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Shree Marutinandan Tubes IPO -Review, Valuation, Date & GMP
Table of Contents
- Shree Marutinandan Tubes Limited - Complete Overview
- Shree Marutinandan Tubes Limited IPO Overview
- Detailed Video
- Company Financial
- Objective of the Issue
- Promoters and Management of Shree Marutinandan Tubes Limited
- Shree Marutinandan Tubes Limited IPO Lead Managers
- Peer Comparison
- IPO's Valuations
- Dividend Policy
- IPO's Strengths
- IPO weaknesses
- IPO GMP Today
- Conclusion
Shree Marutinandan Tubes Limited - Complete Overview
Established in 2013, Shree Marutinandan Tubes Limited is actively involved in the trade of Galvanized Pipes, Electric Resistance Welding Mild Steel Pipes (including round pipes, square, and rectangular hollow sections) available in various specifications and sizes ranging from 15NB to 1000 NB. Additionally, the company trades Black Pipes and Solar Structural Pipes.
These products find extensive applications across diverse industries such as Agriculture, Oil, Public Health, Housing, Irrigation, Engineering, Infrastructural, and Industrial sectors.
Notably, the company does not engage in the direct manufacturing of its products; instead, it has formed a strategic collaboration with Shree Kamdhenu Machinery Private Limited, a reliable and efficient contract manufacturing company. This partnership ensures the production of high-quality products tailored to the specific requirements of customers.
The company's product portfolio encompasses a variety of agricultural equipment, including potato digger machines, grader machines, hopper machines, groundnut de-stoner machines, pipe winder machines, and rotavators.
As of December 25, 2023, the company has a workforce comprising 14 employees.
Shree Marutinandan Tubes Limited IPO Overview
The Shree Marutinandan Tubes Limited IPO date is scheduled to open for subscription from January 12, 2024, to January 16, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.
The Shree Marutinandan Tubes Limited IPO price is set at Rs 143 per share. The listing of this upcoming BSE SME IPO is anticipated on January 19, 2024.
The total issue size for this IPO is Rs.14.30 Crores. Within this total issue, 50% is allocated to retail investors and 50% to other investors.
Shree Marutinandan Tubes Limited IPO timetable (Tentative)
|
Events |
Date |
|
IPO Opening Date |
12 January 2024 |
|
IPO Closing Date |
16 January 2024 |
|
IPO Allotment Date |
17 January 2024 |
|
Refund initiation |
18 January 2024 |
|
IPO Listing Date |
19 January 2024 |
Detailed Video
Shree Marutinandan Tubes Limited IPO Details
|
IPO opening & closing date |
12 January to 16 January 2024 |
|
Face value |
Rs.10 per share |
|
Issue Price |
Rs.143 per share |
|
Lot Size |
1000 Shares |
|
Price of 1 lot |
Rs.143,000 |
|
Issue Size |
1,000,000 shares (aggregating up to Rs.14.30 Cr) |
|
Fresh issue |
1,000,000 shares (aggregating up to Rs.14.30 Cr) |
|
Listing at |
BSE SME |
|
Issue Type |
Fixed Price Issue IPO |
|
Registrar |
Bigshare Services Pvt. Ltd. |
Shree Marutinandan Tubes Limited IPO Lot Details
|
Minimum Lot Investment (Retail) |
1 lot |
|
Maximum Lot Investment (Retail) |
1 lot |
|
Minimum Lot Investment (HNI) |
2 lot |
Shree Marutinandan Tubes Limited IPO Reservation
|
Other Investors share Portion |
50% |
|
Retail Investors share Portion |
50% |
Company Financial
(amount in lakhs)
|
Period |
30 Sep 2023 |
31 Mar 2023 |
31 Mar 2022 |
31 Mar 2021 |
|
Total Assets |
2,234.29 |
1,617.60 |
1,284.83 |
1,301.03 |
|
Total Revenue |
4,284.64 |
4,722.58 |
4,718.49 |
3,597.28 |
|
PAT |
141.99 |
201.76 |
6.01 |
13.30 |
|
Net worth |
409.70 |
267.74 |
65.98 |
59.98 |
|
Reserve & Surplus |
163.73 |
247.24 |
45.48 |
39.48 |
|
Total Borrowings |
607.28 |
716.90 |
688.89 |
795.31 |
Product-wise Revenue Breakup
(amount in lakhs)
|
Products |
30 Sep 2023 |
31 Mar 2023 |
31 Mar 2022 |
31 Mar 2021 |
|
Galvanized Pipes |
17.43 |
16.99 |
176.10 |
45.18 |
|
Solar Structural Pipe |
74.22 |
106.62 |
226.53 |
246.09 |
|
Black pipe/MS Pipe |
3,196.88 |
2,431.26 |
2,794.44 |
2,571.92 |
|
Structural Pipe |
790.94 |
1,934.77 |
1,487.02 |
679.51 |
|
Other |
197.83 |
227.33 |
29.98 |
20.91 |
|
Total |
4,277.30 |
4,716.96 |
4,714.07 |
3,563.61 |
State-wise Revenue Breakup
(amount in lakhs)
|
State |
30 Sep 2023 |
31 Mar 2023 |
31 Mar 2022 |
31 Mar 2021 |
|
Gujarat |
4,185.66 |
4,560.88 |
4,581.52 |
3,502.94 |
|
Rajasthan |
88.86 |
119.62 |
70.74 |
6.47 |
|
Karnataka |
- |
18.60 |
35.93 |
- |
|
Maharashtra |
- |
15.69 |
14.32 |
0.09 |
|
Madhya Pradesh |
- |
- |
11.56 |
3.20 |
|
Other |
2.78 |
2.17 |
- |
50.91 |
|
Total |
4,277.30 |
4,716.96 |
4,714.07 |
3,563.61 |
Objective of the Issue
The funds raised from the Fresh Issue will be allocated for the following purposes:
1. Meeting incremental working capital requirements.
2. General corporate purposes.
3. Covering expenses related to the public issue.
Promoters and Management of Shree Marutinandan Tubes Limited
Mr. Vikram Shivratan Sharma, Mr. Bharat Shivratan Sharma, and Mrs. Kusumlata Shivratan Sharma are the promoters of the company.
|
Pre-issue Promoter shareholding |
82.00% |
|
Post-issue Promoter shareholding |
58.30% |
Shree Marutinandan Tubes Limited IPO Lead Managers
-
Swastik Investmart Ltd
Peer Comparison
Following are the listed peers of the Shree Marutinandan Tubes Limited.
|
Name of the company |
Face Value (Rs.) |
EPS (Rs.) |
P/E Ratio |
|
Shree Marutinandan Tubes Limited |
10.00 |
8.20 |
17.44 |
|
Swastik Tubes Limited |
10.00 |
4.53 |
17.51 |
|
Hi Tech Pipes Limited |
1.00 |
2.35 |
33.98 |
|
APL Apollo Tubes Limited |
2.00 |
18.47 |
65.26 |
IPO's Valuations
The Shree Marutinandan IPO price is set at Rs.143 per share.
Evaluation of P/E Ratio:
-
Considering the EPS of Rs 8.20, the resulting P/E ratio is 17.44.
Dividend Policy
The company did not distribute any dividends in the past financial years, and the likelihood of future dividend payments is contingent upon the company's earnings and financial performance.
IPO's Strengths
- Experienced Promoter and Management Team: The company boasts a team of seasoned promoters, and its senior management possesses extensive knowledge of the steel industry.
-
Quality Products:The company has established a commendable reputation for delivering reliable and high-quality products, maintaining unwavering standards.
-
Diversified Product Range:With a diverse product range, the company caters to various customer requirements effectively.
-
Strong Sales and Distribution Network all over india:The company's expansive sales and distribution network enables it to effectively reach a broad consumer base throughout India.
IPO weaknesses
-
The property utilized by the Company for its storage operations is not under its ownership.
-
The demand and pricing within the steel industry are volatile, sensitive to the cyclical nature of the industries it serves.
-
A substantial portion of the company's revenue is generated from the Gujarat Region.
-
There was a sudden increase in the company's profit after tax in the financial year ending March 31, 2023, attributed to a significant reduction in the volume of purchases made throughout the year.
-
The company need to obtain and renew certain registrations, licenses, and permits from government and regulatory authorities.
-
The company operates in a High Volume-Low Margin Business.
-
Operating in a highly competitive industry, the company could face adverse effects if it fails to keep pace with technical and technological developments in the industry.
IPO GMP Today
The Latest GMP of Shree Marutinandan Tubes SME IPO is Rs.17.
Conclusion
The company operates in pan India, boasting robust distribution networks and offering a diverse range of products tailored to meet the specific requirements and specifications of customers. Nevertheless, it operates within a competitive and volatile sector. Investors are recommended to carefully assess all factors before considering an investment in the IPO for optimal outcomes.
Finowings IPO Analysis
Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO.
You must consult your financial advisor before making any financial decisions.
To Apply for the IPO, Click Here.
To Read the Prospectus of the Company Click Here to Download the DRHP.
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Frequently Asked Questions
Shree Marutinandan Tubes Limited primarily trades in various steel pipes, including galvanized, mild steel, and solar structural pipes. It doesn't engage in direct manufacturing but has partnered with Shree Kamdhenu Machinery Private Limited for production. Their portfolio extends to agricultural equipment like potato digger machines and rotavators.
The IPO opens on January 12, 2024, offering 1,000,000 shares at ₹143 each, aggregating to ₹14.30 Crores. The subscription lasts from January 12 to January 16, with allotment set for January 17 and listing on January 19.
The company's revenues, net worth, and borrowings vary across financial periods, primarily driven by sales of black pipes/MS pipes. The revenue breakup across states highlights a significant presence in Gujarat. Comparatively, Shree Marutinandan Tubes Limited's P/E ratio stands at 17.44, alongside earnings per share (EPS) of ₹8.20.
Shree Marutinandan Tubes Limited's strengths include an experienced management team, quality products, diversified offerings, and a robust sales network across India. However, concerns exist regarding property ownership, regional revenue dependency, and market volatility within the steel industry.
Investors should evaluate the competitive landscape, potential volatility within the steel sector, the company's dependence on specific regions, and its profitability trends. Additionally, understanding the risk factors outlined, such as regulatory compliance, operational margins, and technological advancements, is crucial before making investment decisions.
