Vishnu Prakash R Punglia debuts at a premium of 65% at Rs 163 per share on the BSE

Vishnu Prakash R Punglia Limited, a prominent player engaged in the business of designing and constructing infrastructure projects, is listed with a premium of 65% at Rs 163.30 per share on BSE. On the NSE, the stock debuted at Rs 165, indicating an increase of 66.67% compared to its initial public offering price of Rs 99 per share. 

Currently, while writing this article the stock is trading at Rs 151 on the BSE. Its intraday highs and lows are Rs 164.45 and Rs 144, respectively. The current market capitalisation of the company is Rs 1880 crore. 

Incorporated in 1986, Vishnu Prakash R Punglia Limited specializes in designing and constructing infrastructure projects for Central and State Governments, autonomous bodies, and private entities across 9 States and 1 Union territory in India. 

The company’s primary business operations are categorized into four main areas: Water Supply Projects (WSP), Railway Projects, Road Projects, and Irrigation Network Projects. 

Let’s recapitulate the subscription history of the company, on the final day of the IPO window August 28, 2023, the IPO witnessed a subscription rate of 87.82 times. The public issue received an overwhelming response, with the retail category being subscribed 32.01 times, the QIB category achieving a subscription rate of 171.69 times, and the NII category reaching a subscription rate of 111.03 times. 

The company had attracted Rs 91.77 crore from various anchor investors. The company has allocated 92.70 lakh equity shares at Rs 99 per share to anchor investors. 

The price range for the IPO was set between Rs 94 and Rs 99, with a face value of Rs 10 per share and a lot size of 150 shares. The total size of the company’s IPO was Rs 308.88 crore. The final share issue price of the company was fixed at Rs 99 each. 

Following is the financial performance of the company (Standalone): 

 The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions, investors who applied for listing gains have already earned 65% on the listing day alone 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.