Malpani Pipes & Fittings Ltd IPO
Status:
Overview
IPO date
29 Jan 2025 to 31 Jan 2025
Face value
₹ 10 per share
Price
₹ 85 to ₹90 per share
Issue Size
2,880,000 shares
(aggregating up to ₹ 25.92 Cr)
(aggregating up to ₹ 25.92 Cr)
Allotment Date
01 Feb 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Objectives of Malpani Pipes & Fittings Ltd IPO
Malpani Pipes & Fittings Ltd IPO Strategy
About Malpani Pipes & Fittings Ltd
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T&C*
Strengths vs Risks of Malpani Pipes & Fittings Ltd
Know the pros & cons
Strengths
Wide Geographical Reach.- Strategically located manufacturing facilities with a core focus on quality.
- Diversified product mix.
- Our Quality.
- Experienced Promoter and strong management team.
Risks
- The company business depends on its manufacturing facility and shutdown of operations of the manufacturing facility on any reasons could adversely affect its business and results of operations.
- The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.
- The company derives a significant portion of its revenues from its top ten customers. The loss of any significant customer may have an adverse effect on the company business, financial condition, results of operations, and prospects.
- Its top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
- There are outstanding litigations involving the Company which if determined against it, could adversely impact financial conditions.
- Majority of its operations are limited to the states of Northern India. Up till now, the company is supplying its products to the customers spread over with the state of Northern India.
- Any increase in the cost of its raw material or other purchases or a shortfall in the supply of the company raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on the company business, results of operations and financial condition.
- The company engage in foreign currency transactions, which expose it to adverse fluctuations in foreign exchange rates. Fluctuations in the exchange rate between the Rupee and other currencies may adversely affect its operating results.
- The company has experienced negative cash flows from operating activities and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- The unsecured loan availed by the Company from Directors may be recalled at any given point of time.
- The company is dependent on third party transportation service providers for delivery of raw material to it from the company suppliers and delivery of its products to the company customers.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business and the company manufacturing facility, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on its results of operations.
- Intense competition in the market of Pipes Industry could affect its pricing, which could reduce the company share of business from clients and decrease its revenues and profitability.
- The company inability to maintain and protect its brand and business reputation could adversely affect its business, prospects and financial performance. The company may be unable to adequately protect its intellectual property and may be subject to risks of infringement claims.
- The Company does not have intellectual property rights over its corporate logo "MALPANI PIPES & PITTINGS LTD."
- If the company is not successful in managing its growth, its business may be disrupted and the company profitability may be reduced.
- Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.
- Any inability on the company part to maintain quality standards could adversely impact its business, results of operations and financial condition.
- There have been instances of delay in filing of Goods and Service Tax (GST) returns, Employee State Insurance (ESI) Returns, return of Tax Deducted at Source (TDS) dues and in payment of Provident Fund dues.
- Two of its group companies are into similar line of business which can affect the company because of the Potential Conflict of Interest.
- The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
- The company insurance policies may not be adequate to cover all losses incurred in its business. The company inability to maintain adequate insurance cover to protect it from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The company is dependent upon the experience and skill of its promoter, management team and key managerial personnel and senior management personnel. Loss of its Promoter or the company inability to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.
- Its Promoters and members of the Promoter Group have provided personal guarantees and may in the
future provide additional guarantees. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by its Promoters and members of the Promoter Group.
- The average cost of acquisition of Equity Shares held by its Promoters is lower than the Issue Price.
- There is no assurance that the Equity Shares issued pursuant to the Offer will be listed on the BSE SME Platform of BSE Limited in a timely manner, or at all.
- The requirements of being a public listed company have many restrictions and may strain on its resources.
- All of its directors does not have any prior experience of being a director in any other listed company in India.
- Its may not be able to manage successfully the company growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.
- Its operations are subject to environmental, health and safety laws and regulations.
- The company has certain contingent liabilities that have not been provided for in the Company's financials which if materialised, could adversely affect its financial condition.
- Changes in Government Regulation for the use of Plastic Products may affect its business operations, revenue and profitability adversely.
- The company is exposed to the risks of disruptions of information technology systems may adversely affect its business, financial condition, results of operations, cash flows and prospects.
- Its Promoters, Directors and Key Managerial Personnel may have interest in the Company, other than reimbursement of expenses incurred or remuneration.
- There is no monitoring agency appointed by the Company and the deployment of funds are at the
discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.
- Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Its Promoter and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- The company has not independently verified certain data in this Red Herring Prospectus.
- Its funding requirements and proposed deployment of the Net Proceeds are based on management
estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.
- Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of the company Equity shares may decline below the issue price.
- Sale of shares by its promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Its future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.
Malpani Pipes & Fittings Ltd Peer Comparison
Understand the company’s industry standing
Malpani Pipes & Fittings Ltd
Aik Pipes & Polymers Ltd
Kriti Industries (India) Ltd
Face Value
10
10
1
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
140.9618
37.2725
866.6261
EPS-Basis
37.17
6.69
4.32
EPS-Diluted
---
---
---
NAV Per Share
60.8
34.46
30.32
P/E-Basic EPS
---
15.70
36.44
P/E-Diluted EPS
---
---
---
RONW(%)
50.07
15.56
13.99
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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Enter details- PAN, Application number or DP client ID
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The IPO opens on 29 Jan 2025 & closes on 31 Jan 2025.
Malpani Pipes And Fittings Limited was incorporated as 'Malpani Pipes And Fittings Private Limited' on February 3, 2017 with the Registrar of Companies, Gwalior. Subsequently, Company has converted into a Public Limited Company and a fresh Certificate of Incorporation has been issued on July 29, 2024 by the Registrar of Companies, Gwalior reflecting the change in name as ' Malpani Pipes And Fittings Limited'.
Malpani Pipes & Fittings Limited, an ISO 9001:2015 certified company based in Ratlam, Madhya Pradesh, manufactures a range of high-grade plastic pipes. The Company is engaged in manufacturing a variety of pipes used in agriculture, water transportation or distribution, house service connection etc. It is also engaged in the trading of granules and PVC pipes, as well as the sale of services. The products include High-Density Polyethylene (HDPE) Pipes, Medium-Density Polyethylene (MDPE) Pipes, and Linear Low-Density Polyethylene (LLDPE) Pipes, all marketed under the brand name 'Volstar'.
The Company work out a manufacturing plant in Central India i.e. Ratlam, Madhya Pradesh. The pipes are engineered to meet a wide range of applications, including irrigation, potable water supply, sewerage, and drainage systems. They are well-suited for boreholes and tube wells for underground water extraction. Furthermore, these pipes support infrastructure projects such as the installation of long-distance electrical cables and optical fibers.
The Company launched the IPO of 28,80,000 equity shares of face value Rs 10 each by raising Rs 25.92 crores in January 2025.
Malpani Pipes & Fittings Ltd IPO will close on 31 Jan 2025.
- Wide Geographical Reach.
- Strategically located manufacturing facilities with a core focus on quality.
- Diversified product mix.
- Our Quality.
- Experienced Promoter and strong management team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Rohit Malpani | 1431625 | 18.13 | 1431625 | 13.28 |
| 2 | Harsha Malpani | 1634750 | 20.7 | 1634750 | 15.17 |
| 3 | Mohit Malpani | 1662375 | 21.05 | 1662375 | 15.42 |
| 4 | Deepak Malpani HUF | 195000 | 2.47 | 195000 | 1.81 |
| 5 | Hirendra Malpani HUF | 195000 | 2.47 | 195000 | 1.81 |
| 6 | Sonal Malpani | 490750 | 6.21 | 490750 | 4.55 |
| 7 | Mohit Malpani HUF | 97500 | 1.23 | 97500 | 0.91 |
| 8 | Rohit Malpani HUF | 130000 | 1.16 | 130000 | 1.22 |
| 9 | Sunita Malpani | 188500 | 2.39 | 188500 | 1.74 |
| 10 | Hemlata Malpani | 315250 | 3.99 | 315250 | 2.93 |
| 11 | Deepak Malpani | 359125 | 4.55 | 359125 | 3.33 |
| 12 | Hirendra Malpani | 487500 | 6.17 | 487500 | 4.52 |
| 13 | Harshita Malpani | 417625 | 5.29 | 417625 | 3.87 |
| 14 | Rini Malpani | 292500 | 3.7 | 292500 | 2.71 |
- The company business depends on its manufacturing facility and shutdown of operations of the manufacturing facility on any reasons could adversely affect its business and results of operations.
- The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.
- The company derives a significant portion of its revenues from its top ten customers. The loss of any significant customer may have an adverse effect on the company business, financial condition, results of operations, and prospects.
- Its top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
- There are outstanding litigations involving the Company which if determined against it, could adversely impact financial conditions.
- Majority of its operations are limited to the states of Northern India. Up till now, the company is supplying its products to the customers spread over with the state of Northern India.
- Any increase in the cost of its raw material or other purchases or a shortfall in the supply of the company raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on the company business, results of operations and financial condition.
- The company engage in foreign currency transactions, which expose it to adverse fluctuations in foreign exchange rates. Fluctuations in the exchange rate between the Rupee and other currencies may adversely affect its operating results.
- The company has experienced negative cash flows from operating activities and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- The unsecured loan availed by the Company from Directors may be recalled at any given point of time.
- The company is dependent on third party transportation service providers for delivery of raw material to it from the company suppliers and delivery of its products to the company customers.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business and the company manufacturing facility, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on its results of operations.
- Intense competition in the market of Pipes Industry could affect its pricing, which could reduce the company share of business from clients and decrease its revenues and profitability.
- The company inability to maintain and protect its brand and business reputation could adversely affect its business, prospects and financial performance. The company may be unable to adequately protect its intellectual property and may be subject to risks of infringement claims.
- The Company does not have intellectual property rights over its corporate logo "MALPANI PIPES & PITTINGS LTD."
- If the company is not successful in managing its growth, its business may be disrupted and the company profitability may be reduced.
- Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.
- Any inability on the company part to maintain quality standards could adversely impact its business, results of operations and financial condition.
- There have been instances of delay in filing of Goods and Service Tax (GST) returns, Employee State Insurance (ESI) Returns, return of Tax Deducted at Source (TDS) dues and in payment of Provident Fund dues.
- Two of its group companies are into similar line of business which can affect the company because of the Potential Conflict of Interest.
- The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
- The company insurance policies may not be adequate to cover all losses incurred in its business. The company inability to maintain adequate insurance cover to protect it from material adverse incidents in connection with its business may adversely affect the company operations and profitability.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The company is dependent upon the experience and skill of its promoter, management team and key managerial personnel and senior management personnel. Loss of its Promoter or the company inability to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.
- Its Promoters and members of the Promoter Group have provided personal guarantees and may in the future provide additional guarantees. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by its Promoters and members of the Promoter Group.
- The average cost of acquisition of Equity Shares held by its Promoters is lower than the Issue Price.
- There is no assurance that the Equity Shares issued pursuant to the Offer will be listed on the BSE SME Platform of BSE Limited in a timely manner, or at all.
- The requirements of being a public listed company have many restrictions and may strain on its resources.
- All of its directors does not have any prior experience of being a director in any other listed company in India.
- Its may not be able to manage successfully the company growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.
- Its operations are subject to environmental, health and safety laws and regulations.
- The company has certain contingent liabilities that have not been provided for in the Company's financials which if materialised, could adversely affect its financial condition.
- Changes in Government Regulation for the use of Plastic Products may affect its business operations, revenue and profitability adversely.
- The company is exposed to the risks of disruptions of information technology systems may adversely affect its business, financial condition, results of operations, cash flows and prospects.
- Its Promoters, Directors and Key Managerial Personnel may have interest in the Company, other than reimbursement of expenses incurred or remuneration.
- There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.
- Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Its Promoter and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- The company has not independently verified certain data in this Red Herring Prospectus.
- Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.
- Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of the company Equity shares may decline below the issue price.
- Sale of shares by its promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Its future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.
The Issue type of Malpani Pipes & Fittings Ltd is Book Building - SME.
The minimum application for shares of Malpani Pipes & Fittings Ltd is 1600.
The total shares issue of Malpani Pipes & Fittings Ltd is 2880000.
Iitial public issue of upto 28,80,000 equity shares of face value of
Rs. 10/- each of Malpani Pipes and Fittings Limited ("MPFL" or the company or the issuer) for cash at a price of Rs. 90 per equity share including a share premium of Rs. 80 per equity share (the issue price) aggregating to
Rs. 25.92 (the issue), of which 1,45,600 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 90 per equity share including a share premium of Rs. 80 per equity share aggregating to Rs. 1.31 crores will be reserved for subscription by market maker to the issue (the market maker reservation portion). The issue less the market maker reservation portion i.e., net issue of 27,34,400 equity shares of face value of Rs. 10/- each at a price of Rs. 90 per equity share aggregating to Rs. 24.61 crores is herein after referred to as the net issue. The issue and the net issue will constitute 26.72 % and 25.37% respectively of the post issue paid up equity share capital of the company.
The face value of the equity shares is Rs. 10 each. The floor price is 9 times of the face value.