Pratham EPC Projects IPO Opens On 11 March
Pratham EPC Projects IPO
Unveiling Pratham EPC Projects IPO: A Comprehensive Overview
The upcoming Initial Public Offering (IPO) of Pratham EPC Projects has generated significant buzz in the financial markets.
Scheduled to open on March 11 and close on March 13, this Rs 36 crore IPO has captivated the attention of investors with its ambitious goals and strategic positioning in the oil and gas sector.
Let’s delve deeper into the key aspects of this IPO, exploring its intricacies from the management team to the financial performance.
1. Company Background and Services:
Established in 2014, Pratham EPC Projects Limited has carved a niche for itself by providing end-to-end services to the oil and gas utilities sector in India.
The company specializes in integrated engineering, procurement, construction, and commissioning, with a particular focus on gas pipeline projects that encompass welding, testing, and commissioning.
This strategic specialization positions Pratham EPC Projects as a crucial player in the energy infrastructure landscape.
2. IPO Details:
The IPO is set at Rs 36 crore and is priced in the range of Rs 71-75 per share. With 48 lakh new shares on offer, the IPO is expected to draw considerable attention from investors seeking exposure to the energy sector. Investors keen to participate in the IPO can bid in lots of 1600 shares.
The proceeds from the IPO are expected to be utilized for various purposes, including expansion plans, working capital requirements, and other corporate objectives.
3. Key Dates and Listing Information:
The IPO timeline indicates that it will be open for subscription from March 11 to March 13. Post the closure, the listing of Pratham EPC Projects’ shares is anticipated on NSE SME on March 18.
The significance of these dates lies in their potential impact on the company’s valuation and market perception, making them crucial for both existing and prospective investors.
4. Key Stakeholders:
The promoters of Pratham EPC Projects are Nayankumar Manubhai Pansuriya and Prateekkumar Maganlal Vekaria.
Currently holding a 100 percent stake in the company, their ownership is expected to decrease to 72.97 percent after the IPO.
Understanding the key stakeholders is vital for investors, as it provides insights into the individuals driving the company’s vision and strategy.
5. Allocation Breakdown:
The IPO’s reserve portion is structured to accommodate various investor categories. Notably, 50 percent of the IPO is reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and 15 percent for non-institutional investors.
This allocation breakdown reflects a strategic approach to diversify ownership and cater to different investor profiles.
6. Book Running Lead Manager:
The book running lead manager for the Pratham EPC Projects IPO is Beeline Capital Advisors Pvt Ltd.
As a critical intermediary in the IPO process, the lead manager plays a pivotal role in orchestrating the offering, managing the book-building process, and ensuring a seamless transition to the listing phase.
7. Registrar and Market Maker:
Working in tandem with the lead manager, the registrar, Link Intime India Private Ltd, plays a crucial role in managing the IPO application process and shareholder records.
Meanwhile, Spread X Securities acts as the market maker, contributing to the liquidity and stability of the stock post-listing.
8. Gray Market Premium:
Ahead of the IPO launch, the gray market, an unauthorized platform where shares are traded before official listing, is indicating a premium for Pratham EPC Projects’ shares.
As per reports from investorgain.com, the shares are trading at a premium ranging from Rs 75 to Rs 88, translating to an impressive 117.33 percent.
The gray market premium serves as an informal indicator of market sentiment and investor anticipation.
9. Financial Performance:
Examining the financial performance of Pratham EPC Projects provides investors with critical insights into the company’s stability and growth potential.
During the period from April to September 2023, the company reported a revenue of approximately Rs 36 crore and a net profit of Rs 5.23 crore.
Moving to the full fiscal year 2023, Pratham EPC Projects witnessed a 2 percent year-on-year increase in revenue, reaching Rs 51.67 crore.
Simultaneously, net profit showed substantial growth, surging by 73.14 percent on an annual basis to Rs 7.64 crore.
10. Investor Sentiment and Market Dynamics:
Understanding investor sentiment is paramount in the context of an IPO. The strong gray market premium indicates positive market dynamics and heightened investor interest in Pratham EPC Projects.
Investors are likely attracted to the company’s strategic positioning in the energy sector, coupled with its consistent financial performance.
Final Remarks:
In conclusion, the Pratham EPC Projects IPO presents a compelling opportunity for investors to gain exposure to the burgeoning energy infrastructure sector in India.
With a focus on gas pipeline projects and a robust financial performance, the company appears well-positioned for growth.
As the IPO unfolds, investors should carefully evaluate the company’s fundamentals, management team, and market dynamics to make informed investment decisions.
The key dates, allocation breakdown, and gray market premium all contribute to the broader narrative of Pratham EPC Projects’ journey towards becoming a publicly listed entity.
