Teerth Gopicon plans to raise up to Rs. 44.40 crore from public issue; IPO opens April 8

Ahmedabad: Ahmedabad based Teerth Gopicon Ltd, company specializes in engineering construction and development mainly focusing on roads, sewerage and water distribution projects is planning to raise up to Rs. 44.40 crore from its SME public issue. The company has received approval to launch its public issue on NSE Emerge Platform of National Stock Exchange. The public issue open for subscription on April 8 and closes on April 10. The Proceeds of the public issue will be utilised to fund company's expansion plans including meeting working capital requirements and general corporate purposes. Interactive Financial Services Ltd is the lead manager of the issue.

The initial public offering comprises of a fresh issue of 39.99 lakh equity shares of face value Rs. 10 each. Company has fixed price of Rs. 111 per equity share for the public issue (including a premium of Rs. 101 per equity share). Out of the issue proceeds of Rs. 44.40 crore, company plans to utilize Rs. 33.40 crore towards working capital requirements and Rs. 10.24 crore towards general corporate purpose. Minimum lot size for the application is 1200 shares which translates in to investment of Rs. 1.33 lakh per application. Retail investor quota for the IPO is kept at 50% of the net offer.

Highlights:-

• Public issue opens for subscription from April 8 to April 10.
• Minimum lot size for application is 1200 shares; Minimum IPO application amount Rs. 1.33 lakh
• Funds raised through the issue will be used to meet the working capital requirements and general corporate purposes
• For 10 months of FY23-24 company reported revenues of Rs. 69.70 crore and Net Profit of Rs. 7.84 crore
• The Order Book of our Company as on January 31, 2024, is Rs. 904.98 crore.
• Interactive Financial Services Ltd is the lead manager of the issue.

Incorporated in the year 2019, Teerth Gopicon Limited is engaged in the business of road construction, sewerage and water supply in Madhya Pradesh. Company’s business is concentrated in the State of Madhya Pradesh and mainly in city of Indore, Chhatarpur, Sagar, Dindori, Jabalpur and Ujjain. and gradually expanding its presence in other states. ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified company, it is also registered as – All class civil and Electrical Contractor and have executed various Projects of Government Department. Company has worked as a registered Civil contractor for various Central/State Government departments such as ISCDL, IMC, USCL, UMC, MPJNM etc. and also undertaken building works for private sector. The Order Book of our Company as on January 31, 2024, is Rs. 904.98 crore.

The company has undertaken a wide range of civil engineering projects such as building construction, water supply, pipelines, sewage network, sewage treatment plant, nalla taps, reuse network, overhead tanks, GSR, road construction, lake rehabilitation, etc. As at February 29, 2024, the company had a total of 164 permanent employees (including workmen) in various departments.

Dr. Maheshbhai Kumbhani, Founder & Managing Director, Teerth Gopicon Ltd said, "Company has reported excellent operational and financial performance over years. Company’s current business is concentrated in Madhya Pradesh and gradually we plan to expand in other states. We are hopeful that after the proposed public issue, we will be able to execute our growth strategy in a manner that creates exponential value for all stakeholders while consistently delivering quality products."

Company has reported excellent operational and financial performance over years. The Company has witnessed a multi-fold growth in revenue and profitability over the years. For the 10 months of FY23-24 ended January 2024, company has reported net profit of Rs. 7.84 crore and revenue of Rs. 69.70 crore as compared to full year profitability and revenue of Rs. 1.80 crore and Rs. 39.15 crore in FY22-23. As on 31st January 2024, Net Worth of the company was reported at Rs. 15.72 crore, Reserves & Surplus at Rs. 7.73 crore and Asset base of Rs. 137.20 crore. As on 31st January 2024, ROE of the company was 66.40%, ROCE at 48.40% and RONW at 22.72%. Shares of the company will be listed on NSE’s Emerge platform.