Malpani Pipes IPO is a book-built issue valued at ₹25.92 crore. It is an entirely fresh issue of 28.80 lakh shares. The IPO was open for subscription from January 29, 2025 and is closing on January 31, 2025. The allotment is expected to be finalised on February 3, 2025, with a tentative listing date of February 5, 2025, on BSE SME.
The IPO price is set at a price band of ₹85 - ₹90 per share. Retail investors need a minimum investment of ₹1,44,000 for one lot of 1,600 shares, while HNI investors must invest in at least two lots, amounting to ₹2,88,000.
Interactive Financial Services Ltd is the book-running lead manager for this issue, while Bigshare Services Pvt Ltd serves as the registrar. MNM Stock Broking Private Limited is the market maker.
For detailed financial and operational information, investors can refer to the Malpani Pipes IPO RHP. This IPO presents an opportunity to invest in a growing enterprise listed on the SME platform.
Industry Outlook
- The Indian plastic industry, employing over 4 million people, is one of the key sectors of the economy, with more than 30,000 processing units, 85-90% of which are small and medium enterprises. The Government of India aims to grow this sector’s economic contribution from ₹3 lakh crore to ₹10 lakh crore in the next 4-5 years through innovation and exports.
- India's increasing population and food security demands have intensified water scarcity, with more than 90% of groundwater used for irrigation. Government schemes like the Pradhan Mantri Krishi Sinchayee Yojana and Jal Jeevan Mission aim to promote efficient water usage and provide rural households with assured tap water by 2024.
Malpani Pipes IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Funds will be allocated to enhance production capabilities and modernise existing facilities to improve operational efficiency.
- A portion of the proceeds will be utilised to repay existing debt obligations, thereby improving the financial health of the company.
- The remaining funds will be used to support day-to-day operations, strategic growth initiatives, and other corporate requirements.
About Malpani Pipes Limited
Malpani Pipes and Fittings Limited, incorporated on February 3, 2017, operates from its manufacturing base in Ratlam, Madhya Pradesh. Initially established as a private limited company, it transitioned to a public limited entity on July 29, 2024, as per its special resolution.
The company specialises in manufacturing high-grade plastic pipes, including High-Density Polyethylene (HDPE) Pipes, Medium-Density Polyethylene (MDPE) Pipes, and Linear Low-Density Polyethylene (LLDPE) Pipes, along with trading granules and PVC pipes. Its products cater to a wide range of applications, such as irrigation, water supply systems, sewerage, and underground cabling for infrastructure projects.
With a state-of-the-art facility in central India, Malpani Pipes ensures quality through in-house testing and mandatory third-party certification for government projects. These certifications are conducted by renowned agencies like the Central Institute of Petrochemicals Engineering & Technology (CIPET) and Bureau Veritas.
The company operates on a B2B model, offering solutions for agricultural and industrial applications, supported by consistent quality and timely delivery through advanced machinery and a dedicated workforce.
How To Check the Allotment Status of the Malpani Pipes IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Malpani Pipes IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Malpani Pipes IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Malpani Pipes IPO
Registered office: 65-A, Sector B, Industrial Area, Ratlam - 457001, Madhya Pradesh, India
Phone: +91 7412 260707
E-mail: pipes@malpanipipes.com
Malpani Pipes IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares Offered |
8,00,000 (27.78%) |
|
Market Maker Shares Offered |
1,45,600 (5.06%) |
|
QIB Shares Offered |
5,58,400 (19.39%) |
|
NII (HNI) Shares Offered |
4,16,000 (14.44%) |
|
Retail Shares Offered |
9,60,000 (33.33%) |
|
Total Shares Offered |
28,80,000 (100%) |
Malpani Pipes IPO Anchor Investors Details
|
Bid Date |
January 28, 2025 |
|
Shares Offered |
8,00,000 |
|
Anchor Portion Size (In Cr.) |
7.20 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
March 5, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
May 4, 2025 |
Malpani Pipes IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1600 |
₹1,44,000 |
|
Retail (Max) |
1 |
1600 |
₹1,44,000 |
|
HNI (Min) |
2 |
3200 |
₹2,88,000 |
Malpani Pipes IPO Promoter Holding
The promoters of the company are Rohit Malpani, Harsh Malpani and Mohit Malpani.
|
Share Holding Pre-Issue |
100% |
|
Share Holding Post Issue |
73.28% |
Key Performance Indicators for Malpani Pipes IPO
As of March 31, 2024, the market capitalisation of Malpani Pipes's IPO is ₹97.00 crore. Here are the KPIs of Malpani Pipes:
|
KPI |
Value |
|
RoE (%) |
71.52 |
|
RoCE (%) |
21.74 |
|
Debt/Equity (x) |
2.04 |
|
PAT Margin (%) |
5.25 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
37.17 |
- |
|
P/E (x) |
2.42 |
- |
Note: Malpani Pipes Limited’s pre-IPO EPS is based on pre-issue shareholding and FY earnings as of March 31, 2024.
Malpani Pipes IPO Prospectus
Malpani Pipes IPO Registrar and Lead Managers
Malpani Pipes IPO Lead Managers
- Interactive Financial Services Ltd
Registrar for Malpani Pipes IPO
Bigshare Services Pvt Ltd
- Contact Number:+91-22-6263 8200
- Email Address:ipo@bigshareonline.com
Malpani Pipes IPO Registrar
Financial Performance of Malpani Pipes Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Total Income (in ₹ lakh) | 14,096.18 | 8,245.09 |
| Profit After Tax (PAT) (in ₹ lakh) | 739.72 | 208.04 |
| EBITDA (in ₹ lakh) | 1,329.04 | 441.31 |
| Return on equity ratio (%) | 71.52 | 43.35 |
| Return on capital employed (%) | 21.74 | 12.78 |
| Current Ratio (x) | 1.31 | 1.22 |
| Debt-Equity ratio (x) | 2.04 | 3.36 |
Know before investing
Strengths
8The company offers a diversified product range, including HDPE, MDPE, and LLDPE pipes, catering to sectors such as irrigation, infrastructure, and industrial applications.
Its manufacturing facility in Ratlam, Madhya Pradesh, strategically enables efficient distribution to key markets like Maharashtra, Gujarat, and Rajasthan.
Adherence to ISO 9001:2015 standards and the availability of in-house testing facilities ensure stringent quality control and consistent product reliability.
Expansion of manufacturing capabilities, including the addition of two HDPE and one PVC machine, will increase production capacity by 5,100 metric tonnes per annum.
The company boasts a strong and experienced leadership team, with its promoters playing key roles in operations, strategy, and financial management.
Robust revenue growth of 70.96% in FY 2024 highlights the company’s ability to scale operations effectively.
Strategically located warehouses in Ratlam, Bhiwandi, and Amravati ensure efficient inventory management and swift delivery across India.
Repeat orders from loyal customers underscore strong client satisfaction and trust in the company’s products and services.
Risks
8Legal proceedings could result in liabilities, penalties, or reputational damage.
The company’s success depends on overcoming challenges in manufacturing, marketing, and timely delivery.
High competition in the market may lead to lower sales and increased inventory levels.
Dependence on unorganised suppliers poses risks of delays or defective raw materials.
Over 80% reliance on Maharashtra for raw materials increases vulnerability to supply chain disruptions.
Pricing pressure from customers could reduce profit margins and operational efficiency.
Operations are conducted on rented premises, making the company subject to lease renewals and potential disputes.
Regional revenue concentration increases the risks from adverse local developments or economic conditions.
Malpani Pipes Limited Peer Details Comparison
| Company Name | EBDITA (in ₹ lakh) | PAT (in ₹ lakh) | Return on Equity (%) | Return on Capital Employed (%) |
|---|---|---|---|---|
| Malpani Pipes Limited | 1,329.04 | 739.72 | 71.52 | 21.74 |
| Aik Pipes And Polymers Limited | 4 468.06 | 341.16 | 24.79 | 22.97 |
| Kriti Industries (India) Ltd | 6285.27 | 2,103.98 | 15.00 | 27.62 |
