Introduction: Why Patil Automation IPO is Creating Market Buzz
The Patil Automation IPO is set to make its debut on the Indian stock market, and investors are keenly watching this automation solutions company. With the IPO opening on June 16, 2025, and closing on June 18, 2025, this ₹69.61 crore public issue represents an exciting opportunity in the growing automation sector.
But here’s the million-dollar question: Is the Patil Automation IPO worth your investment?
In this comprehensive guide, we’ll dive deep into every aspect of the Patil Automation IPO – from its price band and timeline to financial performance and investment analysis. By the end of this article, you’ll have all the information needed to make an informed investment decision.
What is Patil Automation Limited? Company Overview
Patil Automation Limited stands as a specialized player in India’s welding and line automation solutions sector. Established in 2015, this Pune-based company has rapidly grown to become a significant name in industrial automation.
Key Company Highlights:
- Founded: 2015
- Headquarters: Pune, Maharashtra
- Business Focus: Welding and line automation solutions
- Operational Facilities: 5 facilities across India (2 in Pune)
- Total Operational Space: 460,000 sq. ft.
- Workforce: 244 full-time employees + 256 contract laborers (as of March 31, 2025)
The company serves clients across 10 Indian states including Maharashtra, Haryana, Karnataka, Gujarat, Madhya Pradesh, and Tamil Nadu, showcasing its pan-India presence.
Patil Automation IPO: Key Details and Timeline
IPO Overview Table
Parameter | Details |
---|---|
IPO Size | ₹69.61 crores |
Issue Type | 100% Fresh Issue |
Shares Offered | 58,00,800 shares |
Price Band | ₹114 – ₹120 per share |
Lot Size | 1,200 shares |
Listing Platform | NSE SME |
Complete Patil Automation IPO Timeline
Event | Date |
---|---|
IPO Opens | Monday, June 16, 2025 |
IPO Closes | Wednesday, June 18, 2025 |
Allotment Finalization | Thursday, June 19, 2025 |
Refund Initiation | Friday, June 20, 2025 |
Shares Credit to Demat | Friday, June 20, 2025 |
Tentative Listing Date | Monday, June 23, 2025 |
UPI Mandate Cut-off | 5 PM on June 18, 2025 |
Mark your calendars! The Patil Automation IPO subscription window is quite narrow – just 3 days.
Patil Automation IPO Investment Requirements
Minimum Investment Details
Investor Category | Minimum Lots | Shares | Investment Amount |
---|---|---|---|
Retail Investors | 1 lot | 1,200 shares | ₹1,44,000 (at cut-off price) |
Retail (Minimum) | 1 lot | 1,200 shares | ₹1,36,800 (at lower band) |
HNI (Minimum) | 2 lots | 2,400 shares | ₹2,88,000 |
Important Investment Tips:
- Bid at cut-off price (₹120) to avoid rejection due to oversubscription
- Retail investors can apply for maximum 1 lot only
- HNI investors must apply for minimum 2 lots
Patil Automation IPO Reservation and Allocation
The Patil Automation IPO follows standard SME IPO reservation norms:
Share Allocation Breakdown
Category | Allocation Percentage |
---|---|
QIB (Qualified Institutional Buyers) | Maximum 50% of Net Issue |
Retail Investors | Minimum 35% of Net Issue |
NII/HNI (Non-Institutional Investors) | Minimum 15% of Net Issue |
Market Maker Allocation: 2,92,800 shares reserved for Mansi Share & Stock Broking Private Limited
Patil Automation’s Product Portfolio: What They Do
Patil Automation Limited offers a comprehensive range of automation solutions across multiple industrial segments:
Welding Solutions
- Robotic Welding Systems – Automated precision welding
- Spot Welding Systems – High-speed automotive welding
- Arc Welding Solutions – MIG, TIG, and plasma welding
- Resistance Welding Systems – High-strength industrial joints
Assembly Line Solutions
- Automated Car Body Assembly Lines
- Engine and Transmission Assembly Systems
- Electrical and Electronics Assembly Lines
- Conveyor Systems (Belt, roller, and chain)
Advanced Automation Systems
- Robotic Gantries & Pick-and-Place Systems
- Automated Guided Vehicles (AGVs)
- Vision Inspection Systems with AI-based defect detection
- Leak Testing Machines
- End-of-Line Testing Systems
This diverse portfolio positions Patil Automation as a one-stop solution provider in the automation space.
Financial Performance Analysis: Is Patil Automation IPO Financially Sound?
Revenue and Profitability Trends
Financial Parameter | FY 2025 | FY 2024 | FY 2023 | Growth (FY25 vs FY24) |
---|---|---|---|---|
Total Assets | ₹115.35 Cr | ₹91.77 Cr | ₹94.04 Cr | +25.7% |
Revenue | ₹122.04 Cr | ₹118.72 Cr | ₹82.35 Cr | +3.0% |
Profit After Tax (PAT) | ₹11.70 Cr | ₹7.84 Cr | ₹4.20 Cr | +49.2% |
Net Worth | ₹53.69 Cr | ₹32.10 Cr | ₹24.27 Cr | +67.3% |
Key Takeaways:
- Revenue Growth: Modest 3% growth in FY25
- Profitability Surge: Impressive 49% jump in PAT
- Asset Expansion: 26% increase in total assets
- Strong Balance Sheet: Net worth doubled in two years
Key Performance Indicators (KPIs): The Financial Health Check
Valuation Metrics
Parameter | Pre-IPO | Post-IPO |
---|---|---|
EPS (Earnings Per Share) | ₹7.30 | ₹5.36 |
P/E Ratio | 16.43x | 22.38x |
Market Capitalization | – | ₹261.85 Cr |
Price to Book Value | – | 3.43x |
The post-IPO P/E of 22.38x suggests the issue might be aggressively priced.
Patil Automation IPO: Fund Utilization Plan
The company plans to utilize the ₹69.61 crore raised through the IPO for strategic growth initiatives:
Detailed Fund Allocation
S.No. | Purpose | Amount (₹ Crores) |
---|---|---|
1 | New Manufacturing Facility Setup | ₹62.01 |
2 | Debt Repayment | ₹4.00 |
3 | General Corporate Purposes | Remaining Amount |
Key Focus: 89% of funds dedicated to capacity expansion, indicating strong growth ambitions.
Competitive Strengths: Why Patil Automation Stands Out
Core Competitive Advantages
- Design and Development Capabilities – In-house R&D expertise and customized automation solutions
- Integrated Manufacturing Setup – 460,000 sq. ft. operational space with in-house testing capabilities
- Customer Recognition and Loyalty – Over 80% revenue from repeat OEM customers
- Experienced Leadership – Deep domain knowledge and industry experience
Patil Automation IPO: Key Intermediaries and Contact Details
Important Service Providers
Role | Company | Contact |
---|---|---|
Book Running Lead Manager | Seren Capital Private Limited | – |
Registrar | Purva Sharegistry India Pvt Ltd | +91-022-23018261 |
Market Maker | Mansi Share & Stock Broking Private Limited | – |
Company Contact Information
- Address: Gat no. 154, behind G.E. Company, Village Sudumbre, Tehsil Maval, Pune, Maharashtra
- Phone: +91-9168338383
- Email: info@patilautomation.com
- Website: https://patilautomation.com/
Expert Review: Should You Invest in Patil Automation IPO?
Investment Recommendation: May Apply
Positive Points:
- Emerging leader in automation solutions serving automotive and industrial sectors
- Steady growth in revenue and profitability
- 80%+ revenue comes from repeat OEM customers
- Medium to long-term investment potential for well-informed investors
Risk Factors to Consider:
- High Valuation: Post-IPO P/E of 22.38x seems stretched
- SME Listing: Higher volatility compared to main board
- Sector Dependence: Heavy reliance on automotive sector
- Limited Track Record: Relatively young company (established 2015)
How to Apply for Patil Automation IPO
Step-by-Step Application Process
1. Open a Demat Account
2. Check Your Eligibility
- Ensure sufficient funds in your account
- Verify UPI ID for ASBA applications
3. Place Your Bid
- Login to your broker’s platform
- Select Patil Automation IPO
- Choose lot size and bid price
- Submit application before 5 PM on June 18, 2025
Pro Tips for IPO Application:
- Bid at cut-off price (₹120) to maximize allotment chances
- Apply on the first day to avoid last-minute technical issues
- Keep backup payment methods ready
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Frequently Asked Questions (FAQs)
Conclusion: The Final Verdict on Patil Automation IPO
The Patil Automation IPO presents a mixed investment proposition. On the positive side, the company operates in the growing automation sector, has shown impressive 49% growth in profitability, and maintains strong relationships with OEM customers.
However, the aggressive valuation with a post-IPO P/E of 22.38x and modest revenue growth of just 3% raises concerns about the pricing. The company’s strong fundamentals, including an excellent ROE of 27.28% and ROCE of 21.62%, indicate operational efficiency.
CAUTIOUS OPTIMISM – The Patil Automation IPO may be suitable for:
Suitable For:
- Long-term investors who believe in India’s automation story
- Risk-tolerant investors comfortable with SME volatility
- Sector-focused investors betting on industrial automation growth
Avoid if you’re:
- Looking for quick listing gains
- Uncomfortable with high valuations
- Seeking stable, dividend-paying stocks
Remember, IPO investments carry inherent risks. Always consult with your financial advisor and invest only what you can afford to lose.