Prince Pipes IPO

Things to Know before Investing in Prince Pipes IPO

The Prince Pipes IPO is going to open for bidding on December 18, 2019.

Key points to note before investing in Prince Pipe IPO

Company Profile

Price pipes is recognized as one of the leading PVC pipes and fittings manufacturer in India. It has two brand names : Prince piping systems and Trubore with 7167 SKUs as on October 31, 2019.

Company has 5 manufacturing plants, of which two are in Aurangabad (Maharashtra), one is in Guntur (Andhra Pradesh), one is in Balasore (Odisha) and one is in Hajipur (Bihar).

Now, the company is expanding its manufacturing facilities with two new units, one at Jobner near Jaipur in Rajasthan and second one in Sangareddy (Telangana).

Issue Size

The total issue size is of Rs. 500 Cr out of which Rs. 250 Cr is of fresh issue and Rs. 250 Cr is offer for sale.

The offer for sale is by promoters of company comprises selling of Rs 20 crore shares by Jayant Shamji Chheda, Rs 140 crore shares by Tarla Jayant Chheda, Rs 50 crore shares by Parag Jayant Chheda and Rs 40 crore shares by Vipul Jayant Chheda.

50% of issue is reserved for QIB (Qualified Institutional Investors); 15% is reserved for Non – institutional Investors and 35% is for Retail.

Pre IPO Placement

The company has also taken a private placement of 596500 convertible Preference shares with value at Rs. 106.18 Cr which have been converted to 5965000 equity shares.

South Asia Growth Fund II Holdings LLC picked up 6.18 percent (representing 59,26,820 equity shares) stake in the company in pre-IPO placement.

Price Band

 The price band of IPO is fixed at Rs. 177-178 per share.

Objects of Issue

The company intends to utilise net proceeds from fresh issue and pre IPO placement for repayment of certain outstanding loans, financing the cost of new manufacturing facility, upgradation of manufacturing facilities and general corporate purposes.

Strengths

  • Brand with around 32 years of experience in industry.
  • Diversified product portfolio.
  • Quality focused manufacturing facilities.
  • Large and growing distribution network.
  • Strong and professional management.

Financial Overview

 Profit of Rs. 83.25 Cr. in FY 2018-19, with a growth of around 14.5% than previous year.

Its profit stood at Rs 26.91 Cr. on revenue of Rs 380 Cr. for three months period ended June 2019.

Top 20 distributors account 15-20% of company’s sales and retail segment account 20 percent to total revenue and the rest is accounted by institutions.

Read More details, Review and recommendations Here : Prince Pipes IPO Detail

Prince Pipes IPO GMP

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