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Popular Foundations IPO

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Established in 1998, Popular Foundations Limited specializes in engineering and construction services, offering end-to-end solutions across the construction sector.

The company focuses on projects in factories, educational institutions, and commercial and residential sectors, with a strategic emphasis on non-residential and non-government projects around Chennai. Additionally, it has completed successful projects in locations like Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore.

Popular Foundations IPO is a SME IPO of 5,370,000 equity shares of the face value of ₹10 aggregating up to ₹19.87 Crores. The issue is priced at ₹37 per share. The minimum order quantity is 3000 Shares.

The IPO opens on September 13, 2024, and closes on September 18, 2024.

Bigshare Services Pvt Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE SME.

Popular Foundations IPO Details and Objectives   

Popular Foundations Limited plans to use the net proceeds from the issue for the following purposes:

  • Prepaying or repaying a portion of the company's outstanding borrowings
  • Funding the company's working capital needs
  • Supporting general corporate purposes

Key Dates to Remember      

IPO Open Date

13th September 2024

IPO Close Date

18th September 2024

Listing Date

23rd September 2024

Pricing and Lot Size of Popular Foundations IPO 

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.

How to Apply for the IPO of Popular Foundations Ltd?

  • Log into Your Demat Account on Bajaj Broking’s website or trading app
  • Navigate to the IPO section
  • Select "Popular Foundations Ltd" and fill in the required details
  • Confirm and submit your application after selecting the lot size
  • In case you are applying through UPI, accept the UPI mandate to complete the transaction

Financial Health and Performance           

Particulars (₹ in Lakhs)

FY24

FY23

FY22

Assets

6,354.87

4,864.7

4,929.49

Revenue

5,191

4,866.89

2,630.17

Profit After Tax

347.76

119.61

48.08

Net Worth

2,313.11

1,483.69

1,384.08

Reserves and Surplus

812.31

1,383.69

1,284.08

Total Borrowing

1,578.4

1,753.99

1,835.37

Popular Foundations Limited has shown strong financial growth, particularly in FY24. Revenue rose by 97.4% over two years, reaching ₹5,191 lakhs, with a year-over-year growth of 7% from FY23 to FY24.

Investment Risks and Opportunities

Strengths of the company

  • Skilled and experienced leadership team
  • Strong track record of timely project delivery and reputation growth
  • High-quality design standards
  • Resilient and well-structured business model
  • Well-established brand with a solid reputation

Potential Risks and Threats

  • Geographical concentration only in the southern part of India
  • Limited focus on residential and government projects
  • Fierce competition within the construction industry
  • Economic instability influencing the real estate market
  • Regulatory shifts impacting the construction sector

Opportunities and Growth Potential

  • Expanding into new geographical locations
  • Opportunities for diversification into residential and government projects
  • Increasing demand for construction services in India

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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