The initial public offer (IPO) by Prince Pipes and Fittings has been subscribed 41% on Thursday, its second day of subscription. The issue that closes tomorrow, received bids for 80.20 lakh equity shares against the 1.97 crore equity shares offered, as of 1345 IST.
Prince Pipes and Fittings launched its Rs 500 crore IPO with a price band of Rs 177-178 per equity share.
The issue of the Mumbai-based polymer pipes and fittings manufacturer is demanding a PE multiple of 23.5 times at the upper limit of the price band Rs 177-178 per share.
The offer comprises of fresh issue of Rs 250 crore and an equal amount through offer-for-sale (OFS). The OFS would result in promoters' stake reducing from 90% to 65.8% post-IPO. 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 OFS.
In pre-IPO placement, Prince Pipes issued 59,26,820 equity shares, representing 6.18 per cent stake for cash consideration of Rs 106.18 crore by South Asia Growth Fund LLP at Rs 178 per equity share.
The company has already raised Rs 150 crore from eight anchor investors on Tuesday.
JM Financial and Edelweiss Financial Services are the book-running lead managers to the issue while Link Intime India is the registrar to the issue.