The Shree Marutinandan Tubes IPO is scheduled to be open for subscription from January 12 to January 16, with a price band of ₹143 per share. The lot size is 1,000 shares, and investors can bid for a minimum of 1,000 shares and in multiples thereof. The issue price is set at 14.30 times the face value of ₹10.
Shree Marutinandan Tubes Ltd operates in the trading of black pipes, solar structural pipes, galvanized pipes, and electric resistance welding mild steel pipes, serving various industries such as agriculture, oil, public health, housing, irrigation, engineering, infrastructure, and industrial sectors.
The company’s draft red herring prospectus (DRHP) mentions listed peers like Swastik Tubes Ltd, Hi Tech Pipes Ltd, and APL Apollo Tubes Ltd.
The company’s financial performance indicates substantial growth, with a 3,257.07% increase in profit after tax (PAT) and a 0.09% increase in revenue between March 31, 2022, and March 31, 2023.
The IPO comprises a fresh issue of 10,00,000 equity shares with a face value of ₹10 each, and the proceeds will be utilized for public issue costs, general corporate purposes, and additional working capital requirements. The promoters of the company are Vikram Shivratan Sharma, Bharat Shivratan Sharma, and Kusumlata Shivratan Sharma.
As of day 1, the subscription status indicates that the IPO is oversubscribed by 5.18 times. Retail investors have shown significant interest, with their portion subscribed 6.69 times, and non-institutional buyers’ portion subscribed 3.67 times.
In the grey market, the Shree Marutinandan Tubes IPO is trading at a premium of ₹32, suggesting investor willingness to pay more than the issue price. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Shree Marutinandan Tubes shares is indicated at ₹175 apiece, representing a 22.38% increase over the IPO price of ₹143. The “grey market premium” reflects investors’ inclination to pay a premium for the shares, indicating a positive sentiment toward the company’s prospects.
