Prince Pipes and Fittings made its stock market debut on Monday after its shares got listed at Rs 160 on the National Stock Exchange (NSE) and BSE earlier in the day, down 10.11 per cent from its initial public offer (IPO) issue price of Rs 178.
The stock of the pipe company ended at Rs 166.60 apiece on the BSE, down 6.40 per cent from its issue price and on NSE it settled at Rs 165.00, down 7.30 per cent.
During the intraday trade, the scrip hit an intraday low of Rs 152.60 on the BSE and Rs 152.50 on the NSE. On the upper end, it hit a high of Rs 177.95 on the BSE and Rs 177.90 on the NSE.
Over 20.37 lakh shares of Prince Pipes and Fittings were traded on the BSE, while on NSE, over 2.11 crore shares exchanged hands during the entire day.
“Prince Pipes and Fittings Ltd is among the top 6 organised players in pipes and fittings in India with 5 per cent market share. It has well-diversified product profile, strong presence in North, West & South India and 1408 distributors across India (highest among peers). Its revenue grew by 16 per cent CAGR over FY16-19 while Profitability grew 40.6 per cent CAGR in FY16-19. Post IPO, we expect a reduction in debt as well as promoter leverage, providing meaningful upside in valuation. As at the upper price band of Rs178, it is available at P/E of 23.5x on FY19 which is a 22 per cent discount to its peers. We have a ‘SUBSCRIBE’ rating with short to medium-term perspective,” Vinod Nair, Head of Research at Geojit Financial Services wrote in an IPO note on December 18.
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