Patil Automation Limited, a key player in the customized automation solutions space, has witnessed overwhelming investor interest in its Initial Public Offering (IPO). With an aim to enhance its capabilities in the automotive and industrial automation segment, the company is tapping the capital markets via a book-built IPO worth ₹69.60 crores.

Founded with a focus on designing and installing advanced automation systems like welding lines (MIG, TIG, spot welding), assembly lines, material handling systems, and special-purpose machinery, Patil Automation has become a reliable partner for industrial clients. Their tailored automation solutions address specific production needs of Indian and global manufacturers, especially in the automotive domain.

The IPO, consisting entirely of a fresh issue of 58 lakh equity shares, is priced between ₹114 and ₹120 per share. At the upper end of the price band, the estimated market capitalization stands at ₹261.84 crores. The IPO opened on June 16, 2025, and closed on June 18, 2025. The allotment date is scheduled for June 19, 2025, and the listing is expected on NSE SME on June 23, 2025.

The minimum lot size is 1,200 shares, translating to a minimum retail investment of ₹1,44,000. For High-Net-Worth Individuals (HNIs), the minimum application size is 2 lots (2,400 shares) requiring ₹2,88,000.

Oversubscription and Live Status

As of 7:00 PM on June 19, 2025, the IPO was oversubscribed by 94.34 times, indicating strong demand across all investor categories. The live subscription data reflects confidence in the company's business model and long-term growth prospects.

The Grey Market Premium (GMP) for Patil Automation IPO is hovering around ₹15, suggesting an expected listing price of ₹135, i.e., a premium of 12.50% over the issue price. However, it is crucial to note that GMP is unregulated, based on demand-supply mechanisms, and serves only as an indicative tool, not a guaranteed forecast.

Patil Automation IPO GMP Trend

Allotment Instructions

To check your Patil Automation IPO allotment status, follow the steps below:

1. Visit the Registrar’s official IPO allotment page.

2. Select Patil Automation Limited IPO from the dropdown menu.

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

4. Click submit to view your allotment status.

This enables investors to track their allotment in real-time and proceed with trading or holding based on personal strategy.

Use of IPO Proceeds

Patil Automation plans to deploy the net proceeds from the IPO towards:

1. ₹62.01 Crores for setting up a new manufacturing facility, expanding production capacity.

2. ₹4.00 Crores to repay part of existing borrowings, improving financial leverage.

3. The remaining funds for general corporate purposes, supporting business operations and future scaling.

These strategic investments will enhance Patil Automation’s infrastructure, positioning the company for robust growth in the automation industry.

Financial Performance Snapshot

The company has showcased strong financial growth over the years:

These figures highlight a steady increase in revenue, operating margin, and net profit, driven by consistent order inflows and efficient project execution.

Valuation Metrics

The IPO valuation stands on relatively solid ground when compared to industry benchmarks:

• Pre-Issue EPS (FY24): ₹7.62

• Post-Issue EPS: ₹5.36

• Pre-Issue P/E Ratio: 15.74x

• Post-Issue P/E Ratio: 22.38x

• Industry P/E: ~28x (Automation sector)

• ROCE (FY24): 21.62%

• ROE (FY24): 27.28%

• RoNW (FY24): 21.80%

These metrics suggest the IPO is fairly priced, with room for appreciation depending on market momentum and listing sentiments.

Leadership and Promoter Profile

Patil Automation is spearheaded by Manoj Pandurang Patil (Managing Director) and Prafulla Pandurang Patil, both of whom bring over 25 years of experience in automation. Manoj Patil’s vision has helped the company scale and maintain high service standards across a variety of automation verticals.

Their combined expertise supports strategic decision-making, innovation, and customer-oriented product development, making Patil Automation a strong contender in a high-potential sector.

Investor Recommendation

Given the strong financials, high oversubscription, positive GMP, and fair valuations, risk-tolerant investors may consider applying for listing gains. The automotive automation space is expected to grow with the push towards smart manufacturing and Industry 4.0 adoption, offering long-term value.

However, given the high P/E post-issue and cyclical nature of the industrial automation segment, conservative investors may wish to wait and watch post-listing performance before entering.

Disclaimer:
This article is intended solely for educational and informational purposes. It should not be considered as investment advice or a solicitation to buy or sell securities. Investments in the securities market are subject to market risks. Please consult with a SEBI-registered advisor before making any investment decision. All financial data is sourced from publicly available documents and is valid as of the date of publication.

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