Prince Pipes and Fittings IPO Review, Price, GMP

Prince Pipes and Fittings IPO Review Pic

In India, the company is recognized as one of the leading polymer pipes and fittings manufacturers. And the recognization is in terms of numbers of distributors. Moreover, they market their products under two different brand names, likely, Price Piping System, and, Trubore. Due to their comprehensive range of products, they are positioned as one of the best polymer piping systems solution provider. The company has more than 30 years’ experience in the polymer pipes segment. The article is about Prince Pipes and Fittings IPO Review.

Prince Pipes and Fittings IPO Issue Details

  • IPO Opens on – Dec 18, 2019
  • IPO Closes on –Dec 20, 2019
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – ₹177 to ₹178 Per Equity Share
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 84 Shares.
  • Minimum Order Quantity – 84 Shares
  • Issue Size – 28,248,586 Eq Shares of ₹10
  • (aggregating up to ₹500.00 Cr)
  • Listing Exchange – BSE, NSE.
  • Draft Prospectus – Click Here

Objectives of the Issue

  • They enter into various financial agreements, for that capital requirement is essential.
  • Besides the above, capital requires for payment and repayment.
  • Above all, to enhance the brand name, image.
Prince Pipes and Fittings Ltd

FAQ to consider for Prince Pipes and Fittings IPO Review

What is Prince Pipes IPO?

Prince Pipes and Fittings Ltd are about to launch their company in the share market through initial public offerings. The IPO will be open this month of December. With issue price of Rs.177-Rs. 178, and, market lot 84 shares the company is going to issue it. The order type is book build issue and will open on Dec 18 and close on Dec 20, 2019.

How to apply for Prince Pipes IPO?

Prince Pipes IPO application can be done so easily through stockbrokers trading accounts or through banks. All popular banks such as HDFC, SBI, ICICI, etc offer applications for IPO. Apart from this, top brokers like Zerodha, Sharekhan also offer the facility to their customers. You can apply for the Prince Pipes IPO in 5 minutes through Zerodha.

When Prince Pipes IPO will open?

The Prince Pipes IPO will open on 18th December 2019 and close on 20th December. The detailed guidelines are given here.

What is the Lot size of Prince Pipes IPO?

The lot size of the Prince Pipes IPO is 84 shares. If you ask for the minimum quantity of buying the Prince Pipes IPO shares, the answer is also the same, 84 shares.

Company Details

  • The company presently manufactures polymer pipes by using four different polymers like UPVC; CPVC; PPR; and HDPE. And also fittings using three types of polymers such as UPVC; CPVC; and PPR.
  • As of June 30, 2018, they had a product range of 7,480 SKUs. Their products are used for multiple applications such as plumbing, irrigation, and soil, waste, and also rainwater management.
  • They have five effectively located manufacturing plants. These have enabled us to develop a strong presence in North, West as well as South India.
  • The company plans to set up two new manufacturing plants, one in Jobner (Rajasthan). This is near Jaipur along with an installed capacity of 40,621 tonnes/annum. And the other in Sangareddy (Telangana) along with an installed capacity of 52,242 tonnes/annum.
  • They distribute their products from their five plants and 10 warehouses. Their warehouses are managed by clearing as well as forwarding agents.
  • As of June 30, 2018, the company sold its Prince Piping Systems products to 843 distributors in this country. They sell their Trubore products just directly to wholesalers as well as retailers. As of June 30, 2018, they sold they Trubore products to 212 wholesalers and retailers.
Prince Pipes and Fittings Products

Product Information

The brief product details are given below. To find more about the products, check the DRHP (Draft rad herring prospectus).

Plumbing

  • UPVC
  • CPVC
  • PPR

Irrigation

  • UPVC

SWR management

  • UPVC
  • Others

Underground drainage

  • HPDE

Registered Office

Plot No.1, Honda Industrial Estate, Phase II, Honda Sattari, Honda, Goa 403 530, India

Company Management

  • Jayant Shamji Chheda Designation: Chairman and Managing Director
  • Parag Jayant Chheda Designation: Executive Director
  • Vipul Jayant Chheda Designation: Executive Director
  • Heena Parag Chheda Designation: Executive Director
  • Ramesh Chandak Designation: Independent Director
  • Mohinder Pal Bansal Designation: Independent Director
  • Sundar Parthasarathy Designation: Independent Director
  • Uma Mandavgane Designation: Independent Director

Best Company Strategies

  • Continue to optimize its product mix to improve margins.
  • Increase their sales of DWC pipes
  • Set up two new advanced manufacturing plants
  • Expand the Trubore brand to new geographies areas.
  • Brand building through major and important marketing initiatives.
  • Among their strength, strong brands in the pipes as well as fittings segment with over 30 years’ experience. And also the company received multiple industry awards and accolades.
  • Their comprehensive product portfolio across polymers serving diverse end-use applications.

Financial Data Analyzed for Prince Pipes and Fittings IPO Review

This is one of the most important parts of the review. So let us check it.

Prince Pipes and Fittings IPO Review

Prince Pipes and Fittings IPO Review

So, the above chart contains the financial details of Prince Pipes. It shows the company is making a moderate profit throughout the years. Now, let us have a look at the prospectus of the company. Its EPS (earnings per share) stands at 8.17 (as of FY18 basic and diluted). The company has not revealed the PE (price to earnings) ratio. It’s RoNW (Return on Net Worth) and NAV/share are 23.08 and 35.37 respectively.

Besides this, Prince Pipes’ GMP (Grey market premium) is 40-45 and the Kosak rate is 350.

So based on these available data, Prince Pipes and Fittings IPO Review carries a NEGATIVE view. It is advisable to avoid the IPO.

Conclusion

However, if investors want to invest in it, they can invest but at their own risk. Our review says the IPO is not fruitful.

Author: Ankita Sarkar

Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. She is a NISM certified Research Analyst. An experienced stock market content writer Ankita is also trading successfully on her own account.

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