Pratham EPC Projects, an integrated provider of engineering, procurement, construction, and commissioning services, is set to initiate its initial public offering (IPO) on March 11.
The IPO, categorized as an SME IPO, will open for bidding from March 11 to March 13.
The company has disclosed the price band for the public offer, with Pratham EPC Projects IPO priced between ₹71 to ₹75 per share. At the upper end of this range, the company aims to raise ₹36 crore through the issuance of 48 lakh fresh equity shares.
The lot size for Pratham EPC Projects IPO is 1,600 shares, requiring a minimum investment of ₹120,000 for retail investors. Proceeds from the IPO will be utilized for machinery procurement, meeting working capital needs, and general corporate purposes.
The allotment of Pratham EPC Projects IPO shares is anticipated to be finalized by March 14, with the equity shares slated to be listed on NSE SME on March 18, 2024.
Beeline Capital Advisors Pvt Ltd is serving as the book-running lead manager for the Pratham EPC Projects IPO, while Link Intime India Private Ltd is the IPO registrar.
Overview of Pratham EPC Projects
Pratham EPC Projects Ltd offers comprehensive services to oil and gas utilities in India, specializing in integrated engineering, procurement, construction, and commissioning. The company is promoted by Nayankumar Pansuriya and Pratikkumar Vekariya. Following the IPO, the promoter holding will decrease to 72.97% from the current 100%.
Financial Performance
In the financial year ending March 2023, Pratham EPC Projects witnessed a significant surge in net profit to ₹7.64 crore, up from ₹4.41 crore in the preceding year. Additionally, the company’s revenue grew to ₹51.67 crore in FY23 compared to ₹50.62 crore in FY22.
Grey Market Premium (GMP) for Pratham EPC Projects IPO
Market observers have reported that the grey market premium (GMP) for Pratham EPC Projects IPO is currently at ₹35 per share. This implies that the company’s equity shares are trading at a premium of 46.67% at ₹110 apiece in the grey market, exceeding the IPO price of ₹75 per share.
