Prince Pipes share price rose over 4% intra day on January 1 after promoters released a pledge on all their shares. Share price of Prince Pipes gained up to 4.52% to Rs 159.40 compared to the previous close of Rs 152.50 on BSE. The stock ended 2.23% higher at Rs 155.90 compared to the previous close of Rs 152.90.
Promoters of the firm had subscribed to bonds of Express Infra Projects LLP by pledging certain equity shares in their capacity on March 30, 2019 as first holders or second holders of such equity shares, aggregating 35 percent stake, with IDBI Trusteeship Services which acted as a trustee on behalf of the bondholders.
The firm in a filing to BSE said outstanding amount in relation to bonds had been paid in full out of proceeds from the offer for sale. Express Infra Projects had issued bonds aggregating up to Rs 200 crore, of which Rs 191.5 crore was outstanding as on October 31, 2019.
For securing these bonds, the promoters of Prince Pipes, Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda and Heena Parag Chheda, and one of its promoter group entities, Jayant Shamji Chheda HUF, had on March 30, 2019, pledged certain equity shares in their capacity as first holders or second holders of such equity shares, aggregating 35 percent stake, with IDBI Trusteeship Services which acted as a trustee on behalf of the bondholders.
Prince Pipes in a communication to bourses said, "The Company has received a letter dated December 31, 2019, enclosed as Annexure A, from Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda, Heena Parag Chheda in relation to use of the proceeds from the offer for sale from the initial public offering of Prince Pipes and Fittings Limited by Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda and Vipul Jayant Chheda, for redemption of the bonds issued by Express Infra Projects LLP."
Shares of Prince Pipes and Fittings made a tepid listing on BSE and NSE on December 30 last year. The company debuted at the price Rs 160 on BSE, a 10.11% discount to the issue price of Rs 178.
The IPO of Prince Pipes and Fittings comprised fresh issue of Rs 250 crore and an equal amount through offer-for-sale (OFS). In a 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 initial public offer, which was held from December 18 to December 20, 2019 was subscribed 2.22 times on its last day of bidding. The firm's Rs 500-crore IPO offer was subscribed 28% on the opening day and 41% on Thursday, its second day of subscription.