Malpani Pipes IPO GMP, Date, Price & All Details

Malpani Pipes IPO-Complete Overview

Malpani Pipes IPO under the SME IPO category is a book build issue of Rs.25.92 Cr (28.80 lac Shares) and is maintained by Malpani Pipes And Fittings Limited, which was incorporated in 2017. The company begins by producing its plastic pipes. 

The firm offers HDPE, MDPE, and LLDPE pipes under the brand name “Volstar”. Moreover, the company offers services and deals in PVC pipes and granules of different varieties. 

The most common uses of the company’s pipes encompass the water supply in agriculture, sewerage and drainage systems, rings, boreholes, and submersible pumps. In addition, they are also utilized in laying cables and installing optical fibers. 

The company is located in Ratlam, Madhya Pradesh, and possesses a manufacturing plant equipped with all necessary machines and testing equipment for his specific. The company operates with ten production lines which can produce 11,500 M.T.P.A.

Moreover, as the government contractors do the project for which the company supplies the pipes, they also carry out the construction works. Rural pipes supply for farmers is also covered purpose for social politics of the government welfare programs. 

The company sells through the channels of wholesalers and retailers. As well, the projects are being constructed by government-allocated contractors with the company supplying the pipes; there are also government welfare policies for the distribution of pipes to the farmers.

Products

HDPE Pipes: High-density polyethylene (HDPE) are classified according to the outer diameter. The ranges are from 20 mm to around 2000 mm. Because of its strength, toughness, flexibility, and resistance to environmental and chemical factors, it is widely used in industrial, irrigation, and water supply pipes. 

MDPE Pipes: Medium-density polyethylene (MDPE) pipes are polymers utilized for the distribution of gasses, irrigation, mining, and water supply because their flexibility and performance make them withstand treatment and handle applications very well.

LLDPE Pipes: Being superior in intermolecular strength, Linear Low-Density Polyethylene (LLDPE) follows a similar quest to deliver more economical irrigation, water supply, and drainage systems.

Drip Irrigation System: It is ideally designed to conserve water by maintaining low discharge over the roots of plants which supports agriculture, horticulture, and commercial development.

 

 

Malpani Pipes And Fittings Limited IPO Overview

This Malpani Pipes IPO date is 29 January, and its ‘initial public offering’ will end on 31 January 2025.    

This Rs.25.92 crore new SME IPO comprises a wholly fresh issue of 28.80 lac Shares. 

This upcoming IPO date is on 29 Jan 2025. The Malpani Pipes IPO Price is Rs.85 to Rs.90 for each Share. 

The expected IPO listing date is 05 Feb 2025, and the listing at BSE and SME.

Click to open a demat account  and apply for the IPO.

Company Financial

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Cash Flows

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Product-wise Revenue Breakdown 

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Product-wise Revenue Breakdown 

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State-wise Revenue Breakdown 

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(Source: RHP)

The Objective of The Issue

• Capital expenditure for the acquisition of equipment.

• Payback of Debt.

• General corporate purposes.

 

Peers of Malpani Pipes Ltd.

Evaluation

The Malpani Pipes And Fittings Limited IPO share price is Rs.85 to Rs.90 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.37.17 from the last year, the resulting P/E ratio is 2.42x.

Considering the weighted EPS of Rs.22.95 for the last three years, the P/E ratio is 3.92x.

 

IPO's Strengths

• Reach and coverage over large territories.

• Strategically dispersed production hubs concentrating on the delivery of quality products.

• Variety of product split.

• Promoter and strong experienced and capable management.

• Quality.

 

IPO’s Weaknesses

• Risk of Material Consequence to Business Operations through the Manufacturing Facility: The business is highly dependent on the manufacturing facility, and any break due to mechanical breakdowns, power supply failures, labor disgruntlement, or natural disasters will significantly impact its operation and final results.

• Capital Expenditure Delay: The company has not yet placed orders for equipment/machinery necessary for the planned capital expenditure. Delays in procurement or vendor-related issues could lead to time and cost overruns.

• Concentration of Customer: A major portion of the revenue is generated from the top ten customers and thus may draw the business back if the key customer fails to perform in the future.

• Market Risks After Initial Public Offering: The equity shares will face various price/volume fluctuations post-listing. Possibly, stock price movements can be influenced by economic changes, changes specific to this particular industry, or any public relations received by the general media.

 

Malpani Pipes IPO GMP Today

Malpani Pipes IPO GMP is Rs.25 as of 27 January 2025. With the price of Rs.90, the estimated Malpani Pipes listing price is Rs.115 at the time of writing this content.

 

IPO Timetable (Tentative)

The IPO opening date is January 29, with allotment on February 03, refund initiation on February 04, and listing on 05 February 2025.

 

Malpani IPO Details 

The Malpani IPO with a Face Value of Rs.10 per share offers a total issue size of 28,80,000 Shares (Rs.25.92 Cr).

 

Malpani Pipes IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,44,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,88,000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Malpani Pipes And Fittings Ltd.

• Rohit Malpani

• Harsh Malpani

• Mohit Malpani.

 

IPO Lead Managers

• Interactive Financial Services Ltd.

 

Dividend Policy

• The company has not declared a dividend in the last three FYs.

 

Conclusion

Malpani Pipes IPO offers an opportunity with a strong product range and strategic market presence. Despite risks like customer concentration and manufacturing dependencies, the company shows growth potential and financial stability. With an attractive P/E ratio and GMP of Rs.25, it could be an option to consider.