Shree Marutinandan Tubes Limited is set to launch its Initial Public Offering (IPO) as a fixed-price issue, with an aim to raise Rs 14.30 crores. The IPO consists entirely of a fresh issue of 10 lakh shares.
**Key Details of Shree Marutinandan Tubes IPO:**
– **Issue Size:** The IPO is a fixed-price issue with a total size of Rs 14.30 crores, comprising a fresh issue of 10 lakh shares.
– **Price:** The IPO price per share is fixed at ₹143.
– **Lot Size:** The minimum lot size for an application is 1000 shares.
– **Minimum Investment:** Retail investors need a minimum investment of ₹143,000, while HNI investors need to invest in 2 lots (2000 shares), amounting to ₹286,000.
– **Book Running Lead Manager:** Swastika Investmart Ltd is the book running lead manager.
– **Registrar:** Bigshare Services Pvt Ltd is the registrar for the issue.
– **Market Maker:** Swastika Investmart is the market maker for the Shree Marutinandan Tubes IPO.
– **Listing Date:** The IPO is expected to list on BSE SME on Friday, January 19, 2024.
**IPO Timeline (Tentative Schedule):**
– IPO opens on January 12, 2024, and closes on January 16, 2024.
– Basis of Allotment: Wednesday, January 17, 2024.
– Initiation of Refunds: Thursday, January 18, 2024.
– Credit of Shares to Demat: Thursday, January 18, 2024.
– Listing Date: Friday, January 19, 2024.
– Cut-off time for UPI mandate confirmation: 5 PM on January 16, 2024.
**Promoter Holding:**
– The promoters of the company are Mr. Vikram Shivratan Sharma, Mr. Bharat Shivratan Sharma, and Mrs. Kusumlata Shivratan Sharma.
– Shareholding pre-issue: 82.00%
– Shareholding post-issue: 58.30%
**Reservation Details:**
– The IPO offers 50% of the net offer to retail investors and the remaining 50% to other investors.
**About Shree Marutinandan Tubes Limited:**
Established in 2013, Shree Marutinandan Tubes Limited specializes in Galvanized Tubes, Electrical Resistance Welded Mild Steel Tubes (ERW MS) of various specifications and sizes, ranging from 15NB to 1000 NB, and Black Tubes and Solar Structural Tubes. These products cater to diverse sectors such as Agriculture, Oil, Solar Energy, Healthcare, Housing, Irrigation, and Engineering.
The company collaborates with Shree Kamdhenu Machinery Private Limited, a contract manufacturing company, for the production of its offerings based on customer specifications. Shree Marutinandan Tubes Limited’s product range also includes potato harvesters, grading machines, hoppers, peanut destoners, tube winders, and rotavators.
As of December 25, 2023, the company employs 14 individuals.
**Financial Information (Restated):**
– Shree Marutinandan Tubes Limited witnessed a 0.09% increase in revenue and a substantial 3257.07% rise in profit after tax (PAT) between March 31, 2023, and March 31, 2022.
**Key Performance Indicators:**
– ROE: 120.91%
– ROCE: 78.52%
– Debt/Equity: 2.68
– RoNW: 75.36%
– P/BV (Price-to-Book Value): 1.09
**Objects of the Issue:**
The Net Proceeds from the Fresh Issue will be utilized for incremental working capital requirements, general corporate purposes, and to meet public issue expenses.
**IPO Review:**
[Dilip Davda] The company’s fluctuating bottom lines and static top line in recent fiscal years raise concerns about the sustainability of its sudden boost in bottom lines for the last 18 months. The H1-FY24 performance appears to be a window dressing, and the issue seems fully priced based on this performance. The review suggests exercising caution.
**Prospectus:**
Detailed information about the IPO can be found in the Shree Marutinandan Tubes IPO Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP).
