Shree Marutinandan Tubes SME IPO: Check price band, GMP, financials, risks and listing date

The tentative listing date has been fixed as Friday, January 19, 2024

The Rs 14.30-crore initial public offering (IPO) of Shree Marutinandan Tubes Limited opens for subscription on January 12. Purely a fresh issue, the IPO will close on January 16.

Founded in 2013, the company manufactures galvanised tubes, ERW MS tubes (15NB to 1000 NB), and black tubes for sectors such as agriculture, oil, solar energy, healthcare, housing, irrigation, and engineering.

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Issue size

The issue is a fresh offer of 10 lakh shares.

Price Band

The price band has been fixed at Rs 143 a share.

Lot Size

Investors can bid for a minimum of 1,000 shares and in multiples thereof.

Financial performance

For the period ending September 2023, the company posted a revenue of Rs 42.77 crore, while its net profit stood at Rs 1.42 crore. In 2022, the company clocked a revenue of Rs 47 crore, and reported a profit of Rs 2 crore, official documents show.

Objectives of the Issue

The issue proceeds will be used to meet working capital requirements, fulfil public issue expenses and for general corporate purposes.

Promoters of the Company

Vikram Shivratan Sharma, Bharat Shivratan Sharma, and Kusumlata Shivratan Sharma are the promoters.

Lead Managers

Swastika Investmart Ltd is the lead manager to the IPO, while Bigshare Services Pvt Ltd is the registrar. The market maker for Shree Marutinandan Tubes IPO is Swastika Investmart.

Key Risks

i.) The property used for the operation purpose of its storage is not owned by the company. A termination of the lease or rent agreement can adversely affect the company's operations and financial conditions, the IPO doucment says.

ii.) It is dependent on a few suppliers for material requirements. The loss of any of its suppliers or a failure by them to deliver the products may harm the company's ability to continue operations without interruptions.

Grey Market Premium

The grey market premium (GMP) surged to Rs 32, or 22.3 percent, over the issue price of Rs 143 on January 10. The GMP implies a listing price of Rs 175.

The grey market is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors typically track the grey market premium (GMP), which can fluctuate wildly, to get an indication of the listing price.

Listing Date

Shree Marutinandan Tubes IPO will likely list on BSE SME on January 19.