Malpani Pipes and Fittings Limited made its debut on the BSE SME platform on February 4, 2025, but the company’s shares listed at a 4.56% discount from the issue price. Despite a massive 137 times subscription during the IPO period from January 29 to January 31, the shares priced between ₹80 to ₹90 ended up listing at a lower price.

This discount listing came after the IPO’s Grey Market Premium (GMP) indicated a 21.11% potential listing gain, based on the company’s performance. While investors had eagerly anticipated a listing gain, the market dynamics caused a deviation from expectations. The Malpani Pipes IPO offered 28.80 lakh shares under a fresh issue to raise a total of ₹ 25.92 crores, and despite the strong demand, the shares listed at ₹ 86.05, down from the top band price of ₹90.

Financial Overview and IPO Details

The company’s IPO was a Book Built Issue with a lot size of 1,600 shares, where retail investors were required to invest a minimum of ₹ 1,44,000 and High Net-Worth Individuals (HNIs) had a minimum investment of ₹2,88,000. The market capitalization of the company at the IPO price of ₹90 per share was around ₹ 96.99 crores.

Malpani Pipes and Fittings manufactures a wide range of plastic pipes, including HDPE Pipes, MDPE Pipes, Sprinkler Pipes, and Drip Irrigation Pipes, catering to various industrial needs. With a steady rise in financial performance—revenues from operations of ₹ 8,454.55 lakh for FY2024—investors expected a better listing performance. The profit after tax (PAT) for FY2024 was ₹509.19 lakh, reflecting consistent growth in recent years.

Subscription and GMP Trends

The subscription data revealed an overwhelming response, with the IPO **subscribed 136.92 times. The Grey Market Premium (GMP) of ₹19 (21.11%) hinted at significant listing gains, yet the shares listed at a 4.56% discount to the issue price, leading many to reassess the market dynamics.

In terms of valuation, the P/E ratio for the pre-issue was 2.42x, and for post-issue, it stood at 13.11x, which compares favorably against the industry’s P/E of 26x, making the IPO fairly priced based on market performance.

The Outlook for Malpani Pipes and Fittings

Despite the listing discount, Malpani Pipes and Fittings Limited is set to benefit from strong market fundamentals. The company’s robust growth, with high ROE (71.52%) and ROCE (21.74%) in FY24, indicates potential long-term value for investors. The net proceeds from the IPO will be used to repay debt and invest in capital expenditures for machinery purchases, making this a strategic move for the company’s expansion.

For investors interested in IPOs, Malpani Pipes and Fittings presents an opportunity to invest in the precision plastic pipes market despite the initial listing discount. The GMP suggests a potential for market recovery in the future.

The Upcoming IPOs in this week and coming weeks are Ken Enterprises, Amwill Healthcare, Readymix Construction, Solarium Green, Eleganz Interiors.

The Current active IPO is Chamunda Electricals.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.