Popular Foundations
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Sep 2024 – 19 Sep 2024
- Listing date
- 24 Sep 2024
- Face value
- ₹1 per share
- Issue price
- ₹37 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Listing at
- BSE
- Total issue size
- ₹19.87 Cr
- Market cap at offer price
- ₹75.40 Cr
- Promoter holding
- 83.36% → 61.39% pre-issue → post-issue
- ISIN
- INE0PZB01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Srujan Alpha Capital Advisors LLP
- Registered office
- New No.32/1, 32/2, Old No.9/1, 9/2, Kamatchi Apartment, 10th Avenue, Ashok Nagar, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,70,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹37
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,11,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,22,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,99,000 |
| B-HNI (min) | 10 | 30,000 | ₹11,10,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.32 | 1.71 |
| P/E (×) | 15.95 | 21.64 |
| Price to book (×) | 2.30 | — |
| Market cap | — | ₹75.40 Cr |
Key performance indicators
- Return on net worth
- 15.03%
- ROCE
- 22.77%
- PAT margin
- 6.70%
- NAV per share
- ₹16.06
- Price to book
- 2.30
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Popular Foundations
Popular Foundations Limited, incorporated on November 30, 1998 and converted to a public limited company on December 20, 2023, is a construction contractor with over 25 years of experience providing comprehensive end-to-end solutions in the construction sector. The company specializes in managing and executing construction projects on behalf of clients, strategically focusing on non-residential and non-governmental projects in civil construction. The company operates under work contracts with clients which outline the scope of work, project timelines, budget, quality standards, and other terms and conditions. It caters to various verticals such as factories, educational institutions, commercial, and residential projects, but primarily directs its focus toward civil construction projects in and around Chennai.
Company Analysis
from RHPPopular Foundations Limited is an engineering and construction company specializing in non-residential and non-governmental civil construction projects across various verticals including factories, educational institutions, and commercial developments, primarily operating in and around Chennai with over 25 years of experience.
Popular Foundations Limited, incorporated on November 30, 1998 and converted to a public limited company on December 20, 2023, is a construction contractor with over 25 years of experience providing comprehensive end-to-end solutions in the construction sector. The company specializes in managing and executing construction projects on behalf of clients, strategically focusing on non-residential and non-governmental projects in civil construction. The company operates under work contracts with clients which outline the scope of work, project timelines, budget, quality standards, and other terms and conditions. It caters to various verticals such as factories, educational institutions, commercial, and residential projects, but primarily directs its focus toward civil construction projects in and around Chennai.
Objects of the Issue
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company Up to ₹494 lakhs p.21
- Funding the working capital requirements of our Company Up to ₹1,186 lakhs p.21
- General corporate purposes Up to ₹108.21 lakhs p.21
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company Upto ₹494 lakhs p.73
- Funding the working capital requirements of our Company Upto ₹1,186 lakhs p.73
- General corporate purposes Upto ₹108.21 lakhs p.73
Issue Structure
- Total Issue
- Up to ₹1,986.90 lakhs
- Fresh Issue
- Up to 53,70,000 Equity Shares aggregating to ₹1,986.90 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹37 per Equity Share (Fixed Price)
- Lot Size
- 3,000 Equity Shares and in multiples of 3,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company operates as a construction contractor that manages and executes construction projects on behalf of clients under work contracts. These contracts outline the scope of work, project timelines, budget, quality standards, and other terms and conditions. The company generates revenue from construction services for non-residential and non-governmental projects in the civil construction sector.
Business Segments
SWOT Analysis
- • Over 25 years of construction experience with comprehensive end-to-end solutions(p.20)
- • Focused business model on non-residential and non-governmental civil construction projects(p.20)
- • Revenue growth over three financial years(p.22)
- • Profitability improvement trend with increasing PAT(p.22)
- • Experienced management team with 25+ years in construction industry(p.99)
- • Strong track record of repeat orders from institutional clients(p.99)
- • Commitment to quality design and delivery standards(p.100)
- • Operational efficiency through standardization and mechanization(p.102)
- • Established brand reputation and customer trust(p.101)
- • Long operational history and established track record in civil construction(p.124)
- • Consistent profitability across reporting periods(p.124)
- • Diversified project portfolio across multiple sectors(p.124)
- • ISO 9000 certification demonstrating quality standards(p.124)
- • Significant geographic expansion(p.124)
- • Milestone achievement of 100+ contracts secured(p.124)
- • Over 25 years of industry experience in engineering and construction(p.181)
- • Founder with elite educational background and deep industry expertise(p.181)
- • Diverse project portfolio across multiple verticals(p.181)
- • Strong financial performance with significant profit growth(p.189)
- • Strong cash generation from operations(p.190)
- • Moderate debt-to-equity ratio indicating financial stability(p.176)
- • Negative cash flow from operations in FY 2023-24 despite profitability(p.27)
- • High dependence on top 5 suppliers for 45.39% of materials in FY 2023-24(p.29)
- • Dependence on leased properties for registered office and warehouse(p.28)
- • Non-compliance with various Companies Act provisions and filing requirements(p.32)
- • Trademark/logo not registered in company name(p.34)
- • Outstanding tax and GST demands against the company(p.28)
- • Promoter-controlled guarantees on debt facilities(p.37)
- • Skilled labor availability constraints(p.103)
- • Working capital limitations(p.103)
- • Geographic concentration of operations(p.101)
- • Significant dependence on a limited customer base(p.125)
- • Relatively high debt levels requiring servicing(p.151)
- • Trade receivables concentration with aging outstanding balances(p.159)
- • Limited formal dividend policy framework(p.146)
- • Significant dependence on few promoters for business and technical expertise(p.181)
- • Dependence on few major customer segments(p.181)
- • Substantial related party transactions and promoter lending(p.179)
- • Outstanding tax demands against the company(p.197)
- • High proportion of revenue dependent on cost of materials(p.185)
- • Growing residential construction sector driven by urbanization and housing deficit(p.20)
- • Infrastructure construction growth supported by government investment in transport infrastructure(p.20)
- • Energy and utilities construction growth from renewable energy and net-zero objectives(p.20)
- • Commercial and industrial construction driven by corporate expansion and manufacturing investment(p.20)
- • Increased NRI investments in real estate across key Indian cities(p.20)
- • Growth in institutional and hospitality construction sectors(p.102)
- • Expansion to other regions and major cities(p.101)
- • India's robust construction industry growth trajectory(p.102)
- • Government initiatives supporting construction and infrastructure(p.97)
- • Rising demand for commercial real estate and smart cities(p.97)
- • Expansion into new geographic markets and business segments(p.123)
- • Growth in hospitality and institutional building sectors(p.124)
- • Government infrastructure development initiatives(p.123)
- • Capacity expansion through organizational development(p.124)
- • Green building and sustainable construction practices(p.124)
- • Focus on high-margin non-residential and institutional construction projects(p.181)
- • Expansion beyond current geographic footprint(p.181)
- • Growth in educational and institutional infrastructure sector(p.181)
- • Leveraging capital market access from IPO for growth initiatives(p.215)
- • Supply chain disruption risks from material price volatility and availability(p.27)
- • Economic downturn impact on construction project demand and financing(p.40)
- • Weather-related delays and natural disasters(p.40)
- • COVID-19 pandemic or future pandemic disruptions(p.40)
- • Indian economic slowdown and inflation risks(p.41)
- • Regulatory and tax law changes(p.42)
- • Political instability and geopolitical risks(p.43)
- • Labor disputes and wage inflation(p.31)
- • Weather-related delays and project execution risks(p.103)
- • Evolving government policies and regulatory changes(p.103)
- • Customer resistance to adoption of new technologies(p.103)
- • Collection delays affecting cash flow(p.103)
- • Skilled labor shortage in construction sector(p.91)
- • Global supply chain disruptions and material cost volatility(p.91)
- • Regulatory compliance requirements across multiple states and real estate legislation(p.115)
- • Construction labor welfare and cost obligations(p.115)
- • Environmental compliance and pollution control requirements(p.120)
- • Industry cyclicality and economic dependency(p.115)
- • Litigation involving promoter as disclosed(p.144)
- • Increasing competition within the construction industry(p.181)
- • Dependence on regulatory approvals and permits for project execution(p.181)
- • Economic cyclicality affecting construction sector demand(p.181)
- • Impact of economic conditions on market demand(p.181)
- • Vulnerability to natural disasters(p.182)
- • Rising labor and input costs impacting profitability(p.188)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ananthanarayanan Sankaralingam Venkatesh | Promoter | 62.47% | 46.07% |
| Vinita Venkatesh | Promoter | 20.82% | 15.36% |
| Ananthanarayanan Sankaralingam Venkatesh | Promoter | 62.47% | 46.01% |
| Vinita Venkatesh | Promoter | 20.82% | 15.34% |
| Ananthanarayanan Sankaralingam Kumar | Promoter Group | 0.07% | 0.05% |
| Ananthanarayanan Sankaralingam Venkatesh | Promoter | 74.99% | 62.47% |
| Vinita Venkatesh | Promoter | 25.00% | 20.82% |
| A.S. Venkatesh | Promoter | — | — |
| Vinita Venkatesh | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.