Patil Automation set for NSE SME debut today. GMP hints at modest premium

Synopsis

Patil Automation, a Pune-based automation and robotics solutions provider, is set to debut on the NSE SME platform following a highly successful IPO that was oversubscribed by 101.42 times. The IPO, consisting of a fresh issue of 58 lakh shares, saw strong interest from various investor categories, with proceeds earmarked for a new manufacturing facility and debt repayment.

Pune-based Patil Automation is set to list on the NSE SME platform today after seeing overwhelming investor demand during its Rs 69.61 crore IPO. The issue was subscribed an impressive 101.42 times overall, driven by robust interest from non-institutional investors (NII) who bid 258 times their quota. Retail investors subscribed 44.77 times, while the Qualified Institutional Buyer (QIB) category was booked 82.92 times.

Ahead of the listing, the grey market premium (GMP) for Patil Automation shares is hovering around ₹31, indicating a listing price of Rs 151 per share—nearly 26% higher than the issue price of Rs 120. While GMPs are unofficial and not always accurate indicators, the premium reflects positive sentiment among investors.

The IPO consisted entirely of a fresh issue of 58 lakh shares. Anchor investors had pumped in Rs 19.81 crore ahead of the IPO opening, with 16.51 lakh shares allocated at the upper price band. The funds raised will be used primarily to set up a new manufacturing facility and repay a portion of the company’s borrowings.

Founded in 2015, Patil Automation provides automation and robotics solutions across industries including automotive, electronics, and general engineering.

Its product range includes robotic welding systems, automated assembly lines, conveyor systems, and AI-based vision inspection systems. The company operates five facilities and has over 500 personnel including contractual workers.

For FY25, the company posted a net profit of Rs 11.70 crore on a revenue of Rs 122 crore, with PAT margins at 9.91% and ROE at 27.28%. The IPO valued the firm at a post-issue P/E of around 22.4x.

Given the strong subscription figures and current GMP, the listing is likely to be positive, though post-listing performance may depend on broader market trends and investor appetite for SME stocks.

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