Tijaria Polypipes is a Jaipur based company which enters the capital market with its 1 Cr equity shares. The IPO opens today and will close on 29th September and is price at Rs 60 per share.
Tijaria Polypipes produces high-grade MDPE, LDPE and HDPE plastic pipes along with sprinkler systems under the brand name of Vikas and Tijaria. For HDPE pipes the company has an installed capacity of 20664 MT, for PVC 7392 MT and 7,200 MT for PET flakes and granules manufactures annually. The products are used in telecommunication, irrigation, infrastructure, industrial and housing sectors.
The company has proposed to increase its manufacturing capacity and diversify its business to manufacture mink blankets, polyster zippers long chains and pet sheets. The company is also looking to produce raw materials to produce these products. The company will manufacture POY (partially oriented yarn), draw TY (texturised yarn) and monofilament yarn in one roof. It has plans to set up two new units in RIICO (Rajasthan Industrial and Investment Corporation) at Sitapura and Ramachandrapura extension near jaipur.
The total estimated cost for this project is rupees 108.52 Cr. To implement their new projects the promoter has contributed rupees 8.52 Cr as equity capital along with this it has arranged a 40 Cr term loan from the bank.
The company has achieved a revenue of rupees 118.59 Cr in FY10 and a PAT (profit after Tax) of Rupees 6.90 Cr during the same period.
To manage its public issue Hem Securities Limited has been appointed as the BRLMs (book running lead manager) and the registrant to this issue is Sharex Dynamic (India) Pvt. Ltd.
“Bell the bull says: It is difficult to take a call on IPO’s when you get stocks in the secondary market at similar or lower P/E.”