At 12.30pm, the stock had recouped some of its losses but was still trading 6.1% lower
Prince Pipes and Fittings had a lackluster debut this morning. The stock of the polymer pipes and fittings manufacturer listed at a discount of 10 per cent at Rs 160 on the BSE and NSE, compared to its issue price of Rs 178 per share.
At 12.30pm, the stock had recouped some of its losses but was still trading 6.1% lower at Rs 167. The markets gave up their earlier gains and slipped into the red; the BSE was trading lower by 102 points at Rs 41,473 and the Nifty was down 27 points at 12,218.
Prince Pipes and Fittings had fixed the IPO price band at Rs 177-178 per share. The Rs 500-crore IPO was open for subscription between December 18 and December 20. It comprised fresh issuance of shares amounting to Rs 250 crore and equal amount through offer for sale (OFS). A total 50% of the public issue, or shares worth Rs 250 crore, were reserved for qualified institutional buyers, while 15% (Rs 75 crore) is reserved for non-institutional investors and 35% (Rs 175 crore shares) for retail bidders.
Prince Pipes and Fittings reported a net profit of Rs 83 crore on revenues of Rs 1,572 crore in FY19, which has grown from Rs 74 crore profit on Rs 1,330 crore revenue in FY17. In the first quarter of FY20, the company posted Rs 27 crore profit on revenues of Rs 380 crore. The company has an ROE of 20.8%.
Source: NDTV Profit