Prince Pipes and Fittings Ltd is a known PVC manufacturer and these are used in various applications such as sewage works, plumbing and irrigation. The company has recently been granted a regulatory approval to have an IPO or initial public offering.
The approval has been granted by India’s Securities and Exchange Board on the 3rd of November. Since the beginning of this year, the total number of companies that have been granted regulatory approvals to receive an initial public offering now stands at 39.
Price Pipes which is headquartered in Mumbai has sent a filing of their draft red herring pamphlet last September 27, 2017.
The prospectus of the company declared that their initial public offering size is currently set at Rs 700 crore or equivalent to $106.5 million in US dollars. The company is going to offer fresh shares amounting to Rs 500 crore and promoters under them will be able to share their shares amounting to Rs 200 crore.
Price Pipe is not the only company that is trying to venture into the public’s hands as many companies are eyeing to take advantage the rise of stock market in the country. The company will be going public along with other companies in the same industry such as Finolex Industries, Jain Irrigation Systems and Astral Poly Technik.
Jain irrigation recorded an increase of almost 25 per cent this 2017 while Astral Poly was able to gain as high as 92 per cent. Finolex, on the other hand, was able to get 62 per cent. These data came from the stock exchange market.
Prince Pipes is hoping to achieve net proceeds that will help the company pay the loans they have and to construct a new factory as well as improve their current equipment which is located in their manufacturing facilities. They are also planning to use the funds for general corporate uses. The secondary sale’s proceeds, on the one hand, will be funnelled to all the current shareholders.
The company which is famous as a PVC manufacturer has two brands under them, Trubore Piping Systems and Price Piping Systems. As of August, they have 766 distributors located all over India.