Vishnu Prakash R Punglia IPO sees strong response from investors

On the third and last day of the bidding process, investors continued to show a strong response to the Rs 309-crore initial public offering (IPO) of Vishnu Prakash R Punglia. 

Investors can submit bids for a minimum of 150 equity shares and subsequent multiples during the three-day bidding process for Vishnu Prakash R Punglia's shares, which are being sold for between Rs 94 and Rs 99 per share. The selling of up to 3.12 crore equity shares is a totally fresh offering.

On Monday, August 28, 2023, investors submitted bids for 54,60,22,950 equity shares, or 24.90 times, more than the 2,19,30,000 equity shares that were initially made available for the subscription. Today is the last day to subscribe to the issue, which opened for subscription on Thursday, August 24.

While the portion reserved for retail investors had a subscription of 22.30 times, the allotment reserved for non-institutional bidders brought in 54.05 times bids. Although the quota for qualified institutional bidders (QIBs) was booked 8.35 times at the same time as the employee reservation, it was subscribed 9.34 times.

Vishnu Prakash R Punglia, a company located in Jodhpur that was incorporated in 1986, is in the business of designing and constructing infrastructure projects for the national and state governments, autonomous bodies, and private organizations in nine Indian states and one union territory.

The company's main business activities may be generally categorized into four groups: projects for water supply, railroads, roads, and irrigation networks. It has been accredited with a number of registrations as a contractor from different departments and organizations.

The majority of brokerage companies have recommended subscribing to the issue due to its substantial order book, good execution, sound financial position, promising growth potential, and appealing values for investors. The main challenges, nevertheless, are dependence on government programs, costly working capital, and escalating competition.

Source: Media Reports