Prince Pipes and Fitting Ltd IPO
Prince Pipes and Fittings will open its initial public offering (IPO) on December 18 and have fixed a price band of Rs 177-178 per share. The Rs 500-crore IPO includes the issuance of shares worth Rs 250 crore and an offer for sale of Rs 250 crore. The issue will open on December 18 & close on December 20.
The details of utilization of the proceeds of the Fresh Issue are summarized below (source: Moneycontrol)
- Repayment or prepayment of certain outstanding loans of the company;
- Financing the project cost towards the establishment of a new manufacturing facility;
- Upgradation of equipment at the manufacturing facilities; and
- General corporate purposes, subject to the applicable laws.
Overview
Prince Pipes and Fittings. Ltd is a well-known, leading manufacturer of pipes and fittings in India in terms of the number of distributors with over 30 years of industry experience. The company markets its products under two brand names: Prince Piping Systems and Trubore. The products have varied applications in plumbing, irrigation, and soil, waste and rainwater management.
Promoters of Prince Pipes
The Promoter of Prince Pipes company is Jayant Shamji Chheda, Tarla Jayant Chheda, Vipul Jayant Chheda & Heena Parag Chheda, Parag Jayant Chheda.
Prince Pipes & Fitting Ltd IPO Offer
Issue Structure
Prince Pipes and Fittings Ltd.’s net issue size is Rs. 500 crore. Out of the issue size of Rs 500 crore, Rs 250 crore will be raised as Fresh Issue and the remaining Rs 250 crore will be raised as Offer for Sale The minimum bid lot size is of 84 equity shares.
Share Holding Pattern
Prince Pipes and Fittings Ltd. Pre & Post IPO Shareholding Pattern in (%).| Pre | Post | |
|---|---|---|
| Promoter | 90 | 65.8 |
| Public | 10 | 34.2 |
| Total | 100 | 100 |
IPO Issue Structure
| Fresh issue | 50.0% |
| Offer for Sale | 50.0% |
No. of Shares on Offer
| Category | No. of shares offered | % Shares offered |
|---|---|---|
| QIB | 14044944 | 50 % |
| Non Institutional Bidders | 4213483 | 15% |
| Retail | 9831460 | 35% |
| Total | 28089887 | 100% |
Minimum & Maximum Lot Size for Retail
Prince Pipes IPO Lot Size along with Price details for the retail investors.| Application | Lots | Shares |
|---|---|---|
| Minimum | 1 | 84 |
| Maximum | 13 | 1092 |
| Total | 28089887 | 1 |
Important Date of Prince Pipes IPO
| Price Band announced | 2019-12-13 |
| Bid/Offer Opening Date | 2019-12-18 |
| Bid/Offer Closing Date | 2019-12-20 |
| Finalisation of Basis of Allotment | 2019-12-26 |
| Initiation of Refunds | 2019-12-27 |
| Shares Credit to Demat Account | 2019-12-30 |
| Listing on NSE & BSE | 2019-12-31 |
IPO Allotment Status
You can directly check Prince Pipes and Fitting Ltd IPO allotment status on the Link Intime registrar website. You can check the allocation status just by entering the PAN or App. No. or DP/Client ID.
Prince Pipes and Fittings IPO Summary
| Subscription Dates | 18 - 20 December 2019 |
| Issue Type | Book Built Issue IPO |
| Issue Price | INR177 - 178 per share |
| Fresh issue | INR250 crore |
| Offer For Sale | INR250 crore |
| Total IPO size | INR 500 crore |
| Minimum bid (lot size) | 84 shares |
| Face Value | INR10 per share |
| Retail Allocation | 0.35 |
| Listing On | NSE, BSE |
Financial Statements
| Particulars | FY 2017 | FY 2018 | FY 2019 | Q1 FY 2020 |
|---|---|---|---|---|
| Expenses | 1236.6 | 1231.4 | 1467.5 | 346.3 |
| Net income | 73.1 | 73.3 | 83.2 | 26.9 |
| Net margin | 5.5 % | 5.5 % | 5.3% | 7.1% |
| Revenue | 1332.5 | 1326.6 | 1579 | 380.2 |
Prince Pipes IPO Valuation
Post issue on the expanded shareholding, the valuation works to 23.41X to 23.54X the Earning Per Share.
On FY21 basis, the stock is trading at 16X Price Earning multiple. It’s recommended to subscribe for listing gains.
