Shares of Popular Foundations debuted with a lackluster performance on the BSE SME platform today, opening at ₹37 per share, which matched the IPO price of ₹37. Following the initial listing, the stock briefly rose by ₹0.50 to ₹37.50 but could not maintain that momentum and is currently trading at ₹36.75.
The IPO, which was open for subscription from September 13 to September 19, 2024, saw a subscription rate of 9.21 times. This offering consisted entirely of a fresh issue of 5.37 million shares.
The company set a minimum investment threshold of ₹1,11,000 for retail investors. Data shows that IPOs with a minimum investment above ₹1 lakh tend to receive a weaker response compared to those with a lower threshold, such as ₹15,000.
The funds raised from this IPO will be utilized for various purposes, including the prepayment or repayment of certain outstanding borrowings, funding the company’s working capital needs, and covering general corporate expenses.
About Popular Foundations
The company 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.
The company, in its DRHP, said it is equipped with expertise in engineering, architecture, and interior and exterior fit outs. Popular foundations have gained recognition among numerous educational institutions, industries, and commercial establishments in Tamil Nadu.
It said it has successfully undertaken projects in Pondicherry, Tanjore, Bangalore, Trichy, Madurai, Vizhuppuram, and Coimbatore, besides Chennai. Its reputation is built on continued customer patronage, goodwill, and a commitment to delivering high-quality construction solutions.
The company revenue from operations for the fiscals 2024, 2023, and 2022 were ₹51.82 crores, ₹47.10 crores, and ₹25.89 crores, respectively. Its EBITDA for the fiscal years 2024, 2023, and 2022 were ₹7.10 crore, ₹3.23 crore, and ₹2.65 crore, respectively.
The profit after tax for the fiscals 2024, 2023, and 2022 stood at ₹3.48 crore, ₹1.20 crore, and ₹0.48 crore, respectively, the DRHP report showed.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
