Prince pipes and Fittings IPO

Mumbai based Prince Pipes and Fittings Limited is engaged in the manufacturing of polymer pipes and fittings. It is recognized as one of the leading polymer pipes and fittings manufacturers in India in terms of the number of distributors (Source: CRISIL Research Report).

Prince pipes and Fittings Limited make products under two brand names: Prince Piping Systems; and Trumbore. The company offer a comprehensive product range and also offer end-to-end polymer piping systems solution provider. The company has more than 30 years’ experience in the polymer pipes segment.

The company has five strategically located manufacturing plants, which has enabled help to develop a strong presence in North, West and South India. The total installed capacity of our five existing plants is 242,916 tonnes per annum as of July 31, 2018.

The company plan to set up two new manufacturing plants, one in Jobner (Rajasthan), which is near Jaipur, with an installed capacity of 40,621 tonnes per annum and the other in Sangareddy (Telangana) with an installed capacity of 52,242 tonnes per annum.

Strength of Prince Pipes

  • Strong brands in the pipes and fittings segment with over 30 years’ experience.
  • The company is not just as a pipe manufacturer but also as an end-to-end piping systems supplier.
  • Strategically located manufacturing facilities with a core focus on quality.
  • Large and growing distribution network.
  • Our technical collaboration with a reputed international player, which helps to improve the quality of our products and our manufacturing efficiency.

Points to Consider 

  • Not disclosed Q2FY20 Results
  • Complaints of Non-Disclosure  of certain litigation in DRHP
  • Least Efficient as compared to its peers
  • Less Transparent
  • Valued at 19 times to P/E Ratio: Reasonably Valued
  • Debt-Equity Ratio is high as compared to its peers

Prince Pipes IPO Details

IPO Opens on: 18 December 2019 

IPO Closes on: 20 December 2019  

Price Band:  Rs 177-178 per share

Bid Lot: 84 shares and in multiples of 84 shares

Minimum Investment: 1 Lot = Rs 14,952

Maximum Investment: 13 Lot = Rs 194,376

Fresh issue: Rs 250 Cr

Offer for Sale: Rs 250 Cr 

IPO Size: Rs 500 Cr (Approx)

Retail & Employees Discount: Rs 0 per share

Prince Pipes IPO Time Line

Finalisation of Allotment: 26 December 2019 

Initiation of Refunds: 27 December 2019

Transfer of Shares to Demat Account: 30 December 2019

Listing At: NSE & BSE

Listing Date: 31 December 2019

Financial Performance of (in Crores) Prince Pipes

FY2018 FY2019 Q1 FY2020
Total Revenue 1,326.6 1,579.0 380.2
Total Expense 1,231.4 1,467.5 346.3
Net Income 73.3 83.2 26.9
Net margin (%) 5.5 5.3 7.1
Debt-Equity Ratio 1.15 0.74 0.70

Prince Pipes IPO Valuations

Face Value = Rs 10

Earnings Per Share (EPS) = Rs 9.26

PE Ratio = 19.11 – 19.22 (Approx)

Return on Net Worth (RONW) = 21.18 %

Net Asset Value = Rs 43.71/Share

Prince Pipes IPO Subscription Details

Category Shares offered Subscription (no. of times)
Day 1 (5 pm) Day 2 (5 pm) Day 3 (5 pm)

QIB

5,649,718 0.05x 0.68x 3.54x
NII 4,237,288 0.03x 0.06x 1.21x
Retail 9,887,006 0.52x 1.06x 1.89x
Employee
Total 19,774,012 0.28x 0.74x 2.21x

Grey Market Premium of Prince Pipes IPO Day by Day

Grey market premium as on 21-12-2019 = Rs. 8-10/Share

Grey market premium as on 20-12-2019 = Rs. 8-10/Share

Grey market premium as on 19-12-2019 = Rs. 8-10/Share

Grey market premium as on 18-12-2019 = Rs. 10-15/Share

Grey market premium as on 17-12-2019 = Rs. 10-15/Share

Grey market premium as on 16-12-2019 = Rs. 40-45/Share

Grey market premium as on 15-12-2019 = Rs. 40-45/Share

Grey market premium as on 14-12-2019 = Rs. 40-45/Share

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