Prince Pipes and Fittings is recognized as one of the leading polymer pipes and fittings manufacturers in India in terms of number of distributors. The company markets its products under two brand names: Prince Piping Systems and Trubore. The company has more than 30 years’ experience in the polymer pipes segment. The company is positioned not just as a pipe manufacturer but also as an end-to-end piping systems supplier. The company currently manufacture polymer pipes using four different polymers: UPVC, CPVC, PPR and HDPE, and fittings using three different polymers: UPVC, CPVC and PPR. Its products are used for varied applications in plumbing, irrigation, and soil, waste and rain water (SWR) management.

Prince-Pipes-IPO-Recommendations

Issue Details

Objects of the issue 1. Repayment or prepayment of certain outstanding loans.
2. Financing the project cost towards establishment of a new manufacturing facility.
3. General corporate purposes, subject to the applicable laws.
Issue Size 280,89,887 Shares ( up to ₹500.00 Cr)
Face value Rs 10 Per Equity Share
Issue Price Rs 177- Rs 178 Per Equity Share
Bid Lot 84 shares
Listing at: NSE, BSE
Issue Opens: 18th Dec 2019 – 20th Dec. 2019
Minimum Investment Rs. 14952
QIB 50% (250 Cr.)
NII 15% (75 Cr.)
Retail 35% (175 Cr.)
Issue Structure (%) Fresh issue 50%
Offer for sale 50%

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Shareholding Pattern:

Pre issue % Post issue %
Promoters 90.06 65.87
Public 9.94 34.13

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Valuation:

Particulars (cr.) Mar-18 Mar-19 Sep-19*
Total Income 1315.04 1571.87 379.77
Operating Profits 163.34 185.91 52.71
Other Income 6.03 7.13 0.43
PBIDT 169.36 193.03 53.14
Interest 36.11 36.4 7.39
PBDT 133.26 156.63 45.75
Depreciation 38.09 45.16 11.82
PBT 95.17 111.47 33.93
Provision for Tax 22.4 28.12 7.26
Profit after Tax 72.77 83.35 26.67
EPS ( FV 10/Share) Mar-18 Mar-19 Sep-19*
Basic 8.1 9.3 3.0
Diluted 8.1 9.3 3.0

*consider 6 months data till Sep 2019

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Strengths:

  1. A Diverse product portfolio and strong distributor network.
  2. Operates in a robust domestic market. Its plants are located at: Athal (Union Territory of Dadra and Nagar Haveli); Dadra (Union Territory of Dadra and Nagar Haveli); Haridwar (Uttarakhand); Chennai (Tamil Nadu); Kolhapur (Maharashtra) and Jobner (Rajasthan).
  3. Multi-location manufacturing units in India. A strong presence in North, West and South India.
  4. Technical collaboration with international players to maintain quality of products.
  5. Under AMRUT scheme govt. has decided to expense Rs 85000 cr out of which 10%will be in to material which will benefit to Pipe industry. India is having 11 kg per person consumption of plastic whereas world avg. is 33 kg

Weakness:

  1. The business model can be easily replicated and operates in a highly competitive market.
  2. Weak financial performance and return on Investment is low.
  3. Increases in cost of raw materials.The company faces significant competition from organized and unorganized pipe manufacturers. In addition to competition from players in the polymer pipes industry, it also faces competition from substitutes for many of its products.

Key Highlights:

  • Prince Pipes and Fittings’ number of distributors as of September 30, 2019, was 1,408 compared to 984 distributors of Supreme Industries, 850 Finolex Industries, 750 Astral Polytechnic and 1,100 of Ashirvad Pipes.
  • The company plans to set up a new manufacturing plant in Sangareddy (Telangana), with a total estimated installed capacity of 51,943 tonnes per annum.
  • Strong brands in the pipes and fittings segment with over 30 years’ experience and multiple industry awards and accolades

 

Check Prince Pipes and Fittings Limited IPO Allotment Status

Prince Pipes and Fittings Limited allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Check Prince Pipes and Fittings Limited Allotment Status
  2. Go to Application Status
  3. Select IPO as Prince Pipes and Fittings Limited
  4. Enter your PAN Number or Application Id or DP Client Id.

 

It takes little time to fetch information so you need to be little patient.

Download “Prince Pipes and Fittings Limited” IPO Application Form

From BSE: click here

 


Outlook:

Prince Pipes and Fittings. Ltd is a well-known, leading manufacturer of pipes and fittings. The company has a pan-India network of distributors. At the upper price band of Rs 178, the offer is made at around 23.4 times its FY 2019 EPS of Rs 7.6 on a post-issue equity share capital of Rs 110.03 crore of face value of Rs 10 each. We observed that Prince Pipes and fittings is expensively priced and there are much better players already listed such as Supreme industries, Astral, Finolex with reasonable price. Post dilution on the trailing basis the IPO demands price – earnings multiple of 24 this is fair when compared with the valuation of Supreme industries, finolex and astral poly which are trading at 33, 20, and 73 respectively. So, we advised retail investors to subscribe the issue.


 DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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