Prince Pipes
Mainboard₹500 Cr issue
-10.11%
Listing gain over issue price
Issue size
₹500 Cr
1 lot at cut-off
₹14,952
Lot size
84shares
Open
18 Dec 2019
Close
20 Dec 2019
Allotment
26 Dec 2019
Listing
30 Dec 2019
Listing performance
Issue price
₹178
Listed at
₹160
Listing-day close
₹166.90
Latest price
₹251
Close on 23 Oct 2026
Listing gain
-10.11%
Return since issue
+41.01%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Dec 2019 – 20 Dec 2019
- Listing date
- 30 Dec 2019
- Face value
- ₹10 per share
- Issue price
- ₹178 per share
- Lot size
- 84 shares
- Total issue size
- ₹500 Cr
- Promoter holding
- 90.06% → 65.80% pre-issue → post-issue
- ISIN
- INE689W01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Edelweiss Financial Services Ltd.
- Registered office
- Plot No.1, Honda Industrial Estate,, Phase II, Honda Sattari,, Honda, Goa
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 84,26,965 | — | — |
Application size
Minimum 84 shares per lot, in multiples, at ₹178
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 84 | ₹14,952 |
| Retail (max) | 13 | 1,092 | ₹1,94,376 |
| S-HNI (min) | 14 | 1,176 | ₹2,09,328 |
| S-HNI (max) | 66 | 5,544 | ₹9,86,832 |
| B-HNI (min) | 67 | 5,628 | ₹10,01,784 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
84,26,965
Anchor portion
₹150 Cr
at ₹178 per share
Valuation and performance
Valuation at offer price
₹178 per share
| Metric | Pre-issue | Post-issue |
|---|
About Prince Pipes
Prince Pipes and Fittings Limited was incorporated on November 13, 1987 in Mumbai as a private limited company and converted to a public limited company on August 11, 2017. The company manufactures and sells a range of polymer pipes (UPVC, CPVC, HDPE, PPR) and fittings under its Prince Piping Systems and Trubore brands. The company generates revenue from the sale of plumbing products (38-44% of net revenue), soil/waste/rainwater management products (21-23%), irrigation products (34-38%), and other products. It operates five manufacturing plants located in Haridwar (Uttarachal), Chennai (Tamil Nadu), Kolhapur (Maharashtra), Athal (Silvassa), and Dadra, along with contract manufacturing arrangements. The company sells its products through a pan-India network of distributors to wholesalers, retailers, and plumbers.
Company Analysis
from DRHPPrince Pipes and Fittings manufactures and sells polymer pipes and fittings for plumbing, irrigation, and soil/waste/rainwater management applications across India.
Prince Pipes and Fittings Limited was incorporated on November 13, 1987 in Mumbai as a private limited company and converted to a public limited company on August 11, 2017. The company manufactures and sells a range of polymer pipes (UPVC, CPVC, HDPE, PPR) and fittings under its Prince Piping Systems and Trubore brands. The company generates revenue from the sale of plumbing products (38-44% of net revenue), soil/waste/rainwater management products (21-23%), irrigation products (34-38%), and other products. It operates five manufacturing plants located in Haridwar (Uttarachal), Chennai (Tamil Nadu), Kolhapur (Maharashtra), Athal (Silvassa), and Dadra, along with contract manufacturing arrangements. The company sells its products through a pan-India network of distributors to wholesalers, retailers, and plumbers.
polymer pipes and fittingsbuilding and construction materialswater supply and sanitationirrigation
Objects of the Issue
- Financing the project cost towards establishment of a new manufacturing facility in Telangana ₹1,811.63 million p.20
- Repayment or prepayment of certain outstanding loans of our Company ₹1,000.00 million p.91
- Financing the project cost towards establishment of a new manufacturing facility in Telangana ₹1,811.63 million p.93
- Upgradation of equipment at our manufacturing facilities ₹764.78 million p.96
- General corporate purposes p.97
- Financing the project cost towards establishment of a new manufacturing facility in Telangana ₹1,811.63 million p.142
- Repayment of borrowings
- General corporate purposes
- Financing the project cost towards establishment of a new manufacturing facility ₹1,811.63 million p.290
Issue Structure
- Total Issue
- ₹6,000 million
- Fresh Issue
- ₹4,000 million
- Offer for Sale
- ₹2,000 million (comprising ₹150 million by Jayant Shamji Chheda, ₹1,000 million by Tarla Jayant Chheda, ₹500 million by Parag Jayant Chheda, and ₹350 million by Vipul Jayant Chheda)
- Price Band
- [●] per Equity Share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures polymer pipes and fittings and sells them through a pan-India distributor network. It generates revenue from sales of its own manufactured products as well as products manufactured by contract manufacturers. Sales are primarily to distributors on credit terms of 15-30 days. The company purchases raw materials (UPVC, CPVC, PPR, HDPE resins) from domestic suppliers on credit terms of less than a week and imported raw materials on credit terms of 90-150 days.
Business Segments
Plumbing pipes and fittings for water supply and sewerage applications
Pipes and fittings for soil, waste and rainwater drainage management
Pipes and fittings for irrigation applications in the agriculture sector
Polymer pipes and fittings for plumbing applications in building and construction
Polymer pipes and fittings for irrigation applications
Dual-wall corrugated (DWC) pipes and other solutions for underground drainage, industrial wastewater, storm water drainage, cable ducting, and culvert drainage
UPVC, CPVC, and PPR pipes and fittings for indoor and outdoor use in hot and cold water applications in residential complexes, commercial buildings, public utilities, swimming pools, and RO/DM water plants.
UPVC pressure and non-pressure piping systems for agricultural sector use in water supply and distribution schemes, irrigation, drinking water supply, cable ducting, ventilation pipelines and slurry lines.
UPVC low-noise and underground drainage pipes for soil, waste and rain water systems in residential buildings/complexes and commercial and industrial buildings.
Manufacturing and selling of plastic pipes and fittings for building and construction applications
Manufacturing and selling of plastic pipes and fittings using four different polymers (UPVC, CPVC, PPR, and HDPE) for varied applications in plumbing, irrigation, and SWR management
SWOT Analysis
Strengths
- • Pan-India geographic presence with established distribution network(p.30)
- • Diversified product portfolio across multiple pipe types and applications(p.18)
- • Established technology partnership with international leader(p.25)
- • Growing presence in high-margin fittings segment(p.43)
- • Strong brand recognition with 30+ years of experience and multiple awards(p.51)
- • Market leader position among organized players with 5% market share (FY18)(p.51)
- • Comprehensive product portfolio across multiple polymers and applications(p.51)
- • Strategic geographic distribution with multi-location manufacturing presence(p.52)
- • Significant distribution network expansion with 1,055 distributors/wholesalers(p.52)
- • Technical collaboration with Wavin (international player) for quality and efficiency improvements(p.53)
- • Strong management team with decades of combined experience in the pipes segment(p.54)
- • Strong brand legacy and market position with over 30 years' experience(p.134)
- • Top-tier market share among organised players(p.134)
- • Comprehensive product portfolio across multiple polymers and applications(p.135)
- • Strategically located manufacturing facilities across multiple regions(p.135)
- • Large and rapidly expanding distribution network(p.136)
- • Technical collaboration with reputed international player improving quality and efficiency(p.136)
- • Strong experienced management team with deep industry expertise(p.137)
- • Strong board composition with independent directors and regulatory compliance(p.170)
- • Established board-level committee structure for governance oversight(p.170)
- • Experienced key management personnel with significant industry expertise(p.178)
- • Financial growth demonstrated in restated financial statements(p.200)
- • Diversified manufacturing footprint across six plants(p.222)
- • Multiple secured credit facilities from leading banks(p.224)
- • Strong working capital management with multiple lending relationships(p.224)
- • Leading manufacturer with strong market position(p.286)
- • Comprehensive product portfolio and end-to-end solution offering(p.286)
- • Long operational history in polymer pipes segment(p.286)
- • Wide manufacturing footprint enabling strong geographic presence(p.286)
- • Large and diverse SKU portfolio(p.286)
- • Extensive distribution network(p.286)
- • Multiple manufacturing polymers and product applications(p.286)
Weaknesses
- • High dependence on few product categories for revenue(p.19)
- • Significant exposure to unhedged foreign currency(p.20)
- • High raw material costs as percentage of revenue(p.20)
- • Pending litigation involving promoters in related business(p.21)
- • Pledged promoter shareholding creates control risk(p.24)
- • High working capital requirements with significant debt facilities(p.26)
- • Loss of tax benefits from Haridwar plant(p.27)
- • Significant promoter shareholding concentration at 93.39% pre-offer creates governance risk(p.81)
- • High debt levels with borrowings of ₹1,619.03 million as of September 15, 2018(p.92)
- • Pledged shares held by promoters create potential liquidity constraints(p.80)
- • Limited diversification in product applications - primarily focused on plumbing and irrigation(p.54)
- • Limited insurance coverage against business interruption and specific risks(p.147)
- • Personal guarantees by promoters creating contingent liability exposure(p.161)
- • Historical workforce disruption due to industrial action(p.159)
- • Union presence constraining workforce flexibility(p.147)
- • Dependence on crude oil price movements for raw material costs(p.143)
- • Complete import dependency for CPVC requirements(p.143)
- • Some group companies have incurred losses and negative net worth(p.189)
- • Related party transactions with promoter group entities(p.191)
- • High leverage with substantial borrowings(p.199)
- • Contingent liabilities related to tax disputes pending(p.210)
- • High debt-to-equity ratio indicating significant leverage(p.248)
- • Substantial current obligations from short-term borrowings(p.248)
- • Multiple outstanding contingent liabilities from tax disputes(p.235)
- • Concentration of credit in multiple bank relationships requiring management(p.222)
- • Floating rate exposure across majority of borrowings(p.231)
- • Significant reliance on imported raw materials and currency exposure(p.288)
- • Substantial portion of raw materials imported creating FX risk(p.288)
- • High leverage and floating rate debt exposure(p.289)
- • Expiring tax benefits reducing profitability(p.289)
- • Declining profitability trend(p.301)
- • Litigation involving key directors and promoters(p.318)
Opportunities
- • Strong government infrastructure spending supporting industry growth(p.18)
- • Industry growth trajectory with increasing urbanization and government schemes(p.44)
- • Expanding irrigation investment under government initiatives(p.47)
- • Rising demand for CPVC pipes in growing market segment(p.45)
- • Geographic expansion opportunity for Trubore brand(p.23)
- • Low per-capita plastic consumption provides growth runway(p.44)
- • GST supporting organized sector market share gains(p.43)
- • Plastic pipes and fittings industry projected to grow at 12-14% CAGR FY18-FY23(p.50)
- • Large affordable housing pipeline with 133 million sq.ft. expected completion FY17-FY19(p.49)
- • Real estate sector recovery expected following RERA implementation for market confidence(p.48)
- • Expanding rural market with low penetration and rising farmer disposable income(p.48)
- • Tier II and III city expansion opportunity with healthy growth trajectory expected(p.48)
- • DWC pipes entry strategy with high growth potential in water supply and sanitation(p.54)
- • Government initiatives (Pradhan Mantri Awas Yojana, RERA) driving housing and infrastructure demand(p.48)
- • Projected 12-14% CAGR growth in plastic pipes industry through FY23(p.115)
- • Low per-capita plastic consumption offering significant headroom for substitution(p.115)
- • Government initiatives driving irrigation and WSS investments(p.117)
- • Strong urbanisation trend driving housing and infrastructure demand(p.121)
- • High-growth potential in CPVC and HDPE segments(p.116)
- • GST implementation benefiting organised players through reduced price differential with unorganised competitors(p.114)
- • Estimated 1.3 billion sq ft housing supply in top 9 cities creating plumbing pipe demand(p.121)
- • Planned new manufacturing plants in Rajasthan and Telangana expanding regional reach(p.138)
- • Expansion through capital investment in manufacturing facilities(p.199)
- • Development of new products through R&D initiatives(p.179)
- • Employee stock option scheme for incentive and retention(p.180)
- • Revenue growth trajectory from FY16 to FY18(p.227)
- • Expansion of manufacturing capacity through capital expenditure(p.235)
- • Market expansion through IPO proceeds and improved financing capacity(p.247)
- • Enhanced product mix with increasing traded goods and diversification(p.227)
- • Expansion into underground drainage segment via HDPE DWC pipes(p.290)
- • Capacity expansion through new manufacturing plants(p.286)
- • Geographic expansion of Trubore brand(p.290)
- • Growing demand for plumbing and irrigation products(p.286)
- • Expansion of product portfolio with higher-margin polymers(p.287)
Threats
- • Demand highly dependent on construction and agriculture activity(p.18)
- • Government policy changes could reduce infrastructure investment(p.18)
- • Monsoon dependency for agricultural demand(p.19)
- • Volatile raw material prices tied to crude oil(p.19)
- • Intense competition from organized and unorganized players(p.19)
- • Substitution threat from alternative materials(p.19)
- • Indian Rupee depreciation increasing import costs(p.20)
- • Rising interest rates impacting debt service costs(p.27)
- • Highly fragmented industry with unorganized segment at 35-40% may face competition pressure(p.50)
- • Real estate sector cyclicality and previous sluggish demand affecting end-user consumption(p.48)
- • Dependence on capital expenditure from government and municipal bodies for WSS and irrigation(p.54)
- • Raw material price volatility and currency fluctuation risks for imported machinery(p.94)
- • Competition from larger established players (Supreme Industries 10%, Finolex 9%, Jain Irrigation 7%)(p.50)
- • Intense competition from multiple organised players in the plastic pipes industry(p.147)
- • Raw material price volatility tied to crude oil fluctuations(p.122)
- • Unorganised sector competition on price basis despite lower tax compliance(p.147)
- • Dependence on end-user sector investments subject to cyclicality(p.110)
- • Regulatory changes in employment laws increasing operating costs(p.156)
- • Vulnerability to monsoon and agricultural cycles affecting irrigation demand(p.118)
- • No formal dividend policy which may limit investor returns(p.192)
- • Disputed tax liabilities across multiple assessment years and jurisdictions(p.211)
- • Significant decline in trade payables indicating working capital pressure(p.199)
- • Foreign exchange exposure on ECB and imports creating currency risk(p.230)
- • Interest rate volatility on floating rate borrowings across INR and USD(p.231)
- • Commodity price volatility affecting raw material costs(p.232)
- • Regulatory compliance burden from multiple tax jurisdictions(p.235)
- • Working capital concentration risk with customer receivables(p.232)
- • Volatile raw material prices dependent on crude oil(p.288)
- • Intense competitive pressures affecting margins(p.289)
- • Interest rate risk from floating rate borrowings(p.289)
- • Dependence on limited number of suppliers without long-term contracts(p.288)
- • Foreign exchange fluctuation risk(p.311)
- • Macroeconomic and industry cyclicality risks(p.311)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jayant Shamji Chheda | Promoter/Promoter Group | — | — |
| Tarla Jayant Chheda | Promoter/Promoter Group | — | — |
| Parag Jayant Chheda | Promoter/Promoter Group | — | — |
| Vipul Jayant Chheda | Promoter/Promoter Group | — | — |
| Heena Parag Chheda | Promoter/Promoter Group | — | — |
| Jayant Shamji Chheda | Promoter/Chairman and Managing Director | 8.53% | — |
| Tarla Jayant Chheda | Promoter | 27.53% | — |
| Parag Jayant Chheda | Promoter/Executive Director | 28.66% | — |
| Vipul Jayant Chheda | Promoter/Executive Director | 28.66% | — |
| Jayant Shamji Chheda | Promoter | — | — |
| Parag Jayant Chheda | Promoter | — | — |
| Vipul Jayant Chheda | Promoter | — | — |
| Heena Parag Chheda | Promoter | — | — |
| Jayant Shamji Chheda | Promoter | 8.53% | — |
| Tarla Jayant Chheda | Promoter | 34.02% | — |
| Parag Jayant Chheda | Promoter | 28.66% | — |
| Vipul Jayant Chheda | Promoter | 28.66% | — |
| Heena Parag Chheda | Promoter | — | — |
| Jayant S. Chheda | Managing Director / Promoter | 8.00% | — |
| Tarla Jayant Chheda | Promoter Group | 31.89% | — |
| Parag Jayant Chheda | Director / Promoter | 29.99% | — |
| Vipul Jayant Chheda | Director / Promoter | 30.00% | — |
| Jayant S. Chheda | Promoter | — | — |
| Parag J. Chheda | Promoter | — | — |
| Vipul J. Chheda | Promoter | — | — |
Leadership
Jayant Shamji Chheda · Chairman/Executive Director/Promoter
Parag Jayant Chheda · Executive Director/Promoter
Vipul Jayant Chheda · Executive Director/Promoter
Heena Parag Chheda · Executive Director/Promoter
Tarla Jayant Chheda · Promoter
Shailesh Bhaskar · Company Secretary and Compliance Officer
Auto-extracted from the company's DRHP 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 DRHP before relying on it.
Prince Pipes IPO FAQs
What is the lot size of Prince Pipes IPO?
The minimum lot size of Prince Pipes IPO is 84 shares. One lot costs ₹14,952 at the cut-off price.
When does Prince Pipes IPO open and close?
Prince Pipes IPO opened for subscription on 18 Dec 2019 and closed on 20 Dec 2019.
What is the listing date of Prince Pipes IPO?
Prince Pipes IPO listed on 30 Dec 2019.