Business Overview
Prince pipes & fittings limited was incorporated on November 13, 1987, the company is engaged in manufacturing of polymer pipes and fittings under the brand name of Prince piping Systems and Trubore.
They manufactures polymer using four different polymers : UPVC, CPVC, PPR and HDPE while fitting is manufactured using three polymers : UPVC, CPVC and PPR. The product of company are used in plumbing, irrigation, soil and rain water harvesting.
Manufacturing plant locations: Athal, Dadra, Haridwar, Chennai and Kolhapur.
They are planning to setup two new manufacturing plant, one in Jobner (Rajasthan) and Sangareddy (Telangana).
The company has 843 distributors for prince piping systems and 212 wholesalers and retailers for Trubore as on 30 jun’2018 which wide range of products of 7480 SKUs on said date.
Promoters
Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda and Heena Parag Chheda are the promoters of the company.
Registered office
Plot No. 1, Honda Industrial Estate, Phase -II, Honda Sattari, Honda, Goa 403530, India, Email Address : investor@princepipes.com , Website : www.princepipes.com
Financials of Company
| Q1 FY20 | Mar’19 | Mar’18 | Mar’17 | |
| Revenue | 380.19 | 1579.00 | 1326.57 | 1332.50 |
| Expense | 346.26 | 1467.53 | 1231.40 | 1236.59 |
| PAT | 26.91 | 83.25 | 73.31 | 73.14 |
| Profit Margin | 7.1% | 5.3% | 5.5% | 5.5% |
Objects of the Issue
- Repayment or Repayment or prepayment of certain outstanding loans of the company;
- Financing the project cost towards establishment of a new manufacturing facility;
- Upgradation of equipment at the manufacturing facilities; and
- General corporate purposes, subject to the applicable laws.
| Offer Period | Dec 18, 2019 – Dec 20, 2019 |
| Issue Type | Book Built Issue IPO |
| Issue Size | Rs. 500 Cr. |
| Face value | Rs. 10 Per Equity Share |
| Issue Price | Rs. 177 – 178 Per Share |
| Market Lot | 84 Shares |
| Listing at | NSE, BSE |
| Minimum Investment (Retail) | Rs. 14,952/- |
Issue consists of Fresh issue of Rs. 250 Cr and Offer for Sale Rs. 250 Cr respectively.
IPO Schedule
| Offer Open | Dec 18,2019 |
| Offer Close | Dec 20,2019 |
| Finalisation of Basis of allotment | Dec 26,2019 |
| Refund Initiation | Dec 27,2019 |
| Credit Demat Account | Dec 30,2019 |
| Listing Date | Dec 31,2019 |
| Prince Pipes IPO Registrar | Prince Pipes IPO Lead Manager |
Link Intime India Private Limited C-101,1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli(West) Mumbai-400083, Maharashtra, India Contact No. +91-22-49186270 Email : princepipes.ipo@linkintime.co.in Website : www.linkintime.co.in | 1. Edelweiss Capital Limited 2. JM Financial Consultants Pvt Ltd |
Review of Prince Pipe IPO
Prince Pipes is a renowned name in Indian PVC pipes industry and the demand is expected to grow at a pace of 10% per annum in India vs 4% global growth estimations supported by irrigation sector. We recommend to subscribing the issue for listing gain as the IPO is priced at attractive valuations and investor can subscribe this IPO. However, for long term investment the growth of company is not so consistent, company is providing profit margins of around 5.3% – 5.5% in last few years, EPS of company is 9.26 per share which is lower when compared to its listed peers Astral, Finolex and Supreme so we recommend to be cautious for this IPO while subscribing to this IPO in long term.
Investment for Listing Gain : Subscribe
Investment for Long Term : Cautious
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