AIK Pipes is set to launch its Initial Public Offering (IPO) with a fixed price band of ₹89 per equity share, having a face value of ₹10 each. The IPO is scheduled to open for subscription on December 26, 2023, and will close on December 28, 2023. The company aims to finalize the allotment on December 29, 2023, with expectations to list on the BSE SME on January 2, 2024.
The IPO comprises an entirely fresh issue of 16.88 lakh shares, amounting to ₹15.02 crore. The minimum lot size for application is 1,600 shares, with subsequent multiples of 1,600 equity shares. Shreni Shares Limited is the book-running lead manager, and Skyline Financial Services Private Ltd is the registrar for the issue, as stated in the company’s RHP.
Out of the total equity shares, 84,800 shares (₹75.47 lakh) will be reserved for subscription by the Market Maker, while the net issue to the public is 16.03 lakh shares, aggregating to ₹14.27 crore. Post-issue, the company’s equity share capital will see a 26.53% and 25.20% increase in the issue and net issue, respectively.
AIK Pipes plans to utilize the net proceeds from the IPO for capital expenditure, meeting working capital requirements, and covering general corporate expenses.
Specializing in manufacturing HDPE pipes, HDPE fittings, MDPE pipes, and PPR pipes, AIK Pipes and Polymers cater to sectors such as water distribution, gas transmission, sewerage systems, and telecom. As of March 31, 2023, the company’s net worth was ₹5.61 crore, with revenue from operations at ₹30.48 crore for FY23 and a profit of ₹1.9 crore for the same period.
