Popular Foundations IPO: Key Dates, Pricing, and Allocation Details

Popular Foundations Limited, founded in 1998, specializes in engineering and construction services, offering comprehensive end-to-end solutions in the construction sector. The company focuses on various sectors, such as factories, educational institutions, and commercial and residential projects, with a strategic emphasis on non-residential and non-government projects in and around Chennai. The company has executed projects beyond Chennai in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore. As of 7th September 2024, Popular Foundations employs 86 on-site employees, including senior executives at headquarters.

The Objectives of the Issue

Popular Foundations Limited intends to utilize the Net Proceeds from the Issue towards the following objectives:

1. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company;
2. Funding the working capital requirements of the Company; and
3. General corporate purposes.

Highlights of Popular Foundations IPO

Popular Foundations IPO is set to launch with a fixed price issue of ₹19.87 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 13th September 2024 and closes on 19th September 2024.
• The allotment is expected to be finalised on 20th September 2024.
• Refunds will be initiated on 23rd September 2024.
• Credit of shares to Demat accounts is also expected on 23rd September 2024.
• The company will tentatively list on BSE SME on 24th September 2024.
• The issue price is fixed at ₹37 per share.
• The fresh issue comprises 53.7 lakh shares, aggregating to ₹19.87 crores.
• The minimum lot size for the application is 3000 shares.
• Retail investors need to invest a minimum of ₹111,000.
• The minimum investment for HNI is 2 lots (6,000 shares), amounting to ₹222,000.
• Srujan Alpha Capital Advisors Llp is the book running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.
• Spread X Securities is the market maker for the IPO.

Popular Foundations IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 19th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Popular Foundations IPO Issue Details/Capital History

The Popular Foundations IPO is scheduled from 13th September to 18th September 2024, with a fixed price of ₹37 per share and a face value of ₹10. The total issue size is 53,70,000 shares, raising up to ₹19.87 crores through a fresh issue. The IPO will be listed on BSE SME. The pre-issue shareholding is 1,50,08,000 shares.

Popular Foundations IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 3000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Popular Foundations Ltd

Strengths:

• Experienced management team
• On-time delivery and reputation-building
• Quality design
• Robust business model
• Established brand and reputation

Weaknesses:

• Geographical concentration in and around Chennai
• Limited focus on residential and government projects

Opportunities:

• Expansion into new geographical areas
• Potential for diversification into residential and government projects
• Growing demand for construction services in India

Threats:

• Intense competition in the construction sector
• Economic fluctuations affecting the real estate market
• Regulatory changes impacting the construction industry

Financial Highlights: Popular Foundations Ltd

Below are the consolidated financial results for the Fiscal years FY24, FY23, and FY22:

Popular Foundations Limited has demonstrated strong financial growth, particularly in the most recent fiscal year. The company's revenue increased by 7% and profit after tax (PAT) rose by 191% between the financial year ending with 31st March 2024 and 31st March 2023.

Assets have grown, increasing from ₹4,929.49 lakhs in FY22 to ₹6,354.87 lakhs in FY24, representing a growth of about 28.9% over two years.

Revenue has seen steady growth, especially in FY24. It rose from ₹2,630.17 lakhs in FY22 to ₹5,191 lakhs in FY24, marking an increase of 97.4% over two years. The year-over-year growth from FY23 to FY24 was 7%, indicating consistent performance.

The company's profitability has improved substantially. Profit after tax increased from ₹48.08 lakhs in FY22 to ₹347.76 lakhs in FY24, representing a growth of 623.3% over two years. The year-over-year growth in PAT from FY23 to FY24 was 191%, showing improved operational efficiency.

Net worth has shown consistent growth, increasing from ₹1,384.08 lakhs in FY22 to ₹2,313.11 lakhs in FY24, a growth of about 67.1% over two years. This increase reflects the company's ability to generate and retain earnings, strengthening its financial position.

Total borrowings have decreased over the years, from ₹1,835.37 lakhs in FY22 to ₹1,578.4 lakhs in FY24. This reduction in borrowings, coupled with increasing assets and profitability, suggests improving financial health and debt management.