The initial public offering (IPO) of Vishnu Prakash R Punglia Ltd (VPRPL) opens for subscription today, 24 August 2023, and closes on 28 August 2023. The issue size of around Rs 308 crore consists entirely of a fresh issue.
The IPO got fully subscribed in the initial hours on the first day of bidding as all kinds of investors showed interest in the offer.
According to subscription data on bourses, investors have placed bids for 4.69 crore equity shares, which is 2.14 times the offer size of 2.19 crore equity shares.
Retail investors have bought three times the reserved quota, and high net-worth individuals (HNIs) have bid 3.05 times the portion booked for them.
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The Rajasthan-based construction company has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional investors (NIIs), and not less than 35 per cent of the issue for retail investors. The company has reserved 3 lakh shares for its employees, who will get those shares at a discount of Rs 9 per share from the final offer price. Employees have also applied for 98 per cent shares of their quota.
Vishnu Prakash R Punglia is planning to raise Rs 308.88 crore in equity shares through an initial public offering (IPO). The company has already raised Rs 91.77 crore through its anchor book.
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Of the total proceeds, Rs 61.18 crore will be utilised for the purchase of equipment and machinery and Rs 150 crore for working capital requirements. The remaining funds will be used for general corporate purposes.
According to market data, Vishnu Prakash IPO was commanding a grey market premium (GMP) of Rs 65.
The price band has been fixed at Rs 94–99 per equity share. To apply for the IPO, a retail investor will require at least Rs 14,850. The bidding will be done in lots, with each lot comprising 150 shares.
The expected date for the allocation of shares is 31 August. The company is likely to be listed on the stock exchanges on 5 September.
Link Intime India is the official registrar for the issue.
The engineering, procurement, and construction company is led by promoter Vishnu Prakash Punglia. It operates in water supply, railway, road, and irrigation network projects.
As of 15 July 2023, the company had 51 ongoing projects, with a total amount of work awarded amounting to Rs 6,183 crore. It had an orderbook of Rs 3,799.53 crore.
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