Prince Pipes and Fittings plans to raise up to Rs 500 crore via IPO

Prince Pipes and Fittings, a manufacturer of polymer pipes and fittings, on Friday said that it was planning to raise up to Rs 500 crore through an initial public offering (IPO). The company has fixed the price band for shares at Rs 177-178 per equity share. The polymer fittings company will raise Rs 250 crore through a fresh issue and Rs 250 crore through the offer for sale route. The issue will open between December 18 and 20. The bids can be placed for a minimum of 84 equity shares and in multiples of 84 equity shares thereafter.

The promoter group plans on diluting around 29 % of its equity stake in the proposed IPO. Prince Pipes and Fittings executive director Parag Chheda said that the company plans on using the money raised through the IPO for expansion. “We intend to have a seventh manufacturing unit at Telangana where we will install machines for fittings and pipes.” The company will also use the proceeds from the IPO to pare debt and upgrade existing equipment. Currently, the company has a net debt of Rs 274 crore and plans on repaying around Rs 50 crore through the IPO.