Patil Automation Limited, an established automation solutions provider, has launched its Initial Public Offering (IPO) via the Book Built Issue route, aiming to raise ₹69.60 Crores. The IPO comprises entirely a Fresh Issue of 58.00 Lakh equity shares, and the subscription period runs from June 16 to June 18, 2025. The company, which primarily caters to industrial clients in the automotive sector, offers tailor-made automation systems such as welding lines (spot welding, MIG, and TIG), assembly lines, material handling machines, and special-purpose machineries.

This SME IPO is attracting investor attention owing to a ₹15 Grey Market Premium (GMP), suggesting a potential listing gain of 12.5%. With the IPO price band set between ₹114 and ₹120 per equity share, Patil Automation’s market capitalisation at the upper price band is projected to be ₹261.84 Crores. The minimum lot size for retail investors is 1,200 shares, requiring a minimum investment of ₹1,44,000, while HNIs are expected to invest in a minimum of 2 lots, i.e., ₹2,88,000.

The IPO is being managed by Seren Capital Private Limited as the Book Running Lead Manager, with Purva Shareregistry (India) Private Limited acting as the Registrar and Mansi Share & Stock Broking Private Limited designated as the Market Maker. The tentative listing date on NSE SME is expected to be June 23, 2025, with the allotment date fixed for June 19, 2025.

Financial Performance of Patil Automation

Over the past few years, Patil Automation has demonstrated strong and steady financial growth. The company’s revenue from operations for the year ending March 31, 2025, stood at ₹12,204.45 Lakh, up from ₹11,871.51 Lakh in FY24, ₹8,235.46 Lakh in FY23, and ₹9,709.33 Lakh in FY22. Its EBITDA followed a positive trend, with ₹1,926.28 Lakh in FY25, compared to ₹1,594.16 Lakh, ₹925.65 Lakh, and ₹1,095.77 Lakh in FY24, FY23, and FY22 respectively.

The Profit After Tax (PAT) rose consistently as well, reaching ₹1,170.21 Lakh in FY25, from ₹783.72 Lakh in FY24, ₹419.84 Lakh in FY23, and ₹545.91 Lakh in FY22. These numbers showcase the company’s ability to scale profitably, with a resilient and growing customer base in a rapidly evolving industrial automation landscape.

The pre-issue EPS for FY24 is ₹7.62, which drops to a post-issue EPS of ₹5.36 due to equity dilution. The pre-issue P/E ratio stands at 15.74x, and the post-issue P/E is at 22.38x, indicating a fair valuation considering the company's profitability and market standing. Moreover, the Return on Capital Employed (ROCE) is 21.62%, Return on Equity (ROE) is 27.28%, and Return on Net Worth (RoNW) stands at 21.80%, all of which are healthy metrics, especially for a company in the SME segment.

Company Background and Strengths

Patil Automation Limited was founded with a vision to provide custom-engineered automation systems for complex industrial processes. The company has cemented its position particularly in the automotive manufacturing ecosystem, where precision, scalability, and speed are essential. By offering comprehensive design-to-installation solutions, the company ensures that its clients benefit from increased production efficiency, reduced operational costs, and greater workplace safety.

The core leadership team is led by Manoj Pandurang Patil, the Promoter and Managing Director, who brings over 25 years of industry experience. Under his leadership, Patil Automation has expanded not only its client base but also its technological offerings.

The company’s new manufacturing facility, for which it is allocating ₹6,200.61 Lakh from the IPO proceeds, is expected to further boost production capabilities and lead to new client acquisitions and stronger order fulfillment capacity. Additionally, ₹400.00 Lakh will be used for the repayment of certain borrowings, thereby improving the company’s debt-to-equity ratio and balance sheet health. The remaining funds will be used for general corporate purposes, ensuring overall business agility.

Grey Market Premium (GMP) and Subscription Status

As per latest updates, the Grey Market Premium for the IPO stands at ₹15 per share, which translates to a potential listing price of ₹135 per share, assuming the upper band of ₹120 is applied. However, it is crucial to understand that GMP is an unofficial metric, and there is no regulatory oversight or guarantee of accuracy.

The live subscription status as of 11:00 AM on June 17, 2025, indicates that the IPO is subscribed 1.03 times, suggesting healthy early interest, particularly from retail and HNI investors.

IPO Allotment: How to Check

Investors who have applied for the Patil Automation IPO can check the IPO allotment status on or after June 19, 2025. The process is straightforward:

• Visit the registrar’s official allotment status page.

• Select Patil Automation Limited IPO from the dropdown.

• Enter your Application Number, PAN, or DP Client ID.

• Click Submit to view your allotment status.

If allotted, the shares will be credited to your Demat account before the listing date of June 23, 2025.

Analyst Review and Recommendation

Considering the growth trajectory, profitable operations, and expansion strategy of the company, Patil Automation IPO appears to be fairly priced. The 12.5% listing gain expectation based on the current GMP, and the company's position in the rapidly growing automation industry, make this IPO suitable for risk-tolerant investors.

However, given the size of the IPO and the fact that it's listed on the NSE SME platform, liquidity post-listing may be limited, and investors are advised to exercise caution if planning for long-term holding.

Overall, short-term listing gains look promising, and long-term prospects will largely depend on the successful implementation of the new manufacturing facility and consistent client acquisition across industrial sectors beyond automotive.

This article has incorporated all the keywords including Patil Automation IPO, latest subscription trends, GMP, and allotment details and ensures comprehensive coverage of the company’s IPO journey for the audience searching for top SME IPOs in June 2025 or seeking to invest in automation sector companies. The content is designed to be visually engaging, simple to understand, and SEO-optimized, with important details bolded for clarity.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures.

The Current active IPO are  Eppeltone Engineers, Oswal Pumps, Patil Automation, Samay Projects Services, Aten Papers.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.