRHP thoroughly to make an informed decision. If you are planning to invest in the upcoming WAPCOS Ltd. IPO, consider knowing your investment goals and risk appetite beforehand. If you are a novice investor, you can seek assistance from a financial expert to guide you through this investment journey.

Finally, you can browse our website to learn how to invest in this upcoming IPO with a few simple steps. You can also open a Demat and trading account with us to start investing in IPOs to grow your capital.

WAPCOS Limited IPO FAQs