Precision Pipes and Profiles Company settled at Rs 138.65 on BSE, a discount of 7.57% over the IPO price of Rs 150.

The stock had debuted at Rs 160, a premium of 6.66% over the IPO price. The stock hit a high of Rs 175 and a low of Rs 132. On BSE, 62.46 lakh shares were traded in the scrip.

At the current price of Rs 138.65, the PE multiple works out to 13.99, based on the year ended March 2007 EPS of Rs 9.91.

The company had fixed the IPO price at the top end of the Rs 140-Rs 150 price band. The Precision Pipes and Profiles Company IPO had ended on 20 December 2007 with 10.35 times subscription. The qualified institutional buyers (QIBs) category was subscribed 5.03 times, the non institutional investors category 8.58 times and the retail investors category 18.70 times.

Precision Pipes and Profiles Company (PPAP) is engaged in the business of manufacturing automobile sealing systems and exterior products. PPAP has five manufacturing facilities, which are located in New Delhi and Noida, Uttar Pradesh.

The company is currently in the process of increasing its production capabilities from 4.75 million kilogram (kg) to 9.14 million kg by 2008-09. It is also setting up a new plant for manufacturing of auto components and also a new plant for electrical outlet system products for Power and Data Corporation, Australia.

The total investment is expected to be around Rs 106 crore, out of which Rs 75 crore will be from the IPO proceeds, Rs 25 crore through term loans and the remaining Rs 6 crore from internal accruals.

Precision Pipes and Profiles Company reported a net profit of Rs 13.88 crore on sales of Rs 109.29 in the year ended March 2007.

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