Pattech Fitwell Tube Components
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Apr 2023 – 12 Apr 2023
- Listing date
- 21 Apr 2023
- Face value
- ₹10 per share
- Issue price
- ₹50 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹12 Cr
- Market cap at offer price
- ₹38.79 Cr
- Promoter holding
- 100.00% → 69.06% pre-issue → post-issue
- ISIN
- INE0NZW01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Survey No.873/B/1, RD No: 1, Ansons Limbani Estate, Nr.GETCO 66K.V.Sub Station, G.I.D.C, Por, N.H-08, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,26,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹50
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,50,000 |
| S-HNI (min) | 2 | 6,000 | ₹3,00,000 |
| S-HNI (max) | 6 | 18,000 | ₹9,00,000 |
| B-HNI (min) | 7 | 21,000 | ₹10,50,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹38.79 Cr |
Key performance indicators
- ROCE
- 11.00%
- PAT margin
- 6.49%
- EBITDA margin
- 10.79%
- NAV per share
- ₹0
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pattech Fitwell Tube Components
Pattech Fitwell Tube Components Limited was originally formed as a partnership firm M/s Pat Tech Fitwell Tube Components on November 22, 2012, and was converted into a private limited company on August 22, 2022. It was subsequently converted into a public limited company on October 11, 2022. The company is engaged in manufacturing of pipe fittings, flanges and various types of forgings and machined components as well as pipe spools and fabrication works for various industries. The company converts semifinished/raw products to finished products by carrying out value-added processes such as forming, bending, drilling, cutting, inspection, polishing, painting, blasting, welding, punching, marking, testing and packaging.
Company Analysis
from RHPPattech Fitwell Tube Components Limited manufactures pipe fittings, flanges, forgings, machined components, pipe spools and fabrication works for industries including fertilizers, petrochemical, power, chemical & pharmaceutical, food processing, oil & gas, desalination & water treatment, shipbuilding, and defense.
Pattech Fitwell Tube Components Limited was originally formed as a partnership firm M/s Pat Tech Fitwell Tube Components on November 22, 2012, and was converted into a private limited company on August 22, 2022. It was subsequently converted into a public limited company on October 11, 2022. The company is engaged in manufacturing of pipe fittings, flanges and various types of forgings and machined components as well as pipe spools and fabrication works for various industries. The company converts semifinished/raw products to finished products by carrying out value-added processes such as forming, bending, drilling, cutting, inspection, polishing, painting, blasting, welding, punching, marking, testing and packaging.
Objects of the Issue
- Funding working capital requirements ₹ 865.00 Lakhs p.21
- General corporate purposes ₹ 264.00 Lakhs p.21
- Funding our working capital requirements ₹865.00 lakhs p.74
- General corporate purposes ₹264.00 lakhs p.79
- Objects of the Offer not specified in this part of document
Issue Structure
- Total Issue
- ₹ 1200.00 Lakhs
- Fresh Issue
- Upto 24,00,000 Equity Shares
- Offer for Sale
- NA
- Price Band
- ₹ 50 per Equity Share (Fixed Price)
- Lot Size
- 3000 Equity Shares
- Face Value
- ₹ 10 per Equity Share
Business Model
The company manufactures and supplies pipe fittings, flanges, various types of forgings and machined components as well as pipe spools and fabrication works based on orders given by customers. It converts semifinished/raw products to finished products through value-added manufacturing processes including forming, bending, drilling, cutting, inspection, polishing, painting, blasting, welding, punching, marking, testing and packaging.
Business Segments
SWOT Analysis
- • Diversified customer base with minimal single-customer concentration(p.120)
- • Long-standing customer relationships driving repeat business(p.120)
- • Experienced promoter management with 2+ decades industry expertise(p.120)
- • ISO and international certifications validating quality standards(p.108)
- • Diversified product portfolio across multiple industries(p.120)
- • Proven financial growth with strong profitability recovery(p.108)
- • Flexible manufacturing infrastructure capable of multi-product production(p.120)
- • Over 20 years of industry experience in pipe and tube fittings manufacturing(p.142)
- • Established manufacturing capability with multiple product conformities to international standards(p.202)
- • ISO certifications including quality, environmental, and occupational health and safety standards(p.220)
- • Diversified end-use industries reducing single-sector dependency(p.202)
- • Revenue growth recovery with positive profitability trajectory(p.209)
- • High supplier concentration with top 10 suppliers contributing 86.14% of raw material supply(p.25)
- • No long-term raw material supply agreements; exposed to spot market volatility(p.25)
- • Extreme customer concentration with top 10 customers representing 100% of revenue in recent period(p.27)
- • History of negative operating cash flows in prior periods(p.28)
- • Loss history with ₹1.16 Lakhs loss in FY 2021(p.36)
- • Significant debt burden with total borrowings of ₹1,745.92 Lakhs as of November 30, 2022(p.30)
- • Unsecured loans of ₹480.43 Lakhs (27.52% of total borrowings) subject to recall at any time(p.31)
- • Equity issued in past 12 months at ₹10 face value, significantly below current issue price of ₹50(p.31)
- • Unsecured loans from Axis Bank still in process of takeover into company name; charges not yet registered(p.32)
- • Manufacturing facility concentrated in single location (Vadodara, Gujarat)(p.35)
- • Minimal direct OEM customer relationship; indirect sales channels(p.122)
- • Extremely small workforce of only 9 employees limiting scalability(p.107)
- • High dependency on raw material from limited supplier base (top 10 supply 86% of purchases)(p.128)
- • Very recent company incorporation (August 2022) with minimal operating history(p.107)
- • Heavy reliance on domestic suppliers with imported raw materials vulnerability(p.108)
- • Significant dependence on few major customers for revenue(p.211)
- • High debt burden relative to equity base(p.213)
- • Pending litigations involving directors including cheque dishonour cases(p.215)
- • Outstanding dues to creditors with material concentration(p.216)
- • Recent incorporation as public company with minimal track record(p.143)
- • Funding working capital requirements through IPO proceeds to support growth(p.29)
- • Expansion into international markets from current domestic-only presence(p.121)
- • Direct supply to OEMs to improve margins and expand client base(p.122)
- • Operational efficiency improvements and capacity utilization optimization(p.121)
- • Geographic expansion within India to new regions(p.121)
- • Growing India steel sector with expected capacity expansion to 300 MT by 2030-31(p.95)
- • Expansion into new geographies and customer segments(p.139)
- • Product portfolio expansion and value-added service offerings(p.202)
- • Potential migration to main board for capital raise and market visibility(p.243)
- • Growth in industrial demand across multiple sectors including oil & gas and power(p.202)
- • Facility utilization through rental income from unutilized manufacturing capacity(p.208)
- • Raw material price volatility and unavailability due to lack of long-term contracts(p.31)
- • Rising energy costs impacting operating expenses(p.32)
- • Dependence on third-party transportation providers for product delivery(p.33)
- • Indian economic growth dependency and vulnerability to macroeconomic slowdowns(p.40)
- • Exposure to inflation risks and rising input costs(p.41)
- • Regulatory changes and compliance risks in evolving regulatory environment(p.36)
- • Risk of infectious disease outbreaks disrupting operations(p.40)
- • Global competition from other manufacturing countries(p.42)
- • High competition from organized and unorganized players in pipe fittings industry(p.127)
- • Raw material pricing volatility dependent on global demand and forex fluctuations(p.127)
- • Global economic slowdown affecting industrial demand(p.97)
- • Persistence of elevated global inflation pressuring costs(p.97)
- • Downside risks to global economic outlook including geopolitical tensions(p.97)
- • Commodity cycle volatility affecting steel industry profitability(p.127)
- • Volatility in supply and pricing of raw materials impacting margins(p.203)
- • Competition from existing and new market entrants(p.203)
- • Economic sensitivity and cyclicality in industrial manufacturing sectors(p.203)
- • COVID-19 type disruptions causing operational closures(p.209)
- • Regulatory and compliance changes in labour and environmental laws(p.203)
- • Natural disasters and calamities impacting operations(p.203)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharatbhai Jivrajbhai Limbani | Promoter | 70.35% | — |
| Jaysukhbhai Popatbhai Limbani | Promoter | 29.65% | — |
| Bharatbhai Jivrajbhai Limbani | Promoter | 70.35% | 48.59% |
| Jaysukhbhai Popatbhai Limbani | Promoter | 29.65% | 20.47% |
| Ripalben Bharatbhai Limbani | Promoter Group | Negligible | Negligible |
| Milan Vallabhbhai Limbani | Promoter Group | Negligible | Negligible |
| Akshay Mansukhbhai Limbani | Promoter Group | Negligible | Negligible |
| Saurabh Rameshbhai Limbani | Promoter Group | Negligible | Negligible |
| Tusharbhai Mavjibhai Limbani | Promoter Group | Negligible | Negligible |
| Bharatbhai Jivrajbhai Limbani | Promoter/Chairman and Managing Director | 70.35% | — |
| Jaysukhbhai Popatbhai Limbani | Promoter/Whole-Time Director | 29.65% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.