Pratham EPC Projects Limited provides end-to-end services to oil and gas utilities in India. The company specializes in integrated engineering, procurement, construction, and commissioning. Pratham EPC Projects IPO mulls to raise Rs 36.00 crores. The issue is entirely a fresh issue of 48 lakh shares.
IPO opens
Mar 11, 2024
IPO Closes
Mar 13, 2024
IPO Size (Rs.)
₹36.00 Cr
IPO Size (shares)
4,800,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹71 to ₹75 per share
Minimum Lot
1600 Shares
Listing At
NSE SME
QIB
~50 % (less anchor)
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Beeline Capital Advisors Pvt Ltd
Registrar
Link Intime India Private Ltd
Market maker
Spread X Securities
.
About Pratham EPC Projects Limited:
The company was originally incorporated in the name and style of “Pratham EPC Projects Private Limited”, in 2014.
Based at Ahmedabad, Pratham EPC Projects Limited is an integrated engineering, procurement, construction and commissioning company being in business of end-to end service providers to Oil & Gas distribution companies in India. F
Company has been executing various gas pipeline project handling all pipeline activities like, mainline welding, tie-in, coating, hydro testing, pipeline commissioning etc. Pratham specialize in oil & gas pipelines for cross country distribution and city gas distribution. It also undertakes offshore projects for water distribution specifically project bidding & project management.
They are an Oil & Gas pipeline infrastructure service provider in India, focused on laying pipeline networks along with construction of associated facilities; and providing Operations & Maintenance services to the City Gas Distribution (“CGD”) Companies in India. They are an integrated EPC company offering a diversified range of pipeline and allied services for oil & gas industry. They provide services for cross country pipeline projects for different applications viz. Oil, gas & water etc. and also undertake Pipeline laying work on Turnkey basis including engineering, procurement, pipeline construction for city gas distribution, horizontal direction drilling, stations including civil, electromechanical and instrumentation.
They We derive their revenue from following two business verticals:
Gas & Oil Pipeline Projects
Water Pipeline Projects
Promoters of Company are Mr. Nayankumar Manubhai Pansuriya and Mr. Pratikkumar Maganlal Vekariya.
Financials: Pratham EPC Projects Limited
Particulars (₹ in Lacs.)
2023 (06)
2023 (12)
2022 (12)
Revenue from operations
3,478.44
5,020.35
5,046.84
Profit After Tax
524.08
765.46
441.51
Share Capital
1,296.00
81
81
Net worth
2,323.93
1,799.38
1,033.92
EPS– Basic & Diluted
4.04
5.91
3.41
NAV
17.93
13.88
7.98
Total Borrowings
1,024.02
1,418.83
246.26
Post issue Share Capital
1,776
FV
10.0
IPO price
75.0
EPS Fy23
4.3
PE Fy23
17.4
EPS Fy24 (annualized)
5.9
PE Fy24 (annualized)
12.7
Market cap in Lacs
13,320.0
Market cap / Sales
2.65
Anchors: Pratham EPC Projects IPO
Pratham EPC Projects IPO: Salient Points
The Company has successfully executed more than 12 projects with our major completed projects quantifying to approximately Rs 13,184.10 Lakhs. And has 8 major on-going projects out of which 7 projects worth approximately Rs 29,666.33 Lakhs.
The Net Proceeds are proposed to be utilized for:
Particulars
Amount (₹ in Lakhs)
Purchase of Machinery
883.80
To Meet Working Capital Requirements
1,515.00
General Corporate Purpose^
[●]
Clients
list of major completed projects
Sr. No.
Name of Client
Description of the contract
Value of Project (₹ in Lakhs)
Year of Completion
1.
Sabarmati Gas Limited
Contract for Laying and Construction of 12″/8″ NB Steel Pipline form Gadhoda-kishor Pura pipeline, Sabarkantha District – Part – A
1,721.47
FY 2020-21
2.
Adani Gas Limited
Steel Pipeline Laying, Construction, Installation and Erection Work for BPCL Connectivity Gota – Ahmedabad
575.02
FY 2019-20
3.
Adani Gas Limited
Steel Pipeline Laying, Construction, Installation and Erection Work for Kheda Geographical Area
FY 2021-22
4.
Oswal Infrastructure Limited
Work Order for Laying & Construction of 6″ & 4″ NB U/G and A/G Steel Pipeline Network & Associated works for pipeline works for CPF and Well sites of Bhaskar field, Khambhat
639.38
FY 2020-21
5.
Gujarat Gas Limited
Steel Pipeline construction & associated work from Mahendranagar Chowkdi to Bela Village in Morbi GA
302.21
FY 2020-21
6.
GAIL (INDIA) Limited
Contract for Civil, Instrumentation, Electricals Pipeline Laying works for HMEL Connectivity Pipeline Project, Bhatinda.
2,770.89
FY 2022-23
7.
Oswal Infrastructure Limited
Laying Testing and commissioning of pipeline and associated works for satellite field (Haliburton – Cairn Oil&Gas field)
456.64
FY 2023-24
8.
Gujarat State Petronet Limited
Laying, Installation, station Mechanical, Civil, E&I and associated works for UPL Connectivity Project
565.18
FY 2022-23
9.
SunPetro Chemicals Private Limited
Laying of Export Piggable Pipeline: 3LPE 273.1 mm (10-3/4″) OD Line pipe, 9.3 mm WT, ID: 254.5 mm, API 5L Grade X42 and associated works
3,336.75
FY 2022-23
10.
Gujarat Gas Limited
Laying, Testing and Commissioning of 33.3 KM Steel Pipeline including Station piping work of CGS and CNG, TCP works and valve installation at Sirohi, Rajasthan.
1,469.17
FY 2022-23
11.
Oswal Infrastructure Limited
Contract for 12 inch dia Steel Pipeline construction & associated work for extension in Amreli
540.39
FY 2019-20
12.
Sabarmati Gas Limited
Work Order for Laying & Construction of 8″ NB U/G Steel Pipeline Network & Associated works for city gas distribution project in Patan district (Part A)
807.00
FY 2018-19
Total
13,184.10
Revenue Breakup & other details
Particulars
For the Year / Period ended on
30-Sept-23
31-Mar-23
31-Mar-22
31-Mar-21
No. of Projects Completed
0
5
2
5
Workforce Strength
770
442
144
108
Revenue Split between different verticals of the company
Direct Contract
2850.53
3,460.79
4866.18
2,398.48
In percentage (%)
83.10%
68.94%
96.42%
78.43%
Sub Contract
579.78
1559.57
180.66
659.75
Peers:
Company
CMP (₹)
Revenue(₹cr)
Net Profit(₹ cr)
NPM %
PE
Macp/sales
ROCE
Pratham EPC Projects
75
50.2
7.6
15.1%
17.4(12.7)
2.7
48.40%
Likhitha Infrastructure
1,749
351
60
17.1%
15
4.6
35.91%
As at February 23, 2024, they have 8 major on-going projects out of which 7 projects worth approximately ₹ 29,666.33 Lakhs has been confirmed based on Letter of Allocation / Purchase Order for which ₹ 24,015.61 Lakhs worth project execution is pending and 1 project has been finalized with Purchase Order, which is worth approximately ₹ 40,667.29 Lakhs, based on management estimates, suggesting a strong order book.
Pratham EPC Projects IPOis coming at a PE ratio of 17.4x (fy23 earnings) and 12.7x (Fy24 annualized earning)
I intend to apply in Pratham EPC Projects IPOsubject to availability of funds. Both business verticals of company i.e. pipe projects in Oil and gas sector and water projects are likely to witness good demand. The company has robust order book.
It may be noted that many times my expectations have proved to be wrong & I have been forced to sell or hold the stock in loss.
Beeline Capital Advisors Pvt Ltd is the Lead Manager to the issue. It has a fair to good record. Past issues handled by them include Rudra Gas Enterprise Limited, Fonebox Retail Limited, Konstelec Engineers, Australian Premium Solar, Indifra Limited, Benchmark Computer Solutions, Sheetal Universal Limited, Rajgor Castor Derivatives, Arvind and Company Shipping Agencies, Karnika Industries Limited, Hi-Green Carbon Limited, Kody Technolab Limited, Chavda Infra Limited, Vinsys IT Services Limited,Ahasolar Technologies, Pentagon Rubber, Remus Pharmaceuticals, Sotac Pharmaceuticals, RBM Infracon Limited, Transvoy Logistics, Dev Labtech, Viviana Power Tech, Vital Chemtech, Aristo Bio-Tech and Lifescience, Viaz Tyres, Vertexplus Technologies etc.
GMP as per Social media is around Rs. 88. It may be noted that such rates are perhaps in thin deals and may not be even indicative. I steer clear of any deals in GMP however lucrative they may appear, nor I have any access to any grey market operator.
SME IPO are much more risky and volatile than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management. I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. These certifications are for 3 year period and are no more valid. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF/IPO investments have high degree of inherent risk.