Pratham EPC Projects Lists at 51% Premium at Rs 113 per share on NSE and Hits Upper Circuit

Pratham EPC Projects provides end-to-end engineering, procurement, construction, and commissioning services to oil and gas utilities in India, debuted on the Indian stock market today.

The stock of Pratham EPC Projects opened at Rs 113.30 per share on the NSE, reflecting a substantial 51.07% premium over the final issue price of Rs 75 per share. The market capitalisation on the BSE stands at Rs 211 crore. Furthermore, the stock has reached the upper circuit price limit of 5%, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers. Currently, the stock is trading at Rs 118.95 per share.

IPO Proceeds 

The net proceeds from the Fresh Issue will be used to purchase machinery for the company, to meet working capital requirements, and for general corporate purposes.

Business Overview

Established in 2014, Pratham EPC Projects Limited provides end-to-end services to oil and gas utilities in India. The company specialises in integrated engineering, procurement, construction, and commissioning.

The company undertakes gas pipeline projects, including welding, testing, and commissioning. Pratham specialises in oil and gas pipelines and offshore water distribution projects and undertakes tendering and management. The company has completed over 12 projects, with the largest totaling approximately Rs 13,184.10 lakhs. As of March 31st, 2023, the company has six major projects. Five of them worth approximately Rs 19,397.33 lakhs have been confirmed, but the execution of projects worth Rs 16,952.80 lakhs is still pending. One project has been completed with an order worth around Rs 40,667.29 lakhs, indicating a healthy order book.

Subscription details 

On March 13, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 178.54 times. The public issue received remarkable interest, with the retail category being subscribed 179.48 times, while the QIB and NII categories reached a subscription rate of 70.28 and 320.53 times respectively.

The IPO price band was between Rs 71 to Rs 75 per share, with a face value of Rs 10 per share and a lot size of 1600 shares. The total size of the company’s IPO was Rs 36 crore, and the final share issue price was fixed at Rs 75 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 51% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.