Malpani Pipes and Fittings IPO: All You Need to Know

Malpani Pipes and Fittings Limited, a key player in the precision plastics industry, is launching an Initial Public Offering (IPO) to raise ₹ 25.92 Crores. The IPO comprises a fresh issue of 28.80 Lakh shares, with a price band of ₹ 85 to ₹ 90 per equity share. The subscription period for this IPO opens on January 29, 2025, and closes on January 31, 2025, with the shares expected to list on the BSE SME by February 5, 2025.

IPO Details

• Price Band: ₹ 85 to ₹ 90 per share
• Market Capitalization at Upper Price Band: ₹ 96.99 Crores
• Lot Size: 1,600 shares
• Retail Minimum Investment: ₹ 1,44,000 (for 1,600 shares)
• HNI Minimum Investment: ₹ 2,88,000 (for 3,200 shares)

Company Performance and Market Insights

• The Grey Market Premium (GMP) for Malpani Pipes and Fittings IPO is currently ₹ 19, suggesting potential listing gains of around 21.11%.
• The company manufactures a wide range of products, including HDPE Pipes, MDPE Pipes, and Drip Irrigation Pipes, catering to various industries.

IPO Objectives

The proceeds from the IPO will be used for:

1. Capital expenditure for the purchase of machinery (₹ 350 Lakhs)
2. Repayment of debt (₹ 1,500 Lakhs)
3. General corporate purposes

Financial Performance

• Revenue (FY 2024): ₹ 14,116.23 Lakhs
• Profit After Tax (FY 2024): ₹ 739.72 Lakhs
• Post-issue P/E Ratio: 13.11x (Industry P/E: 26x)
• ROCE (FY 2024): 21.74%
• EPS (FY 24): Pre-issue: ₹ 37.17, Post-issue: ₹ 6.86

Malpani Pipes and Fittings IPO Review

The company's strong financials and competitive pricing suggest that this IPO is fairly priced. With a high Grey Market Premium (GMP), indicating potential listing gains, investors are recommended to apply for listing gains. The company’s solid growth trajectory in the precision plastics industry further supports its investment potential.

Anchor Investors and Subscription Status

Malpani Pipes and Fittings has raised ₹ 7.2 Crores from Anchor Investors at ₹ 90 per share. As of January 29, 2025, the IPO has been subscribed 3.01 times, reflecting strong demand.

IPO Allotment Check:

• The allotment status will be available online starting February 3, 2025. Investors can check the status via the Registrar's website.

With a potential listing gain and the company’s financial stability, this IPO presents a solid opportunity for investors seeking growth in the precision plastics sector.