1. IPO Snapshot
- Issue period: June 16–18, 2025
- Price band: ₹114–120/share; minimum lot of 1,200 shares (₹1.44 lakh at upper band)
- Fresh issue: 58.01 lakh shares, raising ₹69.61 crore, with listing on NSE SME (Emerge) expected June 23
2. Company Overview
- Founded in 2015 and based in Pune, Patil Automation creates turnkey industrial automation systems—spanning welding (spot, MIG, TIG), assembly lines, AGVs, leak inspection machines, and more—with five production facilities nationwide
- Operates across sectors like automotive, electronics, EVs, defense, capital goods, and agricultural machinery; served over 52 clients in FY25
3. Financials & Performance
- FY25: Revenue ₹118.05 cr (+2.3% YoY); EBITDA ₹15.21 cr; PAT ₹11.70 cr (+49%) with margins ~9.9%; Return on Equity ~27%
- Post-IPO valuation: ~₹261.8 cr for ~5.86 lac shares; P/E ~22.4× FY25 earnings
4. Objectives for Funds
Proceeds will be allocated as follows:
- ₹62 cr (≈89%) for establishing a new manufacturing facility
- ₹4 cr (~6%) to repay debt
- ₹3.6 cr (~5%) for corporate expenses
5. Anchor Investment & GMP
- Pre-IPO anchor book raised ₹19.81 cr, with ₹120/share allocation across 11 funds like Chartered Finance, NAV Capital, etc.
- Grey Market Premium (GMP) stands around +₹22, suggesting a projected listing price near ₹142 (+18%)
6. Subscription Status (Day 1)
By midday on June 16:
- Overall subscription: ~35–50%
- Retail: ~34%, NIIs: 1.5×, QIBs: ~1×
7. Key Strengths & Risks
Strengths:
- Strong embedded expertise in turnkey automation systems
- Client diversity across multiple industries
- High margins and ROE, signaling efficiency and profitability
Risks:
- Heavy reliance on the automotive/EV sector (~88% revenue exposure)
- Customer concentration (70% revenue from few clients)
- Absence of long-term supplier contracts; lease dependencies
8. Should You Consider It?
For investors bullish on India’s industrial automation sector—especially linked to EV and manufacturing growth—Patil Automation offers a focused, growth-oriented small-cap opportunity. Key attractions include robust financial health, clear fund-usage, and encouraging GMP.
However, the risks tied to sector dependency, client concentration, and a lack of long-term contracts cannot be ignored. The stock pricing at ~22× P/E is reasonable, but avoid overexposure given its SME listing status and associated market volatility.
🚨 Timeline Checklist
- June 18 – IPO closes
- June 19 – Allotment finalization
- June 20 – Refunds & share credit
- June 23 – Listing on NSE Emerge
Conclusion
Patil Automation’s IPO presents an intriguing play on industrial automation, with strong financials, good use of funds, and healthy anchor interest. If you’re confident in the automation boom and are comfortable with SME-level risk, this IPO is worth a look—just ensure your overall portfolio stays balanced.
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