AIK Pipes And Polymers IPO: Details and Analysis

AIK Pipes And Polymers IPO

Investing in the stock market can be thrilling, especially when it involves a company poised for growth. AIK Pipes and Polymers, a name that’s been buzzing in market circles, is launching its SME IPO, and it’s got investors talking. With the listing date set for January 2, 2024, there’s a palpable excitement around the opportunities this IPO presents.

Navigating the IPO landscape can be tricky, but I’m here to shed light on the process. Whether you’re looking to subscribe, apply, or simply understand the allocation process, I’ve got the insights you need. The AIK Pipes and Polymers SME IPO isn’t just another offering; it’s a chance to be part of a company’s growth story from the ground up. Let’s dive into the details and see what makes this IPO stand out.

AIK Pipes And Polymers IPO Details

One of the most promising IPOs is on the horizon for small and medium-sized investors looking to diversify portfolios. I’m talking about the AIK Pipes and Polymers IPO, which is grabbing headlines with its impressive figures. Here’s a closer look at the specs commanding savvy investors’ interest.

The company’s IPO window is set from December 26, 2023, to December 28, 2023. This short window means that interested parties should be ready to act fast. With a total issue size of 1,688,000 shares, aggregating up to ₹15.02 Cr, the offering is a fixed-price issue type listed at BSE SME. It’s a fresh issue, which means that all the shares being offered are newly issued by the company, raising funds for their corporate endeavors.

Let’s break down the numbers:

IPO DateDecember 26-28, 2023
Face Value₹10 per share
Issue Price₹89 per share
Lot Size1600 Shares
Total Issue Size1,688,000 shares
Fresh Issue1,688,000 shares
Market Maker Portion84,800 shares

Before the issue, shareholding sat at 4,675,000, which will escalate to 6,363,000 post-issue. This is noteworthy because it reflects the level of expansion that the company’s equity is undergoing—obviously an attractive aspect for those who understand the potential inherent in such growth.

As for the financial commitment, investors should note that the price is set at ₹89 per share, with the lot size fixed at 1600 shares. This means that the minimum investment is calculated to be relatively accessible for investors at different levels.

With the listing on BSE SME, AIK Pipes and Polymers positions itself within a platform that’s recognized for supporting small and medium enterprises—often seen as the backbone of innovation and economic growth. Investors are eyeing this IPO not just as a financial move but as an opportunity to be part of a narrative of development and advancement.

AIK Pipes And Polymers IPO Timeline

With the AIK Pipes and Polymers IPO generating buzz, it’s essential to know the key dates. The IPO opens on December 26, 2023, giving investors a brief window until December 28, 2023, to place their bids. Prospective investors should note the 5 PM cut-off time for UPI mandate confirmation on the final day of the IPO, ensuring they complete their applications promptly.

Following the application period, the allotment process begins. The Basis of Allotment is set for December 29, 2023. I’ll be especially marking my calendar for that date, as it reveals who gets a slice of the shares. It’s a pivotal moment for both the company and investors alike.

Once the allotment is decided, any investor who isn’t allotted shares will receive a refund. This initiation of refunds is scheduled for January 1, 2024. Successful applicants will see the Credit of Shares to Demat accounts on the same day. This dual action on New Year’s Day kicks off 2024 with anticipated updates in the world of investments.

The process culminates on January 2, 2024, with the Listing Date. This is when AIK Pipes and Polymers shares will officially start trading on the BSE SME platform. It’s a significant step for the company and a day of reckoning for those investing, as market forces come into play to determine the actual value of the shares.

Here’s a handy breakdown of the important dates for the AIK Pipes and Polymers IPO:

IPO ActivityDate
IPO Open DateTuesday, December 26, 2023
IPO Close DateThursday, December 28, 2023
Basis of Allotment DateFriday, December 29, 2023
Initiation of RefundsMonday, January 1, 2024
Credit of Shares to DematMonday, January 1, 2024
Listing DateTuesday, January 2, 2024

AIK Pipes And Polymers IPO Lot Size

When diving into the specifics of the AIK Pipes and Polymers IPO, it’s crucial to understand the lot size as it significantly influences investment decisions. Often overlooked, the lot size determines how many shares I can buy and the minimum investment required.

For the uninitiated, a lot is a bundle of shares that investors like me can purchase in a single transaction. The AIK Pipes and Polymers IPO presents a fixed lot size, simplifying retail investors’ process. Each lot consists of 1,600 shares, which translates to a monetary value based on the fixed issue price per share.

Let’s break down the investment requirement by investor category:

  • Retail investors, representing the general public, can invest in a minimum or maximum of one lot.
  • High Net-Worth Individuals (HNIs) have a higher minimum investment threshold, starting at two lots.

Taking into account the issue price of Rs 89 per share, here’s what the investment looks like:

Retail (Min)11,600₹142,400
Retail (Max)11,600₹142,400
HNI (Min)23,200₹284,800

These amounts clearly indicate the commitment required to participate in the IPO. For retail participants, the implication is straightforward – a one-time buy-in at the prescribed lot size. For HNIs, the investment doubles, reflecting a deeper foray into the IPO market.

Understanding the lot size also prepares investors for the commitment needed to be part of the AIK Pipes and Polymers growth story. Notably, these figures also dictate the extent of share allocations and the ensuing refund process should they not get allotted the stocks they bid for. As investors gear up for the IPO, keeping tabs on the lot size helps in strategizing and aligning financial portfolios with investment goals.

AIK Pipes And Polymers IPO Promoter Holding

When looking at any IPO, it’s crucial to understand the promoter holding as it indicates the confidence promoters have in the company’s future. For AIK Pipes and Polymers, the holding patterns before and after the IPO show significant commitment by its promoters. Initially, Mr. Imran Khan and Ms. Tahira Sheikh held a full stake in the company, which amounts to 100%.

Following the IPO, their combined holding will dilute to 73.47%, indicating their ongoing trust while allowing public shareholders to participate in the company’s growth. Here’s a quick glance at the holding figures:

Share HoldingPre IssuePost Issue
Promoter’s Holding100%73.47%

This shift in ownership is a common occurrence in the public listing process. However, it’s noteworthy that the promoters retain a substantial majority share. This majority sharepost-IPO assures investors that the company’s leadership remains in capable hands, which may be a positive signal for potential investors eyeing the AIK Pipes and Polymers IPO.

Moreover, a promoter holding above the 50% mark is often seen as a sign of inherent stability in company governance, which can be pivotal for drawing investments. By maintaining a majority stake, the promoters of AIK Pipes and Polymers showcase their long-term vision and dedication to the company’s roadmap and success in the competitive manufacturing industry of pipes and polymer products.

Investors tend to track these numbers closely as they may influence the stock performance once it is listed on the BSE SME platform, scheduled for January 2, 2024. The adjustment in shareholding reflects a strategic decision to fund growth while keeping a significant say in the company’s decision-making processes. It’s a balancing act between inviting public investment and retaining control, which looks to be effectively managed by AIK Pipes and Polymers.

The healthy promoter holding post-IPO should assure investors about the promoter’s commitment to the company’s growth and stability.

AIK Pipes And Polymers Limited Financial Information

In my deep dive into AIK Pipes and Polymers Limited, I’ve uncovered some compelling financial details that warrant investor attention. Having a robust financial backbone is critical for a company’s success, and AIK Pipes and Polymers has shown considerable strength in this area.

A look at their Assets reveals a marked growth trend. Their assets have more than doubled in a span of two years, surging from ₹739.75 lakhs as of 31 March 2021 to striking ₹1,638.56 lakhs by 30 June 2023. This signals a company swiftly expanding its operational capacity and, possibly, its market share.

When it comes to Revenue, there’s a similar narrative of growth. They’ve racked up a revenue of ₹1,400.42 lakhs by mid-2023, and although this is a dip from a record ₹3,077.92 lakhs in March 2023, the overall trajectory is unmistakably upward compared to ₹1,020.54 lakhs back in March 2021.

The Profit After Tax (PAT) metric is particularly telling. It’s a clear indicator of profitability and efficiency. AIK Pipes and Polymers Limited has seen its PAT skyrocket by over 100% in the last year alone. More precisely, the PAT hiked from ₹87.90 lakhs in March 2022 to a robust ₹101.97 lakhs by June 2023.

Diving deeper, their Net Worth, Reserves, and Surplus have soared, reflecting the company’s increasing intrinsic value and preparedness for future expansions or unexpected expenses. The company’s net worth stood at ₹662.47 lakhs by June 2023, which props up the belief in their financial stability.

However, keeping an eye on the Total Borrowing figures is essential. While there appears to be a slight decrease from ₹538.09 lakhs in March 2023 to ₹429.91 lakhs by June 2023, it’s imperative to consider the leverage situation in relation to the company’s overall financial health.

Here’s a snapshot of the critical financial data:

| Period Ended | 30 Jun 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |

AIK Pipes And Polymers IPO Reservation

When looking into the AIK Pipes and Polymers IPO distribution, it’s critical to understand how the company has structured the allotment for different investor categories. The division has an egalitarian approach, with the Net Issue being divided equally between Retail Investors and other categories. This strategic allocation method indicates a balanced opportunity for investment regardless of the investor’s category, allowing both small and larger investors a fair chance to participate in the IPO.

Investor CategoryShares Offered
Retail Shares Offered50% of the Net issue
Other Shares Offered50% of the Net issue

I find this allocation particularly interesting as it suggests that AIK Pipes and Polymers recognizes the importance of individual investors in the market. By reserving half of the shares for retail investors, the company is potentially widening its shareholder base, which can be beneficial from a market stability standpoint.

For those of us gearing up to participate in this IPO, it’s worth noting how swiftly the post-allotment process occurs. Upon successful Allotment, shares are credited directly into one’s Demat Account. The company and registrars ensure timely communication through email and SMS, which means investors won’t be left in the dark regarding their application status. The actual unavailability of the IPO Allotment Status—expected to go live on December 29, 2023—means there’s still a brief waiting period. However, the anticipation builds gauge the demand for the offering.

Once released, the IPO’s Basis of Allotment (BOA) document will be invaluable, detailing the exact distribution across all investor types. It’s this document that will shed light on the number of applications received and the proportion of shares allocated per category. For anyone invested in the process, keeping tabs on the registrar’s site or the link provided for updates is a must. With the IPO allotment status around the corner, it’s a matter of staying informed and ready to check the allotment as soon as it’s announced.

About AIK Pipes and Polymers Limited

I’ve taken a close look at AIK Pipes and Polymers Limited, a company that stands out for its brand and its commitment to sustainability and quality. Based in the historical city of Jaipur, Rajasthan, AIK Pipes & Polymers has carved a niche in the manufacturing sector with its innovative approach to creating pipes and polymers.

Formed relatively recently in 2017 as AIK Pipes and Polymers Private Limited, the company has rapidly grown, showing remarkable potential and entrepreneurial spirit. It wasn’t long before the company transitioned into a public limited entity, a sign of burgeoning growth and a prelude to the IPO. This change, marked by a fresh certificate of incorporation on June 19, 2023, was a significant milestone.

AIK Pipes & Polymers is committed to upholding high standards of quality, a promise readily apparent across its digital presence, including the company website and LinkedIn profile. Their focus on sustainability echoes the current global emphasis on environmentally friendly practices.

Venturing into the stock market, AIK Pipes and Polymers is tapping into the BSE SME platform, choosing to introduce their enterprise to a wider audience and to deepen their financial roots. With the IPO slated to open on December 26 and close on December 28, they’re poised to raise Rs 15.02 crores—a clear demonstration of the company’s scale and the investors’ anticipation. The fixed price band of this IPO is pegged at Rs 89 per equity share, with a market lot size of 1600 shares.

What distinguishes AIK Pipes & Polymers in the saturated market of pipes and polymers is their unwavering adherence to quality and their stride toward sustainable manufacturing practices. It’s evident that the company’s management and their promise of quality are not mere talking points but are ingrained in the company ethos.

Their decision to list on the BSE SME exchange underlines their strategic move to tap into capital markets, widen their investor base, and enhance their corporate visibility. This move indicates the company’s prepared trajectory towards a robust financial future and its preparedness to embrace greater market challenges.

AIK Pipes and Polymers IPO Review

In analyzing the AIK Pipes and Polymers IPO, it’s essential to look at the underpinnings of the company. With a state-of-the-art manufacturing facility that churns out HDPE and MDPE pipes and PPR pipes, this company has strategically positioned itself to service a wide range of critical sectors. From water distribution to gas transmission and even telecom infrastructure, the products they offer are integral to the smooth functioning of these industries.

The financials of AIK Pipes and Polymers suggest robust growth and a commitment to sustainable operations. By raising ₹15.02 Crores through this IPO, the company is poised for a strategic expansion that could potentially amplify its reach in the market. The fresh issue of 1,688,000 equity shares, with each share priced at ₹89, empowers the company to secure the working capital necessary for its ambitious growth plans.

IPO Opening DateDecember 26, 2023
IPO Closing DateDecember 28, 2023
Issue Price₹89 per equity share
Market Lot1600 shares
Amount to be Raised₹15.02 Crores
Listing TargetBSE SME

Potential investors looking to apply for the AIK Pipes and Polymers IPO have several avenues to consider. Notably, the application process is accessible through major trading platforms such as Zerodha, utilizing UPI as a payment mode. Moreover, the ASBA (Applications Supported by Blocked Amount) facility is available for investors who prefer the traditional net banking approach to apply for IPOs.

I’ll keep an eye on the progression of this IPO, as it’s essential to understand how the markets respond to such ventures, especially in specialized manufacturing sectors. While the official AIK Pipes and Polymers IPO review is not available at this moment, the fundamental analysis points to a company that is well-poised for growth with solid plans for utilizing its IPO proceeds.

With the scheduled listing on the BSE SME platform, AIK Pipes and Polymers aims to catapult its corporate visibility. This move also grants them the opportunity to tap into the capital markets that can foster not just expansion but, potentially, innovation within their production technology and processes.

AIK Pipes And Polymers IPO Strengths and Weaknesses

AIK Pipes and Polymers IPO presents a promising opportunity for investors eager to be part of a company with a strong commitment to sustainability and quality. With a competitive price band and a strategic expansion plan in place, it’s clear that the company is poised for growth. The state-of-the-art manufacturing facilities and the pivotal role of their products in various sectors underscore the company’s potential. As the IPO window opens, it’s worth considering the strengths that AIK brings to the table, along with the inherent risks associated with any investment. I’m optimistic about the prospects of AIK Pipes and Polymers as they prepare to make their mark on the BSE SME platform, and I believe savvy investors will be watching closely as the subscription period unfolds.

You may also like Balaji Valve Components IPO.

How to Apply for AIK Pipes And Polymers IPO in Upstox

To apply for an IPO in Upstox, you can follow these steps:

  1. Online Application:
    • Login to the Upstox app using your 6-digit PIN or Biometrics.
    • Visit the ‘Discover’ tab and click on ‘Invest in IPO’ to view ongoing IPOs.
    • Select the IPO you are interested in and fill in the required details.
    • Enter your UPI ID and click on ‘Confirm’.
    • Accept the mandate on the UPI app.

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