Popular Foundations Limited IPO Opens on 13th September, 2024

Popular Foundations Limited, with over 25 years of experience, specializes in Engineering and Construction Activities, providing comprehensive end-to-end solutions in the construction sector. The company is dedicated to building practices catering to various verticals such as factories, educational institutions, commercial, and residential projects. However, it strategically directs its focus towards non-residential and non-governmental projects in the realm of civil construction in and around Chennai.

Popular Foundations Limited has announced its plan to go public with an Initial Public Offering (IPO) on September 13, 2024, aiming to raise of₹ 19.87 Cr with shares to be listed on the BSE SME platform. The issue is Up To 53, 70,000 equity shares of a face value of ₹ 10 each.

Equity Share Allocation

• Issue Size (Fresh Issue): 53,70,000 Shares
• Market Maker Quota: 2,70,000Shares
• Minimum Retail Application: 3,000 Shares
• Minimum HNI Application: 6,000 Shares
• Issue Price: ₹37 (Fixed Price Issue)
• Lot Size: 3000 Shares
• Issue Opens on:  September 13, 2024
• Issue Closes on: September 18, 2024
• Listing Date: September 23, 2024 (tentative)

The net proceeds from the Issue are set to be utilized primarily for:

Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company, Funding its working capital requirements of the company and for General corporate purposes.

Srujan Alpha Capital Advisors Llp is the book running lead manager of the Popular Foundations IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. 

Mr.A. S. Venkatesh, Managing Director said “Our Company with over 25 years of standing and a track record of consistent growth, PFL is recognised for it’s high quality and dependability. Our ‘ customer first’ approach has ensured enduring customer relationships. 

This IPO will enable PFL to expand its operations, harness technology and enhance value for customers in our journey to further strengthen our brand in the fast growing construction industry.

Rajat Baid, Partner, Srujan Alpha Capital, Lead Manager to IPO- “The revenues of the Company have grown at a CAGR of about 26% over the last 3 years and it has a healthy order book. The IPO will open for subscription for public on September 13 and will remain open till September 18, the IPO being under fixed price route.”

About Popular Foundations Limited:

Founded in 1998, Popular Foundations Limited specializes in engineering and construction services and offers comprehensive end-to-end solutions in the construction sector.

The company is dedicated to construction practice in various sectors such as factories, educational institutions, and commercial and residential projects. However, the company strategically focuses on non-residential and non-government construction projects in and around Chennai. Apart from Chennai, the company has successfully executed projects in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram and Coimbatore.

Competitive strengths:

Experienced management team: The Company’s management team has experience in the industry and is responsible for the growth of operations and financial performance.

On-time delivery and reputation building: By ensuring that projects are completed on time, the company empowers consumers to make informed decisions. In addition, completing projects on time helps improve the company’s reputation in the marketplace, giving the company a competitive advantage.

Financials

For the years ended on March 31, 2024, March 31, 2023, and March 31, 2022, our Company has earned revenue from operations of ₹5,191 Lakhs, ₹ 4,866.89 Lakhs, ₹ 2,630.17 Lakhs respectively. Our Profit after Tax for the year ended on March 31, 2024, March 31, 2023, and March 31, 2022, were ₹347.76 Lakhs, 119.61 Lakhs, ₹ 48.08 Lakhs respectively.

Disclaimer: 

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.