Upcoming IPO: Malpani Pipes And Fittings Ltd IPO will open for subscription on Wednesday, January 29, and close on Friday, January 31. Malpani Pipes IPO price band has been fixed in the range of ₹85 to ₹90 per equity share of face value of ₹10 each. Bids can be made for a minimum of 1,600 equity shares and in multiples of 1,600 equity shares thereafter.
Malpani Pipes and Fittings Limited, established in 2017, specializes in the production of high-quality plastic pipes, providing a range of products that include High-Density Polyethylene (HDPE) Pipes, Medium-Density Polyethylene (MDPE) Pipes, and Linear Low-Density Polyethylene (LLDPE) Pipes, all marketed under the brand name “Volstar.”
In addition to manufacturing, the company engages in the trading of granules and PVC pipes, offering a variety of related services. The pipes produced by Malpani are utilized in various applications including irrigation, water supply, sewerage systems, drainage solutions, boreholes, tube wells, and infrastructure projects such as electrical cable and optical fiber installations.
The company’s manufacturing facility, located in Ratlam, Madhya Pradesh, is equipped with state-of-the-art machinery and an in-house testing facility, ensuring high production standards. With 10 production lines, Malpani Pipes has a robust capacity of 11,500 M.T.P.A., enabling it to meet diverse customer needs efficiently.
As per the red herring prospectus (RHP), the company’s listed peers are Aik Pipes and Polymers Ltd (with a P/E of 15.70), and Kriti Industries (India) Ltd (with a P/E of 36.44).
For the period ending 31st March 2024, the company reported total revenue of ₹14,116.23 lakhs, with a PAT of ₹739.72 lakhs and EBITDA of ₹1,329.04 lakhs. Key financial ratios include a strong ROE of 71.52% and ROCE of 21.74%.
Malpani Pipes IPO details
Malpani Pipes IPO consists of a fresh issue of 28,80,000 equity shares, aggregating to ₹25.92 crore. There’s no offer for sale (OFS) component.
The IPO comprises 50% of the net issue for QIB, 35% for retail investors and 15% of the net issue for the NII segment.
The proceeds from the issue will be allocated for several key purposes, including funding capital expenditures for the acquisition of machinery, repaying existing debt, fulfilling working capital needs, and addressing general corporate requirements.
Interactive Financial Services Ltd serves as the book running lead manager for the Malpani Pipes IPO, with Bigshare Services Pvt Ltd acting as the registrar for the offering. Additionally, Mnm Stock Broking Private Limited is designated as the market maker for the Malpani Pipes IPO.
Malpani Pipes IPO GMP today
Malpani Pipes IPO GMP today is +25. This indicates Malpani Pipes share price was trading at a premium of ₹25 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Malpani Pipes share price is indicated at ₹115 apiece, which is 27.78% higher than the IPO price of ₹90.
Grey market activity over the prior six sessions indicates that today’s IPO GMP is positive and anticipates a successful listing. According to experts on investorgain.com, the lowest GMP is ₹20, and the maximum is ₹25.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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