VISHNU PRAKASH R PUNGLIA LIMITED

VISHNU PRAKASH R PUNGLIA LIMITED - IPO DETAILS 

Company Overview 

Established in 1986, Vishnu Prakash R Punglia Limited is actively involved in the realm of designing and executing infrastructure projects for Central and State Governments, autonomous bodies, as well as private entities across 9 States and 1 Union territory in India. The company's core business operations can be categorized into four main segments: Water Supply Projects (WSP), Railway Projects, Road Projects, and Irrigation Network Projects. 

VPRP has obtained multiple accreditations as a contractor from diverse departments and agencies, including but not limited to Jodhpur Development Authority, Public Health Engineering Department in Rajasthan, Water Resources Department in Rajasthan, Roads and Building Department in Gujarat, Military Engineering Services (MES) under South Western Command in Jaipur, Public Works Department in Chhattisgarh, and Public Works Department in Madhya Pradesh. These accreditations, which range from Class AA, Class A to Class S, underscore their proficiency and experience in various project types. 

Objective of the IPO 

Here are a few quick reasons why Vishnu Prakash R Punglia Limited going public:  

1. Meeting the financial needs for capital expenditures related to the acquisition of equipment and machinery. 

2. Addressing the financial demands associated with the company's operational activities. 

3. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. Over the last two years, there has been robust revenue growth, and FY23's figures have more than doubled compared to FY21.  

2. Based solely on the sector's potential, the government's investment in infrastructure capital expenditure, and the company's proven track record in project delivery, the current pricing seems to offer an opportunity for investors. 

3. The most recent annual profit margins and return on equity (ROE) are notably impressive. The company has maintained net profit margins exceeding 5% and an ROE surpassing 25%, which is a highly competitive achievement. 

4. Already has a presence in 9 states and 1UT and is planning to diversify across more geographies. 

Cons 

1. Can be impacted by pending legislation against the company. 

2. Its revenue is tied and concentrated on projects with government entities, which are usually favourable to clients, i.e., government entities and agencies. This can impact the profitability of the business. 

3. Higher working capital requirements. 

4. A large business is focused on WSP which creates business concentration risk. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”