Prince Pipes and Fittings IPO subscribed 2.21 times

Receives bids for 4.37 crore shares

The initial public offer (IPO) of Prince Pipes and Fittings received bids for 4.37 crore shares, as against 1.97 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 2.21 times.

The issue opened for bidding on Wednesday, 18 December 2019 and it closed on Friday, 20 December 2019. The price band was fixed at Rs 177 to Rs 178 per share.

The qualified institutional buyers (QIBs) category was subscribed 3.54 times. The non-institutional investors category was subscribed 1.21 times. The retail individual investors (RIIs) category was subscribed 1.89 times.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 17 December 2019, finalized allocation of 84,26,965 equity shares to anchor investors at Rs 178 per share.

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 IPO comprised a fresh issue worth Rs 250 crore and an offer for sale of an equal amount. The sellers in offer for sale comprised of promoter Jayant Shamji Chheda (Rs 20 crore), Tarla Jayant Chheda (Rs 140 crore), Parag Jayant Chheda (Rs 50 crore) and Vipul Jayant Chheda (Rs 50 crore).

The proceeds from the offer for sale shall be received by the promoter selling shareholders and the company shall not receive any proceeds from the offer for sale. The promoter selling shareholders intend to use the proceeds of the offer for sale towards repayment of the outstanding bonds issued by Express Infra Projects LLP.

Net proceeds from the fresh issue will be used for repayment or prepayment of certain outstanding loans of company; financing the project cost towards establishment of a new manufacturing facility; upgradation of equipment at manufacturing facilities; and for general corporate purposes.

The company intends to utilize an amount aggregating up to Rs 48.17 crore from the net proceeds and the proceeds from the pre-IPO placement towards repayment and/or pre-payment, in full or in part, of certain outstanding term loans availed by the company.

Prince Pipes and Fittings reported net profit of Rs 26.67 crore and total income of Rs 379.77 crore in the quarter ended June 2019.

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