Vishnu Prakash R Punglia shares to list on Tuesday; here's what grey market premium is signalling

Vishnu Prakash R Punglia is set to make a strong debut at Dalal Street on Tuesday as singalled by the current grey market premium. If one goes by the signs from the unofficial market, the listing bound player is likely to join the contenders delivering strong listing pop after Aeroflex Industries.
 
Last head, Vishnu Prakash R Punglia was commanding a a strong premium in the grey market of around Rs 54, about 55 per cent higher from its issue price of Rs 99 apiece. However, the premium in the unofficial market has remained stable around the same levels since the closure of bidding for the issue.

Anubhuti Mishra, Equity Research Analyst at Swastika Investmart expects Vishnu Prakash R Punglia to list around Rs 153, based on its grey market premium. "It is a well-established company that focuses on water supply projects, which is benefiting from various government initiatives in the infrastructure sector," she said.

The business has a history of completing projects successfully, and it has seen significant expansion through a robust order book. Also, Investors responded enthusiastically to this IPO, with a subscription of 87.82 times. Based on these factors, we can expect a strong return on listing of the company, Mishra added.

The primary offering of Vishnu Prakash R Punglia was entirely a sale of 3.12 crore fresh equity shares amounting to Rs 309 crore. The company had offered its shares in the fixed price band of Rs 94-99 apiece, and the investors could make bids for a minimum of 130 equity shares and its multiples thereof.

With Vishnu Prakash R Punglia issue getting an overwhelming response by investors and getting oversubscribed by about 88 times, we expect the issue to deliver handsome gains on the listing day, said Parth Shah, Research Analyst at StoxBox.

"We expect the issue to list at a premium of around 60 per cent on Tuesday on account of strong order book, extensive track record of executing a range of projects, good financial performance and attractive valuations. We would advise investors who have received allotment to book profits on the opening day and wait for dips for any fresh entry," he said.

The IPO of Vishnu Prakash R Punglia was overall subscribed a stellar 87.82 times. The portion for qualified institutional bidders was booked a whopping 171.69 times, while the non-institutional investors' category was subscribed an astounding 111.03 times. Retail investors were nowhere behind in bidding as their quota was subscribed 32.01 times.

Considering robust demand response by investors in all categories, investors are eagerly waiting for the company listing and we expect 50 per cent and above listing gain from its issue price of Rs 99 apiece, said Prashanth Tapse, Senior VP Research at Mehta Equities.

"We believe the premium listing is justified on the back of infrastructure sector focused business model supported by the government long term goal along with 3.5 times years of revenue visibility and investor friendly IPO valuations which gives room for strong listing gains," he added. "Looking at long term rationales, we recommend allotted investors to continue hold the stock."

Incorporated in 1986, Jodhpur-based Vishnu Prakash R Punglia is engaged in the business of designing and constructing infrastructure projects for the central and state governments, autonomous bodies, and private bodies across nine states and one union territory in India.

Choice Capital Advisors and Pantomath Capital Advisors are the book running lead managers and Link Intime India has been appointed as the registrar to the issue. Shares of the company are proposed to be listed on both BSE and NSE.

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