Jodhpur-based Vishnu Prakash R Punglia Ltd has filed for an initial public offering (IPO) by submitting Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).

Under the IPO, the company would issue 3.12 crore fresh equity shares with a face value of Rs 10 each with no offer-for-sale component. The IPO Size is expected to be around Rs 300 crores.

The ISO-certified Engineering, Procurement and Construction (EPC) company focuses on Water Supply Projects and has designed and constructed major infrastructure projects for the central and state governments.

The proceeds from the issue would be used to purchase capital equipment (Rs 58.64 crore), fund working capital requirements (Rs 140 crore) and fulfil general corporate objectives (remaining).

The company had 51 projects amounting to Rs 5,653.43 crore as of December 2022, of which projects worth Rs 1816.81 crore have already been completed with ongoing projects in nine states.

According to financial reports for the 9 months ended 31 December 2022, the company reported revenue from operations of Rs 712.70 crore and a net profit of Rs 50.74 crore with a 13.13% EBITDA margin. From FY19-20 to FY 20-21, the company’s revenue from operations rose at a CAGR of 45.10%, and profit climbed at a CAGR of 88.25%.

The allocation of the issue will be as follows – 50% to qualified institutional buyers (QIB), 15% to non-institutional investors (NII), and 35% to retail individual investors (RII). The lead book-running managers of the issue are Choice Capital Advisors Private Limited and Pantomath Capital Advisors Private Limited.