Akash Jha
On the second day of bidding, August 25, investors purchased 23.3 crore equity shares in Vishnu Prakash R Pungulia’s first public offering. This number was 10.63% higher than the 2.19 crore shares that were available in the offer.
Higher government spending on infrastructure via programmes like Atal Mission for Rejuvenation and Urban Transformation, AMRUT, and Swachh Bharat, in addition to sound finances and reasonable valuations relative to competitors, may explain the enthusiastic response.
In terms of total bids, high net worth individuals and retail investors stayed on top, purchasing 19.39 times and 12.88 times their respective quotas. Both categories can receive up to 35% of the issue size, with the former receiving 15%.
Up to 50% of the shares in the issue can be reserved for qualified institutional purchasers, and so far they have bid on 35% of the shares.
There have been 5.68 subscriptions to the portion reserved for workers. The offer price includes a discount of Rs 9 per share for the company’s employees, who can purchase up to 3 lakh shares at a discount.
The Jodhpur-based construction firm, led by promoter Vishnu Prakash Punglia, plans to raise Rs 308.88 crore through a public issue of 3.12 crore equity shares, all of which will be new issues.
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Therefore, the business will get all of the proceeds from the issue, and use them to fund the purchase of Rs 62.2 crore worth of machinery and equipment, as well as meet working capital needs of Rs 150 crore.
The water supply, railway, road and irrigation network divisions are all run by the same engineering, procurement and construction (EPC) firm with a history of working on a wide range of infrastructure projects. However, WSPs (water supply projects) account up the bulk of company revenue.
