Popular Foundations Limited, with over 25 years of expertise in the engineering and construction sector, is set to launch its initial public offering (IPO). The issue is a Fixed Price Issue amounting to ₹19.86 Crores, comprising a Fresh Issue of 53.7 Lakh Shares. The subscription period runs from September 13 to September 18, 2024, with the allotment date on September 19, 2024, and a tentative listing on the BSE SME scheduled for September 23, 2024.

Share Price and Investment Details

The IPO share price is fixed at ₹37 per share, with a minimum lot size of 3,000 shares. Retail investors need to invest a minimum of ₹111,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹222,000 for two lots (6,000 shares).

IPO Management and Market Details

The IPO is managed by SRUJAN ALPHA CAPITAL ADVISORS LLP as the book-running lead manager, BIGSHARE SERVICES PRIVATE LIMITED as the registrar, and Spread X Securities Private Limited as the Market Maker.

Grey Market Premium (GMP) Insights

The Grey Market Premium (GMP) for Popular Foundations Limited is anticipated to be between ₹14 and ₹15. The GMP provides an informal gauge of potential listing gains but should be considered cautiously as it reflects unregulated trading. GMP figures are mentioned for informational purposes and should not be the sole basis for investment decisions.

Live Subscription Status

As of 4:04 PM on September 16, 2024, the IPO has been subscribed 2.96 times on its second day. For the latest updates on subscription status, visit the BSE website.

IPO Allotment Process

The allotment of shares is expected to be finalized on September 19, 2024. Investors can check their allotment status by visiting the IPO allotment status page, selecting Popular Foundations Limited, and entering their application number, PAN, or DP Client ID.

Utilization 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 the company's working capital needs.

₹108.21 Lakhs for general corporate purposes.

Financial Performance and Valuation

Popular Foundations has demonstrated strong financial performance, with revenues from operations increasing from ₹2,630.17 Lakhs in FY22 to ₹5,191.00 Lakhs in FY24. EBITDA and Profit After Tax (PAT) have also seen significant growth. The pre-issue EPS is ₹2.41, and the post-issue EPS is ₹1.70, with a pre-issue P/E ratio of 15.35x and a post-issue P/E ratio of 21.76x, compared to an industry P/E ratio of 36.05x. The company's ROCE for FY24 is 22.77%, and ROAE is 23.17%, indicating that the IPO is reasonably priced.

The GMP suggests potential listing gains of 38%-40%, making the IPO a viable option for investors looking for both short-term gains and long-term investment opportunities.

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