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Malpani Pipes IPO: A Comprehensive Guide

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Malpani Pipes IPO: A Comprehensive Guide

The Malpani Pipes and Fittings Limited IPO has garnered significant attention in the financial markets, thanks to its promising business model and strong subscription numbers. This blog provides an in-depth overview of the Malpani Pipes IPO, covering IPO details, subscription status, Grey Market Premium (GMP), business overview, and more.

Malpani Pipes IPO Details

ParticularsDetails
Total Issue Size₹25.92 crore
Fresh Issue28.80 lakh shares
Price Band₹85 to ₹90 per share
Minimum Lot Size1,600 shares
Retail Investor Minimum Investment₹1,44,000
HNI Minimum Investment3,200 shares (₹2,88,000)

Use of IPO Proceeds

The company plans to allocate the net proceeds from the IPO toward:

  1. Capital Expenditures: Acquiring new machinery to enhance production capabilities.
  2. Debt Repayment: Reducing existing debt to improve financial stability.
  3. General Corporate Purposes: Supporting overall growth and operational efficiency.

Malpani Pipes IPO Subscription Status (As of January 31, 2025)

Investor CategorySubscription (Times)
Retail Investors113.35x
Qualified Institutional Buyers (QIBs)58.49x
Non-Institutional Investors (NIIs)343.13x
Overall Subscription146.93x

The overwhelming response from all investor categories reflects strong market confidence in Malpani Pipes’ growth potential.

Grey Market Premium (GMP) Details

According to Business Standard, the GMP for Malpani Pipes IPO stands at ₹2. Based on the upper price band of ₹90 per share, the estimated listing price is projected to be ₹92 per share. This reflects an anticipated 2.22% gain over the issue price.

Disclaimer: The GMP price is unauthenticated, market-related information with no official basis. Investors should conduct independent research before making investment decisions.

Malpani Pipes and Fittings Limited: Business Overview

Founded in 2017, Malpani Pipes and Fittings Limited specializes in manufacturing high-quality plastic pipes under the brand name “Volstar.” The company’s diverse product range includes:

  • HDPE (High-Density Polyethylene) Pipes
  • MDPE (Medium-Density Polyethylene) Pipes
  • LLDPE (Linear Low-Density Polyethylene) Pipes

Applications:

  • Irrigation Systems
  • Water Supply Networks
  • Sewerage and Drainage Systems
  • Infrastructure Projects (e.g., Electrical Cable Installations)

In addition to manufacturing, Malpani Pipes trades granules and PVC pipes while offering related services.

Manufacturing Facility:

  • Location: Ratlam, Madhya Pradesh
  • Production Lines: 10
  • Annual Production Capacity: 11,500 M.T.P.A.

The company distributes its products through wholesalers, retailers, and government contractors, with a significant portion supplied to farmers via welfare schemes.

Investment Risks and Considerations

Investing in SME IPOs involves inherent risks, including:

  • Market Volatility: Prices can fluctuate significantly post-listing.
  • Liquidity Concerns: SME stocks may have lower trading volumes.
  • Business Risks: Dependency on a specific sector or limited customer base can impact financial performance.

Disclaimer: SME IPOs are suitable for investors with high-risk tolerance. Perform thorough due diligence and consult financial advisors before investing.

Final Thoughts

The Malpani Pipes IPO has attracted substantial investor interest, reflected in its impressive subscription numbers across all categories. The company’s growth prospects, driven by robust product offerings and strategic use of IPO proceeds, make it an interesting investment opportunity. However, like any SME IPO, potential investors should carefully assess the risks and make informed decisions.

Stay informed for real-time updates on the Malpani Pipes IPO and track its performance post-listing to evaluate its growth trajectory.

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