Tijaria Polypipes plans Rs 60-cr IPO

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Tijaria Polypipes plans Rs 60-cr IPO

The Jaipur based Tijaria Polypipes is coming out with its initial public issue of 1 crore equity shares to raise Rs 60 crore to part finance its expansion and diversification plans.

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The Jaipur based Tijaria Polypipes is coming out with its initial public issue of 1 crore equity shares to raise Rs 60 crore to part finance its expansion and diversification plans. The company will issue equity shares having face value of Rs 10/- each at a premium of Rs 50/- per share i.e. at an issue price of Rs 60/- per equity share. 

The issue to the public will constitute 42.33% of the fully diluted post-issue equity share capital of the company. The shares are proposed to be listed at the Bombay Stock Exchange and the National Stock Exchange. The issue will open for subscription on September 27 and close on September 29.

Tijaria Polypipes Limited manufactures high-grade HDPE, MDPE and LDPE plastic pipes and sprinkler systems under the brand names of Tijaria and Vikas. At present, the company has an installed manufacturing capacity of 20,664MT HDPE pipes, 7,392MT PVC pipes and 7,200MT of PET flakes & granules per year. Its products are used in irrigation, telecommunication, industrial, infrastructure and housing sectors.

The company achieved total sales of Rs 118.59 crore in the financial year 2010-11 and a profit after tax of Rs 6.90 core for the same period.

The company now proposes to expand its current manufacturing capacity and diversify into the manufacturing of polyster zippers long chains, mink blankets & PET sheets and also proposes to manufacture the raw materials required for it. The company will manufacture partially oriented yarn (POY), draw texturised yarn (TY) and monofilament yarn all under one roof. The company plans to set up two new units at industrial areas of Rajasthan Industrial and Investment Corporation (RIICO) at Ramachandrapura and Sitapura Extension, close to Jaipur.

The total project cost is estimated at Rs 108.52 crore. For implementing the new project the promoter group has contributed Rs 8.52 crore as equity capital and the company has arranged a term loan of Rs 40 crore from banks.

The lead manager to the issue is Hem Securities Limited, Mumbai and the registrar to the issue is Sharex Dynamic (India) Pvt. Limited.