Patil Automation IPO

About Patil Automation IPO

Patil Automation Limited IPO is an IPO of ₹69.61 crores. It consists of a fresh issue of up to 58,00,000 equity shares. The shares will be allotted on June 19, 2025. The credit of shares to the demat account will take place on June 20, 2025 and the initiation of refunds will take place on June 20, 2025.

Objective of Patil Automation IPO

• Funding of capital expenditure towards the setup of a new manufacturing facility.
• Repayment of a portion of certain borrowings availed by the company.
• General corporate purposes.

Industry Outlook

The Indian industrial automation market experienced steady growth from 2018 to 2023, driven by the increasing adoption of advanced technologies across manufacturing sectors. Starting at approximately USD 650 crores in 2018, the market grew to USD 1,300 crores in 2023, reflecting a CAGR of around 15%. The Indian industrial automation solutions industry is expected to grow from USD 1,512 crores in 2024 to USD 2,943 crores by 2029, at a CAGR of 14.2% during the forecast period. Capex in the industrial sector, measured in terms of Gross Fixed Capital Formation (GFCF), has recorded a CAGR of 11%, increasing from ₹7,48,600 crores to ₹12,85,500 crores.

Company Information

Patil Automation Limited is an automation solutions provider serving industrial clients, primarily in the automotive sector. They are engaged in designing, manufacturing, testing, and installing customised automation systems such as welding lines (spot welding, MIG, and TIG), assembly lines, material handling machinery, and special-purpose machinery, tailored to meet the specific requirements of their clients' production facilities. Their client base primarily comprises Automotive Original Equipment Manufacturers (OEMs), Tier I suppliers to Automotive OEMs, and manufacturers of automotive components and sub-components, who seek to establish, expand, upgrade, modify, or repair their production setup. Their automation solutions focus on optimising manufacturing processes and reducing manual intervention at their clients' facilities. Their product offerings also include assembly fixtures, welding fixtures, robotic cells, testing and inspection systems, and auxiliary items. These products and items support the automation systems and provide integrated solutions to the operational requirements of clients.

Risks of Patil Automation IPO

• They depend significantly on the performance of the automotive sector for the sale of their automation solutions. Any adverse change in the performance of the automotive sector could adversely affect their business and profitability.

Any reduced demand in the automotive segment, deterioration in the automotive market, uncertainty, or changes in regulations, customs, taxes, or other restrictions affecting the automotive market, particularly in India, could adversely impact their business, operations, and financial condition.

• They do not have long-term agreements with suppliers for their input materials, and a significant increase in the cost of, or a shortfall in the availability of, or deterioration in the quality of such input materials could have an adverse effect on their business and results of operations.

If they are unable to pass on cost increases to their customers or are unsuccessful in managing the effects of raw material price fluctuations, their business, financial condition, results of operations, and cash flows could be materially and adversely affected.

• Their business operations are primarily concentrated in certain geographical regions, and any adverse developments affecting their operations in these regions could have a significant impact on their revenue and results of operations.

Due to the geographical concentration of their manufacturing operations in the Pune district, their operations are susceptible to local, regional, and environmental factors, such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of their manufacturing capabilities, significant delays in the transport of their products and raw materials, loss of key managerial personnel or senior management personnel, and/or otherwise adversely affect their business, financial condition, and results of operations.

Anchor Investor Information

The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Seren Capital Private Limited

Registrar for the IPO is Purva Shareregistry (India) Private Limited

Business Model

The company earns its revenue through the following sources:

• Designing, manufacturing, testing, and installation of customised automation systems such as welding lines (spot welding, MIG, and TIG), assembly lines, material handling machinery, and special-purpose machinery, tailored to meet the specific requirements of their clients' production facilities.

Company Growth Trajectory

During the six-month period that ended 30 September 2024, the net revenue from operations of the company was ₹58.354 crores. During the same period, the other income of the company stood at ₹2.133 crores.

Company Market Position

In Fiscal 2024, they supplied products to over 45 customers, including Automotive Original Equipment Manufacturers (OEMs), Tier I suppliers to Automotive OEMs, electric vehicle manufacturers, and manufacturers of automotive components and sub components. During Fiscal 2024, they sold products in India to 10 states, including Maharashtra, Haryana, Karnataka, Gujarat, Madhya Pradesh, and Tamil Nadu. They have also received repeat orders from several customers and have been recognised by several customers through awards such as the Best Supplier Award, Exceptional Performance Award, Best Tech-Savvy Partner Award, and Appreciation Awards.

How To Check Allotment Status of Patil Automation Limited IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Purva Shareregistry (India) Private Limited.

To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Patil Automation Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Purva Shareregistry (India) Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Patil Automation Limited from the drop-down
• Enter your PAN number or Application number Click on “Submit” to know the allotment status

How to Apply for Patil Automation IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI