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Plastic pipes manufacturer Malpani Pipes And Fittings Limited is set to make its market debut with an initial public offering (IPO), valued at ₹25.92 crores, an entirely fresh issue of 28.80 lakh shares. The subscription window opens on January 29, 2025, and draws to a close on January 31, 2025. Investors can track this company’s market journey as it prepares for its listing on the BSE SME platform, scheduled for Wednesday, February 5, 2025.

Malpani Pipes And Fittings Limited presents a public offering, with equity shares of ₹10 face value being offered within a price band of ₹85 to ₹90 per share and a lot size of 1,600 shares. Interested retail investors can participate with a minimum investment of ₹144,000 to buy 1 lot, while High Net-worth Individuals (HNI) are invited to participate with a minimum subscription of ₹288,000 (2 lots). The company has planned a swift post-subscription timeline, with share allotment notifications slated for February 3, 2025, followed by its debut on the BSE SME platform on February 5, 2025. As this pipe-maker embarks on its public market journey, investors stand at the cusp of an emerging opportunity in India's plastics space.

Malpani Pipes And Fittings IPO details

Malpani Pipes And Fittings Limited IPO is a fundraise worth ₹25.92 crores comprising purely of a fresh issue with 145,600 shares reserved for the market maker MNM Stock Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 29, 2025, to January 31, 2025, providing an opportunity for investors looking to gain a stake in the plastic products segment.

Malpani Pipes And Fittings IPO dateJanuary 29, 2025 - January 31, 2025
Price band / Fixed price₹85 to ₹90 per share
Face value₹10 per share
Lot size1,600 shares
Issue typeBook Built Issue IPO
Fresh issue size28,80,000 shares amounting to ₹25.92 crores
Total issue size28,80,000 shares amounting to ₹25.92 crores
Listing atBSE SME
Market maker portion145,600 - MNM Stock Broking Pvt Ltd
Shareholding post-issue1,07,77,500 shares
Shareholding pre-issue78,97,500 shares

Malpani Pipes And Fittings IPO timeline

The Malpani Pipes And Fittings Limited IPO opens for subscription on January 29, 2025, and closes on January 31, 2025, with allotment scheduled for February 3, 2025.

IPO open dateJanuary 29, 2025 (Wednesday)
IPO close dateJanuary 31, 2025 (Friday)
Basis of allotmentFebruary 3, 2025 (Monday)
Initiation of refundsFebruary 4, 2025 (Tuesday)
Credit of shares to Demat accountFebruary 4, 2025 (Tuesday)
Listing date on BSE / NSE SMEFebruary 5, 2025 (Wednesday)
Cut-off time for UPI mandate confirmation5 PM on January 31, 2025 (Friday)

Malpani Pipes And Fittings IPO review

Malpani Pipes and Fittings Limited, established in 2017, specializes in the manufacturing of high-quality plastic pipes, including HDPE, MDPE, and LLDPE pipes, which are marketed under the brand name "Volstar." The company’s products are primarily used in sectors such as irrigation, water supply, sewerage, drainage, boreholes, and infrastructure projects, including electrical cable and optical fiber installations. Their manufacturing facility in Ratlam, Madhya Pradesh, is equipped with advanced machinery and an in-house testing facility, capable of producing 11,500 M.T.P.A. across 10 production lines. Malpani Pipes also trades granules and PVC pipes and provides various related services.

The company distributes its products to wholesalers, retailers, and government contractors, and supplies to farmers through welfare programs. Its range of pipes includes HDPE pipes known for their strength and durability, MDPE pipes offering flexibility and corrosion resistance, and LLDPE lateral pipes designed for irrigation and drainage systems. Malpani Pipes also provides drip irrigation solutions to conserve water in agriculture and commercial sectors. As of December 2024, the company employs 51 full-time and 30 contract-based workers, highlighting its growing workforce in support of its expanding operations.

The company plans to utilize the net proceeds from the issue for capital expenditures to purchase machinery, repay existing debt, and support general corporate purposes.

Malpani Pipes And Fittings IPO financials

The Malpani Pipes And Fittings Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 71.52%, Return on Capital Employed (ROCE) at 21.74% and a Debt-to-Equity ratio of 2.04. The Return on Net-Worth (RoNW) stands at 50.07%, and the PAT Margin was 5.25%. The Price to Book Value was 1.48. The company’s market capitalisation is ₹97 crores.

Period EndedNovember 30, 2024March 31, 2024March 31, 2023March 31, 2022
Revenue84.55141.1682.5734.94
Assets90.7661.3538.9421.30
Net Worth19.7314.775.833.76
Profit After Tax5.097.402.080.89
Reserves & Surplus12.0412.423.901.83
Total Borrowing35.7430.2919.598.98

Amount in ₹ crores

Malpani Pipes And Fittings IPO strengths

Malpani Pipes And Fittings Limited boasts a robust pan-India distribution network under the "VOLSTAR" brand, supplying products across 16 states and building strong customer relationships through consistent quality. Its strategically located manufacturing facility in Ratlam, Madhya Pradesh, offers a central geographic advantage, optimizing logistics and reducing transportation costs for large pipes while ensuring timely delivery to key markets in central India.

The company's diversified product portfolio is a significant strength, featuring HDPE, MDPE, LLDPE pipes, sprinkler systems, and drip irrigation solutions that cater to multiple sectors including irrigation, telecommunications, infrastructure, industrial applications, and housing. Led by an experienced management team with over 35 years of industry experience, Malpani Pipes demonstrates flexibility in manufacturing, adherence to ISO 9001:2015 quality standards, and a commitment to innovation that positions it well in the competitive pipes and fittings market.

Malpani Pipes And Fittings IPO weaknesses

Malpani Pipes faces several critical challenges, including a heavy geographical concentration with 77.68% of revenue derived from Northern India, making the business vulnerable to regional economic or environmental disruptions. The company's reliance on a single manufacturing facility in Ratlam exposes it to significant operational risks such as equipment breakdowns, power outages, raw material shortages, and potential labor disputes that could severely impact production and revenue.

The company is also exposed to multiple external vulnerabilities, including substantial dependence on imported raw materials (accounting for 44.20% of total purchases), which makes it susceptible to foreign exchange fluctuations and potential cost increases. Additionally, the business faces intense market competition from both domestic and international players, with a significant portion of revenues tied to its top ten customers. High debt levels, potential delays in capital expenditure, and the risk of raw material price fluctuations further compound the company's operational and financial challenges.

Should you invest in the Malpani Pipes And Fittings IPO?

Stepping into the world of Malpani Pipes And Fittings Limited isn't just about buying shares—it's about strategically positioning yourself in the company’s growth trajectory. While the opportunity looks promising, savvy investors know the drill: dive deep into the company's operational track record, financial health, and growth strategy, carefully aligning the potential investment with personal risk appetite and financial objectives. The offer document is your treasure map, and professional financial advice can be your guide, transforming this IPO from a mere transaction into a calculated move towards potential future gains.

FAQs

What is the Malpani Pipes And Fittings Limited IPO?

The Malpani Pipes And Fittings Limited IPO is an BSE SME offering consisting of 28.80 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹25.92 crore. The price band has been set between ₹85 to ₹90 per share, with a minimum order quantity of 1600 shares. This IPO will be open for subscription from January 29, 2025, to January 31, 2025. Interactive Financial Services Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while MNM Stock Broking Private Limited is the market maker.

When will the Malpani Pipes And Fittings IPO open?

The Malpani Pipes And Fittings Limited IPO will open for subscription on January 29, 2025, and will close on January 31, 2025.

When is the Malpani Pipes And Fittings IPO listing date?

The tentative listing date for the Malpani Pipes And Fittings Limited IPO is Wednesday, February 5, 2025.