Introduction:
Patil Automation SME IPO is opening for subscription from June 16 to June 18, 2025, aiming to raise ₹69.61 crore entirely through a fresh issue. The company, a provider of customized automation solutions for the automotive and industrial sectors, is offering shares in a price band of ₹114–₹120 per share with a minimum lot size of 1,200 shares (₹2.88 lakh per application). The IPO will be listed on the NSE SME platform, with a tentative listing date of June 23, 2025.
This blog dives into everything investors need to know—from Patil Automation’s business overview and financial performance to GMP trends, peer comparison, objectives of the issue, and our view on valuation and investment outlook. If you’re tracking SME IPOs in 2025, this one deserves your close attention.
Patil Automation SME IPO Details
The Patil Automation SME IPO is a book-built issue worth ₹69.61 crore, entirely comprising a fresh issue of equity shares. The IPO is scheduled to open on June 16, 2025, and will close on June 18, 2025. The issue is priced in the range of ₹114 to ₹120 per share, and investors can bid for a minimum lot size of 1,200 shares, amounting to ₹2.88 lakh per lot at the upper band.
The company aims to list its shares on the NSE SME platform, with the tentative listing date set for June 23, 2025.
| IPO Particulars | Details |
|---|---|
| IPO Open Date | June 16, 2025 |
| IPO Close Date | June 18, 2025 |
| Listing Date (Tentative) | June 23, 2025 |
| IPO Type | Book Build Issue |
| Face Value | ₹10 per equity share |
| Price Band | ₹114 – ₹120 per share |
| Market Lot | 1,200 shares |
| Minimum Investment | ₹2,88,000 (for 1 lot) |
| Retail Quota | Not less than 35% of Net Issue |
| Fresh Issue Size | ₹69.61 crore |
| Offer for Sale (OFS) | Nil |
| Listing At | NSE SME |
| Promoter Holding (Pre-IPO) | 94.38% |
About the Company – Patil Automation
Incorporated in 2015, Patil Automation is an industrial automation solutions provider primarily catering to the automotive sector. The company specializes in the design, manufacturing, testing, and installation of customized automation systems, including welding lines (spot, MIG, and TIG), assembly lines, material handling systems, and special-purpose machines tailored to client-specific production needs. These automation solutions are designed to enhance operational efficiency and reduce human intervention across manufacturing setups.
The client base includes Automotive Original Equipment Manufacturers (OEMs), Tier I automotive suppliers, and component manufacturers, all seeking to optimize or expand their production facilities. Patil Automation also offers a wide array of support systems such as robotic cells, inspection systems, leak testing machines, gauges, and assembly fixtures, along with after-sales services like repairs, modifications, and manpower support.
As per the D&B Report, the industrial automation sector—particularly in automotive—is witnessing rapid growth, thanks to its ability to improve production speed, consistency, and precision while reducing costs. This trend has positioned companies like Patil Automation at the forefront of India’s automation transformation.
Recognition & Client Outreach
By FY25, Patil Automation had served over 52 customers across 10 Indian states, including Maharashtra, Gujarat, Tamil Nadu, and Karnataka. The company has built lasting client relationships, evidenced by repeat orders and industry recognitions such as the Best Supplier Award, Exceptional Performance Award, and Tech-Savvy Partner Awards.
Strong In-House Design Capabilities
Patil Automation has a robust in-house design and development team of 45 professionals using advanced tools such as CATIA V5, AutoCAD, Solid Edge, Delmia, E-PLAN, and Process Simulate. The team crafts precise, customer-specific automation solutions that seamlessly transition from design to manufacturing across their two production units in MIDC Chakan, Pune (spread over 109,000 sq. ft.). These facilities are certified under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards.
Key Strategic Growth Drivers
1. Expanding Manufacturing Capacity:
The company plans to use the IPO proceeds to set up a new state-of-the-art manufacturing facility, aimed at meeting the growing demand for automation in sectors beyond automotive.
2. Focus on Electric Vehicle (EV) Automation:
With the EV market booming, Patil Automation is positioning itself as a key automation partner, offering solutions tailored to battery assembly, motor testing, and electronics handling—areas that demand higher precision and flexibility.
3. Diversification into Non-Automotive Sectors:
Apart from automotive, the company sees strong opportunities in sectors like electronics, pharma, and consumer goods, where industrial robots and automated systems are being rapidly adopted.
Product-Wise Revenue Bifurcation
Patil Automation’s continued focus on innovation, strong client retention, and industry-aligned product roadmap make it a compelling SME listing to watch in 2025.
Financial Performance of Patil Automation
Patil Automation has shown a consistent improvement in both scale and profitability over the past three fiscal years, reflecting its strong business fundamentals and operational efficiency. The company has successfully expanded its customer base, improved margins, and increased returns, which collectively paint a promising picture for potential investors looking at the Patil Automation SME IPO.
Key Financial Highlights (₹ in Lakhs)
| Financial Metrics | FY 2024-25 | FY 2023-24 | FY 2022-23 |
|---|---|---|---|
| Revenue from Operations | 11,805.13 | 11,527.96 | 7,780.75 |
| EBITDA | 1,521.68 | 1,244.37 | 458.65 |
| EBITDA Margin (%) | 12.89% | 10.79% | 5.89% |
| Profit After Tax (PAT) | 1,170.21 | 783.72 | 419.84 |
| PAT Margin (%) | 9.91% | 6.80% | 5.40% |
| Return on Equity (RoE) (%) | 27.28% | 27.81% | 18.94% |
| Return on Capital Employed (RoCE) (%) | 21.62% | 24.52% | 12.60% |
Growth Highlights:
- Revenue Growth: Patil Automation’s operating revenue rose from ₹7,780.75 lakh in FY23 to ₹11,805.13 lakh in FY25, marking a CAGR of over 22% in just two years.
- Profitability Surge: Net profit nearly tripled over the same period—from ₹419.84 lakh in FY23 to ₹1,170.21 lakh in FY25—demonstrating strong cost control and operating leverage.
- Margin Expansion: EBITDA margin improved significantly from 5.89% in FY23 to 12.89% in FY25, while PAT margin grew from 5.4% to 9.91%, highlighting better capacity utilization and pricing power.
- Efficient Capital Use: The company maintains a strong RoE of 27.28% and RoCE of 21.62% in FY25, showcasing efficient deployment of capital and a solid return framework, particularly impressive in the SME space.
These financial metrics indicate a scalable, efficient, and high-margin business model that could potentially deliver long-term shareholder value.
Patil Automation SME IPO Objectives
The proceeds from the ₹69.61 crore Patil Automation SME IPO will be strategically utilized to strengthen the company’s operational capabilities and financial health. The IPO consists entirely of a fresh issue, meaning all funds raised will directly benefit the company and support its growth plans.
Breakdown of Fund Utilization:
| Objective | Amount (₹ Crores) |
|---|---|
| Setting up a new manufacturing facility | 62.01 |
| Repayment of certain borrowings | 4.00 |
| General corporate purposes | Balance |
1. Expansion of Manufacturing Capacity (₹62.01 Cr)
A major portion of the IPO proceeds will be allocated towards establishing a new manufacturing facility. This facility will enhance production capacity, enable the company to cater to a growing client base, and support future product diversification—especially in the non-automotive and electric vehicle (EV) segments. Given the rising demand for industrial automation solutions in India, this move is expected to boost operational efficiency and scalability.
2. Debt Reduction (₹4.00 Cr)
Patil Automation plans to use part of the funds to repay certain outstanding loans. Reducing debt will help improve the company’s balance sheet strength, lower interest outgo, and increase profitability, thereby enhancing investor confidence.
3. General Corporate Purposes
The remaining amount will be used for day-to-day business requirements such as strengthening working capital, marketing, administrative costs, or potential investments in R&D and digital capabilities.
This clear allocation of IPO proceeds reflects Patil Automation’s strategic focus on long-term expansion, de-leveraging, and operational strengthening—all key parameters that matter to discerning investors.
Valuation and Peer Comparison – Patil Automation SME IPO
Patil Automation appears to be entering the SME capital markets with a combination of strong financials and focused sectoral growth. Based on its FY 2025 earnings and IPO pricing, here’s how the company stacks up in terms of valuation metrics.
Patil Automation SME IPO Valuation Metrics:
| Particulars | Details |
|---|---|
| IPO Price Band | ₹114 – ₹120 per share |
| Face Value | ₹10 per share |
| EPS (FY 2025) | ₹7.62 |
| P/E Ratio (at upper band ₹120) | ~15.75x |
| RoNW (FY 2025) | 21.8% |
| Net Asset Value (NAV) per share | ₹34.91 |
With a Price-to-Earnings (P/E) ratio of 15.75x at the upper end of the price band, the valuation seems reasonable, especially given the company’s double-digit EBITDA and PAT margins, strong RoE, and visible growth pipeline.
Peer Comparison:
As per the RHP, there are very few directly comparable listed companies in the same niche segment of custom automation. However, the company has compared itself with Affordable Robotic & Automation Ltd, a listed player in the automation space.
| Company | EPS (₹) | RoNW (%) | P/E (x) |
|---|---|---|---|
| Patil Automation Ltd (FY 2025) | 7.62 | 21.8% | 15.75x |
| Affordable Robotic & Automation Ltd | -10.36 | -11.56% | Not Meaningful |
Key Takeaway:
While Affordable Robotic is facing losses and negative return metrics, Patil Automation is comfortably profitable, has expanding margins, and offers better capital efficiency. Its RoE of 27.28% and EBITDA margin of nearly 13% are standout metrics, especially for a growing SME in the automation sector.
Verdict:
At the proposed valuation, Patil Automation seems fairly priced considering its healthy balance sheet, high return ratios, consistent revenue growth, and robust order book. The IPO may appeal to investors looking for exposure to India’s booming industrial automation and EV manufacturing themes.
Patil Automation SME IPO GMP & Listing Expectations
Latest GMP (Grey Market Premium):
As of June 11, 2025, the Patil Automation SME IPO is commanding a GMP of ₹23 in the grey market.
| GMP Date | IPO Price (Upper Band) | GMP | Estimated Listing Price | Estimated Profit per Lot |
|---|---|---|---|---|
| 11-Jun-2025 | ₹120 | ₹23 | ₹143 | ₹27,600 (per 1200 shares) |
💡 Note: The GMP is dynamic and unofficial. It fluctuates based on market sentiment and subscription trends. It should not be the sole basis for investment decisions.
What Does the GMP Indicate?
A ₹23 GMP suggests a premium of ~19% over the upper end of the IPO price. This points to positive market sentiment around the IPO, potentially driven by:
- Strong financials and margins
- Rapidly growing automation sector
- High return ratios (RoE, RoCE)
- Demand from HNI and retail categories
Listing Gain Expectations:
Based on current GMP trends and assuming consistent demand through the IPO period, listing gains of ₹20–₹30 per share (16%–25%) could be expected. However, actual listing performance may vary depending on:
- Overall market conditions around June 23 (listing date)
- Final subscription figures, especially HNI & QIB categories
- Broader sentiment in the SME and automation sectors
Short-Term vs Long-Term View – Patil Automation SME IPO
Short-Term View (Listing Gains & Initial Performance)
Prospects:
- Strong GMP: As of June 11, 2025, the GMP of ₹23 indicates a ~19% premium, suggesting healthy listing gains.
- Sector Tailwinds: Automation is in focus post-PLI schemes and India’s manufacturing revival.
- Financial Momentum: FY25 PAT growth of 49% YoY and rising EBITDA margins bode well for early interest.
- Reasonable Pricing: At a P/E of ~15.74x, it is attractively priced compared to listed peers in a hot sector.
Risks:
- High Lot Size: ₹2.88 lakh minimum investment may restrict broad retail participation.
- SME Volatility: SME stocks often witness wild listing day swings and low liquidity post-listing.
- Limited Anchor/Institutional Buzz: Lack of QIB anchor allotment may result in weaker price support after listing.
Short-Term Verdict:
Likely to attract strong interest for listing gains, especially if market sentiment stays positive. Ideal for momentum-based traders or HNI applicants eyeing premium-based exit.
Long-Term View (Growth Potential & Fundamentals)
Growth Drivers:
- Sector Growth: India’s industrial automation market projected to grow at 14.2% CAGR till 2029 (D&B Report).
- EV & Non-Auto Push: Expansion into electric vehicles, electronics, and pharmaceuticals to diversify revenue.
- Strong RoE & Margins: FY25 RoE of 27.28% and PAT margin of 9.91% show solid operational health.
- In-House R&D Strength: Advanced design capabilities using software like CATIA, AutoCAD, E-PLAN signal innovation depth.
- New Capex Investment: ₹62 crore towards new facility to expand capacity and scale business.
Challenges:
- Customer Concentration: Heavy reliance on OEMs and Tier-1 auto suppliers; cyclical demand may impact earnings.
- Competitive Landscape: Larger players like ABB, Siemens, and other global OEM suppliers operate in the same segment.
- Post-Listing Liquidity Risks: SME stocks sometimes lack sustained investor interest after debut hype fades.
Long-Term Verdict:
A fundamentally strong player in an emerging sector. Suitable for patient investors with high-risk tolerance looking to ride India’s automation and EV adoption story over the next 3–5 years.
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FAQs
👉 What is the date of Patil Automation SME IPO?
The IPO opens on June 16, 2025 and closes on June 18, 2025.
👉 What is the price band of Patil Automation SME IPO?
The price band is ₹114 to ₹120 per share.
👉 What is the lot size for Patil Automation SME IPO?
Investors need to apply for a minimum of 1200 shares, amounting to ₹2,88,000.
👉 On which exchange will Patil Automation list?
The IPO will be listed on the NSE SME platform, tentatively on June 23, 2025.
👉 What is the GMP of Patil Automation SME IPO?
As of June 11, 2025, the GMP is ₹23, suggesting a ~19% premium.
👉 How much is being raised through this IPO?
The company plans to raise ₹69.61 crore via a fresh issue only.
👉 What are the objectives of Patil Automation IPO?
The proceeds will fund a new manufacturing facility, repay borrowings, and meet general corporate purposes.
👉 Is Patil Automation IPO good for long-term?
With strong fundamentals, RoE of 27.28%, and EV expansion focus, it has long-term potential in the automation segment.
👉 Who are the competitors of Patil Automation?
Peers include companies like Affordable Robotic & Automation, though Patil has superior financial performance.
👉 What is the financial performance of Patil Automation?
In FY25, revenue was ₹118 crore and PAT was ₹11.7 crore, with improving margins and strong RoE.
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