Popular Foundations Limited is offering an IPO of ₹19.87 crores, with 53.7 lakh shares priced at ₹37 each. The IPO opens on September 13, 2024, and closes on September 18, 2024, with allotment on September 19 and a listing on BSE SME set for September 23, 2024.

Retail investors can apply with a minimum investment of ₹1,11,000 for 3,000 shares, while HNIs need to invest ₹2,22,000 for 6,000 shares. Srujan Alpha Capital Advisors LLP is the lead manager, Bigshare Services Pvt Ltd is the registrar, and Spread X Securities is the market maker. For further details, refer to the IPO RHP.

Popular Foundations IPO opens on September 13, 2024, and closes on September 18, 2024.

IPO Open Date Friday, September 13, 2024
IPO Close Date Wednesday, September 18, 2024
Basis of Allotment Thursday, September 19, 2024
Initiation of Refunds Friday, September 20, 2024
The credit of Shares to Demat Friday, September 20, 2024
Listing Date Monday, September 23, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 18, 2024
 
Period Ended 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets ₹63.55 crore ₹48.65 crore ₹49.29 crore
Revenue ₹51.91 crore ₹48.67 crore ₹26.30 crore
Profit After Tax (PAT) ₹3.48 crore ₹1.20 crore ₹0.48 crore
Net Worth ₹23.13 crore ₹14.84 crore ₹13.84 crore
Reserves and Surplus ₹8.12 crore ₹13.84 crore ₹12.84 crore
Total Borrowing ₹15.78 crore ₹17.54 crore ₹18.35 crore

The market capitalization of Popular Foundations IPO is Rs 75.4 Cr. KPI as of March 31, 2024.

KPI Values
ROE 23.17%
ROCE 22.77%
RoNW 15.03%
P/BV 2.3
PAT Margin (%) 6.7
Pre IPO Post IPO
EPS (Rs)  2.32 1.71
P/E (x)  15.97 21.68

The Company proposes to utilize the Net Proceeds towards funding the following objects:

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

Investors can bid for a minimum of 3000 shares and in multiples thereof. The table below depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amounts.

Application Lots Shares Amount
Retail (Min) 1 3000 ₹111,000
Retail (Max) 1 3000 ₹111,000
HNI (Min) 2 6,000 ₹222,000
IPO Date September 13, 2024 to September 18, 2024
Listing Date [September 23, 2024]
Face Value ₹10 per share
Price ₹37 per share
Lot Size 3000 Shares
Total Issue Size 5,370,000 shares
(aggregating up to ₹19.87 Cr)
Fresh Issue 5,370,000 shares
(aggregating up to ₹19.87 Cr)
Issue Type Fixed Price Issue IPO
Listing At BSE SME
Shareholding pre-issue 15,008,000
Shareholding post issue 20,378,000
Market Maker portion 270,000 shares

Founded in 1998, Popular Foundations Limited excels in engineering and construction services, offering end-to-end solutions across various sectors. The company focuses on non-residential and non-government projects primarily in Chennai, with a successful track record in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore.

Competitive Strengths

  • Experienced Management: A skilled team driving operational and financial success.
  • On-Time Delivery: Timely project completion enhances reputation and market advantage.
  • Quality Design: Commitment to superior design sets the company apart.
  • Robust Business Model: Emphasizes customer orientation, fair pricing, and strategic market positioning.
  • Established Brand: A strong brand reputation fosters trust and opens doors to future opportunities.

Strengths:

  • Established Reputation: Popular Foundations Limited has a strong reputation in the construction and foundations sector, which can attract investor confidence.
  • Diverse Service Offering: The company provides a range of foundation solutions, including piles, caissons, and soil testing, catering to various construction needs.
  • Experienced Management: The company benefits from a team with extensive experience in the construction industry, ensuring effective project management and execution.
  • Strong Project Portfolio: A track record of completed projects enhances credibility and demonstrates capability in handling large-scale ventures.

Weaknesses:

  • Dependence on the Construction Industry: The company’s performance is closely tied to the construction industry’s health, making it vulnerable to sector-specific downturns.
  • High Capital Intensity: Foundation work and construction projects often require significant capital investment, which can affect cash flow and financial stability.
  • Geographical Limitations: If the company’s operations are limited to specific regions, it may face challenges in expanding its market presence.

Opportunities:

  • Growing Infrastructure Projects: Increased investment in infrastructure development offers growth opportunities for foundation services.
  • Expansion Potential: There is potential for geographical and service expansion, including entering new markets or diversifying service offerings.
  • Technological Advancements: Adopting new technologies in construction and foundation work can improve efficiency and reduce costs, enhancing competitiveness.

Threats:

  • Economic Fluctuations: Economic downturns can lead to reduced spending on construction and infrastructure projects, impacting revenue.
  • Regulatory Risks: Changes in construction regulations and standards could affect operations and increase compliance costs.
  • Competitive Pressure: Intense competition from other foundation service providers could impact market share and profitability.

 GMP for Popular Foundations SME IPO has not started yet.

Note that the bidding starts at 10 AM and ends at 5 PM on the days when the public issue is open.

The allotment status of Popular Foundations IPO is expected to be available on September 19, 2024.

Popular Foundation IPO allotment status is not available at this time. Popular Foundations IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Popular Foundations Limited’s IPO allotment status.

To check Popular Foundations IPO allotment status, follow the steps below:

  • Click on the below allotment status check button.
  • Select Company Name.
  • Enter your PAN Number, Application Number, or DP Client ID (Anyone).
  • Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Bigshare Services Pvt Ltd either by phone or email. Investors can call +91-22-6263 8200 or send an email with all relevant details to ipo@bigshareonline.com.

Popular Foundations Limited
New No. 32/1, 32/2, Old No. 9/1, 9/2,
Kamatchi Apartment, 10th Avenue,
Ashok Nagar, Chennai – 600083
Phone: +91 941498731
Email: info@grouppopular.com
Website: http://www.grouppopular.com/

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Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.