Prince Pipes are basically polymer pipes manufacturer which was incorporated in 1987, Mumbai. The company is engaged in manufacturing of polymer pipes and fittings using four different polymers I.e., UPVC; CPVC; PPR; and HDPE, as well as fittings using three different polymers i.e., UPVC; CPVC; and PPR.
Prince Pipes IPO Review
Prince Pipes offers end to end solutions across a vast range of product (7,480 SKUs as at 30th June 2018). Its products on the other hand are also used for varied applications in plumbing, irrigation, as well as soil, waste and rain water (“SWR”) management.
It also comprises of total of 5 manufacturing units that are located at Haridwar (Uttarakhand), Athal (Dadra and Nagar Haveli), Dadra (Dadra and Nagar Haveli), Kolhapur (Maharashtra) and Chennai (Tamil Nadu). Besides, two contract manufacturing units that are situated at Hajipur (Bihar) and Aurangabad (Maharashtra).
Prince Pipes and Fittings Limited is basically operating in the polymer pipe segment under two brand names; which are Trubore and Prince Piping Systems. The company on the other hand, has a corporate office in Mumbai as well as a strong presence across North, South and West India.
Prince Pipes IPO GMP, Share Price & Details
Talking about the total installed capacity of the company’s five current plants is 242,916 tonnes per year as on 31 July 2018. It uses two contract manufacturers that are situated in Aurangabad (Maharashtra) and one in Hajipur (Bihar).
At the same time, the company also distributes its products from five plants as well as 10 warehouses. Prince Pipes and Fittings Ltd sells the products under Prince Piping Systems brand name to 843 distributors which further sell them to wholesalers, retailers and then plumbers. At first, they sells Trubore products directly to wholesalers and retailers whose strength stood at 212 wholesalers as well as retailers as at 30 June 2018.
On the top of that, the company is also planning to set up their two new manufacturing units at Jobner (Rajasthan) and Sangareddy (Telangana). The future manufacturing plants in Jobner (Rajasthan), will is near Jaipur, with an installed capacity of 40,621 tonnes per year and the other one in Sangareddy (Telangana) comes with an installed capacity of 52,242 tonnes per year.
Prince Pipes IPO Allotment
Coming to the competitive strengths of the company is that it is a very well-known strong brand in pipes and fittings segment which offers diverse product portfolio. It comprises of multi-location manufacturing units in India and has a strong presence in North, West and South India. It is also a pan-India network of distributors having a technical collaboration with international players to maintain quality of products.
Prince Pipes IPO Details
| Subscription Dates | 18 – 20 December 2019 |
| Price Band | INR177 – 178 per share |
| Fresh issue | INR250 Crore |
| Offer For Sale | INR250 Crore |
| Total IPO size | INR500 Crore |
| Minimum bid (lot size) | 84 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Price Pipes’ Financial Performance (in INR crore)
| FY2017 | FY2018 | FY2019 | Q1 FY2020 | |
| Revenue | 1,332.5 | 1,326.6 | 1,579.0 | 380.2 |
| Expenses | 1,236.6 | 1,231.4 | 1,467.5 | 346.3 |
| Net income | 73.1 | 73.3 | 83.2 | 26.9 |
| Net margin (%) | 5.5 | 5.5 | 5.3 | 7.1 |
