About the Company:
Prince Pipes and Fittings is recognized as one of the leading polymer pipes and fittings manufacturers in India in terms of production capacity, number of distributors, and number and variety of products manufactured.
Company markets their products under two brand names: Prince Piping Systems and Trubore Piping Systems.
Company sells under various brands names like Durafit, Easyfit, Silentfit, Foamfit, Safefit, Rainfit, Novofit, Greenfit, Aquafit, and TRUBORE in India.
Company has more than 30 years‘ experience in manufacturing polymer pipes and more than 20 years‘ experience in manufacturing fittings.
Company has a product range of more than 7,167 SKUs. Company’s products are used for varied applications in plumbing, irrigation, and sewage disposal.
Currently they sell their products to distributors who then resell them to wholesalers, retailers, and consumers. Company has around 766 distributors spread across
India.
Company has six strategically located manufacturing plants, which has enabled them to develop a strong presence in North, West and South India.
Market share of various Companies in the Plastic Pipes Industry :
Details of Company’s Current Manufacturing Facility:
Management Team:
- Mr. Jayant Shamji Chheda (Designation: Chairman and Managing Director)
- Mr. Parag Jayant Chheda (Designation: Executive Director)
- Mr. Vipul Jayant Chheda (Designation: Executive Director)
Objectives of the Issue:
OFS (Offer For Sale): (Rs. 250 cr)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Rs. 250 cr)
- Repayment or prepayment of certain outstanding loans of the Company.
- Financing the project cost towards establishment of a new manufacturing facility, either set up directly or indirectly (through a wholly-owned subsidiary that our
Company may set up in the future). - Upgradation of equipment at our manufacturing facilities.
- General corporate purposes.
Positives for the Company:
Strong brands in the pipes and fittings segment with over 30 years experience.
Company has a strong legacy of more than three decades in the polymer pipes segment and markets its products under two brand names: Prince Piping Systems and Trubore.
Prince pipes and fittings had a market share of approximately 5% in Fiscal 2019 and are amongst the top six organised players, which collectively have a total market share of 49% in Fiscal 2019.
Comprehensive Product portfolio across polymers serving diverse end-use applications.
Company currently manufacture polymer pipes using four different polymers: UPVC; CPVC; PPR; and HDPE, and fittings using three different polymers: UPVC; CPVC; and PPR.
Company had 7,167 SKUs as at October 31, 2019 and the products are used for varied applications in the fields of plumbing, irrigation, and SWR management.
Set up a new Manufacturing plant in Telangana and expand capacity at our plant in Rajasthan.
Company plans to set up a new manufacturing plant in Sangareddy (Telangana), with a total estimated installed capacity of 51,943 tonnes per annum and plans to commence production at the Telangana plant in Fiscal 2021.
The opening of this new plant will improve the efficiency thus making company more competitive.
Currently, the markets in South India are catered to by company’s plants in Athal and Haridwar. The opening of the Telangana plant will enable up to compete in these markets more effectively.
Strong brand Name in the Pipes and Fittings Segment:
Company has a strong legacy of more than three decades in the pipes segment and more than two decades in the fittings segment.
They market their products under two brand names: Prince Piping Systems; and Trubore Piping Systems.
The Trubore Piping Systems‘ brand (“Trubore “) has a long history in the Tamil Nadu market. Trubore brand was acquired by the company in October 2012.
Expand the Trubore brand to New Product lines and New States:
The Trubore brand has a long history in the Tamil Nadu market and has established a good reputation in Tamil Nadu. It is now considered as company’s premium brand.
Trubore brand products are currently sold mainly in Tamil Nadu primarily to the agriculture segment. Company plans to increase the product portfolio under the Trubore brand name to cater to the building industry and infrastructure segment & also start selling the Trubore brand in new geographies.
Financials of the Company:
| (in Crores) | FY 16 | FY 17 | FY 18 | FY 19 | Upto 30th June 19 |
|---|---|---|---|---|---|
| Revenue | 1081.6 | 1332.4 | 1326.5 | 1578.9 | 380.1 |
| Net Profit | 29.3 | 73.1 | 73.3 | 83.2 | 26.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Prince Pipes and Fittings Ltd | 10 | 9.26 | 19.22 | 21.18% | 43.71 |
| Astral Poly Technik Ltd | 1 | 16.27 | 65.37 | 15.45% | 106.64 |
| Finolex Industries Ltd | 10 | 29.59 | 19.13 | 14.26% | 207.60 |
| Supreme Industries Ltd | 2 | 35.32 | 32.17 | 20.83% | 169.57 |
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IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 18th December 2019 |
| Issue Closes on:. | 20th December 2019 |
| Issue Price | Rs.177 – 178 |
| Net Offer | QIB 50% | Retail 35% | NII 15% |
| Face Value | Rs.10 |
| Minimum Lot | 84 Shares |
| Minimum Investment | Rs. 14,952 |
| Issue Constitutes | 25.53% |
| Issue Size | Rs. 500 cr ($71 million) |
| Market Cap | Rs. 1958 cr ($275 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,40,44,943 |
| Equity Shares Offered (OFS) | 1,40,44,943 |
| Total Equity Shares Offered (Fresh + OFS) | 2,80,89,887 |
| Equity Shares Prior to the Issue | 9,59,80,816 |
| Equity Shares after the issue | 11,00,25,759 |
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Important Dates:
| Finalization of Basis of Allotment | On or before 26th December 2019 |
| Initiation of Refunds | On or before 27th December 2019 |
| Credit of Equity Shares: | On or before 30th December 2019 |
| Listing Date: | On or before 31st December 2019 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 56,49,718 | 0.05 | 0.68 | 3.53 |
| NII | 42,37,288 | 0.03 | 0.06 | 1.21 |
| Retail | 98,87,006 | 0.52 | 1.06 | 1.88 |
| Employee | ———- | —- | —– | —- |
| TOTAL | 1,97,74,012 | 0.28 | 0.74 | 2.21 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
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| Find the List of Upcoming IPOs in 2020: |
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Upcoming IPOs in India (Click on the below Link)www.UpcomingIPOs-in-India |
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| Company Contact Info: |
|---|
| Prince Pipes and Fittings Ltd Registered Office Plot No.1, Honda Industrial Estate Phase II, Honda Sattari Honda, Goa 403 530, India Telephone: +91 22 66022222 Website: www.princepipes.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083, Maharashtra, India Telephone: +91 22 4918 6200 Facsimile: +91 22 4918 6195 E-mail: princepipes.ipo@linkintime.co.in Investor E-mail: princepipes.ipo@linkintime.co.in Website: www.linkintime.co.in |
