Prince pipes and fittings IPO Issue Details:
IPO date: 18 Dec – 20 December 2019
Issue Size: 500 Cr
Offer Price: Rs 177 – Rs 178 Per Equity Share
Market Lot: 84 Shares & multiples
Exchange Listing: BSE, NSE
IPO Timelines (tentative dates):
Allotment & refund: 27 Dec
Credit to Demat: 30 Dec
Listing on Exchange: 31 Dec
Company Promoters: Jayant Shamji Chheda & family
Objective of the Issue: Repayment or prepayment of certain outstanding loans, financing new manufacturing facility, Upgradation of equipment
IPO Registrar: Link Intime India Private Ltd
- Incorporated in 1987, Mumbai based Prince Pipes is engaged in manufacturing of polymer pipes and fittings.
- Brand names: Trubore, Prince.
- PAN-India presence & products are used for varied applications in plumbing, irrigation, and soil, waste and rain water management.
- The company website: https://princepipes.com/
Prince pipes IPO Analysis (Review)
valuations as on 31st Mar 2019:
1. Earning per share (EPS): 9.26
2. Price to Earning ratio (P/E): 19
Company category: medium-grower
- Strategically multi-located & diversified manufacturing facilities with a core focus on quality.
- Strong brands in the pipes and fittings segment with over 30 years‘ experience with Pan-India presence.
- Technical collaboration with a reputed international player to improve quality.
- Company plans new facility at Telangana, likely to be operational by Dec 2020, implying 28% hike.
Low profit margin
debt higher than peers but will get somewhat down after IPO fund
P/E valuation are okay compare to peers.
- Brand name with PAN-India presence, New facility will increase capacity & thus profit, reducing debt from IPO fund, overall okay P/E valuation compare to peers are plus points.
- GMP (Grey Market Premium) is around 12 Rs as of 17th Dec. IPO may bring some listing gain or may not as looking at GMP & overall Analysts and investors’ less sentiment for this IPO.
- You may or may not find usual subscription response as less sentiment but this is actually an opportunity to get allotment for such a overall okay IPO as like Apex frozen food, AU small finance, Polycab IPO etc. You can expect reasonable gain in mid to long run.
- Considering all the factors, my personal view is ‘Positive’ for mid to long term gain.
- BullRun IPO-India Ratings: 3.5 stars (out of 5 Stars)
Prince pipes IPO Allotment Check:
- how and where to check allotment status (link) :
Prince pipes Subscription Status:
EPS – Earning per share
OFS – Offer for Sale
P/E – Price to Earning
RoE – Return on Equity
QIB – Qualified Institutional Buyer
NII – Non-Institutional Investors
RII – Retail Individual Investor
Disclaimer & Conflict of Interest:
The above analysis is based on research of the company and RHP of Prince pipes. You should study more before taking any decision.
Analysis by – NISM Certified Research Analyst & Investment Advisor.