Vishnu Prakash R Punglia had a stellar debut on the stock market on September 5, with a price tag of 66.7% above its issue price of Rs 99.
Shares in the engineering, procurement and construction (EPC) company started trading on the NSE at Rs 165 and on the ESB at Rs 163.30. The listing was in line with analysts’ expectations, based on strong IPO registrations, the government’s growing focus on the infrastructure sector, strong order books, and valuations. reasonable price.
The initial public release saw a whopping 87.82x signups, backed by all types of investors. Qualified institutional buyers and high net worth individuals (non-institutional investors) were very active among them, buying 171.69 times and 111.03 times the allocated quota. The Rajasthan-based company has raised Rs 308.88 crore through an IPO consisting of only one new issuance. All proceeds from the issuance, excluding IPO fees, will be used to purchase equipment and machinery, working capital requirements, and general corporate purposes.
The company’s financial performance has impressed analysts as well as investors. VPRPL’s revenue has grown at a CAGR (compound annual growth rate) of about 55% over the past three years.
Geojit Research notes: “Furthermore, EBITDA increased CAGR by 86% in FY21-23, while EBITDA margins improved by 9.3% in FY21-13.4% in FY21. 23, thanks to lower commodity prices and better overall cost absorption.” For long-term reasons, analysts recommend that designated investors continue to hold investments in VPRPL.
“It has high growth potential and will also benefit investors after listing. Investors who want to buy on listing date can accumulate VPRPL if listing is established at a lighter rate. due to the secondary market scenario,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.
Meanwhile, customer focus (93.5% of fiscal 2023 revenue from top 10 customers) and region focus (62% of backlog is concentrated in Rajasthan) are seen as risks. main business risk.
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