AIK Pipes And Polymers IPO: Check GMP, verification, second day subscription status and other important details

The AIK Pipes And Polymers IPO opened for subscription on Tuesday, December 26th and closes on Thursday, December 28th. The price range for the IPO of AIK Pipes And Polymers is at ₹89. The lot size of AIK Pipes IPO consists of 1,600 shares. Investors can bid for at least 1,600 shares and multiples thereof. The issue price is 8.9 times the nominal value ₹10.

AIK Pipes and Polymers Limited manufactures PPR, MDPE, HDPE and water distribution pipes and fittings for sewage systems, telecommunications and gas transmission. The company leases three of its manufacturing facilities located in Jaipur, Rajasthan.

Between the financial year ended March 31, 2023 and March 31, 2022, AIK Pipes And Polymers Limited achieved an increase in revenue of 47.21% and an increase in profit after tax (PAT) of 113.58%.

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Tahira Sheikh and Imran Khan are the promoters of the company. According to the company's Red Herring Prospectus (RHP), its listed competitors are Rex Pipes & Cables Industries Ltd (with a P/E ratio of 16.67) and Prince Pipes and Fittings Ltd (with a P/E ratio of 64.75).

AIK Pipes And Polymers IPO details

AIK Pipes And Polymers' IPO is worth it ₹15.02 crore, is an all-new issue of 1,688,000 shares; According to RHP, there is no OFS (Offer for Sale) component.

The net proceeds from the new issue will be used for the following purposes: general corporate purposes, capital expenditures and working capital requirements.

The lead book manager of AIK Pipes and Polymers IPO is Shreni Shares Limited and the registrar is Skyline Financial Services Private Ltd. Shreni Shares is the market maker for the IPO of AIK Pipes and Polymers.

Tentatively, the share allotment basis for the IPO of AIK Pipes And Polymers will be finalized on Friday, December 29 and the company will issue refunds on Monday, January 1 while the shares will be deposited in the demat account of the same day be credited to those entitled to allotment. AIK Pipes And Polymers shares are expected to list on the BSE SME on Tuesday, January 2.

AIK Pipes And Polymers IPO Subscription Status

The IPO of AIK Pipes and Polymers was subscribed 4.72 times on the second day of bidding. The retail share was booked 6.39 times and 1.05 times in the NII category till December 27. According to chittorgarh.com, the issue received 75,64,800 bids on the second day of bidding.

The subscription status of the SME IPO was 1.19 on the first day. The issue received positive response from retail investors whose share was subscribed twice and non-institutional buyers whose share was subscribed 37%, as per data on chittorgarh.com.

According to chittorgarh.com, the company received offers for 19,02,400 shares while 16,03,200 shares were offered on the first day.

AIK Pipes And Polymers IPO GMP today

AIK Pipes IPO GMP today or gray market premium was ₹6, which meant the shares traded at their issue price of ₹95 with ₹6 premium on the gray market according to investorgain.com.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

Valuation of AIK Pipes And Polymers IPO

“The company is engaged in the production of HDPE/MDPE pipes. The company has seen consistent growth in its top and bottom lines over the reporting periods, but reported margins are causing some excitement. With increasing competition, maintaining these margins is a concern. Based on annualized super profits for FY24, the issue appears to be fully priced in. The low equity paid in after the IPO indicates a longer gestation period for the migration to the mainboard. “Well-informed investors can invest funds for medium to long-term returns,” said Dilip Davda, Editor, Chittorgarh.

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.

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