AIK Pipes And Polymers IPO: Check GMP, review, subscription status on day 3, other key details to know

AIK Pipes And Polymers IPO opened for subscription on Tuesday, December 26, and closed on Thursday, December 28. AIK Pipes And Polymers IPO price band is set at ₹89. AIK Pipes IPO lot size consists of 1,600 shares. Investors can bid for a minimum of 1,600 shares and in multiples thereof. The issue price is 8.9 times of the face value of ₹10.

AIK Pipes and Polymers Limited makes PPR, MDPE, HDPE, and water distribution pipes as well as fittings for sewerage systems, telecommunication and gas transmission. The business leases three of its manufacturing facilities, which are located in Jaipur, Rajasthan.

Between the fiscal year ending on March 31, 2023, and March 31, 2022, AIK Pipes And Polymers Limited generated a 47.21% increase in revenue and a 113.58% increase in profit after tax (PAT).

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Tahira Sheikh and Imran Khan are the company's promoters. As per the company's red herring prospectus (RHP), Rex Pipes & Cables Industries Ltd (with a P/E of 16.67), and Prince Pipes and Fittings Ltd (with a P/E of 64.75) are its listed peers.

AIK Pipes And Polymers IPO details

AIK Pipes And Polymers IPO, which is worth ₹15.02 crore, is completely a fresh issue of 1,688,000 equity share; there is no offer for sale (OFS) component, according to RHP.

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

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

Tentatively, AIK Pipes And Polymers IPO basis of allotment of shares will be finalised on Friday, December 29 and the company will initiate refunds on Monday, January 1, while the shares will be credited to the demat account of allottees on the same day itself. AIK Pipes And Polymers shares are likely to be listed on BSE SME Tuesday, January 2.

AIK Pipes And Polymers IPO subscription status

AIK Pipes and Polymers IPO was subscribed 43.57 times on the third and final of bidding. The retail portion was booked 30.93 times and 52.17 times in the NII category by December 27. The issue received 6,98,56,000 bids on the final day of bidding, according to data on chittorgarh.com.

The subscription status of the SME IPO was 1.19 times on day 1 and 4.72 times on day 2. On the first day, the issue received positive response from retail investors who's portion set was subscribed two times, and non-institutional buyers who's portion was subscribed 37 per cent, according to data on chittorgarh.com..

AIK Pipes And Polymers IPO GMP today

AIK Pipes IPO GMP today or grey market premium was ₹9, which meant shares were trading at their issue price of ₹98 with ₹9 premium in the grey market according to investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

AIK Pipes And Polymers IPO review

“The company is in the business of manufacturing HDPE/MDPE pipes. It marked constant growth in its top and bottom lines for the reported periods, but the margins posted raises eyebrows. Amidst rising competition, sustaining such margins raise concerns. Based on FY24 annualized super earnings, the issue appears fully priced. The small paid-up equity capital post-IPO indicates longer gestation period for migration to mainboard. Well-informed investors may park funds for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.