Popular Foundations Limited is launching an IPO with a fixed price issue of ₹19.87 crores, consisting entirely of a fresh issue of 53.7 lakh shares. The IPO opens for subscription on September 13, 2024, and closes on September 18, 2024.
The allotment is expected to be finalised on September 19, 2024, with the company listing on the BSE SME on September 23, 2024. The IPO price is set at ₹37 per share. Retail investors can apply for a minimum lot size of 3,000 shares, requiring an investment of ₹1,11,000. High Net-Worth Individuals (HNIs) need to invest in a minimum of two lots, totalling ₹2,22,000.
Srujan Alpha Capital Advisors LLP is the book-running lead manager for the IPO, with Bigshare Services Pvt Ltd serving as the registrar. Spread X Securities is the market maker for the issue, ensuring liquidity and stability in the market post-listing.
Industry Outlook:
- India's real estate market is projected to grow to ₹65,000 crores by 2040, up from ₹12,000 crores in 2019, reflecting significant sector expansion.
- By 2030, India's real estate sector is expected to reach $1 trillion, contributing 13% to GDP by 2025, up from $200 billion in 2021.
Popular Foundations IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company.
- Funding the working capital requirements of the company.
- General corporate purposes.
About Popular Foundations Limited
Founded in 1998, Popular Foundations Limited is a prominent player in the engineering and construction sector, offering comprehensive end-to-end solutions. The company primarily focusses on non-residential and non-government construction projects, with a strategic emphasis on the Chennai region.
However, it has also successfully executed projects in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore. Popular Foundations is known for its experienced management team, which has been instrumental in driving the company's growth and financial performance. The company is committed to on-time project delivery, which enhances its reputation and provides a competitive edge.
With a strong focus on quality design, Popular Foundations ensures that its projects stand out in aesthetics and functionality. Its robust business model emphasises customer orientation, fair pricing, and strategic market positioning. The company’s established brand and reputation have earned the trust of its customers, positioning it for future business opportunities. As of September 7, 2024, Popular Foundations Limited employs 86 staff members.
Peer Details
The companies considered by Popular Foundations as its peers include:
- NCC Limited
- Hindustan Construction Co. Limited
How to Check the Allotment Status of the Popular Foundations IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of Popular Foundations IPO
- Registered office: New No. 32/1, 32/2, Old No. 9/1, 9/2, Kamatchi Apartment, 10th Avenue, Ashok Nagar, Chennai-600083, Tamilnadu, India
- Phone: +91 9414987318
- E-mail: info@grouppopular.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 5,181.90 | 4,709.55 |
| Profit After Tax (PAT) (in ₹ lakh) | 347.76 | 119.61 |
| Current Ratio (x) | 1.76 | 1.71 |
| Net Worth (in ₹ lakh) | 2,313.11 | 1,483.69 |
| Total Borrowings (in ₹ lakh) | 1,578.40 | 1,753.99 |
| Return on Equity (x) | 0.18 | 0.08 |
| Return on Capital Employed (RoCE) (%) | 22.77% | 11.85% |
| Earnings Per Share (in ₹) | 2.41 | 0.96 |
Know before investing
Strengths
6Experienced management team with 25+ years in the construction industry.
Over 65 skilled site engineers led by seasoned operations heads.
Strong focus on timely project delivery and reputation building.
Established brand with repeat orders from satisfied clients.
Robust business model emphasising customer satisfaction and fair pricing.
Operations in Chennai with successful projects in 7 other cities.
Risks
6Non-compliance with health, safety, and labour laws risks operations.
Negative cash flows in FY2024 of ₹427.49 lakhs affect liquidity.
Dependence on top 5 suppliers for 31.56% of materials.
Reliance on leased properties may disrupt operations if agreements end.
High attrition risks the ability to retain skilled personnel.
Unresolved legal cases with potential liabilities of ₹3.59 lakhs.
