• Total Size: The IPO has fixed a fresh issue size of 30,00,000 equity shares of Rs. 10.

• Price Range: The bidding price is fixed from Rs. 85 to Rs. 89 per equity share.
• Lot size: It provides a lot size of  1600 equity shares.
• Issue Type: The IPO is a book built issue.
• Subscription date: The IPO subscription begins from 29th January, 2025 and closes on  31st January, 2025.
• Listing date: The IPO will be listed on 5th February, 2025.
• Stock Exchange: The exchange is going to be SME platform of Bombay Stock Exchange.

The company vide this IPO aims to utilize the net proceeds for repayment of its debts, purchase and upgrade its machinery and equipment and meet capital requirements for corporate purposes and public issue expenses.  

The table below (in lakhs) shows the financial performance of the company over the last three fiscal years.(for the year ended March 31, 2024)

The plastic industry in India has substantially increased rapidly contributing majorly towards the Indian economy. Almost all sectors utilizes plastics to operate its businesses and India manufactures and exports various plastic related products.

This industry at present has more than 30,000 processing units and over 2500 exporters. The plastic industry is currently valued at US$ 37.8 billion and is projected to grow over US$ 126 Billion in 4-5 years with the increasing value of the Indian manufacturing market that is projected to become a global manufacturing hub by 2030.

The Government of India is also focusing on better water management to make drinking water, irrigation water, water treatments etc more efficient and accessible by implementing various fresh water and irrigation schemes like Pradhan Mantri Krishi Sinchai Yojana, Jal Jeevan Mission (JJM), Har Khet ko Pani scheme, Per Drop More Crop (PDMC) scheme etc. 

• The company since its inception in 2017 has shown significant growth in pipe manufacturing sector and currently functions with 10 production lines having a total capacity of 11,500 MTPA.

• The company supplies its products across various contractors involved in private, local or state schemes and also extends its supplies to farmers as per the government schemes.
• The company insures quality of its products by a thorough testing undertaken by its in-house testing facility equipped with the best machinery or by way of third party laboratories.
• The company has shown promising profit after tax increasing from Rs. 89.06 lakh in FY 2022 to Rs. 739.72. as of 31st March, 2024.

• The company operates primarily from its manufacturing facility in Ratlam, Madhya Pradesh, any breakdown in the manufacturing facility like electric shortage, labour strikes, accidents, natural disasters or political unrest in the state etc may adversely affect the business operations.
• The company derives significant revenue from its top 10 costumers which they have maintained for a long time, failure to retain these customers may effect the business operations and financial conditions.
• The company is facing certain pending criminal and civil litigation and any outcome of this proceeding may impact the company operations and financial conditions.
• The company’s majority of its operations are dependent on the northern state of India accumulating an amount of 9,248.46 lakh (65.62%) in F.Y. 2023-24; any kind of disruption in the northern states may adversely effect the company operations and financial conditions.
• The company imports raw materials (granules) from domestic states as well as foreign suppliers like Dubai, Singapore, Belgium, the UK, Vietnam, Switzerland, Ajman. Any change in pricing of these raw materials, depreciation of foreign currencies and export and import prices may affect the company’s financial conditions and operations.
• The company has availed certain outstanding unsecured loans and failure to repay it on demand by its creditors may affect the company operations and financial conditions.
• The company depends on third party transportation services for delivery of its products to its customers and the supply of its raw materials. Any uncertain changes or delay in the transportation services for supply of its materials may may affect the company operations.
• There is growing competition in the market of Pipe Industry that could affect the company’s pricing and decrease its revenues and profitability.

The company is in the pipe manufacturing sector where the government has implemented many water related schemes. This sector is projected to grow as India is rapidly developing its water management sectors. The company has show promising growth for the last three years increasing its profits (after tax) from Rs. 89.06 lakh in FY 2022 to Rs. 739.72. as of 31st March, 2024. The company also faces competition as there are many well established businesses in this line of industry. Prospective investors should go through the risks and strengths given in the RHP draft prospectus before investing.

The company through this IPO aims to utilize its net proceeds to purchase  new machinery, meet capital to repay its debts and corporate purposes etc. The company has proved to be fundamentally strong generating healthy returns and growth since incorporation. Potential investors should outline the company’s risks before investing.