Vishnu Prakash IPO to open on August 24; price band fixed at Rs 94-99

The initial public offering (IPO) of Vishnu Prakash R Punglia will open for subscription on Thursday, August 24. The company will be selling its shares in the range of Rs 94-99 apiece, where investors can make a bid of a minimum of 150 equity shares and in multiples thereafter. The issue can be subscribed till August 28.

Incorporated in 1986, Vishnu Prakash R Punglia is engaged in the business of designing and constructing infrastructure projects for the central and state governments, autonomous bodies, and private bodies across nine states and one union territory in India.

The primary offering consists entirely of a fresh issue of up to 3.12 crore equity shares, amounting to Rs 308.88 crore at the upper range of the price band. The anchor book for the issue will open on Wednesday, August 23. Also, the company is giving a discount of Rs 9 per cent share to its eligible employees.

Net proceeds from the issue shall be utilized towards funding capital expenditure requirements for the purchase of equipment and machinery, funding the working capital requirements of the company and general corporate purposes.

The company's principal business operations are broadly divided into four categories namely water supply projects, railway projects, road projects and irrigation network projects. It has been accredited with various registrations as a contractor with various departments and agencies.

For the year ended on March 31, 2023, the company reported a net profit at Rs 44.85 crore with a revenue from operations at Rs 785.61 crore. The company had reported a net profit at Rs 18.98 crore with a revenue from operations at Rs 485.73 crore in the previous financial year. As on July 15, 2023, it has an order book of Rs 3,799.53 crore.

The company has reserved 50 per cent of equity shares for qualified institutional bidders, while non-institutional investors will have 15 per cent of reservation for them. Remaining 35 per cent shares will go to the retail investors of the company.

Choice Capital Advisors and Pantomath Capital Advisors are the book running lead managers and Link Intime India has been appointed as the registrar to the issue. Shares of the company are proposed to be listed on both BSE and NSE tentatively on September 5, 2023.

Also read: Titan shares: Caratlane stake purchase EPS dilutive in near term. Stock price targets & more

Also read: Hot stocks on August 21, 2023: Reliance Industries, PNB Housing, Jio Financial, SJS Enterprises and more