⁠Patil Automation IPO: GMP, Subscription Status, Price Band, Offer Size And More

The initial public offering (IPO) of Patil Automation Ltd. opened for subscription on Monday, June 16. The company, known for its expertise in welding and line automation solutions, aims to raise nearly Rs 70 crore from the primary market through its NSE SME issue. Investors should take note of these key details before deciding to invest.

Patil Automation IPO is a book-built issue worth Rs 69.61 crore. The NSE SME offer comprises an entirely fresh issue of 58.01 lakh equity shares.

The company has reserved 50% of the net issue size of the IPO for Qualified Institutional Buyers (QIBs). Retail investors will be allocated not less than 35% of the net issue, while the company will set aside the remaining 15% for Non-Institutional Investors (NIIs).

The price band for Patil Automation IPO has been set between Rs 114 and Rs 120 per share. Investors can apply for a minimum of 1,200 shares and in multiples thereof. For retail investors, the minimum and maximum investment is one lot, comprising 1,200 shares, amounting to Rs 1.44 lakh. For High Net-Worth Individuals (HNIs), the minimum application is two lots, or 2,400 shares, requiring an investment of Rs 2.88 lakh.

The subscription window for the Patil Automation IPO will remain open till Wednesday, June 18. The basis of allotment is expected to be finalised on Thursday, June 19. This will be followed by the initiation of refund to unsuccessful applicants and the transfer of shares to the demat accounts of successful applicants on Friday, June 20. The shares are tentatively scheduled to be listed on the NSE SME on Monday, June 23.

Seren Capital Pvt. is the lead book-running manager for Patil Automation IPO. The registrar is Purva Sharegistry India Pvt., while Mansi Share & Stock Broking Pvt. has been appointed the market maker.

Patil Automation IPO has been subscribed 0.70 times as of 4:40 p.m. on Monday.

Qualified Institutions: 0.01 times

Non-Institutional Investors: 1.81 times

Retail Investors: 0.62 times

*The subscription status will be updated at regular intervals

As of 3 p.m. on June 16, the grey market premium (GMP) for Patil Automation IPO stood at Rs 22 per share. Based on the upper end of the price band of Rs 120, the estimated listing price stands at Rs 142. The GMP indicates a potential listing gain of around 18.33% per share.

Note: GMP is not an official source of data and is based on speculation.

Founded in 2015, Patil Automation Ltd. operates five facilities across India, including two in Pune. As per its red herring prospectus, the company offers end-to-end automation solutions, including welding and assembly lines, auto handling systems, gantries and production and testing machines. It specialises in designing, manufacturing, testing and installing customised automation systems, such as spot, MIG and TIG welding lines.

Use of Proceeds

Patil Automation plans to use the funds raised from the IPO for three main purposes. A part of the money will go toward setting up a new manufacturing facility. Some of the funds will be used to repay existing loans. The rest will be used for general corporate needs.

Financials

The company’s revenue in FY 2024-25 increased marginally by 3% to Rs 122.04 crore against Rs 118.72 crore in FY 2023-24. Patil Automation reported a net profit of Rs 11.7 crore in FY25, marking a 49.2% jump from Rs 7.84 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.