Pratham EPC Projects Ltd

About the Company:

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.

Company has been executing various gas pipeline project handling all pipeline activities like, mainline welding, tie-in, coating, hydro testing, pipeline commissioning etc.

Company specialize in oil & gas pipelines for cross country distribution and city gas distribution, Company also undertakes offshore projects for water distribution specifically project bidding & project management.

Company is 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.

Company is an integrated EPC company offering a diversified range of pipeline and allied services for oil & gas industry.

Company provides 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 for clients.

Over the years, company has successfully executed more than 12 projects with our major completed projects quantifying to approximately Rs.131.84 cr

Company’s execution capabilities have grown significantly with time, both in terms of the size of projects that we bid for and execute, and the number of projects that we execute simultaneously.

Company’s Customers:

Sabarmati Gas Ltd	Adani Gas Limited	Oswal Infrastructure Ltd	Gujarat Gas Ltd	GAIL (INDIA) Ltd
SunPetro Chemicals Pvt Ltd	Bharat Petroleum Corporation Ltd	AGP City Gas Private Ltd.	Gujarat State Petronet Ltd

Company’s business verticals:

Oil & Gas Pipeline Projects:

Under this vertical company undertakes cross-country pipeline projects for different applications viz. Oil, gas & water etc.
Company also undertakes Pipeline laying work on Turnkey basis including engineering, procurement and commissioning for city gas distribution companies.
Company’s scope of work in CGD projects includes laying of High Pressure Gas Steel Pipelines and Medium Density Polyethylene (MDPE) Pipelines for industrial / commercial, Compressed Natural Gas (“CNG”) network and Piped Natural Gas (“PNG”) network, Construction of CNG Stations, Galvanized Iron pipes, copper tubing, etc. as per the project requirements.
Company also provide Operations & maintenance services for Oil & Gas pipelines.

Water Pipeline Projects:

Under this vertical company undertakes design, supply, laying, jointing, testing and commissioning of bulk and distribution pipeline network for domestic and industrial water supply.
The contract scope includes Design, planning, laying, jointing and commissioning of Mild Steel (MS), Ductile Iron (DI), High Density Polyethylene (HDPE), Polyvinyl Chloride (PVC), Reinforced Concrete Cement (RCC), Bar Wrapped Steel Cylinder (BWSC) and Pipes Operation & maintenance of pipeline networks.
Company also provide Operations & maintenance services for water distribution pipelines.

Contract Wise Revenue Bifurcation: (in Lakhs)

Geography Wise Revenue Bifurcation: (in Lakhs)

Entity Wise Revenue Bifurcation: (in Lakhs)

Promoter Background:

Founded by visionary Promoters Mr. Pratikkumar Maganlal Vekariya and Mr. Nayankumar Manubhai Pansuriya having combined experience of over 30 years in engineering industry.
Both our promoters are Mechanical Engineers. Mr. Pratikkumar Maganlal Vekariya, in past, has worked in reputed construction companies namely Jai-Hind Projects Limited, Punj Lloyd Limited and NCC Limited. Mr. Nayankumar Manubhai Pansuriya, in past, has worked with NCC Limited.
Driven by the passion for building an integrated pipeline projects company, backed by their experience, the promoter has been the pillars of Company’s growth and has built a strong value system for the Company.

Management Team:

Mr. Pratikkumar Maganlal Vekariya (Designation: Chairman and Managing Director)
Mr. Nayankumar Manubhai Pansuriya (Designation: Whole Time Director

Objectives of the Issue:

Fresh Issue: (Rs.36 cr cr)

Purchase of Machinery.
To Meet Working Capital Requirements.
General Corporate Purpose.

Fund Utilisation:

Particulars	Amount (Rs. in Crores)
Purchase of Machinery	8.83 cr
To Meet Working Capital Requirements	15.15 cr

Positives for the Company:

Company has End-to-end execution capabilities.

Company has good execution capabilities, comprising strong in-house operations consisting of design, engineering, procurement, construction and quality assurance teams, is a critical factor that has contributed to growth story of the company.
Company’s track record in construction of pipeline projects has been instrumental in consistent sales and performance.
Company’s management team ensures efficient and rapid construction and completion of our pipeline projects, our quality assurance team ensures the quality construction of our pipeline projects, and our procurement team works with vendors who have the scale to deliver and meet our requirements to procure pipeline construction materials and equipment.

Visible growth through a robust order book.

An order book is considered one of the key indicators of future performance as it represents a portion of anticipated future revenue. Company’s strategy is not focused solely on order book addition but, rather, on adding quality projects with potentially higher margins and/or prestigious projects that help enhance our growing reputation.
By diversifying skill set and order book across different sectors,Company is able to pursue a broader range of project tenders and consequently, optimize our business volume and profit margins.
As at February 23, 2024, company has 8 major on-going projects out of which 7 projects worth approximately Rs.296.66 cr has been confirmed based on Letter of Allocation / Purchase Order for which Rs.240.15 ce worth project execution is pending and 1 project has been finalized with Purchase Order, which is worth approximately Rs.406.67 cr, based on management estimates, suggesting a strong order book.

Company plans to expand Geographical footprint.

Company intends to expand the geographical footprint and grow the business by increasing orders from outside of Gujarat.
Till now, significant amount of company’s revenue from operations is from State of Gujarat. Company believes that geographical diversification of projects will reduce its reliance on home state of Gujarat and allow company to capitalise on different growth trends in different states across the country.

Financials of the Company:

(in Crores)	FY 21	FY 22	FY 23	Upto 30th Sept 23
Revenue	30.85	50.62	51.67	35.81
Net Profit	1.12	4.41	7.64	5.23

Valuation of Peer Group Companies:

Company Name	Face Value	EPS	PE Ratio	RoNW	NAV
Pratham EPC Projects Ltd	10	5.90	12.71	42.50%	13.87
Likhitha Infrastructure Limited	5	15.22	15.47	24.01%	63.39

IPO Details:

Details	Info
Issue Opens on	11th March 2024
Issue Closes on	13th March 2024
Issue Price	Rs.71 – 75
Face Value	Rs.10
Minimum Lot	1600 Shares
Minimum Investment	Rs. 1,20,000
Issue Constitutes	27.02 %
Issue Size	Rs.36 cr
Market Cap	Rs. 133.2 cr
Listing at	NSE SME
Equity Shares Offered (Fresh)	48,00,000 (Rs.36 cr)
Equity Shares Prior to the Issue	1,29,60,000
Equity Shares after the Issue	1,77,60,000

Also Read : List of Upcoming IPO’s in India.
Also Read: List of Upcoming SME IPO’s in India.

Important Dates:

Finalization of Basis of Allotment	on or Before 14th March 2024
Initiation of Refunds	on or Before 15th March 2024
Credit of Equity Shares:	on or Before 15th March 2024
Listing Date:	on or Before 18th March 2024

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
5.90	12.71	42.50%	13.87

Company Contact Info:
Pratham EPC Projects Ltd A-1101, Sankalp Iconic Tower, Opp. Vikramnagar Colony, Iscon Cross Road, S.G. Highway, Ambli, Ahmedabad, Daskroi, Gujarat-380058 ; Telephone No.: 079-4003 7008 E-Mail: cs@prathamepc.com Web site: www.prathamepc.com

Registrar to the Issue:
LINK INTIME INDIA PRIVATE LIMITED Address: C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai, Maharashtra, India – 400 083. Tel. Number: +91 22 4918 6200 Email Id: prathamepc.ipo@linkintime.co.in Website: www.linkintime.co.in

Lead Manager to the Issue:
BEELINE CAPITAL ADVISORS PRIVATE LIMITED Address: B 1311-1314 Thirteenth Floor Shilp Corporate Park, Rajpath Rangoli Road Thaltej Ahmedabad Gujarat 380054 India. Telephone Number: +91 79 4918 5784 Email Id: mb@beelinemb.com Website: www.beelinemb.com