Prince Pipes and Fittings Ltd IPO Review, Final Verdict
Please go through for our review and final verdict whether we should opt the IPO or not of Prince pipe LTD
Prince Pipes provides an end to end solutions across a wide product range (7,480 SKUs as on 30th June 2018). It has 5 manufacturing units located at Haridwar (Uttarakhand), Athal (Dadra and Nagar Haveli), Dadra (Dadra and Nagar Haveli), Kolhapur (Maharashtra) and Chennai (Tamil Nadu). Besides, two contract manufacturing units are located at Hajipur (Bihar) and Aurangabad (Maharashtra).
The company is also planning to open two manufacturing units at Jobner (Rajasthan) and Sangareddy (Telangana). Prince Pipes and Fittings Ltd has 10 warehouses to store the products. The company sells the products under Prince Piping Systems brand name to 843 distributors which further sell them to wholesalers, retailers and plumbers. The products under Trubore are directly sold to 212 wholesalers and retailers.
Competitive Strengths
- Strong brand presence in pipes and fittings segment
- Diverse product portfolio
- Multi-location manufacturing units in India
- A strong presence in North, West and South India
- A pan-India network of distributors
- Technical collaboration with international players to maintain quality of products
Company Promoters:
Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda and Heena Parag Chheda are the promoters of the company.
Company Financials:
| Particulars | For the year/period ended (₹ in Millions) | ||||
|---|---|---|---|---|---|
| Three months period ended on 30-June-2019 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Total Assets | 10,144.57 | 10,404.13 | 9,798.77 | 7,605.05 | 6,533.00 |
| Total Revenue | 3,801.92 | 15,789.95 | 13,265.71 | 13,324.95 | 10,816.18 |
| Profit After Tax | 266.69 | 833.51 | 727.66 | 741.82 | 295.35 |
Objects of the Issue:
The details of utilization of the proceeds of the Fresh Issue are summarized below:
1. Repayment or prepayment of certain outstanding loans of the company;
2. Financing the project cost towards establishment of a new manufacturing facility;
3. Upgradation of equipment at the manufacturing facilities; and
4. General corporate purposes, subject to the applicable laws.
Prince Pipes IPO Details
| Issue Open | Dec 18, 2019 – Dec 20, 2019 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 28,248,586 Eq Shares of ₹10 (aggregating up to ₹500.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹10 (aggregating up to ₹250.00 Cr) |
| Offer for Sale | [.] Eq Shares of ₹10 (aggregating up to ₹250.00 Cr) |
| Face Value | ₹10 Per Equity Share |
| Issue Price | ₹177 to ₹178 Per Equity Share |
| Market Lot | 84 Shares |
| Min Order Quantity | 84 Shares |
| Listing At | BSE, NSE |
| P/E (x) | 18.35 |
| Market Cap (₹ Cr.) | 46.7 |
Prince Pipes IPO Tentative Date / Timetable
| Bid/Offer Opens On | Dec 18, 2019 |
| Bid/Offer Closes On | Dec 20, 2019 |
| Finalisation of Basis of Allotment | Dec 26, 2019 |
| Initiation of Refunds | Dec 27, 2019 |
| Credit of Shares to Demat Acct | Dec 30, 2019 |
| IPO Shares Listing Date | Dec 31, 2019 |
Prince Pipes IPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 84 | ₹14,952 |
| Maximum | 13 | 1092 | ₹194,376 |
Prince Pipes IPO Promoter Holding
| Pre Issue Share Holding | 90.06% |
| Post Issue Share Holding | 65.80% |
- Pre-IPO Placement: 5,965,000 equity shares (aggregating up to Rs 106.18 crore)
- Investor Portion- QIB: 50% of the issue; NIB: 15% of the issue; Retail: 35% of the issue
- Anchor bidding date: 17th Dec 2019
Prince Pipes IPO Subscription Status (Bidding Detail)
| No. of Times Issue Subscribed (BSE + NSE) | ||||
|---|---|---|---|---|
| As on Date & Time | QIB | NII | RII | Total |
| Shares Offered | 5,649,718 | 4,237,288 | 9,887,006 | 19,774,012 |
| Dec 18, 2019 17:00 | 0.05x | 0.03x | 0.52x | 0.28x |
Final Verdicts
According to our analysis one should not purchase the lot or go for IPO need to wait for listing , chances of price during listing will go down
(Note that this is our own verdict )