Malpani Pipes IPO sees 7.35 times subscription on Day 1, led by strong retail, NII demand

Malpani Pipes IPO

Malpani Pipes and Fittings' initial public offering saw 7.35 times subscription on the first day of bidding, i.e. January 29, with healthy demand from the retail and non-institutional investors categories.

The plastic pipes maker tapped capital markets to raise Rs 25.92 crore via initial share sale at the upper end of price band of Rs 85-90 per share. The book-built issue comprises of entirely fresh issue of 28.8 lakh shares.

Investors picked 1.52 crore equity shares of Malpani Pipes on Wednesday, compared to the offer size of 20.8 lakh shares via 7,957 applications, the subscription data available on the BSE showed.

The maximum bids were seen from retail investors who subscribed 12.42 times their allotted quota, followed by non-institutional investors whose reserved portion was booked 5.98 times. Qualified institutional buyers bought 2 percent shares of their part.

Madhya Pradesh-based Malpani Pipes has raised Rs 7.2 crore out of the total offer size of Rs 25.92 crore, via anchor book on January 28. Nova Global Opportunities Fund, Mintexrx, Minerva Ventures Fund, Galaxy Noble Global Opportunities Fund and Zeal Global Opportunities Fund are some of new shareholders of the company post anchor book fund raise.

The IPO proceeds will be mainly utilised by the company for purchase of machineries, and repayment of debt.

Interactive Financial Services as a merchant banker is handling the public issue which will close on January 31.