Malpani Pipes & Fittings Limited is a dynamic player in the plastic piping industry. The company is gearing up for its Initial Public Offering (IPO). With a focus on sustainability, innovative product offerings, and strategic market presence, the company has carved a niche in Northern India and beyond. This blog covers Malpani Pipes’ business overview, financial performance, IPO objectives, and the opportunities and risks associated with its operations.
Company Overview
Since its foundation in 2017, Malpani Pipes has grown substantially by harnessing its world-class manufacturing plant with a production capacity of 11,500 M.T.P.A. The company caters to government projects, agricultural markets, and retail customers across India.
Promoters and Their Experience
The company is promoted by:
Rohit Malpani – Managing Director overseeing manufacturing and procurement.
Harsh Malpani – Whole-Time Director and CFO, responsible for finance and accounts.
Mohit Malpani – Whole-time director focusing on marketing and distribution.
Together, the promoters bring wide experience in business strategy, operations, and finance, steering the company towards growth.
Sector Overview
The Indian piping industry is an important cog in the nation’s infrastructure and agriculture sectors. Its applications span across:
- Agriculture: Pipes are necessary for irrigation and water supply systems.
- Urban Infrastructure: Demands for potable water and sanitation are pushing the urban infrastructure market.
- Government Support: Initiatives like the Jal Jeevan Mission (JJM) and subsidies for micro-irrigation systems are supporting the growth of the industry.
Malpani Pipes, being one of the multi-product companies, is strategically located in a way that can capitalize on these opportunities.
Objectives of the IPO
The net proceeds from the IPO are expected to be utilized for:
- Expansion of manufacturing capacity.
- Diversification of product offerings.
- Strengthening working capital for improved operational efficiency.
- Repayment of specific borrowings.
These steps will help the company improve its product capability and financial stability.
Financial Performance of Malpani Pipes Ltd
Here’s an overview of Malpani Pipes’s financial performance.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Revenue from Operations (Cr.) | 141.16 | 82.57 | 34.94 |
| % Growth | 70.96% | 136.91% | – |
| EBITDA (Cr.) | 13.29 | 4.41 | 1.89 |
| Profit After Tax (in Cr.) | 7.4 | 2.08 | 0.89 |
| Debt to Equity Ratio | 2.04 | 3.36 | 2.39 |
| PAT Margin (%) | 5.25 | 2.52 | 2.55 |
| Return on Equity (%) | 71.52 | 43.35 | 26.64 |
State-Wise Revenue Distribution
The company’s revenue is primarily concentrated in Northern India. Here’s the state-wise bifurcation (₹ in Lakhs):
| State | 2023-24 | % | 2022-23 | % | 2022-21 | % |
| Madhya Pradesh | 7,359.39 | 52.22 | 4,022.09 | 48.85 | 1,085.68 | 31.19 |
| Maharashtra | 3,674.83 | 26.08 | 476.24 | 5.78 | 256.60 | 7.37 |
| Rajasthan | 898.18 | 6.37 | 2,880.35 | 34.98 | 1,052.76 | 30.24 |
| Chhattisgarh | 1,227.03 | 8.71 | 443.09 | 5.38 | 319.88 | 9.19 |
| Others | 933.57 | 6.62 | 411.90 | 5.01 | 766.33 | 22.01 |
While the majority of revenue is derived from Northern India, the company has also expanded its presence in Maharashtra.
Comparison with Peers
| Company | Revenue (₹ Lakhs) | EBITDA Margin (%) | Debt-to-Equity Ratio | ROE % |
| Malpani Pipes & Fittings | 14,093.00 | 9.41 | 2.04 | 71.52% |
| Aik Pipes & Polymers Ltd. | 3,737.48 | 12.52 | 0.23 | 24.79 |
| Kriti Industries (India) | 87,000.20 | 7.22 | 0.89 | 15.00 |
Risks
- Geographical concentration: Over 65% of revenues come from Northern India.
- Raw Material Volatility: Being dependent on crude oil-based polymers means the price could be volatile.
- High Leverage: A debt-to-equity ratio of 2.04 signals financial risk.
IPO Details
| IPO Name | Malpani Pipes IPO |
| IPO Open Date | January 29, 2025 |
| IPO Close Date | January 31, 2025 |
| Price Band | ₹85 to ₹90 per share |
| Lot Size | 1,600 Shares per lot |
| Issue Size | 25.92 crores |
| Basis of Allotment | February 3, 2025 |
| Listing Date | February 5, 2025 |
| Retail Investors Min lot & Amount | 1 lot & ₹1,44,000 |
| Retail Investors Max lot & Amount | 1 lot & ₹1,44,000 |
| HNI Min Lot & Amount | 2 lots & ₹2,88,000 |
| Retail Investors Quota | 35% |
| HNI/NII Quota | 15% |
| Qualified Institutional Buyers Quota | 50% |
Conclusion
Malpani Pipes & Fittings Limited has shown strong growth and market adaptability with the help of good management and a favorable sectoral landscape. The IPO offers a promising opportunity for investors, but potential risks warrant cautious optimism. Overall, Malpani Pipes is well-positioned to leverage its strengths and expand its footprint in the growing Indian piping industry.
What is the GMP of Malpani Pipes IPO?
Malpani Pipes SME IPO’s latest Grey Market Premium (GMP) stands at ₹10 as of January 30, 2025.. Based on the price band of ₹90.00, the estimated listing price is ₹100 (cap price + today’s GMP), reflecting a projected gain of 11.11% per share.
What is the Subscription Status of Malpani Pipes IPO?
The IPO has opened for subscription today, dated January 30, 2025. The IPO has been subscribed 50.29 times in the retail category, 0.88 times in QIB, and 39.76 times in the NII category.
How to check the allotment status of Malpani Pipes IPO?
The allotment status can be checked on the official website of the registrar Bigshare Services Pvt Ltd.
What is the Allotment date for Malpani Pipes IPO?
The allotment date for Malpani Pipes IPO is February 3, 2025.
What is the listing date for Malpani Pipes IPO?
The listing date of Malpani Pipes is February 4, 2025.
Important
For Current & Upcoming IPOs check the following link