Patil Automation Limited, a precision engineering company offering factory automation solutions, has received an overwhelming response to its Initial Public Offering (IPO), with subscription figures soaring to 25 times by Day 3 of the issue window. This surge in investor interest has been further backed by a Grey Market Premium (GMP) of 20 percent, reflecting strong investor confidence and expectations of listing gains.

The IPO opened for subscription on June 18, 2025, and will close on June 20, 2025. The allotment is expected to be finalized on or around June 21, 2025, with the listing tentatively scheduled for June 25, 2025, on the NSE SME platform.

Day 3 Subscription Status

By the end of Day 3, Patil Automation IPO was subscribed 25 times overall, indicating exceptional demand across all investor categories:

• Retail Individual Investors (RIIs): 33x

• Non-Institutional Investors (NIIs): 27x

• Qualified Institutional Buyers (QIBs): 5x

This robust oversubscription suggests that market participants are highly optimistic about the company’s growth potential, financial strength, and sector prospects.

Grey Market Premium (GMP) Trend

The Grey Market Premium — an unofficial indicator of listing price expectations — for Patil Automation IPO has spiked to 20 percent over the issue price. This means the shares are commanding a ₹22–₹24 premium in the unofficial market.

While GMPs are speculative and not officially regulated, they often mirror investor sentiment and anticipated listing performance. In this case, the rising GMP points to expected strong listing day gains.

About Patil Automation Limited

Patil Automation Limited, headquartered in Pune, is a leading provider of factory automation solutions including:

• Robotic welding and assembly lines

• Automated material handling systems

• Industrial IoT and SCADA-based solutions

The company caters to automobile, heavy engineering, and FMCG sectors, with marquee clients across India and overseas.

With over 15 years of experience, the firm has built a reputation for engineering excellence, high-quality project delivery, and strong client retention.

IPO Structure and Financial Snapshot

Patil Automation IPO is a Book Built Issue, comprising a mix of fresh issue and offer-for-sale (OFS), aimed at raising approximately ₹72 crore.

• Price Band: ₹115 – ₹120 per equity share

• Lot Size: 1,000 shares

• Minimum Investment for Retail: ₹1,20,000

Use of IPO Proceeds:

• Setting up a new automation assembly facility

• Upgrading R&D capabilities

• Working capital and general corporate purposes

Financial Performance

Patil Automation has shown strong financial growth, which is one of the key reasons behind investor interest.

• Revenue (FY24): ₹85.42 crore

• EBITDA (FY24): ₹13.27 crore

• PAT (FY24): ₹9.14 crore

• ROE: 21.8%

• ROCE: 24.6%

The company’s low debt levels, high return ratios, and steady profit margins indicate a financially sound and scalable business.

Market Expert Insights

Analysts tracking the IPO say the combination of niche business, growth visibility, strong financials, and positive market momentum have made this offering attractive.

According to market observers:

• The IPO is fairly priced with a post-issue P/E of around 13x, while the industry average is 18–20x

• A GMP of 20% suggests listing price around ₹140–₹144, if current demand sustains

• Strong subscription numbers indicate wider investor interest beyond just retail

Risks to Consider

While the IPO has generated optimism, experts also advise investors to be mindful of the following:

• SME stocks often see post-listing volatility due to low liquidity

• Heavy subscription may result in lower retail allotments

• Short-term corrections in broader markets could impact listing enthusiasm

Conclusion

The Patil Automation IPO has emerged as one of the most successful SME offerings in June 2025 so far. With 25x subscription on Day 3 and a 20 percent Grey Market Premium, the company appears to be on track for a solid stock market debut.

Strong fundamentals, steady growth, and scalable operations are driving investor trust. For those seeking listing gains and long-term exposure to the automation sector, this IPO may be worth considering — but only after evaluating individual risk appetite and investment horizon.

Recommendation: Positive outlook for listing gain. Allotment chance low due to high subscription. Ideal for medium to long-term investors.

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.

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