Presentation on Prince Pipe IPO (Initial Public Offer)

1. FINANCE SPECIALISATION
Prince Pipes
Initial Public Offer (IPO)
Assignment-1
SUBMITTED BY-
Sakshi Agarwal
SUBMITTED T0-
PROF. PRADEEP BHARDWAJ
PROF. ASHISH SHRIVASTAVA

2. Prince Pipes
Prince Pipes manufactures polymer pipes using four different polymers: UPVC; CPVC; PPR; and HDPE,
and fittings using three different polymers: UPVC; CPVC; and PPR. As at 30 June 2018, it had a product
range of 7,480 SKUs. Its products are used for varied applications in plumbing, irrigation, and soil,
waste and rain water (“SWR”) management.
The company has five strategically located manufacturing plants at the following locations:
• Athal (Union Territory of Dadra and Nagar Haveli)
• Dadra (Union Territory of Dadra and Nagar Haveli)
• Haridwar (Uttarakhand)
• Chennai (Tamil Nadu)
• Kolhapur (Maharashtra)
The total installed capacity of the company’s five existing plants is 242,916 tonnes per annum as at 31
July 2018. It uses two contract manufacturers in Aurangabad (Maharashtra) and one in Hajipur (Bihar).
The company distributes its products from five plants and 10 warehouses. As at 30 June 2018, it sold
Prince Piping Systems products to 843 distributors in India. It sells Trubore products directly to
wholesalers and retailers whose strength stood at 212 wholesalers and retailers as at 30 June 2018.

3. Prince Pipes
The company plans to set up two new manufacturing plants, one in Jobner (Rajasthan), which is near
Jaipur, with an installed capacity of 40,621 tonnes per annum and the other in Sangareddy (Telangana)
with an installed capacity of 52,242 tonnes per annum.
Prince Pipes IPOdetails
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

4. Listing Performance of Prince Pipes
IPO Opening Date: 18 December 2019
IPO Closing Date: 20 December 2019
Finalisation of Basis of Allotment: 26 December 2019
Initiation of refunds: 27 December 2019
Transfer of shares to demat accounts: 30 December 2019
Listing Date: 31 December 2019
Opening Price on NSE: INR160 per share (down 10.11% from
IPO price)
Closing Price on NSE: INR166.90 per share (down 6.24% from
IPO price)

5. Prince 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

6. Prince Pipes IPO Subscription Details
Category Shares offered
Subscription (no.
of times, at 5 PM)
Day 1 Day 2 Day 3
QIB 5,649,718 0.04 0.67 3.53
NII 4,237,288 0.02 0.05 1.20
Retail 9,887,006 0.51 1.05 1.88
Total 19,774,012 0.28 0.74 2.21

7. Earnings Per Share (EPS): INR9.26
Price/Earnings (PE ratio): 19.11 – 19.22
Return on Net Worth (RONW): 21.18%
Net Asset Value (NAV): INR43.71 per share
Valuation of Prince Pipes (as of FY2019)
• Jayant Shamji Chheda
• Tarla Jayant Chheda
• Parag Jayant Chheda
• Vipul Jayant Chheda
• Heena Parag Chheda
Promoters of Prince Pipes and Fittings

8. Prince Pipes IPO Analyst Reviews
• Angel Broking – Subscribe
• SMC Global – 2/5
• BP Equities – Avoid
• HEM Securities – Subscribe for listing gains
• Motilal Oswal – Subscribe for listing gains
• Reliance Securities – Subscribe
• Choice Broking – Subscribe
• Religare Broking – Subscribe

9. Prince Pipes Share Price
In 1st month

10. Prince Pipes Share Price
In 3rd month

11. Prince Pipes Share Price
In 1st Year

12. Prince Pipes Share Price
In 5th Year

13. Prince Pipes Share Price

14. Prince Pipes
Prince Pipes Contact Details
 Prince Pipes and Fittings Limited
 8th Floor, The Ruby
Senapati Bapat Marg (Tulsi Pipe Road)
Dadar West, Mumbai 400028
 Phone: +91 22 66022222
 Email: investor@princepipes.com
 Website: www.princepipes.com
Registrar of Prince Pipes IPO
 Link Intime India Private Limited
 C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai 400083
 Phone: +91 22 4918 6200
 Fax: +91 22 4918 6195
 Email: princepipes.ipo@linkintime.co.in
 Website: http://www.linkintime.co.in