Popular Foundations IPO Opens Today: Live Subscription Status, GMP Update & Key Details – Don’t Miss Out

Popular Foundations opened its SME IPO for public subscription on September 13, and the offer will close on September 18. The company is looking to raise around ₹20 crore and plans to list its shares on the BSE SME platform at a price of ₹37 per share.

Subscription Status

As of 2:10 pm on Day 1, the IPO had been subscribed 0.78 times. Investors had placed bids for 39.96 lakh shares out of the 51 lakh shares available. The retail portion was fully subscribed, at 1.04 times, while the non-institutional investor category saw a lower subscription rate of 0.53 times.

Key IPO Details

The Popular Foundations IPO consists only of a fresh issue of 53.7 lakh shares, with no offer-for-sale component. The company plans to use the funds raised to repay part of its existing borrowings, meet working capital needs, and for general corporate purposes.

Retail investors can apply for a minimum of 3,000 shares, which requires an investment of ₹1,11,000. High-net-worth individuals (HNIs) must apply for at least two lots, or 6,000 shares, totalling ₹2,22,000.

The allotment is expected to be finalised by September 19, 2024, and the shares are set to be listed on the BSE SME platform by September 23, 2024.

Srujan Alpha Capital Advisors LLP is the lead manager for the IPO, and Bigshare Services Pvt Ltd is the registrar. Spread X Securities is serving as the market maker for this IPO.

About the Company

Founded in 1998, Popular Foundations offers specialised construction and engineering services, mainly focusing on non-residential projects. The company operates mostly in Chennai but has completed projects in cities like Pondicherry, Bangalore, Trichy, and Coimbatore.

Between March 31, 2023, and March 31, 2024, Popular Foundations saw a 7% increase in revenue and a 191% jump in profits.

Review and Grey Market Premium

Some experts have raised concerns about the high profit for FY24, calling it a “High Risk/Low Return” investment. Market analyst Dilip Davda from Chittorgarh.com has recommended skipping this IPO.

As of today, the grey market premium (GMP) for Popular Foundations IPO is ₹0, indicating that the shares are expected to list at their issue price of ₹37 per share. The GMP has remained unchanged since September 10.