Prince Pipes and Fittings IPO subscribed 2.2 times on final day of bidding

The allotted shares from Prince Pipes and Fittings IPO will be credited into the Demat account of shareholders on December 30, 2019

The initial public offer of Prince Pipes and Fittings has been subscribed 2.21 times on Friday, its last day of bidding for subscription.

The Rs 500-crore offer received bids for over 4.36 crore shares against the total issue size of 1.97 crore shares, as per data available with the NSE till 1700 hrs.

Here are 5 key pointers about Prince Pipes and Fittings, that will list on bourses BSE, NSE on December 31, 2019:

1. About the company: Incorporated in 1987, Mumbai-based end-to-end polymer piping systems’ solution provider, Prince Pipes has a diverse product portfolio, coupled with multi-location manufacturing units as well as a network of distributors pan-India. The company has over 30 years of experience in the polymer pipes and fittings manufacturing segments and holds 5% Indian market share manufacturing of both polymer pipes and fittings. Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda and Heena Parag Chheda are the promoters of the company. While Jayant Shamji Chheda is the Chairman and Managing Director of the company, Parag Jayant Chheda and Vipul Jayant Chheda are the executive directors.

2. Company products: The firm owns 6 manufacturing facilities strategically located across India, with an installed capacity of 241,211 tonnes. The company has a product range of 7,167 stock keeping units, meeting the requirements of both the rural and urban markets. The products of the company are used in plumbing, irrigation, soil and rainwater harvesting. The polymer fittings company markets its products under Prince Piping Systems and Trubore. Now, the company is expanding its manufacturing facilities with two new units, one at Jobner near Jaipur in Rajasthan and the second one in Sangareddy (Telangana).

3. Financials: Earning per share (EPS) of the company is 9.26, which is lower when compared to its listed peers Astral Poly Technic, Finolex and Supreme. In terms of valuation, at the upper end of the price band, it is coming with trailing PE of 19, which is fairly priced compared to the competitors. Santosh Meena, Senior Analyst at TradingBells said, “There is decent revenue growth of 10% CAGR whereas 30% CAGR growth in profit for the last four years.” As per analysts, the PVC pipes industry’s demand is expected to grow at a pace of 10% per annum in India compared to 4% global growth estimates supported by irrigation sector.

4. Balance sheet: Company’s profit stood at Rs 26.91 crore, while its revenue was booked at Rs 380 crore for three months period ended June 2019. Prince Pipes’ profit in the financial year 2018-19 stood at Rs 83.35 crore, rising 14.6% over the previous year’s profit of Rs 73.31. Revenue grew by 19% to Rs 1,571.8 crore in the financial year 2018-19, as compared to Rs 1,326.57 crore booked in the same period last year. However, PPFL’s revenue declined 0.71% and profit fell 1.9 % in FY18 compared to FY17.

5. Important dates: Post the issue, the finalisation as per the basis of allotment will be done on December 26, 2019. For investors who would place bids for the issue but would not get any shares, the refund process will start on December 27, followed by December 30, when the allotted shares will be credited into the Demat account of shareholders. The shares of Prince Pipes are proposed to be listed on BSE and NSE on December 31, 2019.