Pratham EPC Projects Ltd IPO: Subscription Dates, Price Band, Lot Size & Financials 2024
The Pratham EPC IPO is just around the Corner. It is a great IPO and lots of investors have great expectations from the same. Therefore today in this article we’ll briefly discuss the Pratham EPC’s operation, share price and other information.
Introduction of Pratham EPC
In order to offer comprehensive services to Indian gas and oil utilities, Pratham EPC Projects Limited was established in the year. Pratham EPC Projects Ltd. has a number of specialties, including integrated engineering, procurement, construction, and commissioning. Gas pipeline projects that Pratham EPC Projects Limited works on include welding, testing, and commissioning. Oil and gas pipelines and offshore water distribution projects are its mainstays. Such projects are managed and put out to bid by Pratham EPC Projects Limited. The company has executed 12 projects totaling ₹131.84 crore thus far. With its own projects underway, its order book is estimated to be worth ₹407 crore. About 770 people work for the company on its numerous projects and in its administrative capacities.
Key Terms of the First EPC Project IPO
Here are some of the highlights of the maiden EPC Projects IPO on the SME segment of the National Stock Exchange (NSE) .
- The issue opens for subscription on 11 March 2024 and closes for subscription on 13 March 2024; Both days are included.
- The company’s stock has a face value of ₹10 per share and is a book building issue. The price of the book building issue has been set in the price band of ₹71 to ₹75 per share. Being a book built issue, price will be discovered in the above band.
- The IPO of Pratham EPC Projects Limited is only a new issue component and not an offer for sale. It must be remembered that the new issue portion is EPS dilutive and equity dilutive, but OFS is merely a transfer of ownership.
- As part of the fresh issue portion of the IPO, Pratham EPC Projects Limited will issue a total of 48,00,000 shares (48.00 lakh shares) at ₹75 per share in the upper band of the IPO to raise fresh funds of ₹36.00 crore. .
- Since there is no offer for sale (OFS) portion, the size of the new issuance will also be double the overall IPO size. Therefore, the overall IPO size will be 48,00,000 shares (48.00 lakh shares) to be issued at an upper band IPO price of ₹75 per share giving an overall IPO size of ₹36.00 crore.
- Like every SME IPO, this issue also has a market making component with a market maker inventory allocation of 2,40,000 shares. X Securities Private Limited will be the market maker for this issue. The market maker provides two types of quotations after listing to ensure liquidity on the counter and on a low cost basis.
- This company has been promoted by Nayan Kumar Pansuriya and Pratik Kumar Maganlal Vekaria. Currently the promoter holding in the company is 100.00%. However, after the fresh issue of shares in the IPO, the promoter equity holding will be diluted to 72.97%.
- The fresh issue funds will be used by the company to purchase machinery at its operating plants. In addition, some portion of the fund will also be allocated for working capital requirements and general corporate purposes.
- Beeline Capital Advisors Private Limited will be the lead manager of the issue and Intime India Private Limited will be the registrar to the issue. The problem extends to market maker X Securities Pvt. Ltd.
Pratham EPC Projects Ltd IPO Lot Size
The minimum lot size for IPO investment is 1600 shares. Thus, retail investors can invest a minimum of Rs 120000 in the IPO which is also the maximum amount. HNI/NII investors can invest in a minimum of 2 lots. There is no upper limit for QIB and HNI/NII investors.
| Investor category | Share Allotment |
| market maker | 2,40,000 (5.00%) |
| anchor allocation | 13,66,400 (28.46%) |
| QIB | 9,12,000 (19.00%) |
| HNI (HNI) | 6,84,800 (14.27%) |
| retail | 15,96,800 (33.27%) |
| Total | 48,00,000 (100.00%) |
The minimum lot size for IPO investment will be 1,600 shares. Thus, retail investors can invest a minimum of ₹120,000 (1,600 x ₹75 per share) in the IPO. This is also the maximum that retail investors can invest in an IPO. HNI/NII investors can invest in a minimum of 2 lots of 3,000 shares and a minimum lot value of ₹2,40,200. There is no upper limit on what HNI/NII investors can apply for. The table below captures the break-up of lot sizes for different categories.
| on application | lot | share | Amount |
| Retail (minimum) | 1 | 1,600 | ₹1,20,000 |
| Retail(Max) | 1 | 1,600 | ₹1,20,000 |
| HNI(Minimum) | 2 | 3,200 | ₹2,40,000 |
Important dates to know in the first EPC Project IPO
| Program | Temporary date |
| IPO opening date | 11-Mar-24 |
| IPO closing date | 13-Mar-24 |
| date of allotment | 14-Mar-24 |
| Refund to non-allottees | 15-Mar-24 |
| Credit of shares in demat acc | 15-Mar-24 |
| listing date | 18-Mar-24 |
Pratham EPC Projects Ltd IPO Financials
The table below captures the key financials of Pratham EPC Projects Limited for the last 3 completed financial years.
| Description | FY23 | FY22 | FY21 |
| Net Revenue (₹ in crore) | 50.20 | 50.47 | 30.58 |
| Sales Growth (%) | -0.52% | 65.02% | |
| Profit after tax (₹ in crore) | 7.64 | 4.41 | 1.13 |
| PAT Margin (%) | 15.22% | 8.74% | 3.69% |
| Total Equity (₹ in Crore) | 17.98 | 10.34 | 5.92 |
| Total Assets (₹ in Crore) | 48.50 | 28.50 | 20.42 |
| Return on Equity (%) | 42.50% | 42.69% | 19.05% |
| Return on Assets (%) | 15.76% | 15.48% | 5.53% |
| Asset Turnover Ratio (X) | 1.04 | 1.77 | 1.50 |
| Earnings per share (₹) | 3.90 | 3.41 | 0.87 |
The company’s net revenue in FY 2023 was Rs 50.20 crore and PAT was Rs 7.64 crore, which was Rs 4.41 crore in FY 2022. Due to the sharp growth in net profits, the net margin has increased rapidly to the level of 15.22% in FY2023, while the ROE (Return on Equity) and ROA (Return on Assets) also stood at a strong 42.50% and 15.76% in the latest year.
So this was all about the Pratham EPC. The above is not investment advice. Follow it with due consideration and carefully as markets are subject to risk. However Pratham EPC IPO can prove to be a great investment opportunities for all of you.
FAQs:-
1. What is Pratham EPC Projects Ltd IPO?
– Pratham EPC Projects Ltd IPO is an initial public offering launched by the company to raise funds from the public for its business operations.
2. When does the Pratham EPC IPO subscription period start and end?
– The subscription period for the Pratham EPC IPO starts on March 11, 2024, and ends on March 13, 2024.
3. What is the price band for Pratham EPC IPO shares?
– The price band for Pratham EPC IPO shares is set between ₹71 to ₹75 per share.
4. What is the minimum lot size for investing in the Pratham EPC IPO?
– The minimum lot size for investing in the Pratham EPC IPO is 1600 shares.
5. How will the funds raised from the IPO be utilized by Pratham EPC Projects Ltd?
– The funds raised from the IPO will be used by Pratham EPC Projects Ltd for purchasing machinery, working capital requirements, and general corporate purposes.
6. Who are the promoters of Pratham EPC Projects Ltd?
– Pratham EPC Projects Ltd is promoted by Nayan Kumar Pansuriya and Pratik Kumar Maganlal Vekaria.
7. What is the role of Beeline Capital Advisors Private Limited in the IPO?
– Beeline Capital Advisors Private Limited is the lead manager of the Pratham EPC IPO.
8. Is there a market making component in the Pratham EPC IPO?
– Yes, there is a market making component in the Pratham EPC IPO, with X Securities Private Limited acting as the market maker.
9. What are the key financial indicators of Pratham EPC Projects Ltd?
– Key financial indicators include net revenue, profit after tax, return on equity, return on assets, and earnings per share.
10. Is investing in the Pratham EPC IPO advisable?
– Investment decisions should be made after thorough consideration of risks and consultation with financial advisors, as market investments carry inherent risks.
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