Vishnu Prakash R Punglia shares list at 67% premium over IPO price

Vishnu Prakash R Punglia (VPRPL) made a strong debut on stock exchanges on Tuesday, with the share price of the homegrown infrastructure company listing at ₹165 apiece on the NSE, a premium of 66.66% to the issue price of ₹99 per share. On the BSE, the stock opened at ₹163.3, up 64.9% against the initial public offering (IPO) price band.

Post listing, VPRPL shares dropped more than 11% from opening levels to touch a low of ₹146.55 on the NSE. The stock touched a high and low of ₹164.45 and ₹146.45 on the BSE.

On the volume front, a total of over 2.1 crore shares changed hands over the counter on the BSE and the NSE, while the market capitalistion stood at ₹1,826 crore.

The stellar listing of Vishnu Prakash was in line with Street expectations as the stock was commanding a premium of around ₹55-60 in the grey market, indicating a gap up opening of 60% over its issue price.

“Vishnu Prakash R Punglia's listing was in line with expectations, as it is a well-established company with a strong track record in the water supply sector. The company is also benefiting from various government initiatives, which are likely to boost its growth in the coming years. The IPO was well-received by investors, with the issue being subscribed to 87.82 times,” says Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

Analyst at Swastika Investmart recommended investors, who participated in the IPO, to either book profits immediately or hold on to their shares for the long term.

The Rajasthan-based infrastructure company raised ₹308.88 crore via IPO route, which comprised only a fresh issue of 3.12 crore equity shares at a price band of ₹94-99 per share. The IPO, having a lot size of 150 shares, opened for subscription between August 24-28.

The IPO of the construction company was subscribed 87.82 times, on the back of an overwhelming response from qualified institutional buyers (QIBs) and non-institutional investors (NIIs). The portion reserved for QIBs and NIIs were booked 171.69 times and 111.03 times, respectively, while the quota for retail investors was subscribed 32.01 times.

The company intended to use IPO proceeds for the purchase of equipment amounting to ₹62.18 crore, ₹150 crore for working capital requirements, and the remaining capital to meet general corporate purposes.

Ahead of the IPO, the company garnered ₹91.77 crore via anchor book on August 23. It allocated 92.7 lakh equity shares to anchor investors at ₹99 per share, which saw participation from 13 foreign investors and domestic institutions including Quant Mutual Fund, Max Life Insurance Company, Kotak Mahindra Life Insurance Company, Societe Generale, Minerva Emerging Opportunities Fund, Copthall Mauritius Investment, and BNP Paribas Arbitrage.

Incorporated in 1986, Jodhpur-based Vishnu Prakash R Punglia VPRPL, with more than 36 years of experience, specialises in executing engineering, procurement, and construction (EPC) projects. The company is prominently recognised for its water supply projects (WSPs) and is actively engaged in various infrastructure segments such as Railways, Roads, and Irrigation networks. The company is currently managing 51 projects valued at ₹3,800 crore across 9 states and 1 union territory.

Choice Capital Advisors and Pantomath Capital Advisors were the book running lead managers and Link Intime India was appointed as the registrar to the issue. 

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