Vishnu Prakash R Punglia's shares makes a stellar market debut at 66% premium

5 Sep 2023 , 10:01 AM

Vishnu Prakash R Punglia’s infrastructure company, VPRPL, had a spectacular debut on the stock market. The company’s shares were listed at Rs 165 on the NSE, marking a remarkable 66.67% increase from the issue price of Rs 99. Similarly, on the BSE, the shares debuted at Rs 163.30, reflecting a substantial 64.95% increase.

The company’s initial public offering (IPO) closed last week with an astounding 87.82 times oversubscription, drawing interest from all types of investors. Qualified institutional buyers and high net worth individuals (non-institutional investors) were particularly aggressive, subscribing 171.69 times and 111.03 times their allocated shares, respectively. Retail investors also showed strong support by subscribing 32.01 times their portion, while employees subscribed 12.97 times.

With a market capitalization of Rs 1,234 crore (at Rs 99 per share), this Rajasthan-based company exclusively raised Rs 308.88 crore through the IPO, which consisted solely of fresh shares. Consequently, all the proceeds from the IPO, excluding expenses, will be allocated for the acquisition of equipment and machinery, fulfilling working capital needs, and general corporate purposes.

Under the leadership of its promoter, Vishnu Prakash Punglia, the EPC company primarily specializes in water supply projects and has delivered robust financial performance in recent fiscal years. Bolstered by a strong order book across various business sectors and geographic regions, the company achieved a 55.10% CAGR in revenue from operations from FY21 to FY23, reaching Rs 1,168.4 crore in FY23. Simultaneously, net profit experienced an impressive 118.52% CAGR during the same period, amounting to Rs 90.64 crore in FY23. Additionally, the company has established a presence in the railway, road, and irrigation segments.