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3 min read | Updated on February 04, 2025, 11:20 IST
SUMMARY
Malpani Pipes and Fittings had a weak trading debut on February 4, listing at a 4.5% discount. Despite early declines, the stock recovered slightly. The IPO raised ₹25.92 crore, with a strong oversubscription of 147 times. The company manufactures plastic pipes used in irrigation and water supply.
Malpani Pipes and Fittings makes weak debut, shares list at 4% discount on BSE SME | Image: Shutterstock
Malpani Pipes and Fittings Ltd made a weak trading debut on Tuesday, February 4, with its shares listing at a discount of 4.5% on the BSE SME platform.
The company's shares started trading at ₹85.9 apiece, against the issue price of ₹90 per share, reflecting a loss of 4.55% over the issue price.
Soon after listing, the stock declined 5% to hit the lower circuit limit at ₹81.61 apiece. However, the shares recovered some early losses to trade 2.21% lower at ₹84 apiece.
More than 5.44 lakh equity shares changed hands on the bourse within five minutes of trade. The total turnover stood at ₹4.66 crore, and the company's market capitalisation touched ₹90.53 crore.
At the listing price of ₹85.9 per share, the value of a single lot of shares bagged by investors in the IPO share allotment was ₹1,37,440 (₹85.9 x 1,600). The IPO investors would have faced losses of ₹6,560 per lot as the minimum investment in a single lot was ₹1,44,000 (₹90 x 1600).
Malpani Pipes and Fittings launched its initial public offering on January 29 to raise ₹25.92 crore from investors. The SME public offer consisted of entirely a fresh issue of 28.8 lakh shares. The company had set the price band at ₹85 to ₹90 per share. The lot size was 1,600 shares for the IPO.
At the close of bidding on January 31, the IPO was booked more than 147 times, driven by strong demand from Non-Institutional Investors (NIIs).
Applications for more than 28.48 crore equity shares were garnered compared to the net offer size of 19.34 lakh shares.
The NIIs applied for more than 14.29 crore shares compared to the quota of 4.16 lakh shares, leading to an oversubscription of 343 times. The Qualified Institutional Buyers (QIBs) placed bids for more than 3.26 crore equity shares compared to 5.58 lakh shares on offer, resulting in a booking of 58.49 times. The retail investors’ quota was booked more than 113 times as applications for 10.92 crore shares were received compared to 9.6 lakh shares on offer.
Malpani Pipes and Fittings Ltd produces plastic pipes such as linear low-density polyethylene (LLDPE), High-Density Polyethylene (HDPE), and Medium-Density Polyethylene (MDPE). These products are used for various purposes, such as irrigation, water supply, drainage systems, underground water extraction, and sewerage treatment plants. GR Infra Projects Ltd, Virent Power and Projects Ltd and JWIL Infra Limited are among its major customers.
The company has proposed to utilise ₹3.5 crore of the IPO proceeds to finance expenditure on the purchase of machinery. It will utilise ₹17 crore of the IPO money for the repayment of debt. As on December 31, 2024, the outstanding debt level was ₹ 37.63 crore.
The company reported a net profit of ₹5.09 crore for the April-November period of FY25 while revenue stood ₹84.09 crore during the period.
For 2023-24, the company reported a profit of ₹7.39 crore against ₹2.08 crore in the previous fiscal. Revenue increased to ₹140.96 crore in FY24 from ₹82.45 crore in FY23.
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