Prince Pipes and Fittings Ltd IPO Review, Final Verdict - Ajay Singh Chauhan

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:

ParticularsFor the year/period ended (₹ in Millions)
Three months period
ended on 30-June-2019
31-Mar-1931-Mar-1831-Mar-1731-Mar-16
Total Assets10,144.5710,404.139,798.777,605.056,533.00
Total Revenue3,801.9215,789.9513,265.7113,324.9510,816.18
Profit After Tax266.69833.51727.66741.82295.35

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 OpenDec 18, 2019 – Dec 20, 2019
Issue TypeBook Built Issue IPO
Issue Size28,248,586 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 Lot84 Shares
Min Order Quantity84 Shares
Listing AtBSE, NSE
P/E (x)18.35
Market Cap (₹ Cr.)46.7

Prince Pipes IPO Tentative Date / Timetable

Bid/Offer Opens OnDec 18, 2019
Bid/Offer Closes OnDec 20, 2019
Finalisation of Basis of AllotmentDec 26, 2019
Initiation of RefundsDec 27, 2019
Credit of Shares to Demat AcctDec 30, 2019
IPO Shares Listing DateDec 31, 2019

Prince Pipes IPO Lot Size and Price (Retail)

ApplicationLotsSharesAmount (Cut-off)
Minimum184₹14,952
Maximum131092₹194,376

Prince Pipes IPO Promoter Holding

Pre Issue Share Holding90.06%
Post Issue Share Holding65.80%
  • 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 & TimeQIB NII RII Total 
Shares Offered5,649,7184,237,2889,887,00619,774,012
Dec 18, 2019 17:000.05x0.03x0.52x0.28x

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 )

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