Ahead of the listing, the company’s shares commanded a premium of Rs 5 in the unlisted market.
The Rs 15 crore IPO of AIK Pipes was subscribed 43 times at close, driven by strong interest from other investors whose category was booked 52 times. The part reserved for retail investors was booked 30.9 times.
The public offer was completely a fresh equity issue of 16.88 lakh shares with a face value of Rs 10 apiece.
The net proceeds from the public offer will be used for funding capital expenditure, working capital requirements and other general corporate purposes.
AIK Pipes and Polymers is engaged in the 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.
The company said it is committed towards constant innovations in drinking water piping solutions, irrigation and sewerage technologies to meet the constantly increasing demands.It is also a registered vendor with government organizations such as Public Health Engineering Department and Rajasthan Water Supply and Sewerage Management Board all over Rajasthan.
The plastics industry is currently home to about 50,000 industries, most of which are micro, small, and medium-sized enterprises (MSMEs). These enterprises contribute Rs 3.5 lakh crore ($42.89 billion) to India’s economy and employ more than 50,000 people.
For the period ended September 2023, the company clocked revenues of Rs 14 crore and net profit of Rs 1 crore.
Shreni Shares acted as the lead manager to the issue and Skyline Financial Services was the registrar.
