Popular Foundations is scheduled to hit the market on September 13, 2024 and close on September 18, 2024. Popular Foundations plans to raise around ₹19.87 Cr through an IPO with a sale of up to 5,370,000 equity shares of ₹10 each. The Retail offered 50%, Other Shares Offered 50%.
Founded in 1998, Popular Foundations Limited provides engineering and construction services, offering complete solutions in the construction industry. The company focuses on various sectors, including factories, schools, and both commercial and residential projects. However, it mainly targets non-residential and non-government construction work in and around Chennai. Besides Chennai, Popular Foundations has successfully completed projects in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore.
The company stands out due to its experienced management team, which plays a key role in driving growth and improving financial performance. It is known for delivering projects on time, which helps build a strong reputation and gives it an edge over competitors. Its focus on quality design ensures that its buildings are both attractive and functional. With a solid business model centered on customer satisfaction, fair pricing, and strategic positioning, Popular Foundations has built a trusted brand that opens doors to future opportunities. As of September 7, 2024, the company employs 86 people at its headquarters and on-site.
Popular Foundations IPO Details
Popular Foundations IPO opens on September 13, 2024, and closes on September 18, 2024. The Listing date for Popular Foundations IPO is on September 23, 2024. The price band for IPO is ₹37 per share and lot size of 3000 Shares.
| IPO Date | September 13, 2024 to September 18, 2024 |
| Listing Date | September 23, 2024 |
| Price | ₹37 per share |
| Lot Size | 3000 Shares |
| Issue Size | ₹19.87 Cr |
| Face Value | ₹10 per share |
Popular Foundations IPO Tentative Timetable
Popular Foundations opening date is September 13, 2024 and close date is September 18, 2024. The IPO allotment date is September 19, 2024. Therefund initiation of IPO is on September 20, 2024. The credit of shares in demat account is on September 20, 2024. The listing date is on September 23, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 13, 2024 |
| IPO Closing | September 18, 2024 |
| IPO Allotment Date | September 19, 2024 |
| Refund Initiation | September 20, 2024 |
| Shares Credit to Demat | September 20, 2024 |
| Lisiting Date | September 23, 2024 |
Popular Foundations IPO Lot Size
Lot Size of this IPO is 3000 shares. A retail-individual investor can apply for up to 1 lots (3000 shares or ₹111,000).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 3000 | ₹111,000 |
| Retail(Maximum) | 1 | 3000 | ₹111,000 |
| HNI (Minimum) | 2 | 6000 | ₹222,000 |
Popular Foundations IPO Promoter Holding
| Pre Issue Share Holding | 83.36% |
| Post Issue Share Holding | 61.39% |
Popular Foundations IPO Review
The company is launching its first IPO, offering 5,370,000 shares at a price of Rs. 37 each. The aim is to raise Rs. 19.87 crore.
On the financial performance front, for the last three fiscals, the company has reported a total income/net profit of Rs. 26.30 cr. / Rs. 0.48 cr. (FY22), Rs. 48.67 cr. / Rs. 1.20 cr. (FY23), and Rs. 51.91 cr. / Rs. 3.48 cr. The boosted bottom line for FY24 raises eyebrows and concern over its sustainability.
For the last three fiscals, the company has posted an average EPS of Rs. 1.59, and an average RoNW of 10.78%. The issue is priced at a P/BV of 2.30 based on its NAV of 16.06 as of March 31, 2024, but missing its post-IPO NAV data in the offer document.
If we attribute FY24 earnings to its post-IPO paid-up equity capital, then the asking price is at a P/E of 21.64. The issue relatively appears fully priced discounting all near term positives.
For the reported periods, the company has posted PAT margins of 1.83% (FY22), 2.46% (FY23), 6.70% (FY24), and RoCE margins of 9.39%, 11.85%, 22.77% respectively for the referred periods.
This is the fifth mandate from Srujan Alpha in the last four financial years, including the current one. Out of the last three listings, all started trading at a premium of 5.00% to 31.18% on their listing day. Interestingly, the same merchant banker also has a mandate for Sodhani Academy, where there was a mistake in the previous mandate data (see pages 196 and 197 of the Sodhani Prospectus, and pages 212 and 213 of the Popular Foundation). Both these documents were filed on September 7, 2024, but the listing rates are different in both prospectuses for the first two mandates.
The company is in the construction business and offers related services. It has shown growth in both its revenue and profits for the recent periods, but the higher profit for FY24 has raised some concerns. The company operates in a very competitive and scattered market. This situation can be seen as a “High Risk/Low Return” investment, which might not be worth considering.
Popular Foundations IPO Subscription Status (Bidding Details)
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- SMC Global: To be updated soon
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Popular Foundations IPO FAQs
What is Popular Foundations IPO?
Popular Foundations is issuing 5,370,000 equity shares with a face value of ₹10 each, totaling up to ₹19.87 Cr. The shares are being offered at a price of ₹37 each, with a minimum order quantity of 3000 shares.
Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Popular Foundations IPO will open?
Popular Foundations will open on September 13, 2024 for QIB, NII, and Retail Investors.
When Popular Foundations IPO will end?
Popular Foundations will end on September 18, 2024.
What is Popular Foundations IPO Size?
Popular Foundations IPO size is ₹19.87 Cr.
What is Popular Foundations IPO Price Band?
Popular Foundations price band is ₹37 per share.
What is Popular Foundations IPO Allotment Date?
Popular Foundations allotment date is September 19, 2024.
What is Popular Foundations IPO Listing Date?
Popular Foundations listing date is September 23, 2024. The IPO is to be listed on BSE and NSE.
How to Popular Foundations IPO through Zerodha?
To apply for the IPO “Popular Foundations” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Popular Foundations IPO through Upstox?
To apply for the IPO “Popular Foundations” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Popular Foundations IPO Allotment Status?
For Popular Foundations IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Popular Foundations IPO GMP?
You can check out here: Popular Foundations IPO GMP. Check all IPO GMP here.