Popular Foundations Limited IPO presents an exciting investment opportunity for both retail investors and High-Net-Worth Individuals (HNIs). With over 25 years of experience in Engineering and Construction Activities, Popular Foundations provides comprehensive end-to-end solutions in diverse sectors like factories, educational institutions, commercial, and residential projects.

The company plans to raise ₹19.86 Crores through this IPO, offering a fixed price issue. The subscription period for the Popular Foundations IPO begins on September 13, 2024, and closes on September 18, 2024. The IPO comprises an entirely fresh issue of 53.7 Lakh Shares at a price of ₹37 per equity share. The minimum lot size for retail investors is 3,000 shares, amounting to ₹111,000, while HNIs are required to invest in at least 2 lots, totaling ₹222,000.

Popular Foundations Limited IPO Highlights:

Book-Running Lead Manager: SRUJAN ALPHA CAPITAL ADVISORS LLP

Registrar: BIGSHARE SERVICES PRIVATE LIMITED

Market Maker: Spread X Securities Private Limited

Financial Overview:

Popular Foundations has demonstrated consistent financial growth. Its revenue from operations has shown a significant increase from ₹2,630.17 lakhs in Fiscal 2022 to ₹5,191.00 lakhs in Fiscal 2024. The company's EBITDA grew from ₹265.22 lakhs in FY22 to ₹710.04 lakhs in FY24, showing substantial improvement in profitability. The Profit after Tax surged to ₹347.76 lakhs in FY24, compared to ₹119.61 lakhs in FY23.

The IPO is valued with a pre-issue P/E ratio of 15.35x and a post-issue P/E ratio of 21.76x, which, when compared to the Industry P/E ratio of 36.05x, suggests that the issue is reasonably priced. The ROCE stands at 22.77%, while the RoAE is 23.17% for FY24, reinforcing confidence in the company’s ability to generate returns.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) for Popular Foundations is in the range of ₹14 to ₹15, reflecting potential listing gains of 38-40%. However, investors are cautioned that GMP should not be the sole factor influencing investment decisions, as the Grey Market operates in an unregulated environment.

Live Subscription Status:

On the first day of the IPO subscription period (September 13, 2024), the Popular Foundations Limited IPO was subscribed 1.12 times. Investors can monitor the live subscription status throughout the IPO period for further updates on demand.

Objectives of the IPO:

The company intends to utilize the proceeds from the IPO for the following purposes:

₹494.00 Lakhs for Prepayment or repayment of certain outstanding borrowings.

₹1,186.00 Lakhs for working capital requirements.

₹108.21 Lakhs for general corporate purposes.

How to Check Allotment Status:

Investors can check their allotment status from September 19, 2024:

Visit the Registrar’s website (BIGSHARE SERVICES PRIVATE LIMITED).

Select Popular Foundations Limited IPO from the list of IPOs.

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

Submit to view your allotment.

Investment Recommendation:

Given the company's consistent financial growth, reasonable valuation, and potential listing gains in the range of 38-40%, the Popular Foundations Limited IPO is recommended for listing gains as well as long-term investment. The company's strong operational track record in the construction sector and healthy financials make this IPO a promising opportunity for investors looking to diversify their portfolio in the construction and infrastructure domain.

Disclaimer:

This IPO review is for educational purposes and should not be taken as financial advice. Always consult a financial advisor before making any investment decision.

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