Patil Automation Ltd IPO

The IPO opens on 16 Jun 2025 & closes on 18 Jun 2025.

Patil Automation Limited was originally incorporated as 'Patil Automation Private Limited', a private Company, dated July 22, 2015 issued by the Registrar of Companies, Maharashtra. Thereafter, Company was converted from Private to Public Limited, and the name of the Company was changed from 'Patil Automation Private Limited' to 'Patil Automation Limited' vide fresh Certificate of Incorporation dated October 21, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company established a manufacturing unit of automation products in 2015 and is engaged in manufacturing and supply of welding Fixture, Inspection Jigs & gauges, Conveyor, Assembly Line. These products and items support the automation systems and provide integrated solutions to the operational requirements of clients. The automation solutions focus on optimizing manufacturing processes and reducing manual intervention at the clients' facilities. The product line include assembly fixtures, welding fixtures, robotic cells, testing and inspection systems and auxiliary items. The Company operate an in-house manufacturing facility comprising of two units Unit-I and Unit II, having combined built up area of around 109,000 sq. ft., which support the production of precision automation systems. These units are equipped with requisite machineries such as CNC bending machines, cutting machines (plasma, oxyfuel and laser), milling machines, jig boring, surface grinding machines, among others and various testing equipment to support production of automation systems. Company has launched the initial public offer by issuing 58,00,800 equity shares having the face value of Rs 10 each by raising funds aggregating to Rs 69.6 Crore in June, 2025.

Patil Automation Ltd IPO will close on 18 Jun 2025.

<ul><li>Design and development capabilities.</li><li>In-house manufacturing facility with integrated testing capabilities.</li><li>Recognition from customers.</li><li>Experienced Promoters with strong management team having domain knowledge.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Manoj Pandurang Patil</td> <td>12148500</td> <td>75.83</td> <td>12148500</td> <td>55.67</td> </tr> <tr> <td>2</td> <td>Aarti Manoj Patil</td> <td>2821500</td> <td>17.61</td> <td>2821500</td> <td>12.93</td> </tr> <tr> <td>3</td> <td>Prafulla Panduranga Patil</td> <td>30000</td> <td>0.19</td> <td>30000</td> <td>0.14</td> </tr> <tr> <td>4</td> <td>Piyusha Manoj Patil</td> <td>30000</td> <td>0.19</td> <td>30000</td> <td>0.14</td> </tr> <tr> <td>5</td> <td>Vijay Pandurang Patil</td> <td>30000</td> <td>0.19</td> <td>30000</td> <td>0.14</td> </tr> <tr> <td>6</td> <td>Sarita Prafulla Patil</td> <td>30000</td> <td>0.19</td> <td>30000</td> <td>0.14</td> </tr> <tr> <td>7</td> <td>Sushila Pandurang Patil</td> <td>30000</td> <td>0.19</td> <td>30000</td> <td>0.14</td> </tr> </tbody> </table>

<ul><li>The company depends significantly on the performance of automotive sector for sale of the automation solutions. Any adverse change in performance of automotive sector could adversely affect its business and profitability.</li><li>Substantial portion of the revenue has been dependent upon few customers with which the company does not have any firm commitments. The loss of any one or more of the major customers would have a material adverse effect on the business, cash flows, results of operations and financial conditions.</li><li>The company derived a significant portion of its revenue from the sale of the key automation solution i.e. Welding Lines. Any decline in the sales of the key offering could have an adverse effect on the business, results of operations and financial condition.</li><li>The Company does not have long-term agreements with suppliers for its input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on its business and results of operations.</li><li>There are outstanding legal proceedings involving the Company, our Directors and the Promoters. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on the business, prospects, results of operations and financial condition.</li><li>The company subject to strict quality requirements and any failures to comply with quality standards may lead to cancellation of existing and future orders, product recalls, product liability, warranty claims and other disputes and claims.</li><li>The company does not own the existing manufacturing facility & registered office and design and admin office from which we carry out the company business activities. In case of non-renewal of lease agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.</li><li>Setting up of a new manufacturing facility requires substantial capital outlay before the realize any benefits or returns on investments, and is subject to the risk of unanticipated delays.</li><li>The company Statutory Auditor have included certain qualifications in the Annexure to the Auditor's Report for financial statements pertaining to F.Y. 2022-23 and 2023-24.</li><li>Any disruptions or shutdown of our manufacturing operations at the existing facility could have an adverse effect on its business, financial condition and results of operations.</li><li>The company requires certain approvals, licenses, registrations and permits to operate its business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate the business may adversely affect the operations and financial conditions.</li><li>There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on its business, financial condition, results of operation and cash flows.</li><li>The company intend to utilize a portion of the Net Proceeds for funding the capital expenditure requirements. The company has shortlisted vendors and obtained quotations from them, however, the company is yet to place orders or enter into definitive agreements with the vendors in relation to such capital expenditure requirements.</li><li>The company failures to identify and understand evolving industry trends and preferences and to develop new products to meet the customers' demands may materially adversely affect the business.</li><li>Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting the operations in these regions could have a significant impact on its revenue and results of operations.</li><li>Trade receivables form a major part of the current assets and net worth. Failure to manage its trade receivables could have an adverse effect on the net sales, profitability, cash flow and liquidity.</li><li>Under-utilization of the manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the business, future prospects and future financial performance.</li><li>Its automation solution is customer specific and a solution designed cannot be used for multiple customers.</li><li>Any negative publicity regarding our Company, brand or products, whether substantiated or not, including concerns about product quality, misbranding or customer service issues, could adversely impact our reputation, consumer trust and market position, which may materially affect our business, financial condition and results of operations.</li><li>The company is dependent upon the experience and skill of its Promoters, Key Managerial Personnel and Senior Management Personnel for conducting its business and undertaking the compay day to day operations. The loss of or its inability to retain, such persons could materially and adversely affect its business performance. In addition, excess rate of attrition amongst the personnel engaged by the Company may have an adverse impact on its business operations.</li><li>Its inability to effectively manage risks associated with international sales could significantly impact the overall profitability. These risks include potential losses in foreign markets, disruptions to operations and assets in those countries, and challenges arising from international trade complexities.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future.</li><li>If the company is not able to successfully manage its growth, our business and results of operations may be adversely affected.</li><li>The Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Draft Red Herring Prospectus. Thus, its may be subject to claims alleging breach of third party intellectual property rights.</li><li>Its operations are subject to high working capital requirements. The company inability to maintain an optimal level of working capital required for the business may impact its operations adversely.</li><li>Changes in technology may render the current technologies obsolete or require it to make substantial investments.</li><li>Adverse publicity regarding the products could negatively impact it.</li><li>The Promoters or directors do not possess experience in managing publicly listed companies.</li><li>The average cost of acquisition of Equity Shares by the Promoters could be lower than the Issue price.</li><li>The company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the employees or those of the suppliers.</li><li>The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.</li><li>The Promoters (including Promoter Group) and Directors hold almost 100% of the Equity Shares of the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.</li><li>The company has incurred significant indebtedness which exposes it to various risks which may have an adverse-effect on its business and results of operations.</li><li>Loans availed by the Company has been secured on personal guarantees of the Promoters. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by the Promoters.</li><li>Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.</li><li>Its could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect the financial condition, results of operations and reputation.</li><li>The Company engages contract labour at its Sudumbre, Tal- Maval Facility and we may be liable for or exposed to litigations, sanctions, penalties or losses arising from accidents or damages caused by the workers or contractors.</li><li>The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.</li><li>It's subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.</li><li>The Objects of the Issue for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.</li><li>Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>The Group Companies have incurred losses in past and any operating losses in the future could adversely affect the results of operations and financial conditions of the group company.</li><li>Information relating to the production capacities and the historical capacity utilization of the production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.</li><li>The ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.</li><li>A portion of the Net Proceeds will be utilized for repayment or prepayment of certain loan facilities availed by the Company.</li><li>Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.</li><li>There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.</li><li>The Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.</li><li>Certain sections of this Draft Red Herring Prospectus disclose information from industry report commissioned and paid for by it and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.</li><li>The company operates in a competitive industry and increased competition may lead to a reduction in its revenues, reduced profit margins or a loss of market share.</li><li>Its inability to effectively manage risks associated with international sales could significantly impact its overall profitability. These risks include potential losses in foreign markets, disruptions to operations and assets in those countries, and challenges arising from international trade complexities.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future.</li><li>If the company is not able to successfully manage its growth, the company business and results of operations may be adversely affected.</li><li>The Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Red Herring Prospectus. Thus, its may be subject to claims alleging breach of third party intellectual property rights.</li><li>Its operations are subject to high working capital requirements. The company inability to maintain an optimal level of working capital required for its business may impact the company operations adversely.</li><li>Changes in technology may render its current technologies obsolete or requires it to make substantial investments.</li><li>Adverse publicity regarding its products could negatively impact the company.</li><li>Its Promoters or directors do not possess experience in managing publicly listed companies.</li><li>The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue price.</li><li>Its industry is labour intensive and the company's business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.</li><li>Its insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.</li><li>The Promoters (including Promoter Group) and Directors hold almost 100% of the Equity Shares of the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.</li><li>The company has incurred significant indebtedness which exposes it to various risks which may have an adverse-effect on its business and results of operations.</li><li>Loans availed by the Company has been secured on personal guarantees of its Promoters. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its Promoters.</li><li>Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.</li><li>The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.</li><li>The Company engages contract labour at its Sudumbre, Tal- Maval Facility and its may be liable for or exposed to litigations, sanctions, penalties or losses arising from accidents or damages caused by its workers or contractors.</li><li>The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.</li><li>The company is subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.</li><li>The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.</li><li>Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>Its Group Companies have incurred losses in past and any operating losses in the future could adversely affect the results of operations and financial conditions of its group company.</li><li>Information relating to its production capacities and the historical capacity utilization of its production facilities included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.</li><li>Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.</li><li>A portion of the Net Proceeds will be utilized for repayment or prepayment of certain loan facilities availed by the Company.</li><li>Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is completed.</li><li>Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.</li><li>Certain sections of this Red Herring Prospectus disclose information from industry report commissioned and paid for by it and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.</li></ul>

The Issue type of Patil Automation Ltd is Book Building - SME.

The minimum application for shares of Patil Automation Ltd is 1200.

The total shares issue of Patil Automation Ltd is 5800800.

Initial public offer of 58,00,800 equity shares of face value of Rs. 10/- each (the "Equity Shares") of Patil Automation Limited ("the Company" or "PAL" or "the Issuer") at an issue price of Rs. 120/- per equity share for cash, aggregating up to Rs. 69.61 crores ("Public Issue") out of which 2,92,800 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 120/- per equity share for cash, aggregating Rs. 3.51 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 55,08,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 120/- per equity share for cash, aggregating upto Rs. 66.10 crores is herein after referred to as the "Net Issue". the public issue and net issue will constitute 26.58 % and 25.24% respectively of the post-issue paid-up equity share capital of the company.