Investors seem to be gung-ho about the prospects of Vishnu Prakash R Punglia as all kinds of investors showed interest in the offer on August 24 helping the issue get fully subscribed in the initial hours on the first day of bidding.
Investors have bought 8.27 crore equity shares, which was 3.77 times the offer size of 2.19 crore equity shares, as per the subscription data available on exchanges.
Retail investors have bid 4.88 times the allotted quota and high networth individuals (HNIs) have bought 6.26 times the portion set aside for them, which is 35 percent and 15 percent of the total offer size, respectively.
Employees also sent in their bids 1.91 times the portion set aside for them, while qualified institutional buyers (QIBs) bought 5 percent shares of their reserved portion, which is 50 percent of the issue size.
The Rajasthan-based construction company has reserved 3 lakh shares for its employees who will get those shares at a discount of Rs 9 per share to the final offer price.
Also Read: Moneyconrol's Research Note on Vishnu Prakash R Punglia IPO
Vishnu Prakash R Punglia is planning to raise Rs 308.88 crore equity shares via an initial public offering (IPO) of 3.12 crore equity shares. It is entirely a fresh issue by the company.
Of which, the company already mopped up Rs 91.77 crore via anchor book, a part of qualified institutional buyers, on August 23. Max Life Insurance, Societe Generale, Kotak Mahindra Life Insurance Company, Copthall Mauritius Investment, Minerva Emerging Opportunities Fund, Quant Mutual Fund, and BNP Paribas Arbitrage were some of the investors, who participated in the anchor book.
Of the total net fresh issue proceeds, Rs 62.18 crore will be utilised for the purchase of equipment & machinery and Rs 150 crore for working capital requirements. The remaining funds will be kept for general corporate purposes.
Also read: Vishnu Prakash R Punglia IPO opens today; 10 key things to know
The engineering, procurement and construction company operates in water supply, railway, road, and irrigation network projects, but a significant portion of the projects executed by them are in the water supply segment, which contributed 85 percent to its revenue in past financial years, while railway & road projects contributed to over 6 percent to topline.
As of July 15, 2023, it has an orderbook of Rs 3,799.53 crore. Its ongoing projects in the state of Rajasthan constituted Rs 2,338.2 crore (61.54 percent) of the pending order book.
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