Patil Automation Limited, founded by Manoj Pandurang Patil, is a specialized industrial automation provider serving clients primarily in the automotive sector. The company designs and installs customized automation systems, including welding lines (Spot, MIG, TIG), assembly lines, material handling systems, and special-purpose machinery tailored to specific client needs.
It is entering the capital markets with its Initial Public Offering (IPO), aimed at raising ₹69.60 Crores via a fresh issue of 58.00 lakh shares. The IPO will be open for subscription from June 16 to June 18, 2025, and will be listed on the NSE SME platform.
IPO Details at a Glance:
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IPO Opening Date: June 16, 2025
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IPO Closing Date: June 18, 2025
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Issue Size: ₹69.60 Crores (entirely fresh issue)
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Face Value: ₹10 per share
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Price Band: ₹114 to ₹120 per share
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Lot Size: 1,200 shares
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Minimum Investment (Retail): ₹1,44,000
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Minimum Investment (HNI - 2 lots): ₹2,88,000
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Market Capitalisation at Upper Price Band: ₹261.84 Crores
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Tentative Allotment Date: June 19, 2025
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Tentative Listing Date: June 23, 2025
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Book Running Lead Manager: Seren Capital Private Limited
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Registrar: Purva Shareregistry (India) Private Limited
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Market Maker: Mansi Share & Stock Broking Pvt. Ltd.
Grey Market Premium (GMP) Today
As of June 10, 2025, the Grey Market Premium (GMP) of Patil Automation stands at ₹15, translating to a potential listing gain of 12.50%. While the GMP suggests market interest, it's important to note that GMP is unofficial, unregulated, and should not be the sole basis of investment decisions.
| Date | IPO Price | Expected Listing Price | GMP | Last Updated |
|---|---|---|---|---|
| June 10, 2025 | ₹120 | ₹135 | ₹15 (12.50%) | 11:00 AM, June 10, 2025 |
Company Overview
Patil Automation has built a strong brand over the years and is known for delivering custom automation systems across multiple domains within industrial manufacturing, especially for auto OEMs and Tier-1 vendors.
Key Promoters & Leadership:
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Manoj Pandurang Patil (Managing Director): Over 25 years of industry experience
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Prafulla Pandurang Patil (Director): Supports operational expansion
The company benefits from a skilled workforce, in-house R&D, and design teams, which support innovation and customization. Their value proposition lies in reducing manufacturing time, enhancing safety, and improving throughput for clients.
Financial Performance (₹ in Lakhs)
| Particulars | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|
| Revenue from Operations | 12,204.45 | 11,871.51 | 8,235.46 | 9,709.33 |
| EBITDA | 1,926.28 | 1,594.16 | 925.65 | 1,095.77 |
| Profit After Tax (PAT) | 1,170.21 | 783.72 | 419.84 | 545.91 |
Growth Insights:
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Revenue has grown consistently, showing resilience and scalability.
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PAT grew by 49.33% YoY in FY25 (from FY24), reflecting operational leverage and cost optimization.
Valuation Metrics
| Metric | FY24 Pre-Issue | FY24 Post-Issue |
|---|---|---|
| EPS (₹) | 7.62 | 5.36 |
| P/E Ratio | 15.74x | 22.38x |
| Return on Equity (ROE) | 27.28% | - |
| Return on Capital Employed (ROCE) | 21.62% | - |
| Return on Net Worth (RoNW) | 21.80% | - |
Compared to the industry average P/E of around 25–30x for small industrial automation firms, Patil Automation's post-issue valuation appears fair.
IPO Objects – Use of Funds
The company intends to use IPO proceeds as follows:
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₹62.00 Crores towards setting up a new manufacturing unit.
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₹4.00 Crores to repay borrowings and reduce interest burden.
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Rest for General Corporate Purposes.
The investment into expansion of manufacturing infrastructure will enhance their capacity to serve more clients and deliver larger projects.
IPO Allotment – How to Check
To check the allotment status post finalization on June 19, 2025:
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Select “Patil Automation Limited IPO” from the dropdown
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Enter your PAN / Application Number / DP Client ID
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Click on Submit to check allotment status
Final Verdict – Should You Apply?
Patil Automation Limited is entering the capital markets with a solid financial background, experienced leadership, and strong operational growth. The company is reasonably valued and is expected to deliver around 12.5% listing gains, based on current GMP.
✅ Recommendation: Risk-Tolerant Investors Can Apply for Listing Gains
However, note the high ticket size for retail investors (₹1.44 lakhs), and the fact that it's an SME IPO—which means less liquidity and higher volatility.
Pros:
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Consistent revenue and PAT growth
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Reasonable valuation
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₹15 GMP (as of June 10, 2025)
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Robust order book in automotive sector
Cons:
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SME IPO with low liquidity
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High investment threshold
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Cyclical dependency on auto 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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