AIK Pipes And Polymers Limited IPO

AIK Pipes And Polymers Limited has announced its IPO, offering a fixed price issue of Rs 15.02 crores. This IPO comprises a fresh issue of 16.88 lakh shares, presenting an opportunity for investors to partake in the company’s growth.

Commencing its subscription on December 26, 2023, the AIK Pipes And Polymers IPO will remain open until December 28, 2023. The finalization of allotments is slated for Friday, December 29, 2023. The IPO is set to debut on BSE SME, with a tentative listing date fixed for Tuesday, January 2, 2024.

Priced at Rs. 89 per share, the AIK Pipes And Polymers IPO requires a minimum lot size of 1600 shares, necessitating a minimum investment of Rs. 142,400 for retail investors. High Net Worth Individuals (HNI) are required to invest in 2 lots (3,200 shares), amounting to Rs. 284,800.

Shreni Shares Limited, acting as the book running lead manager, and Skyline Financial Services Private Ltd, serving as the registrar, are pivotal entities overseeing this IPO. Notably, Shreni Shares stands as the market maker for AIK Pipes And Polymers IPO, ensuring liquidity in the market.

For comprehensive insights and detailed information about AIK Pipes And Polymers IPO, interested individuals can refer to the IPO’s RHP (Red Herring Prospectus), offering a deeper understanding of this investment opportunity.

Investors eyeing potential growth prospects within the pipes and polymers sector may find AIK Pipes And Polymers Limited IPO a compelling avenue for investment.

AIK Pipes And Polymers IPO: Key Highlights

IPO Dates: December 26, 2023, to December 28, 2023

Face Value: Rs. 10 per share

Price: Rs. 89 per share

Lot Size: 1600 Shares

Total Issue Size: 1,688,000 shares (aggregating up to Rs. 15.02 Cr)

Fresh Issue: 1,688,000 shares (aggregating up to Rs. 15.02 Cr)

Issue Type: Fixed Price Issue IPO

Listing At: BSE SME

Shareholding Pre-Issue: 4,675,000

Shareholding Post-Issue: 6,363,000

Market Maker Portion: 84,800 shares

The AIK Pipes And Polymers IPO, scheduled from December 26 to December 28, 2023, offers shares at a face value of Rs. 10 each, priced at Rs. 89 per share. The lot size is set at 1600 shares, constituting a total issue of 1,688,000 shares, amounting to Rs. 15.02 Cr.

This IPO follows a fixed price issue model and is slated to list on the BSE SME platform. Notably, the shareholding structure before the issue stands at 4,675,000, and post-issue, it will rise to 6,363,000 shares.

Additionally, a portion of 84,800 shares has been allocated for the market maker. This IPO represents an opportunity for investors to participate in the growth story of AIK Pipes And Polymers Limited, tapping into the pipes and polymers industry’s potential.

AIK Pipes And Polymers IPO Timeline

Event	Date
IPO Opens	December 26, 2023
IPO Closes	December 28, 2023
Basis of Allotment	December 29, 2023
Initiation of Refunds	January 1, 2024
Credit of Shares to Demat	January 1, 2024
Listing Date	January 2, 2024
Cut-off for UPI mandate confirmation	5 PM on December 28, 2023

The AIK Pipes And Polymers IPO presents a structured timeline for interested investors. Beginning on December 26, 2023, the IPO subscription window will remain open until December 28, 2023. Following this, the basis of allotment will be finalized by December 29, 2023.

For investors seeking refunds, the initiation will occur on Monday, January 1, 2024, coinciding with the credit of shares to demat accounts. Notably, the IPO is set to list on Tuesday, January 2, 2024, providing an early opportunity for trading.

Importantly, investors utilizing the UPI mandate for subscriptions are required to confirm their mandates by 5 PM on December 28, 2023, ensuring a smooth and timely process.

This timeline offers a clear schedule for investors to participate in the AIK Pipes And Polymers IPO, providing ample time for subscription, allotment, and subsequent trading activities.

AIK Pipes And Polymers IPO Lot Size Details

Investors interested in the AIK Pipes And Polymers IPO can participate by bidding for a minimum lot size of 1600 shares, with an option to bid in multiples thereof. Below are the specifics regarding the minimum and maximum investments for both retail and High Net Worth Individual (HNI) investors:

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹142,400
Retail (Max)	1	1600	₹142,400
HNI (Min)	2	3200	₹284,800

For retail investors, the minimum application size is 1 lot, comprising 1600 shares, with a minimum investment amount of Rs. 142,400. The maximum investment for retail investors remains the same, capped at Rs. 142,400 for 1 lot.

On the other hand, High Net Worth Individuals (HNI) are required to bid for a minimum of 2 lots, totaling 3200 shares, and the corresponding investment amount stands at Rs. 284,800.

This table delineates the lot sizes and investment criteria for both retail and HNI investors, allowing individuals to make informed decisions based on their investment preferences and financial capabilities in the AIK Pipes And Polymers IPO.

AIK Pipes And Polymers IPO Promoter Holding Details

Share Holding Pre Issue	100%
Share Holding Post Issue	73.47%

Prior to the issue, the entirety of AIK Pipes And Polymers Limited was held by the promoters, Mr. Imran Khan and Ms. Tahira Sheikh, constituting 100% ownership.

Following the IPO, the promoter holding in the company is expected to decrease to 73.47%. This reduction signifies the dilution of the promoter’s stake as a result of the issuance of new shares to the public.

The promoters, Mr. Imran Khan and Ms. Tahira Sheikh, retain a substantial stake even after the IPO, ensuring continued involvement and interest in the company’s growth and performance.

This adjustment in promoter holding highlights the infusion of public ownership into the company, potentially broadening its shareholder base while maintaining a significant promoter interest in AIK Pipes And Polymers Limited.

Key Performance Indicators (KPIs) for AIK Pipes And Polymers IPO

KPI	Values
P/E (x)	21.54
Post P/E (x)	13.88
Market Cap (₹ Cr.)	56.63
ROE	49.19%
ROCE	17.90%
Debt/Equity	0.96
EPS (Rs)	4.13
RoNW	33.50

P/E (Price/Earnings Ratio): The P/E ratio stands at 21.54, indicating the stock’s price relative to its earnings per share (EPS). A higher P/E ratio may suggest higher investor expectations for future growth.

Post P/E (x): The post-issue P/E ratio is 13.88, reflecting the adjusted P/E after the IPO. A lower post-issue P/E ratio might indicate a potentially attractive valuation for investors.

Market Cap (Rs. Cr.): The market capitalization of AIK Pipes And Polymers stands at Rs. 56.63 Cr., representing the total market value of the company’s outstanding shares.

ROE (Return on Equity): The ROE is 49.19%, showcasing the company’s ability to generate profits from shareholders’ equity, indicating strong performance.

ROCE (Return on Capital Employed): The ROCE is 17.90%, signifying the efficiency in utilizing capital to generate profits, a critical indicator of operational efficiency.

Debt/Equity: The Debt/Equity ratio is 0.96, indicating the proportion of debt relative to shareholders’ equity. A ratio below 1 suggests a balanced or favorable debt structure.

EPS (Earnings Per Share): The EPS stands at Rs. 4.13, signifying the company’s profitability per outstanding share.

RoNW (Return on Net Worth): RoNW is 33.50%, providing insight into the company’s ability to generate profits based on its net worth.

These KPIs offer valuable insights into AIK Pipes And Polymers’ financial performance, indicating profitability, leverage, and efficiency metrics, aiding investors in assessing the company’s financial health and potential for growth.

Grey Market Premium (GMP) AIK Pipes And Polymers IPO

The latest Grey Market Premium (GMP) for AIK Pipes And Polymers SME IPO as of December 27th, 2023, stands at Rs. 6, indicating a positive upward trend compared to previous sessions where the GMP remained unchanged at Rs. 0. This upward trend suggests growing investor interest and expectations of a strong listing for the IPO.

Considering the IPO price band of Rs. 89.00, coupled with today’s GMP of Rs. 6, the estimated listing price is anticipated to be around Rs. 95. This estimated listing price reflects a potential gain of 6.74% from the IPO price, indicating a positive sentiment among investors.

It’s noteworthy that the Retail Subject to Sauda stands at Rs. 7300, showcasing substantial retail interest in the IPO.

Reviewing the day-wise GMP trend over the past sessions, the GMP remained at Rs. 0 without any changes until today’s surge to Rs. 6. This pattern signifies a recent shift in investor sentiment, possibly indicating a more optimistic outlook regarding AIK Pipes And Polymers SME IPO’s potential listing performance.

Investors are advised to stay updated with daily GMP fluctuations as they can provide valuable insights into market sentiment and potential listing prices, aiding in informed investment decisions.

AIK Pipes And Polymers Day-wise IPO GMP Trend

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
27-12-2023	89.00	₹6  Up	7300	₹95 (6.74%)	27-Dec-2023 13:25
26-12-2023 Open	89.00	₹0 NO Change	—	₹89 (0%)	26-Dec-2023 17:12
25-12-2023	89.00	₹0  NO Change	—	₹89 (0%)	25-Dec-2023 23:30
24-12-2023	89.00	₹0  NO Change	—	₹89 (0%)	24-Dec-2023 23:24
23-12-2023	89.00	₹0  NO Change	—	₹89 (0%)	23-Dec-2023 23:29
22-12-2023	89.00	₹0  NO Change	—	₹89 (0%)	22-Dec-2023 23:30
21-12-2023	89.00	₹0  NO Change	—	₹89 (0%)	21-Dec-2023 23:28
20-12-2023	89.00	₹0  NO Change	—	₹89 (0%)	20-Dec-2023 23:25

IPO grey market premium (GMP)

The Grey Market Premium (GMP) for an IPO serves as an unofficial indication of market sentiment and potential listing performance. It operates in an unregulated environment and signifies the price at which an IPO is traded before its official listing, providing insights into potential gains or losses on the listing day.

A positive GMP suggests that the IPO might debut at a premium compared to its issue price, indicating potential profits for early investors. Conversely, a negative GMP implies a potential discount at listing, possibly leading to initial losses for investors.

However, it’s crucial to acknowledge that IPO GMP is highly volatile and speculative. Relying solely on GMP for investment decisions can pose significant risks. Investors should consider various factors, including the company’s fundamentals, market conditions, industry trends, and expert advice, before making investment choices.

Therefore, while the GMP offers insights into market expectations, it’s essential for investors to conduct thorough research, analyze diverse factors, and weigh the risks before deciding whether to invest in AIK Pipes And Polymers SME IPO or not. Making informed investment decisions reduces reliance on speculative indicators and ensures a more comprehensive assessment of potential risks and rewards.

AIK Pipes And Polymers Limited: Innovating Infrastructure Solutions

Established in 2017, AIK Pipes and Polymers Limited stands as a premier manufacturer in the infrastructure sector, specializing in pipes, HDPE fittings, MDPE pipes, and PPR pipes. These products cater to vital domains like water distribution, gas transmission, sewerage systems, and telecommunications, meeting diverse industry needs.

Operational across three leased manufacturing facilities in Jaipur, Rajasthan, the company thrives on a competent team of engineers, technicians, and operators. Their expertise is pivotal in ensuring top-notch production and stringent quality control measures, essential for maintaining superior product standards.

The company prides itself on securing approvals from esteemed authorities such as the Bureau of Indian Standards (BIS), Central Institute of Petrochemicals Engineering and Technology, Indian Oil Corporation, and GAIL. This accreditation underscores AIK Pipes And Polymers’ commitment to adhering to industry benchmarks and delivering certified, quality products.

Registered with the Government of Rajasthan as a reputable supplier in water supply and sewerage management, AIK Pipes demonstrates dedication to essential infrastructure development.

Financially robust, the company reported a total income of Rs. 1400.42 lakhs as of June 30, 2023, highlighting its revenue generation capacity. Additionally, with an adjusted profit after tax of Rs. 101.97 lakhs during the same period, AIK Pipes And Polymers showcases sound financial health and operational efficiency.

Accredited with ISO 9001:2015 certification, the company upholds stringent quality standards. With a workforce of 23 employees as of June 30, 2023, AIK Pipes And Polymers Limited continues to position itself as a reliable and efficient player in the infrastructure sector, committed to innovation, quality, and regulatory compliance.

AIK Pipes And Polymers Limited: Financial Performance

Period Ended	30 Jun 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,638.56	1,450.50	968.13	739.75
Revenue	1,400.42	3,077.92	2,090.84	1,020.54
Profit After Tax	101.97	187.74	87.90	26.99
Net Worth	662.47	560.50	202.76	84.86
Reserves and Surplus	194.97	433.00	132.76	44.86
Total Borrowing	429.91	538.09	432.17	382.88

The financial trajectory of AIK Pipes And Polymers Limited underscores robust growth and stability, exemplifying the company’s upward trajectory.

Between March 31, 2022, and March 31, 2023, the company witnessed significant financial strides. Revenue surged by an impressive 47.21%, escalating from Rs. 2,090.84 lakhs to Rs. 3,077.92 lakhs. Simultaneously, the Profit After Tax (PAT) soared by an impressive 113.58%, rising from Rs. 87.90 lakhs to Rs. 187.74 lakhs, demonstrating substantial profitability.

Examining the period ending June 30, 2023, AIK Pipes And Polymers’ financial prowess continued its ascent. The company reported total assets of Rs. 1,638.56 lakhs, marking a steady increase from Rs. 1,450.50 lakhs in the previous quarter. Such growth highlights the company’s expanding asset base, indicative of its operational expansion and resource utilization.

Moreover, the Net Worth surged to Rs. 662.47 lakhs from Rs. 560.50 lakhs, and the Reserves and Surplus swelled to Rs. 194.97 lakhs from Rs. 132.76 lakhs, portraying a robust financial standing and strengthened equity base.

However, with Total Borrowings standing at Rs. 429.91 lakhs as of June 30, 2023, compared to Rs. 432.17 lakhs in the preceding financial period, the company displayed a slight decline in borrowing, potentially indicating prudent financial management.

AIK Pipes And Polymers Limited’s consistent growth in revenue, profitability, and asset base underlines its financial stability, resilience, and strategic financial management, positioning it favorably in the infrastructure sector.

AIK Pipes And Polymers IPO Objectives

The Net Proceeds from the Fresh Issue of AIK Pipes And Polymers IPO are designated to fulfill various strategic objectives aimed at bolstering the company’s operational capacity and growth trajectory:

Meeting Working Capital Requirement: A significant portion of the funds raised from the IPO will be allocated to meet the company’s ongoing working capital needs. This infusion of capital ensures a smooth operational cycle, enabling the company to manage day-to-day expenses efficiently and maintain seamless business operations.

Capital Expenditure: A portion of the proceeds will be channeled towards capital expenditure initiatives. This strategic investment is aimed at enhancing and expanding the company’s infrastructure, technology, and manufacturing capabilities. Such investments are pivotal in scaling up production capacity and improving operational efficiency.

General Corporate Purpose: Additionally, part of the proceeds will be utilized for general corporate purposes. This encompasses a broad spectrum of routine operational requirements, potential strategic initiatives, and other activities essential for the regular functioning and growth of the company.

By delineating these clear objectives for the utilization of IPO funds, AIK Pipes And Polymers Limited aims to fortify its operational foundation, augment infrastructure capabilities, and ensure sustained growth in the competitive infrastructure industry. These strategic allocations aim to maximize value for shareholders and stakeholders while further strengthening the company’s position in the market.