Prince Pipes sees weak debut

Shares of Prince Pipes and Fittings were trading at Rs 172 at 10:19 IST on BSE, at a discount of 3.37% over the initial public offer (IPO) price of Rs 178.

The stock debuted at Rs 160, a discount of 10.11% to IPO price. So far the stock hit a high of Rs 172 and low of Rs 152. On BSE, so far 7.28 lakh shares were traded on the counter.

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 18 December 2019 and it closed on 20 December 2019. The price band was fixed at Rs 177 to Rs 178 per share.

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.

The polymer pipes and fittings manufacturer reported net profit of Rs 26.67 crore and total income of Rs 379.77 crore in the quarter ended June 2019.

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.

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