AIK Pipes and Polymers, after concluding its initial public offering (IPO) on Thursday, witnessed a positive listing on the BSE SME segment. The share price debuted at ₹100 per share, reflecting a premium of 12.36% over the issue price of ₹89. The IPO subscription, which opened on December 26 and closed on December 28, featured a price band of ₹89 per share.
### IPO Details:
– The IPO was entirely a fresh issue of 1,688,000 equity shares, with no offer for sale (OFS) component.
– The issue size amounted to ₹15.02 crore.
– The lot size for AIK Pipes IPO was 1,600 shares, with investors allowed to bid in multiples thereof.
– The issue price was set at ₹89, equivalent to 8.9 times the face value of ₹10.
### Usage of Proceeds:
The net proceeds generated from the IPO will be allocated for various purposes, including general corporate objectives, capital expenditure, and working capital requirements.
### Promoters and Peers:
Tahira Sheikh and Imran Khan serve as the promoters of AIK Pipes and Polymers. Notably, Rex Pipes & Cables Industries Ltd (P/E of 16.67) and Prince Pipes and Fittings Ltd (P/E of 64.75) are listed peers of AIK Pipes, according to the red herring prospectus (RHP).
### Financial Performance:
Between the fiscal years ending on March 31, 2023, and March 31, 2022, AIK Pipes And Polymers Limited recorded a significant increase in revenue by 47.21% and profit after tax (PAT) by 113.58%.
### Subscription Status:
The IPO witnessed strong investor interest, with an overall subscription of 43.57 times on the final day of bidding. The retail portion was oversubscribed by 30.93 times, while the Non-Institutional Investor (NII) category saw a subscription of 52.17 times as of December 27.
### Grey Market Premium (GMP):
The Grey Market Premium for AIK Pipes and Polymers Limited IPO stands at +5, indicating a premium of ₹5 over the issue price. The estimated listing price, considering the upper end of the IPO price band and the GMP, suggests a listing at ₹94 per share, reflecting a 5.62% premium over the IPO price of ₹89.
The ‘Grey Market Premium’ is a measure of investor sentiment, reflecting their willingness to pay more than the IPO issue price in the unofficial market. Overall, the positive listing and strong subscription numbers suggest a favorable market reception for AIK Pipes and Polymers Limited.
