Pratham EPC Projects
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 Mar 2024 – 13 Mar 2024
- Listing date
- 18 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹36 Cr
- Market cap at offer price
- ₹133 Cr
- Promoter holding
- 100.00% → 72.97% pre-issue → post-issue
- ISIN
- INE0QA601016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- A-1101, Sankalp Iconic, Opp.Vikram Nagar Iscon Temple Cross Road, S.G.Highway, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 13,66,400 | — | — |
| Market maker | 2,40,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹10,80,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.90 | 5.89 |
| P/E (×) | 12.71 | 12.73 |
| Price to book (×) | 4.19 | — |
| Market cap | — | ₹133 Cr |
Key performance indicators
- Return on net worth
- 22.55%
- ROCE
- 24.81%
- PAT margin
- 15.26%
- NAV per share
- ₹17.91
- Price to book
- 4.19
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pratham EPC Projects
Based at Ahmedabad, Pratham EPC Projects Limited is an integrated engineering, procurement, construction and commissioning company serving as an end-to-end service provider to Oil & Gas distribution companies in India. Founded by visionary promoters Mr. Pratikkumar Maganlal Vekariya and Mr. Nayankumar Manubhai Pansuriya with combined experience of over 30 years in the engineering industry, the company specializes in oil & gas pipelines for cross-country distribution and city gas distribution, while also undertaking offshore projects for water distribution. The company has successfully executed more than 12 projects with completed projects quantifying to approximately ₹13,184.10 Lakhs. As of February 23, 2024, the company has 8 major on-going projects worth approximately ₹70,333.62 Lakhs based on management estimates, demonstrating a strong order book. The company is ISO certified for quality, environment, occupational health and safety management systems.
Company Analysis
from RHPPratham EPC Projects Limited is an integrated engineering, procurement, construction and commissioning (EPC) company providing end-to-end oil and gas pipeline infrastructure services and water pipeline projects in India.
Based at Ahmedabad, Pratham EPC Projects Limited is an integrated engineering, procurement, construction and commissioning company serving as an end-to-end service provider to Oil & Gas distribution companies in India. Founded by visionary promoters Mr. Pratikkumar Maganlal Vekariya and Mr. Nayankumar Manubhai Pansuriya with combined experience of over 30 years in the engineering industry, the company specializes in oil & gas pipelines for cross-country distribution and city gas distribution, while also undertaking offshore projects for water distribution. The company has successfully executed more than 12 projects with completed projects quantifying to approximately ₹13,184.10 Lakhs. As of February 23, 2024, the company has 8 major on-going projects worth approximately ₹70,333.62 Lakhs based on management estimates, demonstrating a strong order book. The company is ISO certified for quality, environment, occupational health and safety management systems.
Objects of the Issue
- Purchase of Machinery ₹883.80 Lakhs p.21
- To Meet Working Capital Requirements ₹1,515.00 Lakhs p.21
- General Corporate Purpose [●] p.21
- To meet Public Issue Expenses [●] p.21
- Purchase of Machinery ₹883.80 Lakhs p.91
- To Meet Working Capital Requirements ₹1,515.00 Lakhs p.91
- General Corporate Purpose p.91
- —
Issue Structure
- Total Issue
- 4,800,000 Equity Shares aggregating to ₹[●] Lakhs
- Fresh Issue
- 4,800,000 Equity Shares of Face Value of ₹10/- each aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- Floor Price: ₹[●]/- and Cap Price: ₹[●]/-
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/- per Equity Share
Business Model
The company derives revenue from two business verticals: (1) Gas & Oil Pipeline Projects and (2) Water Pipeline Projects. It operates as an integrated solution provider offering a full range of Engineering, Procurement, Construction/Commissioning (EPC) services including mainline welding, tie-in, coating, hydro testing, pipeline commissioning, pipeline laying on turnkey basis, horizontal direction drilling, and construction of associated facilities including civil, electromechanical and instrumentation work. The company also provides Operations & Maintenance services to City Gas Distribution (CGD) companies.
Business Segments
SWOT Analysis
- • Experienced promoters with combined 30+ years in engineering industry(p.19)
- • Strong track record of project execution with significant completed project value(p.19)
- • Robust order book with ₹70,333.62 lakhs in confirmed and finalized projects(p.19)
- • Multiple ISO certifications for quality, environment, health & safety management(p.19)
- • Integrated EPC service provider with diversified pipeline and allied services capability(p.19)
- • Experienced management with 30+ years combined industry experience(p.90)
- • Integrated EPC capabilities with end-to-end service provision(p.90)
- • Strong profitability with high margins(p.105)
- • Multiple quality certifications across management systems(p.90)
- • Established in pipeline construction and EPC services(p.230)
- • Profitability and positive cash generation from operations(p.227)
- • Strong return on equity(p.210)
- • Improved net profit margins year-over-year(p.210)
- • Visionary promoters with 30+ years combined engineering industry experience(p.267)
- • Strong track record of completed projects worth ~₹13,184 Lakhs(p.267)
- • Solid order book with 8 major ongoing projects worth ~₹70,333 Lakhs(p.267)
- • Multiple quality certifications (ISO 9001, 10002, 14001, 18001)(p.267)
- • Growing profitability with PAT margin improving to 15.26% in H1 FY24(p.272)
- • Positive net worth and EBITDA across all periods(p.301)
- • Heavy dependence on few key customers - top 10 customers represent 100% of sales(p.36)
- • Heavy reliance on few suppliers - top 10 suppliers represent 50-75% of purchases(p.36)
- • Negative operating cash flows in recent periods(p.42)
- • Significant working capital requirements and dependency on financing(p.37)
- • Unsecured loans outstanding that can be recalled anytime(p.44)
- • History of delayed GST and EPF filings with penalties(p.39)
- • Vehicle title deeds held in director's names instead of company's name(p.40)
- • Outstanding litigation against company and promoters involving ₹193.19 lakhs(p.34)
- • Premises not owned by the company - all leased on short-term basis(p.35)
- • High customer concentration with top customer representing 76.56% of revenue(p.105)
- • Negative operating cash flow in recent periods(p.104)
- • Limited financial scale compared to peers(p.106)
- • Significant working capital requirements increasing substantially(p.93)
- • Declining inventory turnover indicating slower asset conversion(p.210)
- • Increased debt levels relative to equity(p.210)
- • No dividend history despite profitability(p.174)
- • Significant contingent liabilities from tax disputes(p.218)
- • Unfunded gratuity obligation creating long-term liability(p.232)
- • Heavy reliance on unsecured loans from directors(p.236)
- • High customer concentration with Top 1 customer at 76.56% of revenues in H1 FY24(p.279)
- • Significant increase in work-in-progress inventory, rising from ₹202.52L to ₹1,632.61L(p.270)
- • Increased debt-to-equity ratio from 0.24 to 0.44, indicating rising leverage(p.281)
- • Negative operating cash flows of ₹383.07L in H1 FY24(p.276)
- • Multiple ongoing tax demands and GST/Service Tax disputes with contingent liabilities of ₹1,642.75L(p.284)
- • Promoter facing significant tax liability of ₹1,42,30,475 in A.Y. 2019-20(p.286)
- • Growing demand for oil & gas pipeline infrastructure - India is world's 3rd largest oil consumer(p.21)
- • India planning to double refining capacity to 450-500 million tonnes by 2030(p.21)
- • LNG import expected to double over next 5 years with increased LNG import capacity planned to 50 MT(p.21)
- • Rising primary energy demand - expected to nearly double by 2040(p.21)
- • Government capex as growth driver - central government capex increased 63.4% in first 8 months of FY23(p.20)
- • Opportunity to expand geographic presence beyond current Gujarat and Orissa concentration(p.48)
- • Growth in MSME credit - credit growth over 30.6% on average during Jan-Nov 2022(p.20)
- • Growing oil & gas pipeline infrastructure sector(p.93)
- • Expansion of City Gas Distribution networks(p.90)
- • Strategic acquisition with 52% subsidiary ownership(p.90)
- • Fleet modernization through acquisition of advanced machinery(p.92)
- • Diversified geographic presence across multiple states(p.203)
- • Growing infrastructure and water projects demand(p.230)
- • Successful conversion to public company and IPO preparation(p.230)
- • Strategic subsidiary acquisition for business expansion(p.230)
- • Growing Oil & Gas pipeline infrastructure sector driven by CGD expansion(p.267)
- • Diversified service offerings in both oil/gas and water pipeline projects(p.267)
- • Recent acquisition of 52% stake in Pipeflow Integrity India Private Limited subsidiary(p.267)
- • Expanding geographic presence across multiple states (Gujarat, Rajasthan, Odisha, Punjab, West Bengal, exports)(p.270)
- • Revenue growth of 65% in FY21-22 as company scales project execution capacity(p.275)
- • Changing tax laws and regulatory uncertainties in India affecting business operations(p.48)
- • Economic slowdown and recession affecting demand for services(p.48)
- • Seasonality and weather disruptions affecting operations and revenues(p.37)
- • Global financial turmoil and instability affecting Indian markets and investment confidence(p.49)
- • Terrorist attacks and political instability in India affecting business sentiment(p.49)
- • Infrastructure inadequacy and congestion affecting operations(p.49)
- • Infectious disease outbreaks or health epidemics impacting operations and economy(p.49)
- • Input cost inflation and raw material price fluctuations(p.41)
- • Intensified competition affecting ability to secure contracts at profitable terms(p.38)
- • Client payment delays and non-payment risks affecting cash flows(p.38)
- • Global financial market instability and contagion effects(p.50)
- • Natural calamities and extreme weather events(p.50)
- • Economic slowdown and inflation pressures(p.50)
- • Regulatory changes and tax law uncertainties(p.50)
- • Illiquidity risk for newly listed shares(p.51)
- • Ongoing service tax and GST disputes with authorities(p.218)
- • Income tax demand and assessment proceedings(p.218)
- • Working capital constraints from receivables collection delays(p.243)
- • Declining cash position and negative operating cash flows(p.228)
- • Contingent bank guarantee liabilities requiring FDR margin(p.218)
- • Severe weather impacts on operations during monsoon and summer(p.279)
- • Dependence on limited number of suppliers with top 1 at 25.32% of material costs(p.280)
- • Competitive pressures from existing and potential competitors(p.280)
- • Exposure to interest rate and inflation risks affecting operating costs(p.278)
- • Regulatory and compliance risks from multiple jurisdictions and pending tax proceedings(p.269)
- • GST/Service Tax liabilities and ongoing assessments with potential recovery notices(p.284)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Nayankumar Manubhai Pansuriya | Promoter | 50.00% | 36.48% |
| Mr. Pratikkumar Maganlal Vekariya | Promoter | 50.00% | 36.48% |
| Nayankumar Manubhai Pansuriya | Promoter | 50.00% | 36.48% |
| Pratikkumar Maganlal Vekariya | Promoter | 50.00% | 36.48% |
| Mr. Pratikkumar Maganlal Vekariya | Promoter/Chairman and Managing Director | — | — |
| Mr. Nayankumar Manubhai Pansuriya | Promoter/Whole Time Director | — | — |
| Nayankumar M Pansuriya | Promoter | 50.00% | — |
| Pratikkumar M Vekariya | Promoter | 50.00% | — |
| Pratikkumar Maganlal Vekariya | Promoter | — | — |
| Nayankumar Manubhai Pansuriya | 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.