Saturday, September 17, 2011

Tijaria Polypipes IPO

Tijaria Polypipes, a plastic pipes manufacturer, has come out with an IPO of 1 crore equity shares of face value of Rs 10 each and aims to raise Rs 60 crore through the issue. The company manufactures various kinds of high grade plastic based pipes via HDPE, MDPE, LDPE, LLDPE, uPVC, PP-R pipes and sprinkler systems under the brand name of "TIJARIA" and "VIKAS".

Tijaria Polypipes IPO shall open on 27 September and shall close on 29 September, 2011. The company has fixed the price of the IPO at Rs 60 per share.

The company intends to use proceeds of the IPO for implementation of expansion cum diversification project; pre-operative expenses; for provision for contingencies; and working capital margin.

Hem Securities is the book running lead manager to the issue. Sharex Dynamic India Pvt Ltd is the registrar to the issue.

Recommendation: 
We would not recommend this IPO to investors.

Subscription: 
Tijaria Polypipes IPO was subscribed by 1.2 times at the close of the IPO.

At the close of the IPO,
NII segment got subscribed by 0.68 times
Retail segment got subscribed by 1.725 times

Allotment: 
Click here to check Tijaria Polypipes IPO Allotment status!

Listing: 
The IPO got listed on 14 October 2011. The share surged 13% in the opening trade to hit a high of Rs 67.75 but closed at Rs 18.1 down 69% from the issue price!