Mumbai-based polymer pipes and fittings manufacturer Prince Pipes and Fittings plans to raise up to Rs 500 crore through an initial public offer (IPO). The IPO will open for subscription on December 18, 2019, and end on December 20, 2019. The price band for the issue has been fixed at Rs 177-178 per share.
The proposed Rs 500-crore IPO is a book built issue that comprises Rs 250 crore through fresh issue of shares and an equal amount through offer-for-sale (OFS). Company's promoter group plans to dilute around 29% in the proposed IPO, which stands at 90.06% in the pre-issue period.
The minimum lot size for the IPO is 84 shares, while the maximum lot size stands at 13 lots in multiples of 84 shares thereafter, amounting to 1,092 equity shares.
While 50% of shares 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).
The company will use the proceeds from the IPO to pare certain outstanding loans, to finance the project cost towards the establishment of a new manufacturing facility and upgrade existing equipment at the manufacturing facilities. "The proceeds of the issue will be used for partly retiring debt, expansion and general corporate purposes," Parag Chheda, Executive Director, Prince Pipes and Fittings Ltd, said.
The company has a diverse product portfolio, coupled with multi-location manufacturing units as well as a network of distributors pan-India. The polymer fittings company markets its products under Prince Piping Systems and Trubore.
Link Intime India Private Ltd is the registrar for the IPO, while JM Financial Limited and Edelweiss Financial Services Ltd are book running lead managers to the issue.
Post the issue, shares of Prince Pipes are proposed to be listed on BSE and NSE on December 31, 2019.