Gujarat (Ahmedabad) based Construction Company PSP Projects Limited is planning to raise about Rs. 212 crore through an initial public offering (IPO).
Company Background
Started in August 2008, PSP Projects Limited is a Gujarat (Ahmedabad) based Construction Company offering a diversified range of construction and allied services across government, government residential, industrial, institutional, and residential projects.
Working Area
The Company provides services across the construction value chain, ranging from planning and design to construction and post-construction activities to public and private sector enterprises.
The company constructs industrial buildings for
- Engineering units
- Food processing units
- Pharmaceutical plants and
- Manufacturing and processing facilities
The company constructs buildings for
- Corporate offices
- Educational institutes
- Malls and
- Hospitals and healthcare services
The Company also undertakes government residential projects; and constructs buildings for group housing and townships, as well as independent residences for select private customers, as well as manufactures ready mix concrete.
Historically, PSP Projects Limited has focused on projects in the Gujarat region. More recently, the company has a geographically diversified portfolio of services and is undertaking projects pan India.
Since its inception in 2008, PSP Projects Limited has executed more than 80 projects.
Company Promoters
1) Prahaladbhai S Patel
2) Shilpaben Patel
IPO Details
IPO Date & Listing
Financial Performance
Revenue –
The Company shows superb revenue growth in recent years. Topline has been increasing regularly for the last three years and jumped from INR 215 crore in FY2014 to INR 468 crore for the year ended March 2016.
Profit –
Not only the company has shown superb growth in revenue, the company has also registered impressive profits in these years. Starting from INR 8.35 crore of profit in FY2012, the company’s earning improved to INR 25 crore in FY2016.
Margin –
The company’s net profit margin remains the same in all these years ( around 4.6% )
CONCLUSION –
The company has shown good performance as far as top line and the bottom line is concern. Keeping the financials in mind the offer price looks fairly valued. Since the IPO size is small, FinBlab recommends only high-risk profile investors to subscribe the issue.
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