Malpani Pipes and Fittings Ltd. has initiated its Initial Public Offering (IPO) to raise ₹25.92 crore. Below is a detailed analysis of the IPO:
1. Company Overview
- Established: 2017
- Specialization: Manufacturing high-grade plastic pipes
- Manufacturing Facility: Located in Ratlam, Madhya Pradesh, equipped with state-of-the-art machinery and an in-house testing facility
- Production Capacity: 10 production lines with a capacity of 11,500 M.T.P.A.
2. IPO Details
- Issue Type: Entirely fresh issue of 28.80 lakh shares
- Total Issue Size: ₹25.92 crore
- Price Band: ₹85 to ₹90 per share
- Lot Size: 1,600 shares
- Minimum Investment: ₹1,44,000 for retail investors
- HNI Investment: Minimum of 2 lots (3,200 shares) amounting to ₹2,88,000
- Subscription Period: January 29, 2025, to January 31, 2025
- Listing: Expected on BSE SME platform on February 5, 2025
3. Objectives of the IPO
- Capital Expenditure: Investment in plant and machinery
- Debt Repayment: Reducing existing financial liabilities
- General Corporate Purposes: Supporting overall business operations
4. Grey Market Premium (GMP)
- As of January 29, 2025: The GMP was approximately ₹28, suggesting a potential listing price of ₹118 per share.
- Note: GMP is subject to market fluctuations and should not be the sole basis for investment decisions.
5. Subscription Status
- Day 1 (January 29, 2025): The IPO was subscribed 2.85 times by 12 PM, with investors bidding for 55.2 lakh shares against the 19.34 lakh shares on offer.
6. Key Dates
- IPO Opening Date: January 29, 2025
- IPO Closing Date: January 31, 2025
- Allotment Finalization: February 3, 2025
- Listing Date: February 5, 2025
7. Lead Manager and Registrar
- Book Running Lead Manager: Interactive Financial Services Ltd
- Registrar: Bigshare Services Pvt Ltd
- Market Maker: Mnm Stock Broking Private Limited
8. Risk Factors
- Dependence on Manufacturing Facility: Any operational disruptions could adversely affect business operations.
- Market Competition: The plastic pipes industry is competitive, which may impact profit margins.
- Economic Factors: Changes in economic conditions and government policies could influence business performance.
9. Recommendations
- Investment Consideration: Potential investors should carefully assess the company’s financial health, industry position, and associated risks before making investment decisions.
- Consultation: It is advisable to consult with financial advisors to align the investment with individual financial goals and risk tolerance.
This analysis provides a comprehensive overview of the Malpani Pipes IPO, highlighting essential aspects for potential investors.
