Patil Automation IPO Opens With ₹22 GMP Premium

The Indian primary market continues to attract retail and institutional investors with fresh offerings in 2025. One of the most closely tracked listings this month is Patil Automation Limited’s IPO, which opened for bidding on June 16, 2025. This book-building IPO, listed on the NSE SME platform, has already gained market attention with its steady Grey Market Premium (GMP), promising listing gains for early investors.

This article covers complete details of the Patil Automation IPO, including financial performance, GMP trends, technical analysis, peer comparisons, IPO objectives, and expert reviews.

Patil Automation IPO Overview

Patil Automation Limited, a player in the automation and industrial solutions sector, is raising capital through a fresh issue of 58.01 lakh equity shares, aggregating up to ₹69.61 crore. The IPO is entirely a fresh issue, with no offer for sale (OFS), making it a pure fund-raising initiative for business expansion.

• IPO Open Date: 16 June 2025

• IPO Close Date: 18 June 2025

• Listing Date (Tentative): 23 June 2025

• Issue Type: Bookbuilding IPO

• Lot Size: 1,200 shares (₹1,44,000 minimum investment)

• Issue Size: 58,00,800 shares

• Price Band: ₹114 to ₹120 per share

• Face Value: ₹10 per share

• Market Makers Portion: 2,92,800 shares

• Listing Platform: NSE SME

• IPO Registrar: Purva Sharegistry India Private Limited

Grey Market Premium (GMP) and Expected Listing Gains

The IPO’s Grey Market Premium (GMP) is one of the critical indicators of market sentiment before listing. GMP reflects the premium at which shares are being traded unofficially before listing.

As of June 16, 2025, Patil Automation IPO’s GMP stood at ₹22 per share. Considering the upper band of ₹120, the estimated listing price is expected around ₹142 per share, suggesting potential listing gains of approximately 18.33% for early investors.

Historical GMP Data:

The steady rise in GMP indicates improving investor confidence as the IPO opens for subscription.

Company Background: Patil Automation Limited

Patil Automation Limited operates in the niche segment of automation equipment and solutions, catering primarily to industries that require advanced process automation, robotics, and production efficiency enhancement.

The company designs and manufactures automation systems for industries like automotive, electronics, packaging, and pharmaceuticals. With rising adoption of Industry 4.0 and increasing demand for automated solutions across Indian industries, Patil Automation is well-positioned to capitalize on the growth opportunity.

Financial Performance Summary

The company’s financial track record shows stability with improving profitability and revenue growth.

Revenue Growth:

• FY24 Revenue: ₹118.72 crore

• FY25 Revenue: ₹122.04 crore

• Revenue Growth: 2.7% YoY

Profit After Tax (PAT):

• FY24 PAT: ₹7.84 crore

• FY25 PAT: ₹11.70 crore

• PAT Growth: 49.23% YoY

While the revenue growth remains modest, the company has shown significant improvement in profitability over the past year.

Key Technical and Financial Ratios

The company’s PE ratio remains reasonable compared to broader market valuations, suggesting room for growth post-listing if performance remains steady.

Objectives of the IPO

Patil Automation Limited intends to utilize the IPO proceeds for multiple strategic purposes, which include:

• Repayment of existing borrowings to strengthen the balance sheet.

• Funding for capital expenditure and working capital requirements to support business expansion.

• Allocation towards general corporate purposes to enhance operational efficiency.

The diversified utilization of funds indicates the company’s focus on both growth and financial stability.

Peer Comparison

To evaluate the valuation, here is a peer comparison between Patil Automation and some similar companies in the automation and robotics space:

Compared to peers, Patil Automation shows strong RoNW and a favorable PE ratio, suggesting that the company is attractively priced relative to its size and profitability.

Patil Automation IPO Allotment and Refund Schedule

Investors can track allotment status and refund details through Purva Sharegistry India Pvt Ltd, the IPO registrar.

Registrar Contact Information

• Registrar Name: Purva Sharegistry India Private Limited

• Email: busicomp@vsnl.com

• Phone: +91-022-23018261

Expert IPO Review

Market experts have mostly assigned a neutral to moderately positive outlook for this IPO. While the company’s growth is steady, it operates in a competitive industry where customer concentration and project-based revenues may lead to variability.

Key Positives:

• Reasonable valuation compared to industry peers.

• Healthy profitability ratios.

• Low debt post-IPO, improving financial stability.

• Participation in a growing automation sector aligned with India’s industrial expansion.

Risks and Concerns:

• Modest revenue growth may limit upside in the near-term.

• Customer concentration risk in project-based businesses.

• Intense competition from both domestic and international players.

Overall, many analysts suggest that investors looking for SME IPO diversification may consider participation, while aggressive listing gains should be approached cautiously depending on broader market sentiment.

Sector Outlook: Automation Industry in India

India’s automation market is projected to grow at a compound annual growth rate (CAGR) of 15 to 18 percent over the next five years, driven by:

• Rising labor costs pushing industries toward automation.

• Government’s ‘Make in India’ policy encouraging domestic manufacturing.

• Expanding applications across automotive, electronics, healthcare, and logistics sectors.

• Adoption of Industry 4.0 and smart factories.

• Increasing foreign direct investment (FDI) in automation technologies.

Patil Automation is strategically positioned to benefit from these trends as Indian industries accelerate their modernization efforts.

Conclusion

The Patil Automation IPO brings an opportunity for investors to participate in India’s growing industrial automation sector. With a reasonable pricing band of ₹114-₹120 and a consistent GMP premium, the IPO has already generated positive pre-listing sentiment.

Strong financial fundamentals, robust profit growth, and favorable sector outlook make this SME IPO worth considering for long-term investors comfortable with SME risks. However, as always, careful analysis of one’s own financial goals, risk appetite, and portfolio diversification needs is essential before subscribing.

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