The initial public offering (IPO) of Mumbai-based Prince Pipes and Fittings Ltd will be open for subscription from December 18, till December 20. The issue comes just after the recently-concluded successful IPOs of CSB Bank Ltd and Ujjivan Small Finance Bank Ltd and, hence, may attract a lot of attention from primary stock market investors trying to cash in on the recent IPO frenzy. If you are planning to put in your money in the Prince Pipes IPO, here’s everything you need to know:
-- Prince Pipes has fixed IPO price band at Rs 177-178 per share, a premium of Rs 167-168 per share over face value of Rs 10 per share.
-- Bids can be made for a minimum of 84 equity shares and in multiples of 84 shares thereafter.
-- The Rs 500-crore IPO comprises Rs 250 crore through fresh issuance of shares and an equal amount through offer for sale (OFS).
-- As usually happens, 50% of the public issue, or shares worth Rs 250 crore, are reserved for qualified institutional buyers, while 15% (Rs 75 crore) is reserved for non-institutional investors and 35% (Rs 175 crore shares) for retail bidders.
-- Equity shares will be listed on both BSE and the National Stock Exchange, reportedly on 31 December. JM Financial and Edelweiss Financial Services are the book running lead managers to the issue, while Link Intime India is the registrar to the issue.
-- The OFS comprises selling of shares worth Rs 20 crore by Jayant Shamji Chheda, Rs 140 crore by Tarla Jayant Chheda, Rs 50 crore by Parag Jayant Chheda and Rs 40 crore by Vipul Jayant Chheda, which all are promoters. Promoters held 90.06% stake in the company at the time of filing red herring prospectus, which should fall down to 61.06% after the proposed IPO.
-- The company will not receive any proceeds from the OFS. The promoters selling shares intend to use those proceeds towards repayment of the outstanding bonds issued by Express Infra Projects LLP.
-- Net proceeds from fresh issue and pre-IPO placement would be used for repayment of certain outstanding loans, financing the project cost towards establishment of a new manufacturing facility, upgradation of equipment at manufacturing facilities, and general corporate purposes.
-- Prince Pipes is recognised as one of the leading polymer pipes and fittings manufacturers in India in terms of number of distributors. It markets products under two brand names: Prince Piping Systems; and Trubore. Its products are used for varied applications in plumbing, irrigation and soil, waste and rain water (SWR) management.
-- The company reported a profit of Rs 83.35 crore in FY19, a jump of 14.6% over FY18. Revenue grew by 19% to Rs 1,571.8 crore during that year. Its profit for three months period ended June 2019 stood at Rs 26.67 crore on revenue of Rs 380 crore.
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