AIK Pipes and Polymers IPO is an entirely fresh issue of 16.88 lakh shares aggregating to ₹15.02 crore. It will be listed on BSE SME. AIK Pipes and Polymers makes HDPE pipes, HDPE Fittings, MDPE (medium-density polyethylene) pipes and PPR (polypropylene random) pipes for the water distribution, gas transmission, sewerage systems and telecom sector.
IPO opens
Dec 26, 2023
IPO Closes
Dec 28, 2023
IPO Size (Rs.)
₹15.02 Cr
IPO Size (shares)
1,688,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹89 per share
Minimum Lot
1600 Shares
Listing At
BSE SME
NII Quota
~50%
Retail Quota
~50%
Lead Manager
Shreni Shares
Registrar
Skyline Financial
Market maker
Shreni Shares
About AIK Pipes:
Company was originally incorporated on September 19, 2017 as “AIK Pipes and Polymers Private Limited
Company is engaged in manufacturing of comprehensive range of HDPE (High density polyethylene) pipes, HDPE Fittings, MDPE (Medium density polyethylene) Pipes and PPR (Polypropylene random) Pipes for water distribution, gas transmission, sewerage system and telecom sector.
Company is committed towards constant innovations in drinking water piping solutions, irrigation and sewerage technologies to meet the constantly increasing demands.
They are registered vendor with government organizations such as Public Health Engineering Department and Rajasthan Water Supply & Sewerage Management Board all over Rajasthan.
Its factory is located at Govindgarh, Jaipur.
Financials: AIK Pipes
Particulars/ Rs. Lacs
30-06-2023
2023
2022
2021
Total Revenue
1400.42
3077.92
2090.84
1020.54
Profit after Tax
101.97
187.74
87.9
26.99
Share Capital
467.5
127.5
70
40
Net Worth
662.47
560.5
202.76
84.86
Earnings Per Share
2.18
4.13
3.51
1.93
Net Asset Value
14.17
12.34
8.1
6.08
Total Borrowings
429.91
538.09
432.17
382.88
Post issue Shr Capital
636.30
FV
10.0
IPO price
89.0
EPS Fy23
3.0
PE Fy23
30.2
EPS Fy24 (annualized)
6.4
PE Fy24 (annualized)
13.9
Market cap in Lacs
5,663.1
Market cap / Sales
1.84
AIK Pipes IPO: Salient Points
The Issue and the Net Issue will constitute 26.53% and 25.20% respectively of the Post Issue paid up Equity Share Capital of the Company.
Company intends to utilize the Net Proceeds for the following objects:
S. No
Particulars
Amt. (₹ in Lakhs)
1.
To Meet the Capital Expenditure
103.02
2.
To Meet Working Capital Requirement
900
3.
General Corporate Expenses
299.30
Net Issue Proceeds
1302.32
Key Performance Indicators
Key Financial Performance
June 30, 2023
March 31, 2023
March 31, 2022
March 31, 2021
Revenue from Operations
1377.17
3048.23
2042.25
1008.26
EBITDA
152.04
303.93
151.42
51.69
EBITDA Margin
11.04
9.97
7.41
5.13
PAT
101.97
187.74
87.90
26.99
PAT Margin
7.40
6.16
4.30
2.68
The products manufactured are approved by various agencies such as the Bureau of Indian Standards (BIS) and also from organisation, Central Institute of Petrochemicals Engineering and Technology, Indian Oil Corporation, and GAIL.
Company is projecting higher revenue in F.Y. 2023-2024 & 2024-2025. Last few years also indicate good upswing in revenues and profits as well as improvement in margins.
Peers
Company / Rs. Lacs
Revenue
EBITDA
EBITDA Margin
PAT
PAT Margin
PE
Macp/ Sales
AIK Pipes
3048.23
303.93
9.97
187.74
6.16
30.2 (13.9)
1.84
Rex Pipes
11764.44
908.1
7.72
361.65
3.07
15.1
0.52
Prince Pipes
271087
25886.5
9.55
12142
4.48
39.4
3.03
:
AIK Pipes IPO is coming at PE of 30.2x (FY23) and 13.9x (FY24 annualized).
I may apply in AIK Pipes IPO only if market is in good shape.
GMP as reported on social media has been around Nil.
Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include Net Avenue Technologies Limited, Swashthik Plascon Limited, KK Shah Hospitals Limited, Marco Cables & Conductors Limited, Meson Valves India Limited, C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes LimitedS, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
SME IPO are more risky and volatile than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
