Pratham EPC Projects Limited IPO

Pratham EPC Projects is gearing up for its Initial Public Offering (IPO), raising Rs 36.00 crores through a book built issue. This fresh issue comprises 48 lakh shares, offering investors an opportunity to participate in the company’s growth trajectory.

The IPO subscription window opens on March 11, 2024, and closes on March 13, 2024. Expectations are high as the allotment process is anticipated to conclude on Thursday, March 14, 2024. The listing, scheduled on NSE SME, is projected for Monday, March 18, 2024.

Investors can subscribe to the IPO within a price band of Rs.71 to Rs.75 per share. The minimum application lot size stands at 1600 shares, requiring a minimum investment of Rs. 120,000 for retail investors. High Net Worth Individuals (HNI) are required to invest in a minimum of 2 lots (3,200 shares), totaling Rs. 240,000.

Beeline Capital Advisors Pvt Ltd spearheads the book running as the lead manager for the Pratham EPC Projects IPO, ensuring a smooth process for investors. Link Intime India Private Ltd serves as the registrar, managing the intricacies of the issue. Spread X Securities acts as the market maker, facilitating trading post-listing.

For comprehensive insights, prospective investors are encouraged to refer to Pratham EPC Projects IPO RHP. Don’t miss out on this opportunity to be part of Pratham EPC Projects’ promising journey into the market.

Pratham EPC Projects IPO Details

The Pratham EPC Projects IPO is set to captivate investors from March 11 to March 13, 2024, offering an opportunity to partake in the company’s growth journey. With a face value of Rs. 10 per share, the IPO presents a price band ranging from Rs. 71 to Rs. 75 per share, ensuring flexibility for investors. The lot size stands at 1600 shares, catering to varying investment preferences.

The IPO entails a total issue size of 4,800,000 shares, amounting to Rs. 36.00 Crores. This constitutes a fresh issue of the same number of shares, reflecting the company’s commitment to expansion and development. Classified as a Book Built Issue IPO, the offering is a testament to Pratham EPC Projects’ confidence in its future prospects.

Upon listing, Pratham EPC Projects will join the NSE SME platform, enhancing its visibility and accessibility to investors. Preceding the issue, the company’s shareholding stood at 12,960,000 shares, with a post-issue shareholding of 17,760,000 shares, indicating significant growth potential. Additionally, a market maker portion of 240,000 shares further solidifies market liquidity and stability.

The Pratham EPC Projects IPO presents an exciting opportunity for investors to participate in a dynamic market offering. With a robust foundation, strategic pricing, and promising growth prospects, this IPO is poised to make a significant impact. Investors are encouraged to seize this opportunity and explore the potential benefits of investing in Pratham EPC Projects.

IPO Date	March 11, 2024 to March 13, 2024
Face Value	₹10 per share
Price Band	₹71 to ₹75 per share
Lot Size	1600 Shares
Total Issue Size	4,800,000 shares (aggregating up to ₹36.00 Cr)
Fresh Issue	4,800,000 shares (aggregating up to ₹36.00 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Share holding pre issue	12,960,000
Share holding post issue	17,760,000
Market Maker portion	240,000 shares

Pratham EPC Projects IPO Promoter Holding

Pratham EPC Projects is backed by dedicated promoters, Mr. Nayankumar Manubhai Pansuriya and Mr. Pratikkumar Maganlal Vekariya, who play a pivotal role in the company’s growth trajectory.

Share Holding Pre Issue: Prior to the IPO, the promoters held 100.00% of the company’s shares, reflecting their significant stake and commitment to Pratham EPC Projects’ success.

Share Holding Post Issue: Following the IPO, the promoter holding is expected to stand at 72.97%. This adjustment signifies the dilution of promoter ownership post-issue, allowing for broader shareholder participation in the company’s growth.

The strong promoter holding in Pratham EPC Projects underscores their confidence and long-term commitment to the company’s vision and objectives. As the IPO proceeds, the adjustment in promoter holding paves the way for increased public participation and strengthens the company’s corporate governance framework. Investors can take assurance in the continued involvement of the promoters, driving Pratham EPC Projects towards sustainable growth and success in the market.

Share Holding Pre Issue	100.00%
Share Holding Post Issue	72.97%

Grey Market Premium (GMP)

As of March 9th, 2024, 11:24 AM, the Grey Market Premium (GMP) for Pratham EPC Projects SME IPO stands at Rs. 88, indicating strong investor interest and anticipation for the listing. With a price band of Rs. 75.00, the estimated listing price is projected to reach Rs. 163 (cap price + today’s GMP), implying an expected percentage gain/loss per share of 117.33%.

Additionally, the retail subject to Sauda for Pratham EPC Projects SME IPO is valued at Rs. 107,000, reflecting substantial retail investor participation and confidence in the IPO.

Based on the last 8 sessions of grey market activities, today’s IPO GMP points upward, suggesting a favorable outlook for the listing. The range of GMP fluctuates between Rs. 0 and Rs. 88, underscoring the dynamic nature of investor sentiment and market demand.

We provide daily updates on Pratham EPC Projects SME IPO GMP to keep investors informed about the latest price trends and expectations for the listing. Stay tuned for further insights and developments as we track the progress of Pratham EPC Projects SME IPO in the grey market.

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
09-03-2024	75.00	₹88 No Change	107000	₹163 (117.33%)	9-Mar-2024 11:24
08-03-2024	75.00	₹88 No Change	107000	₹163 (117.33%)	8-Mar-2024 23:32
07-03-2024	75.00	₹88 Up	107000	₹163 (117.33%)	7-Mar-2024 23:24
06-03-2024	75.00	₹80 No Change	97300	₹155 (106.67%)	6-Mar-2024 23:33
05-03-2024	75.00	₹80 Up	97300	₹155 (106.67%)	5-Mar-2024 23:25
04-03-2024	75.00	₹65 Up	79000	₹140 (86.67%)	4-Mar-2024 23:30
03-03-2024	75.00	₹35 Up	42600	₹110 (46.67%)	3-Mar-2024 23:25
02-03-2024	75.00	₹0 No Change	—	₹75 (0%)	2-Mar-2024 23:25

Pratham EPC Projects IPO Timeline Tentative Schedule

The Pratham EPC Projects IPO is set to follow a structured timeline, ensuring a smooth and efficient process for investors. Here’s a comprehensive overview of the tentative schedule:

IPO Open Date: The IPO opens its subscription on Monday, March 11, 2024, presenting investors with an opportunity to participate in the offering.

IPO Close Date: Investors have until Wednesday, March 13, 2024, to submit their applications for the Pratham EPC Projects IPO, marking the closure of the subscription window.

Basis of Allotment: The basis of allotment for the IPO is expected to be finalized on Thursday, March 14, 2024, determining the allocation of shares to investors.

Initiation of Refunds: Refunds for unsuccessful applicants are slated to commence on Friday, March 15, 2024, ensuring prompt processing and resolution.

Credit of Shares to Demat: Successful applicants can anticipate the credit of shares to their demat accounts also on Friday, March 15, 2024, facilitating seamless ownership transfer.

Listing Date: Pratham EPC Projects is set to debut on the stock exchange with a listing date scheduled for Monday, March 18, 2024, marking its entry into the market.

Cut-off Time for UPI Mandate Confirmation: Investors are reminded that the cut-off time for UPI mandate confirmation is set at 5 PM on March 13, 2024, emphasizing the importance of timely compliance.

The tentative timeline for the Pratham EPC Projects IPO outlines a structured and efficient process, aiming to provide clarity and transparency to investors. With defined dates for subscription, allotment, refunds, and listing, investors can plan their participation accordingly, ensuring a seamless experience throughout the IPO journey.

IPO Open Date	Monday, March 11, 2024
IPO Close Date	Wednesday, March 13, 2024
Basis of Allotment	Thursday, March 14, 2024
Initiation of Refunds	Friday, March 15, 2024
Credit of Shares to Demat	Friday, March 15, 2024
Listing Date	Monday, March 18, 2024
Cut-off time for UPI mandate confirmation	5 PM on March 13, 2024

Pratham EPC Projects IPO Lot Size

Investors participating in the Pratham EPC Projects IPO have the flexibility to bid for shares in multiples of the minimum lot size. Here’s a breakdown of the lot size and corresponding investment amounts for retail and High Net Worth Individual (HNI) investors:

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹120,000
Retail (Max)	1	1600	₹120,000
HNI (Min)	2	3,200	₹240,000

Retail Investors: The minimum application lot size for retail investors is 1 lot, comprising 1600 shares, with a corresponding investment amount of Rs. 120,000. Retail investors can bid for shares up to this maximum limit.

High Net Worth Individuals (HNI): HNIs are required to bid for a minimum of 2 lots, totaling 3200 shares, with an investment amount of Rs. 240,000. This provision caters to investors with larger financial capacity, ensuring fair participation in the IPO.

The Pratham EPC Projects IPO offers a structured lot size framework, accommodating both retail and HNI investors. With clear guidelines on the minimum and maximum investment amounts, investors can plan their bids accordingly, aligning with their investment objectives and preferences. This transparent approach enhances investor confidence and promotes widespread participation in the IPO.

Pratham EPC Projects IPO Reservation The Pratham EPC Projects IPO offers a structured reservation system, ensuring equitable participation across investor categories. Here’s a breakdown of the shares allocated to each investor category:

Qualified Institutional Buyers (QIBs): QIBs are offered up to 50% of the Net Issue. This allocation caters to institutional investors, ensuring they have ample opportunity to partake in the IPO.

Retail Investors: Not less than 35% of the Net Issue is reserved for retail investors. This provision encourages individual investors to participate in the IPO, fostering broad-based ownership.

Non-Institutional Investors (NIIs) or High Net Worth Individuals (HNIs): NIIs or HNIs are allocated not less than 15% of the Net Issue. This segment accommodates investors with substantial financial capacity, promoting inclusivity in the IPO process.

The reservation system implemented in the Pratham EPC Projects IPO underscores the company’s commitment to inclusivity and fair distribution of shares among various investor categories. By offering specific allocations to QIBs, retail investors, and NIIs/HNIs, Pratham EPC Projects aims to ensure a balanced and transparent IPO process. Investors across all categories can participate with confidence, contributing to the success of the IPO and the company’s future growth trajectory.

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not less than 15% of the Net Issue

Pratham EPC Projects IPO Anchor Investors Details

Pratham EPC Projects IPO has successfully raised Rs 10.25 crore from anchor investors, showcasing a robust start to its public offering journey. The anchor bid date, held on March 7, 2024, witnessed significant interest from institutional investors eager to align themselves with the company’s vision and growth prospects.

Shares Offered: A total of 1,366,400 shares were made available to anchor investors, reflecting their confidence in Pratham EPC Projects’ potential.

Anchor Portion Size: The anchor portion size amounted to Rs 10.25 crore, indicating substantial support from institutional investors.

50% Shares: A lock-in period of 30 days applies to 50% of the anchor investor shares, extending until April 13, 2024. This provision ensures stability in the initial trading period post-listing.

Remaining Shares: The remaining anchor investor shares are subject to a lock-in period of 90 days, concluding on June 12, 2024. This extended lock-in period underscores the long-term commitment of anchor investors to Pratham EPC Projects’ growth journey.

The participation of anchor investors in the Pratham EPC Projects IPO underscores their confidence in the company’s prospects and strategic direction. With a solid start backed by institutional support, Pratham EPC Projects is poised for a successful listing and subsequent growth in the market. The anchor investor lock-in periods further reinforce stability and long-term investor commitment, laying a strong foundation for Pratham EPC Projects’ journey as a publicly listed entity.

Bid Date	March 7, 2024
Shares Offered	1,366,400
Anchor Portion Size (In Cr.)	10.25
Anchor lock-in period end date for 50% shares (30 Days)	April 13, 2024
Anchor lock-in period end date for remaining shares (90 Days)	June 12, 2024

About Pratham EPC Projects Limited

Established in 2014, Pratham EPC Projects Limited has emerged as a leading player in the Indian oil and gas utilities sector, offering comprehensive services across the value chain.

Core Services : Specializing in integrated engineering, procurement, construction, and commissioning, Pratham EPC Projects caters to the diverse needs of the oil and gas industry. The company’s expertise extends to gas pipeline projects, encompassing crucial activities such as welding, testing, and commissioning. Additionally, Pratham EPC Projects excels in oil and gas pipelines and offshore water distribution projects, managing tendering processes with finesse.

Certifications : Pratham EPC Projects upholds stringent quality standards, evidenced by its certifications from renowned organizations. The company is ISO 10002:2018 certified for customer satisfaction, ISO 14001:2015 certified for environmental management, ISO 18001:2007 certified for occupational health and safety, and ISO 9001:2015 certified for quality management. These certifications underscore Pratham EPC Projects’ commitment to excellence and customer-centricity.

Project Portfolio : With a robust track record, Pratham EPC Projects has successfully completed over 12 projects, with notable endeavors totaling approximately Rs. 13,184.10 lakhs. As of March 31st, 2023, the company boasts a healthy order book, comprising six major projects. While five projects worth approximately Rs. 19,397.33 lakhs have been confirmed, the execution of projects worth Rs. 16,952.80 lakhs is pending. Notably, one project, valued at around Rs. 40,667.29 lakhs, has been successfully completed, highlighting the company’s operational efficiency and project execution prowess.

Workforce Strength : Pratham EPC Projects values its human capital, with a workforce of 770 employees engaged across various departments as of September 30, 2023. This dedicated team plays a pivotal role in driving the company’s success and upholding its commitment to excellence in service delivery.

Pratham EPC Projects Limited stands as a beacon of excellence in the oil and gas utilities sector, driven by a relentless pursuit of quality, innovation, and customer satisfaction. With a robust project portfolio, a skilled workforce, and a commitment to upholding the highest standards, Pratham EPC Projects is poised for sustained growth and success in the dynamic Indian market.

Pratham EPC Projects Limited Financial Information Restated Standalone

Pratham EPC Projects Limited has demonstrated commendable financial growth and stability over the past few years, as evidenced by its restated standalone financial information.

Revenue and Profit After Tax (PAT) Between March 31, 2023, and March 31, 2022, Pratham EPC Projects witnessed a modest yet notable increase in revenue by 2.07%. Moreover, the company’s profit after tax (PAT) experienced a significant surge, rising by an impressive 73.14% during the same period. This indicates the company’s ability to effectively manage its operations and generate higher profitability.

Financial Position Pratham EPC Projects’ financial position reflects steady growth and strengthening of its balance sheet. As of September 30, 2023, the company’s assets amounted to Rs. 4,643.75 lakhs, showcasing consistent expansion. Similarly, the net worth of the company has witnessed substantial growth, reaching Rs. 2,321.26 lakhs, indicating increased shareholder value and financial stability.

Reserves, Surplus, and Borrowings The company’s reserves and surplus have shown a positive trajectory, reflecting prudent financial management and retained earnings. Furthermore, Pratham EPC Projects’ borrowing profile indicates a judicious balance between debt and equity financing, with total borrowings of Rs. 952.27 lakhs as of September 30, 2023.

Pratham EPC Projects Limited’s restated standalone financial information underscores its resilience and growth trajectory. With a steady increase in revenue, significant improvement in profitability, and prudent financial management, the company is well-positioned for sustained success and value creation for its stakeholders.

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	4,643.75	4,849.75	2,850.17	2,041.93
Revenue	3,581.37	5,167.29	5,062.66	3,085.03
Profit After Tax	523.41	764.12	441.32	112.85
Net Worth	2,321.26	1,797.86	1,033.73	592.41
Reserves and Surplus	1,025.26	1,716.86	952.73	511.41
Total Borrowing	952.27	1,418.83	246.26	199.48

Key Performance Indicator

As of September 30, 2023, Pratham EPC Projects Limited exhibits strong performance across key financial metrics, highlighting its efficiency and profitability in the market.

Return on Equity (ROE): Pratham EPC Projects achieves an impressive ROE of 45.10%, indicating its ability to generate significant returns for shareholders relative to their equity investment.

Return on Capital Employed (ROCE): With an ROCE of 24.81%, the company demonstrates efficient utilization of capital to generate profits, reflecting its operational effectiveness.

Return on Net Worth (RoNW): Pratham EPC Projects maintains a robust RoNW of 22.55%, reflecting the company’s ability to generate profits relative to its net worth and indicating sound financial health.

Price-to-Book Value (P/BV) Ratio: The P/BV ratio stands at 4.19, indicating that investors are willing to pay a premium of approximately 4.19 times the book value of the company’s assets per share, suggesting investor confidence and growth potential.

Profit After Tax (PAT) Margin (%): Pratham EPC Projects achieves a PAT margin of 15.26%, indicating the efficiency of its operations in generating profits from revenue.

These KPIs collectively demonstrate Pratham EPC Projects’ strong financial performance, profitability, and market competitiveness. As reflected in its market capitalization of Rs 133.2 Cr, the company is poised for continued growth and value creation for its shareholders.

KPI	Values
ROE	45.10
ROCE	24.81
RoNW	22.55
P/BV	4.19
PAT Margin (%)	15.26

Objects of the Issue Pratham EPC Projects IPO Objectives

The proceeds from the Fresh Issue of the Pratham EPC Projects IPO will be allocated strategically to achieve the following objectives:

Purchase of Machinery: Pratham EPC Projects aims to invest in advanced machinery and equipment, enhancing its operational capabilities and efficiency in delivering engineering, procurement, and construction services. This investment aligns with the company’s commitment to technological advancement and innovation, enabling it to meet evolving market demands effectively.

Meeting Working Capital Requirements: A portion of the IPO proceeds will be allocated towards meeting the company’s working capital requirements. This includes funding day-to-day operational expenses, managing inventory, and facilitating smooth project execution. By ensuring adequate working capital, Pratham EPC Projects can sustain its business operations efficiently and capitalize on growth opportunities in the dynamic oil and gas utilities sector.

General Corporate Purpose: The remaining proceeds will be utilized for general corporate purposes, providing flexibility to address various operational needs, pursue strategic initiatives, and support overall business growth. This may include investments in research and development, expansion activities, debt repayment, or other strategic priorities aimed at enhancing shareholder value and driving long-term sustainability.

By allocating the IPO proceeds towards these objectives, Pratham EPC Projects aims to strengthen its operational capabilities, expand its market presence, and position itself for sustained growth and success in the competitive landscape of the oil and gas utilities industry.