Popular Foundations Limited, a seasoned player in the engineering and construction sector with over 25 years of experience, is set to launch its IPO with a total issue size of ₹19.86 crores. The IPO comprises a fresh issue of 53.7 lakh shares, and the subscription period opens from September 13, 2024, to September 18, 2024. Shares are priced at ₹37 each, making the minimum lot size 3,000 shares.

The company specializes in delivering comprehensive end-to-end solutions across various sectors, including factories, educational institutions, and residential projects. With a strong focus on quality and innovation, Popular Foundations has built a solid reputation in the construction industry.

The tentative listing date for the shares is set for September 24, 2024, on the BSE SME platform.

Subscription Status and Anchor Investors

As of 12:55 PM on September 19, 2024, the Popular Foundations IPO had been subscribed 7.68 times on its second day, reflecting robust investor interest. The book-running lead manager for the issue is SRUJAN ALPHA CAPITAL ADVISORS LLP, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar. Spread X Securities Private Limited is designated as the market maker for the IPO.

Minimum Investment Requirements

Retail investors are required to make a minimum investment of ₹111,000, which corresponds to one lot of 3,000 shares. High-Net-Worth Individuals (HNIs) need to invest in 2 lots (6,000 shares), totaling ₹222,000.

Financial Performance

Popular Foundations has shown impressive financial growth over the last few fiscal years. The revenue from operations has increased from ₹2,630.17 lakhs in FY22 to ₹5,191.00 lakhs in FY24. The EBITDA figures for the same period were ₹710.04 lakhs in FY24, compared to ₹323.46 lakhs in FY23 and ₹265.22 lakhs in FY22. This shows a significant increase in operational efficiency and profitability.

The company has also improved its profit after tax (PAT), which rose to ₹347.76 lakhs in FY24 from ₹48.08 lakhs in FY22. The pre-issue earnings per share (EPS) stands at ₹2.41, while the post-issue EPS is projected to be ₹1.70. The pre-issue price-to-earnings (P/E) ratio is 15.35x, while the post-issue P/E ratio is 21.76x, compared to the industry average of 36.05x. This suggests that the IPO is fairly valued relative to its peers.

Use of IPO Proceeds

The proceeds from the fresh issue will be allocated as follows:

₹494.00 lakhs for prepayment or repayment of outstanding borrowings.

₹1,186.00 lakhs for funding working capital requirements.

₹108.21 lakhs for general corporate purposes.

These allocations aim to strengthen the company’s balance sheet and support its operational needs.

How to Check Popular Foundations IPO Allotment Status

The allotment date for the Popular Foundations IPO is set for September 20, 2024. Investors can check their allotment status online through the BIGSHARE SERVICES PRIVATE LIMITED website. Here’s how:

Visit the IPO allotment status page.

Select Popular Foundations Limited IPO from the dropdown.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Following these steps will allow investors to quickly determine if they have been allotted shares in this promising IPO.

Should You Invest?

With its solid financial performance and a GMP indicating potential listing gains, the Popular Foundations IPO appears to be a promising investment opportunity. However, it’s essential for investors to assess their risk appetite before proceeding. Given the company's established presence and diversified project portfolio, it is suitable for those seeking both short-term listing gains and long-term growth.

Conclusion:

The Popular Foundations IPO offers a compelling opportunity for investors interested in the construction sector. With its strong track record, robust financial growth, and strategic use of IPO proceeds, this offering is worth considering for both new and experienced investors.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.