Malpani Pipes And Fittings Limited, a leading name in the precision plastics industry, is launching its IPO with a Book Built Issue of ₹25.92 Crores, consisting entirely of a fresh issue of 28.80 lakh shares. The subscription period is from January 29, 2025, to January 31, 2025, and the shares will be listed on the BSE SME platform with a tentative listing date of February 5, 2025.

The price band is set at ₹85-₹90 per equity share, and the IPO lot size is 1,600 shares. Retail investors must invest a minimum of ₹1,44,000, while HNIs need a minimum of ₹2,88,000 (two lots).

Malpani Pipes And Fittings IPO GMP and Subscription Status

As of January 30, 2025 (12:20 PM), the IPO has been subscribed 15.31 times on the second day of bidding. The Grey Market Premium (GMP) is ₹19, indicating a potential listing price of ₹109 per share, translating to an expected gain of 21.11%.

Malpani Pipes And Fittings IPO Anchor Investors & Fund Utilization

The company has secured ₹7.2 Crores from Anchor Investors at the upper price band of ₹90. The net proceeds from the IPO will be utilized as follows:

• ₹3.5 Crores for purchasing machinery.

• ₹15 Crores for debt repayment.

• The remainder for general corporate purposes.

Financial Performance & Investment Outlook

Malpani Pipes And Fittings Limited has shown consistent revenue growth, with earnings from operations reaching ₹141.16 Crores in FY24, up from ₹34.93 Crores in FY22. The profit after tax (PAT) has surged to ₹7.39 Crores in FY24 from ₹0.89 Crores in FY22.

Key performance metrics:

• Pre-issue EPS: ₹37.17 | Post-issue EPS: ₹6.86

• Pre-issue P/E Ratio: 2.42x | Post-issue P/E Ratio: 13.11x

• Industry P/E Ratio: 26x

• ROCE: 21.74% | ROE: 71.52% | RoNW: 50.07%

Malpani Pipes And Fittings IPO Review – Should You Apply?

Considering the strong financials, fair pricing, and high GMP, analysts recommend subscribing to the IPO for potential listing gains. The growing demand for HDPE, MDPE, and irrigation pipes makes this a promising investment opportunity.