Pratham EPC Projects IPO opens today: Check issue size, price band and other details

The initial public offer (IPO) of Pratham EPC Projects Limited, an integrated engineering, procurement, construction and commissioning services provider, will open for subscription today. Investors may submit their bids for shares in the SME public issue between March 11 and March 13.

Pratham EPC Projects IPO consists entirely of fresh issue of 48 lakh shares, including an anchor allocation of 13,66,400 shares. Like all other SME IPOs, Pratham EPC Projects IPO also has a market maker portion, of 2.4 lakh shares.

The company intends to raise ₹36 crore through the public issue. Shares of Pratham EPC Projects will be listed on the National Stock Exchange – NSE Emerge SME platform.

Pratham EPC Projects Limited promoters Nayan Kumar Pansuriya and Pratik Kumar Maganlal Vekariya currently hold 100% in the company. The promoters' share will be diluted to 72.97% post the IPO issue.

Pratham EPC Projects Limited has reserved 50% of the net issue for qualified institutional buyers (QIBs) including anchor investors. Another 15% has been set aside for non-institutional investors and 35% is allocated to retail individual investors.

The company has set the price for Pratham EPC Projects Ltd in the range of ₹71 to ₹75 at face value of ₹10 per share.

Retail investors can submit their bids for shares in the IPO with a minimum lot size of 1600 equity shares, totalling ₹1.2 lakhs, and multiples thereof. The maximum investment amount for retail investors in Pratham EPC Projects Limited is capped at ₹2 lakh.

The minimum investment by NIIs in Pratham EPC Project Ltd's IPO is two lots aggregating to ₹2,40,000.

The company will utilise proceeds from the fresh issue of shares in Pratham EPC Projects IPO for capital expenditure on purchasing of new machinery. A portion of the money raised in the public issue will be used to fund the working capital requirement and general corporate purposes. The allotment of shares in Pratham EPC Projects IPO is tentatively scheduled to be done on March 14. The allotment status will be updated online on the official website of the IPO’s registrar— Link Intime India Private Limited

The initiation of refunds for non-allottees along with the credit of shares in the demat account of successful bidders is likely to happen on March 15.

Shares of Pratham EPC Projects are expected to be listed on NSE Emerge on March 18.

Pratham EPC Projects has appointed Beeline Capital Advisors Private Limited as the sole book-running and lead manager for the public issue.

Pratham EPC Projects Ltd is an integrated services provider offering services in oil and gas utilities. The company specialises in integrated engineering, procurement, construction, and commissioning. It undertakes gas pipeline projects including welding, testing, and commissioning. Pratham EPC Projects is engaged in the business of tendering and management of projects.

As of February 2024, the company has 8 major ongoing projects of which 7 projects are approximately ₹296.66 crore. The company has shown stable growth over the last three financial years. From ₹30.85 crores in FY 21, Pratham EPS Projects' total income grew to ₹50.62 crores in FY22 and ₹51.67 crore in FY23. The company's profit swelled to ₹7.64 crore in FY23 from ₹4.41 crore in FY22 and ₹1.12 crore in FY21.

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