Patil Automation Limited, a key player in the industrial automation sector, is set to launch its Initial Public Offering (IPO) from June 16, 2025, to June 18, 2025. The IPO is a Book Built Issue consisting entirely of a fresh issue of 58 lakh shares, amounting to ₹69.60 Crores. This offering marks a significant opportunity for investors interested in the automotive and industrial automation space, as the company provides customized automation systems including welding lines (spot welding, MIG and TIG), assembly lines, material handling machinery, and special-purpose machinery tailored to client needs.

The IPO’s price band is fixed between ₹114 to ₹120 per equity share, positioning the company’s market capitalization at ₹261.84 Crores at the upper band price. The lot size for the IPO is 1,200 shares, meaning retail investors need to invest a minimum of ₹1,44,000 while High-Net-Worth Individuals (HNIs) must invest in multiples of two lots, totaling ₹2,88,000. The shares will be listed on the NSE SME platform, with the tentative listing date expected on or around June 23, 2025.

Seren Capital Private Limited serves as the book running lead manager for this IPO, while Purva Shareregistry (India) Private Limited is the registrar to the issue. Mansi Share & Stock Broking Private Limited acts as the market maker, supporting smooth trading post-listing.

One of the important pre-listing indicators is the Grey Market Premium (GMP), which for Patil Automation IPO is currently around ₹15, suggesting a listing gain of approximately 12.5%. However, it is crucial to note that GMP is an unofficial and unregulated metric, driven by demand-supply dynamics in the grey market and not based on formal trading activities. Thus, GMP should only be considered for educational purposes and not as a guaranteed return.

The subscription status of the IPO has been strong, with the latest update on June 18, 2025, at 11:30 AM showing the IPO subscribed 6.88 times on its final day. This high subscription level reflects robust investor interest and confidence in the company’s business model and growth prospects.

For investors awaiting their IPO allotment, the allotment date is June 19, 2025. The allotment status will be made available on the registrar’s website, allowing investors to check their status online by entering their application number, PAN, or DP Client ID.

Patil Automation Limited specializes in providing end-to-end automation solutions, primarily catering to the automotive industry. Their core offerings include design, manufacturing, testing, and installation of automation systems customized for specific client production needs. This includes welding lines (spot welding, MIG and TIG), assembly lines, and material handling machinery, all crafted to optimize production efficiency.

The company is steered by an experienced management team led by Manoj Pandurang Patil, the Promoter and Managing Director, who brings over 25 years of expertise in the automation industry. His leadership and strategic vision have been instrumental in Patil Automation’s steady growth trajectory.

Financially, Patil Automation has demonstrated consistent growth. The revenues from operations have increased steadily over the past few years: ₹9,709.33 Lakh in FY22, ₹8,235.46 Lakh in FY23, ₹11,871.51 Lakh in FY24, and ₹12,204.45 Lakh for the period ended March 31, 2025. The company’s EBITDA and profit after tax (PAT) figures also show positive trends with EBITDA rising from ₹1,095.77 Lakh in FY22 to ₹1,926.28 Lakh for the period ended March 31, 2025, and PAT increasing from ₹545.91 Lakh in FY22 to ₹1,170.21 Lakh in the same period.

These financials reflect strong operational performance, which is further supported by key financial ratios. The pre-issue Earnings Per Share (EPS) stands at ₹7.62, with a post-issue EPS of ₹5.36 for FY24. The pre-issue Price-to-Earnings (P/E) ratio is 15.74x, while post-issue it stands at 22.38x, indicating the IPO valuation is reasonable relative to earnings. The company’s Return on Capital Employed (ROCE) is an impressive 21.62%, with Return on Equity (ROE) and Return on Net Worth (RoNW) at 27.28% and 21.80%, respectively, showcasing efficient capital utilization and profitability.

The IPO proceeds will be primarily used to fund capital expenditure for setting up a new manufacturing facility, with ₹6,200.61 Lakh allocated for this purpose. Additionally, ₹400 Lakh will be used to repay certain borrowings, and the balance will be used for general corporate purposes. This capital infusion aims to boost Patil Automation’s production capacity and support its expansion plans in the automation industry.

Given the company’s solid financial performance, experienced management, and growth plans, the IPO is attracting significant attention from investors. While the Grey Market Premium indicates possible listing gains, investors should consider the inherent risks and perform due diligence before applying.

In conclusion, Patil Automation Limited’s IPO presents a compelling investment opportunity in the fast-growing industrial automation sector, particularly within the automotive segment. The company’s steady revenue growth, improving profitability, and prudent use of IPO proceeds position it well for future expansion. The upcoming listing on NSE SME is expected to provide investors with access to a promising industrial automation player with strong fundamentals.

For those interested in the IPO, subscribing during the June 16-18, 2025 period is essential, with allotment results available from June 19, 2025. The shares’ tentative listing on June 23, 2025, will be a key milestone to watch for potential listing gains aligned with the current GMP.

This detailed overview of Patil Automation’s IPO covers all critical aspects including subscription status, pricing, financial performance, management strength, and post-IPO outlook, providing a comprehensive guide for investors seeking to capitalize on this opportunity in the Indian automation sector.

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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