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Prince Pipes IPO: Should You Invest?

Created on 19 Dec 2019

Wraps up in 3 Min

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Updated on 10 Sep 2022

Prince Pipes IPO is listing on the Stock Exchange

Prince Pipes and Company Ltd. are a manufacturer of polymer pipes and fittings. Founded in 1987, the company contributes to irrigation, plumbing and sewage technologies to meet the water supply infrastructure demands of India. Around 37 percent of the company's revenue is generated from supply of plumbing products, along with 32% from irrigation products. 

Business Stats of Prince Pipes 

Prince Pipes are also a known creator of roof roof-water harvesting system and sewage system in India, gaining around 30% of their revenue through these SWR systems.  They claim to use Zero Defect Manufacturing for making the polymer pipes efficient and cost-effective. 

The company has its headquarters in Mumbai, and manufacturing plants at Haridwar (U.P), Dadra (Silvassa), Kolhapur (Maharashtra), Chennai (Tamil Nadu) and Athal (Silvassa).  Prince Pipes has some major competitors in the market hailing from pipes industries, like Finolex Industries, Astral Polytechnik and Ashirvad Pipes. 

Prince Pipes has a Compound Annual Growth Rate (CAGR) of over 40% in the last four years, and has a market share of 5% in total, making it one of the fastest-growing companies in India.

Prince Pipes IPO opened for subscription on Wednesday, and it has risen to around Rs 150 crore this Tuesday from leading anchor investors like HDFC Life Insurance and Aditya Birla Mutual Funds (MF).

In this article, we'll cover the details of the Prince Pipes IPO.

But wait! Are you unfamiliar with IPO application and its allotment? Well, check out our articles on IPO Allotment Process and IPO Application Process before reading further.

What are some expectations of Prince Pipes IPO?

Analysts in the leading brokerage firms in India have provided miscellaneous comments on the subscription of Prince Pipes’ IPO. Some brokerage firms like IDBI Capital and Reliance Securities have given a complete green signal to subscribe for its IPO.

According to them, the strategic location of manufacturing plants, along with strong distribution networks, is sure to support sales growth for the coming years. Furthermore, growth in CAGR, a strong presence in northern regions and plans of increasing capacity are some proof the various brokerage firms have provided for justifying their decision.

On the other hand, some firms like BP's wealth have claimed that the company's stock isn't that attractive, given the market competition it faces along with its costly shares as compared to its peers.

Hence, it is important to ponder on all these facts stated by analysts before buying its IPO.

Prince Pipes IPO Details

The IPO has an issue size of 28,248,586 shares of 10 Rs, which aggregates to 500 crores, along with the Market Cap of Rs 46.7 crore. The issue is of Book Built type, and the Offer for Sale (OFS) is of 10 Rs shares (aggregating to 250 crores).

The IPO listing is done at BSE and NSE.

Prices:

Face Value

10 Rs/Share

Price Band

177 Rs to 178 Rs

P/E ratio

18.35

Lot Size:

Market Lot

84 Shares

Maximum Lot Size

13 (194,376 cut-off amount)

Minimum Lot Size

1 (14,952 cut-off amount)

Investor Portion:

Retail Investors

35% of the issue

QIB

50% of the issue

NIB

15% of the issue

Important Dates:

Issue Open

Dec 18, 2019 – Dec 20, 2019

Bid Opening

Dec 18, 2019

Finalization of Allotment

Dec 26, 2019

Refund Initiation

Dec 30, 2019

IPO shares listing date

Dec 31, 2019

Conclusion

Overall, given the current data and analysis done by various experts, it seems that the subscription of Prince Pipes IPO is going to be favorable for them. Around 28% subscription of its IPO was done on the first day only. 

Even, the sales of the company is doing fairly well, and it has been able to grow its revenue up to 12.6 percent in the period of FY17 to FY19. Customers have also rated the company good, based on the reviews and Prince Pipes news. What hails for Prince Pipes can only be predicted. Let's hope for a successful IPO as the financials seems strong of the compnay. 

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Deb is a keen learner and eager to learn about the finance world. He is that person who would never stop talking, but my oh my, the words he uses, are not something a normal human would in a regular conversation. While the conversations are well, interesting, the write-ups are faultless. With an increased proclivity towards tech and language, he aims to capitalise on his interests as a content writer at Finology.

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