Shree Marutinandan Tubes Limited IPO

Shree Marutinandan Tubes is set to launch its Initial Public Offering (IPO) worth Rs 14.30 crores, offering 10 lakh fresh shares at a fixed price. The subscription for this IPO commences on January 12, 2024, concluding on January 16, 2024, with the allotment expected to be finalized by January 17, 2024. Anticipated to list on the BSE SME on January 19, 2024, at Rs. 143 per share, it presents an attractive prospect for investors seeking promising ventures.

Investors need a minimum lot size of 1000 shares, translating to an initial investment of Rs. 143,000. For High Net Worth Individuals (HNI), the minimum investment is 2 lots (2,000 shares), amounting to Rs. 286,000, thus enabling a broader investment base.

Swastika Investmart Ltd, the book running lead manager, spearheads the IPO, while Bigshare Services Pvt Ltd serves as the registrar. Notably, Swastika Investmart will also function as the market maker for Shree Marutinandan Tubes IPO.

For detailed insights, interested parties can refer to Shree Marutinandan Tubes IPO RHP (Red Herring Prospectus), a comprehensive resource offering in-depth information about this upcoming IPO, including financial details, business operations, and future prospects.

With its fixed price, manageable lot size, and Swastika Investmart’s involvement, the Shree Marutinandan Tubes IPO presents an alluring investment opportunity for both retail and HNI investors eyeing potential growth in the market.

Shree Marutinandan Tubes IPO Details

Shree Marutinandan Tubes is gearing up for its Initial Public Offering (IPO), scheduled from January 12 to January 16, 2024. This fixed price issue IPO offers shares at Rs. 143 per share with a face value of Rs. 10 per share. With a lot size of 1000 shares, the total issue size stands at 1,000,000 shares, aggregating to Rs. 14.30 crores.

Notably, the IPO comprises an entirely fresh issue of 1,000,000 shares, maintaining the issue type as a Fixed Price Issue IPO. The listing will occur on the BSE SME platform, marking an important milestone for the company’s growth trajectory.

Before the issue, the shareholding was at 2,460,000 shares, and post-issue, it will increase to 3,460,000 shares. Additionally, a market maker portion of 50,000 shares will further bolster the IPO’s market presence and stability.

This IPO offers investors a chance to participate in the company’s growth story, allowing them to acquire shares at a set price, presenting an opportunity for potential capital appreciation.

Shree Marutinandan Tubes IPO Tentative Schedule

Investors eyeing the Shree Marutinandan Tubes IPO should mark their calendars for the pivotal dates outlined in its tentative schedule:

IPO Opens: Friday, January 12, 2024

IPO Closes: Tuesday, January 16, 2024

Basis of Allotment: Wednesday, January 17, 2024

Initiation of Refunds: Thursday, January 18, 2024

Credit of Shares to Demat: Thursday, January 18, 2024

Listing Date: Friday, January 19, 2024

Cut-off Time for UPI Mandate Confirmation: 5 PM on January 16, 2024

During this period, interested investors can subscribe to the IPO from January 12 to January 16, 2024, ensuring timely completion of UPI mandate confirmation by the specified cut-off time on January 16, 2024.

The basis of allotment for the IPO will be finalized on January 17, 2024, followed by the initiation of refunds and the credit of shares to investors’ Demat accounts on January 18, 2024. Finally, the much-anticipated listing of Shree Marutinandan Tubes on the BSE SME platform is scheduled for January 19, 2024.

Shree Marutinandan Tubes IPO Lot Size

For Retail investors, the minimum bidding requirement stands at 1 lot, equivalent to 1000 shares, with a minimum investment of Rs. 143,000. The maximum bid for Retail investors also remains the same at 1 lot, making the investment amount consistent at Rs. 143,000.

High Net Worth Individuals (HNI) have a slightly different criterion. The minimum bid requirement for HNIs is 2 lots, totaling 2000 shares, necessitating a minimum investment of Rs. 286,000.

Shree Marutinandan Tubes IPO Promoter Holding

The Shree Marutinandan Tubes IPO introduces an intriguing shift in promoter holding structure, impacting the company’s ownership dynamics. The trio comprising Mr. Vikram Shivratan Sharma, Mr. Bharat Shivratan Sharma, and Mrs. Kusumlata Shivratan Sharma stands as the company’s promoters, heralding this anticipated IPO.

Pre-Issue Promoter Stake : Before the IPO’s commencement, the promoters collectively held a significant 82.00% stake in the company. This substantial ownership showcased their strong vested interest and influence within the organization, depicting a concentrated control over decision-making and company strategies.

Post-Issue Promoter Stake : Upon the IPO’s conclusion and issuance of fresh shares to the public, there will be a notable reduction in the promoters’ shareholding. Post-issue, the promoter holding is set to decrease to 58.30%, signaling a strategic move to broaden the company’s ownership base. This shift aims to invite external investors, ensuring a diversified ownership structure and potentially infusing new ideas and perspectives into the company’s governance.

This alteration in the promoter holding percentage reflects the company’s intent to enhance transparency, foster investor confidence, and create a more open and inclusive corporate environment.

Shree Marutinandan Tubes IPO Key Performance Indicator

Shree Marutinandan Tubes’ upcoming IPO presents compelling Key Performance Indicators (KPIs) that shed light on its financial health and potential growth prospects.

Market Capitalization: The IPO’s market capitalization stands at a notable Rs. 49.48 Cr, signaling its valuation and position in the market.

Return on Equity (ROE): Impressive at 120.91%, indicating robust returns generated on shareholders’ equity, showcasing efficient utilization of invested capital.

Return on Capital Employed (ROCE): Reflects a healthy 78.52%, indicating the efficiency of capital allocation in generating profits.

Debt/Equity Ratio: Stands at 2.68, illustrating the company’s financial leverage, where a higher ratio suggests higher financial risk.

Return on Net Worth (RoNW): An encouraging 75.36%, showcasing the profitability concerning shareholders’ investments.

Price-to-Book Value (P/BV): Valuation stands at 1.09, suggesting a slight premium or discount concerning the company’s book value per share.

Shree Marutinandan Tubes IPO Grey Market Premium (GMP)

Shree Marutinandan Tubes SME IPO, with the last Grey Market Premium (GMP) standing at Rs. 32 as of January 10th, 2024, 02:24 PM. The IPO, priced at Rs. 143.00, holds promising potential with an estimated listing price of Rs. 175, indicating a potential gain of 22.38% per share.

Retail investors are actively participating, with the Retail Subject to Sauda reaching Rs. 24300. The GMP trend has been positive, showing an upward trajectory from Rs. 0 to the current Rs. 32 in just two sessions. It’s essential to stay updated as the GMP direction evolves, ensuring informed investment decisions.

Shree Marutinandan Tubes Day-wise IPO GMP Trend

Shree Marutinandan Tubes Limited Overview

Established in 2013, Shree Marutinandan Tubes Limited has emerged as a key player in the industry, specializing in the production of Galvanized Tubes and Electrical Resistance Welded Mild Steel Tubes (ERW MS). Their diverse product line spans various specifications and sizes, catering to sectors such as Agriculture, Oil, Solar Energy, Healthcare, Housing, Irrigation, and Engineering.

Notably, the company adopts a unique approach by partnering with Shree Kamdhenu Machinery Private Limited, a reputable contract manufacturing entity. This collaboration ensures the precise manufacturing of products according to customer specifications, reflecting Shree Marutinandan Tubes Limited’s commitment to quality and customization.

Beyond tubes, the company extends its product offerings to include a range of agricultural equipment. From potato harvesters and grading machines to hoppers, peanut destoners, tube winders, and rotavators, Shree Marutinandan Tubes Limited contributes significantly to the agricultural sector.

Despite not engaging in equipment manufacturing internally, the company’s strategic collaboration allows them to focus on their core competency — delivering high-quality tubes and agricultural machinery. As of December 25, 2023, Shree Marutinandan Tubes Limited boasts a dedicated team of 14 employees, contributing to its continued growth and success in the market. Keep an eye on this dynamic company as it navigates the ever-evolving landscape of manufacturing and tube production.

Shree Marutinandan Tubes Limited Steady Financial Growth Signals Prosperity

In a notable financial resurgence, Shree Marutinandan Tubes Limited has showcased impressive figures in its restated financial information, underscoring a robust performance between March 31, 2022, and March 31, 2023.

Revenue Boost: The company experienced a marginal yet significant 0.09% increase in revenue, climbing from Rs. 4,718.49 lakhs in March 2022 to Rs. 4,722.58 lakhs by March 31, 2023. This uptick reflects a steady growth trajectory.

Profit After Tax (PAT) Surge: Shree Marutinandan Tubes Limited witnessed a remarkable surge in Profit After Tax, with a staggering 3257.07% rise. The PAT soared from Rs. 6.01 lakhs in March 2022 to Rs. 201.76 lakhs by March 31, 2023, showcasing the company’s financial resilience and strategic acumen.

This financial resurgence positions Shree Marutinandan Tubes Limited as a robust contender in the market, reflecting not only in increased revenue but also in substantial profit growth. The company’s strengthened financial position and prudent management underscore its potential for sustained success in the future. Investors should closely monitor these positive trends as they consider their investment strategies.

Shree Marutinandan Tubes IPO Focused Utilization of Proceeds Objectives

The Shree Marutinandan Tubes IPO aims to deploy the proceeds from the Fresh Issue strategically, aligning with specific objectives to enhance the company’s operational capabilities and financial standing. The designated purposes for utilizing the funds are as follows:

Meeting Incremental Working Capital Requirements: The primary focus is on fortifying the company’s day-to-day operations by addressing incremental working capital needs. This allocation emphasizes ensuring a seamless and efficient workflow, supporting production, and meeting any additional short-term financial demands that may arise.

General Corporate Purpose: A portion of the IPO proceeds will be allocated towards general corporate purposes. This broad category encompasses diverse aspects such as business expansion, technology adoption, and overall strengthening of the company’s corporate framework. The infusion of funds into general corporate purposes contributes to long-term sustainability and growth initiatives.

Meeting Public Issue Expenses: To facilitate a smooth and successful IPO launch, a segment of the funds will be utilized to cover the expenses associated with the public issue. This includes costs related to legal compliance, marketing, underwriting, and other essential aspects integral to executing a public offering.

This transparent allocation of funds underscores Shree Marutinandan Tubes’ commitment to prudent financial management and strategic growth. Investors can anticipate that the IPO proceeds will be instrumental in enhancing the company’s financial resilience, operational efficiency, and overall market positioning. As always, prospective investors are encouraged to review these objectives closely as part of their due diligence before making informed investment decisions.