InvestorQ : Prince pipes IPO is going to come any analysis a available? Should i subscribe or not? and yes then why?

Prince pipes IPO is going to come any analysis a available? Should i subscribe or not? and yes then why?

Shivali Sharma answered.
2 years ago

The company is going to release its IPO on 18th December 2019 and it will be closed on 20th December 2019. The company will raise Rs 500 crore through this IPO, which comprises of Rs 250 crore fresh issue and an equal amount by way of offer-for-sale (OFS). It is being said that 50% of the shares available have been reserved for Qualified Institutional Bidders (QIB) category, 35% of the issue will be allotted to Retail Individual Investors (RII) and the remaining 15% will get allocated to non-institutional bidders (NIB).

As per the investor’s point of view, it can be beneficial for them to try their hand at this IPO. Since the company has a strong brand presence and offers a diversified product portfolio coupled with multi-location manufacturing units as well as a great network of distributors is available PAN-India. The company will show a great response in the long-run. However, the only risk factor that is common among all the companies is the competition among the polymer industry.

The company is asking for an issue price of Rs 178 with a valuation of 15 times to 20.6 times P/E. As per the factors prevailing in the market, the IPO is considered to be offered at a reasonable price. One can invest in the company’s IPO with a long term perspective of at least 3-5 years. Therefore this IPO could be a good catch for the long-term players. 


Crowny Pinto answered.
2 years ago
Prince Pipes and Fittings IPO was open for subscription on 18th December 2019. It was reported to subscribe by 74% on the second day today. As per the disclosed data, the bidding went well. The company received total bids for 1.45 crore equity shares against the issue size of 1.97 croreshares (approx.). The company yesterday raised total capital worth Rs. 150 crore from eight anchor investors; SBI Oman, Aditya Birla MF, SBI Life Insurance, HDFC Life Insurance, Mirae Asset MF, HDFC MF, Tata MF and Newmark Capital.

To my opinion, It would not be a bad decision to subscribe to this IPO for long term as, Prince Pipes appears to be one of the leading players in PVC pipes segment with market share of 5 per cent. The current business model of the company looks to me quite, steady growth and healthy return ratios.