Vishnu Prakash R Punglia IPO: Strong start with 2.62 times subscription on Day 1 so far

24 Aug 2023 , 03:35 PM

The eagerly awaited initial public offering (IPO) of Vishnu Prakash R Punglia Limited has kickstarted today and is scheduled to welcome bids until August 28, 2023. The company, specializing in design and infrastructure construction, has set a price band of Rs 94 to Rs 99 per equity share for its IPO. To participate, you can click here.

As of 3.30 PM on the first day of bidding, the book build issue has garnered an impressive oversubscription of 2.62 times. Notably, the retail portion has experienced robust demand, being subscribed 3.68 times, and the Non-Institutional Investor (NII) portion has achieved a subscription of 3.72 times during this period.

Employees have shown interest with a subscription rate of 1.30 times for their allotted portion, while the Qualified Institutional Buyer (QIB) portion has received bids for 1% of the available shares for subscription.

Vishnu Prakash R Punglia Limited aims to raise Rs 308.88 crore through its IPO, consisting entirely of fresh issue of equity shares, with no offer for sale component. The company intends to utilize the net proceeds for capital expenditure needs related to equipment/machinery purchase, funding working capital requirements, and other general corporate objectives.

Prior to the IPO’s launch, the company secured nearly Rs 92 crore from anchor investors. Notable participants among the anchor investors included Quant Mutual Fund, Kotak Mahindra Life Insurance Company, and Max Life Insurance Company.

Focused on infrastructure projects for both central and state governments, Vishnu Prakash R Punglia specializes in water supply projects and stands to benefit from various government initiatives. As of July 15, 2023, the company is actively involved in 51 ongoing projects, holding a total awarded work value of Rs 6,183 crore. Among these, executed work amounts to Rs 2,384 crore, leaving an order book of Rs 3,799 crore for the remaining work.