Malpani Pipes and Fittings Limited is a key player in the precision plastics industry, focusing on high-quality products such as HDPE Pipes, MDPE Pipes, Sprinkler Pipes, Drip Irrigation Pipes, PE Lateral Pipes, PE Sewerage Pipes, and PE Gas Pipes. The company is known for its robust product offerings and commitment to quality, catering to diverse industries including agriculture, construction, and utilities.

The company has demonstrated significant growth in its operations, delivering specialized solutions to meet the needs of its expanding customer base.

IPO Details
The Malpani Pipes and Fittings IPO is a fresh issue amounting to ₹ 25.92 Crores, consisting of the issuance of 28.80 lakh shares. The price band for the IPO is set at ₹ 85 to ₹ 90 per share, with a lot size of 1,600 shares. The subscription period is from January 29, 2025, to January 31, 2025, and the allotment date is scheduled for February 3, 2025. The listing date on the BSE SME is expected to be February 5, 2025.

Grey Market Premium (GMP)
As of January 23, 2025, the Grey Market Premium (GMP) for Malpani Pipes and Fittings IPO is ₹ 19, indicating a potential 21.11% gain at listing. The GMP reflects market sentiment and is subject to change based on demand and supply before the shares are officially listed.

IPO Subscription Status
The subscription period for the IPO begins on January 29, 2025, and the live subscription status will be updated accordingly.

Financial Performance and Metrics
Malpani Pipes and Fittings has exhibited consistent financial growth across the last few years. For the period ending November 30, 2024, the company reported revenues from operations of ₹ 8,454.55 lakh, which is a significant rise compared to previous years. The EBITDA for the period stood at ₹ 965.38 lakh, and Profit After Tax (PAT) reached ₹ 509.19 lakh for FY2024. These results indicate steady growth and the company’s ability to generate profits even as it expands its business operations.

The company’s key financial ratios include:

• Pre-issue EPS of ₹ 37.17, and post-issue EPS of ₹ 6.86 for FY24.
• P/E ratio (pre-issue) is 2.42x, and post-issue P/E ratio is 13.11x, compared to the industry P/E ratio of 26x.
• ROCE for FY24 is 21.74%, and ROE stands at a remarkable 71.52%, reflecting the company's high capital efficiency.

These metrics suggest that the IPO is fairly priced, making it an attractive investment for those looking for both short-term listing gains and long-term growth potential.

Utilization of IPO Proceeds
The company plans to use the net proceeds from the IPO for the following purposes:

1. ₹ 350.00 Lakhs for capital expenditure to purchase new machinery.
2. ₹ 1,500.00 Lakhs for repayment of debt.
3. Funds will also be allocated to general corporate purposes to support the company’s growth strategy.

Why Invest in the Malpani Pipes and Fittings IPO?
Malpani Pipes and Fittings Limited operates in a growing industry with increasing demand for precision plastic pipes, especially in irrigation and infrastructure. The company has displayed strong financial performance with increasing revenues and profits, making it a solid investment choice. The GMP of ₹ 19 and the strong subscription numbers suggest a positive market outlook for the IPO.

The company’s future growth potential, coupled with its sound financials and plans for expansion, make it an appealing investment opportunity.

Conclusion

Given the company’s financial growth, the attractive valuation, and the positive market sentiment, we recommend that investors apply for the Malpani Pipes and Fittings IPO. With its promising future and potential listing gains, the IPO offers a solid investment opportunity for both retail investors and high-net-worth individuals (HNIs) looking to diversify their portfolios.

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