Precision Pipes and Profiles Company Ltd IPO listing on Friday, January 11, 2008
BSE Script Code: 532934
NSE Symbol: PPAP
Issue Price:: Rs. 150/- Per Equity Share
Face Value: Rs 10/- Per Equity Share
This IPO was given 4 star by crisil but not a huge response , so one can buy after listing.
Precision Pipes and Profiles which was given a 4 out of 5 by CRISIL and which had its IPO ended in December 2007 , was not really respected well by the public like another IPO which got 4 out of 5 rating from Crisil , IPO was oversubscribed by 10.35 times (18.7003 times in retail).I was saying a day before that this IPO should be bough on the listing day and whatever price iot list and get some listing next day gains .
Check IPO allotment status here .
Precision Pipes IPO Allotment will be easy for retail with which its going now at 4.00 clock , its subscribed by 7.2 times as of 4.00 clock max it can go to 10 or so not more than that and with the way how its doing on the retail side it might subscribe by 5 times or 8 times on the retail side not more than that , so allotment might be easy for retail for full application of 1 lac and for some odd lots also allotment might be firm we will decide that after we get the final figure.
Update at 7.30 PM
Total subscription is 10 times but retail is 18 times , so it has become lottery system again .
1 Qualified Institutional Buyers (QIBs) 2678571 13484790 5.0343
2 Non Institutional Investors 803572 6896610 8.5824
3 Retail Individual Investors (RIIs) 1875000 35063145 18.7003
About Precision Pipes
About Precision Pipes and Profiles Company (PPAP) is engaged in the business of manufacturing automobile sealing systems and exterior products. PPAP’s product range includes weather strips, trim door opening, windshield molding, roof molding, quarter window seal, A-pillar garnish, B-pillar garnish, skirt air damper, body side molding, among others. Additionally, it manufactures PVC based customised profiles for white goods and other industries. PPAP has five manufacturing facilities, which are located in New Delhi and Noida, Uttar Pradesh.
About Precision Pipes IPO
Issue Period December 17, 2007 to December 20, 2007
Issue Size (.) Equity Shares aggregating Rs. 7500 Lacs
Issue Type 100% Book Building
Face Value Rs.10/-
Price Range Rs 140 to Rs 150
Tick Size Re. 1/-
Market Lot/Min Lot :45 shares
Fund to be use for setting up two new manufacturing plants for auto components and electrical outlet system products for Power and Data Corporation of Australia. It also plans to use the proceeds to expand capacity (to about 30 lakh kilos) in its existing plant from the current 12 lakh-levels.
>PPAP is an OEM supplier to the automobile industry and its client list includes Maruti Udyog, Honda SIEL, General Motors and Toyota Kirloskar.
>PPAP is in agreements with Nissen Chemitec Corporation, Japan
>Leader in its area and striving to grow.
> Fall in Automobile industry growth
> Large revenue from single client is not good sign , if the client sees a hit in it sales (Maruti Suzuki)
> No Export order
> Auto Sector dependent
Sales have increased from 39 crore sales in 2003 to 109 crore in 2007 , Net profit has increased from 4 crore to 13 crore.At a price band of Rs 140– 150, PPAP’s PE is at 14.5 – 15.1 times yearly 2007 earning and 10.2-10.6 times there-months FY 2008 annualized earning on post-IPO equity.
Crisil Rating for PPAP IPO
Crisil Rating for PPAP IPO is 4 out of 5.
Final Verdict – Apply for the IPO
I know there are some strong negative factors but for sure in coming years the revenue wioll increase and this being a rated company by CRISIL it will get very good attraction from QIB and FII so for sure this will subscribe more than 100 times for sure and get heavily listed like religare , so apply for PPAP IPO , But PPAP IPO Allotment will be lottery based.
About Precision Pipes
Precision Pipes and Profiles Company, a Delhi-based OEM supplier to the automobile industry, is entering the capital market with an initial public offering (IPO) of 50-lakh shares.
IPO Info – Price Band
The price band of the issue has been fixed between Rs 140 and Rs 150 per equity share of face value of Rs 10 each.
Issue will open on December 17 and close on December 20
Precision Pipes and Profiles Company Ltd. CRISIL IPO Grade 4/5 04-Sept-2007