AIK Pipes and Polymers share price debuts with 12.4% premium at ₹100 on BSE SME

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 was set at ₹89. AIK Pipes IPO lot size consisted of 1,600 shares. Investors could bid for a minimum of 1,600 shares and in multiples thereof. The issue price was 8.9 times of the face value of ₹10.

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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.

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

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.

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.

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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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.

Also Read: Esconet Technologies files DRHP with SEBI for NSE SME listing

AIK Pipes and Polymers IPO GMP today

AIK Pipes and Polymers Limited IPO GMP or grey market premium is +5, similar to the previous session. This indicates AIK Pipes and Polymers share price were trading at a premium of ₹5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of AIK Pipes and Polymers share price was indicated at ₹94 apiece, which is 5.62% higher than the IPO price of ₹89.

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

Also Read: Diffusion Engineers files draft papers with SEBI to raise funds via IPO

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.

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Published: 02 Jan 2024, 10:02 AM IST