NEWS

Swastik Pipe Limited IPO : Company Info. and Financials

Swastik Pipe Limited initiated its business operation in 1973. The company is manufacturer and exporter of Hollow Steel Pipe, Stainless Steel tubes, API Pipes, CR Stripes, Mild Steel or Carbon Steel ERW Black and Galvanised Pipes, Swaged type Tubular Pipes and Solar structure. The company is one of the oldest manufacturers in the tube segment. It has 2 manufacturing facilities with an installed capacity of 201250 MT.

IPO DETAILS

Swastik Pipe Limited IPO is set to launch on 29th Sept., 2022. The subscription timeline extends till 3rd Oct., 2022. The size for the IPO is 62.52 Crore Rs.. Shares issued through fresh issues are worth 62.52 Crore Rs. No shares are issued through Offer For Sale mode. The lot size is 1200 shares and the price range is 97 Rs. – 100 Rs./ share. The company is going to get listed at both the exchanges NSE SME. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is KFin Technologies Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	29th Sept., 2022
CLOSING DATE FOR IPO	3rd Oct., 2022
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	97 Rs. – 100 Rs.
LOT SIZE	1200 shares
MINIMUM ORDER QUANTITY	1200 shares
ISSUE SIZE	62.52 Crore Rs.
OFFER FOR SALE	No shares
FRESH ISSUE	62.52 Crore Rs.
LISTING AT	NSE SME
LISTING DATE	12th Oct., 2022

IMPORTANT DATES

IPO OPENING DATE	29th Sept., 2022
CLOSING DATE FOR IPO	3rd Oct., 2022
IPO ALLOTMENT DATE	7th Oct., 2022
REFUNDS	10th Oct., 2022
DEMAT A/C CREDITED ON	11th Oct., 2022
IPO LISTING DATE	12th Oct., 2022

Swastik Pipe Limited IPO begins for subscription from 29th Sept., 2022. The IPO subscription would continue till 3rd Oct., 2022. The allotment status for the shareholders who applied would come on 7th Oct., 2022. The refunds for the ones who did not get allotment would be initiated on 10th Oct., 2022. The DEMAT accounts of shareholders would be credited on 11th Oct., 2022. The listing of the company would be accompanied on 12th Oct., 2022.

Lead Managers

The lead managers are :

Corporate Capital Ventures Private Limited

The minimum lot size for the company is decided at 1200 shares. This holding accounts to 120000 Rs.. The maximum lot size is decided at 1200 shares. This amounts to 120000 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	1200 shares	120000 Rs.
Maximum	1200 shares	120000 Rs.

OBJECTIVES FOR THE IPO

For General corporate purposes.
To meet the future capital requirements.

COMPANY FINANCIALS

Particularly (in Lakh Rs.)	2021-22	2020-21	2019-20
ASSETS	34127	33625	33650
Revenue	61219	52383	65807
PAT	2041	149	(1389)

The company’s asset base has been increasing in a very slow manner. The Asset base of 2018-19 was 35608 Lakh Rs and since then the company’s assets haven’t reached the 35000 Lakh Rs mark. The revenue generated by the firm is ot stable. The revenue for 2019 was 65807 Lakh Rs. and the same for 2020 was 52823 Lakh Rs. This again went up to 61219 Lakh Rs. The COVID effect can be noticed in the revenue generation pace of the company. Also the effect can be seen in the profitability of the company.

The loss for 2020 was (1389) and this went to a profit figure of 149 Lakh Rs. in 2021. However currently the profitability of the company has suddenly boosted to 2041 Lakh Rs in 2022. This shows a jump of more than 1890 Lakh Rs or 1270%. If we talk about the year 2022 then the company is a ripe fruit for the investors but looking at its track record one can be cautious about investing in the same.

PROS

The company has 2 manufacturing facilities.
It has an installed capacity of 201250 MT.
Swastik Pipe Limited is one of the oldest manufacturers in its segment. It has a varied product range consisting of Hollow Steel Pipe, Stainless Steel tubes, API Pipes, CR Stripes, Mild Steel or Carbon Steel ERW Black and Galvanised Pipes, Swaged type Tubular Pipes and Solar structure.

CONS

The company’s financials are not stable and aren’t growing every year. The fluctuation can be noticed in assets as well as the revenue generated by the firm.